April 22, 2013

Massachusetts Governor’s Proposal Ties Local Aid To A Municipality’s Revenue Capacity

As part of his FY 14 budget recommendation, Massachusetts Governor Deval Patrick has proposed reforming the way in which the state distributes local aid.  The governor’s budget calls for a 3.4% increase in non-school local aid, which would be apportioned according to “each municipality’s relative ability to provide essential local services.”  According to budget documents, the new local aid formula “will consistently provide equitable distributions into the future, as each year the formula components will be updated and the total distribution of aid will be calculated using the updated components.”

The formula is consistent with proposals from the New England Public Policy Center to promote a more equitable distribution of local aid.