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SUBURBAN COALITION POSITION PAPER

2009 — 2010

Introduction

We are living in challenging times. Despite declining state and local revenues, the obligation of local governments to provide essential services of life safety, education and infrastructure maintenance remains constant. There has never been a greater need for partnership between the state government and the municipalities of the Commonwealth. If local governments are to survive tough economic times with less financial assistance from the state, we depend on the Legislature to provide non-financial assistance that will free scarce resources for essential services. To that end, we ask the Legislature to address the following priorities:

Summary of 2009/2010 Legislative Priorities

Health Insurance: Grant municipal employers the unilateral authority to make plan design changes that will reduce health insurance costs. At the least, allow employers to make a unilateral decision to join the GIC.

Special Education: Limit private school tuition increases to no more than statewide the increase in Chapter 70 funding and stop allowing mid-year increases for which school districts have not budgeted. Ensure the Rate Setting Commission considers the fiscal conditions of the state and local communities when making changes. Review the reasons behind the disincentive for school districts to bring cases to the Bureau of Special Education Appeals.

Local Revenue: Allow municipalities more options to raise revenue locally, such as a local meals tax and an increase in the hotel tax, as included in the Municipal Partnership Act. Close the loophole that provides telecommunications companies with a tax advantage on equipment. Ensure that all property of telephone, cable and other telecommunications companies is included on local tax rolls.

Charter School Funding Reform: Base the charter school tuition amount charged against sending school district's Chapter 70 on prior year enrollment. Limit reserves of charter schools to the same (5%) percentage allowed to regional school districts.

Capital Spending: Establish a threshold of $25,000 to require the use of prevailing wage on municipal projects. This would save money and allow communities to use local contractors for smaller jobs. Eliminate the filed sub-bid requirement.

Issues and Priorities for State Aid to Local Communities

The Coalition recognizes that state revenues are reflecting the severe economic conditions we are now experiencing. Local revenues are also suffering. Still, we believe it of great importance to reiterate our priorities. Local services are essential services that have the most effect on the residents of Massachusetts. With that in mind and with an understanding of how difficult the next several years may be, we include our funding priorities:

Reforming Local Tax Policy and Providing Legislative Relief

Within the constraints of Proposition 2 ½ and with few options to raise additional funds, local communities struggle to provide essential services that citizens rely upon every day: public safety, education, infrastructure maintenance. To assist communities in serving their citizens, the Suburban Coalition recommends the following budget-neutral actions by the Legislature:

Exempt funds in the Overlay Account from Proposition 2 ½ since those funds are earmarked for abatements to taxpayers. To avoid abuse of this approach, the exemption should be limited to the amount equal to 120 percent of the previous year's abatements.

Avoid any new unfunded mandates. At the very least, the state should enforce the Proposition 2 ½ clause that requires state funding of all new mandates.

Streamline reporting required by the state. Local communities spend considerable time and money complying with state reporting mechanisms. The state could eliminate, combine or simplify many reports. For example, high performing school districts should have reduced DESE reporting requirements.

Changing State Tax Policy

The state should consider converting its income tax program into a "piggyback" program based on the net federal income tax paid. This would allow the state to eliminate a considerable amount of duplicated effort, staff and money. It would also automatically convert the flat sate income tax to a more fair graduated income tax. The process would require a state constitutional amendment. However, the combination of going to a graduated income tax and achieving significant savings through downsizing the DOR might make the proposal desirable to a majority of voters.

Change the Senior Circuit Breaker so that it is the program of first resort before local relief. The senior circuit breaker credit should be calculated, then additional relief through local option programs can be added. Currently, the amount of local option relief is deducted from the circuit breaker credit.

Strengthening Public Education Funding

Demands and expectations for public education in Massachusetts have never been higher and despite inadequate state funding and increased mandates, communities have responded with positive action to meet the goals of education reform and federal No Child Left Behind legislation. Demands on schools' performance are extensive and expensive, yet the state Chapter 70 funding formula has not been adjusted to recognize new requirements. The Coalition recommends the following actions:

Continue the commitment to provide a 17.5 percent minimum floor of foundation funding for education to every school district. We strongly urge legislators to continue this commitment to its completion. While some districts will need more support from the state, districts similar in size and needs should receive equivalent amounts of funding on a per-pupil basis. After the 17.5 percent is reached, the state needs to aim for a new level of providing 30 percent of foundation the budget.

Conduct an adequacy study to determine the true cost of providing an education that prepares students for the twenty-first century global economy. Over forty other states have already conducted such studies. Further, the state should assist districts in implementing "best practices" in the areas of educational achievement and fiscal responsibility.

Revise the Chapter 70 formula to reflect the adequacy study results. Actual needs in three important areas, technology, special education, and employee salary and benefits must be fully realized and addressed in any updated formula.

Special Education Funding

The increased incidence and severity of young children with special needs, especially children diagnosed with a disability on the autism spectrum, requires an even stronger partnership between school districts and state government. Together we need to provide the resources to meet the needs of our most vulnerable children. This includes the costs related to state and federal mandates. To that end, the Coalition recommends the following steps:

Lower the threshold of the Circuit Breaker from four times to three times the foundation budget for programs closest to a child's home, in-district and collaborative placements. This will provide incentives to utilize these more cost effective programs when they are educationally equivalent.

Provide the necessary software and training to all collaboratives in the state so that the pilot program for Special Education transportation can be implemented statewide.

School Building Assistance Program

The Massachusetts School Building Authority (MSBA) is managing $11 billion in projects authorized under the former SBA program and has moved the first round of potential projects into the $2.5 billion 5-year capital pipeline under the new program. With the downturn in the economy and lower sales tax revenues, the needs of districts with deteriorating and overcrowded schools buildings far exceeds the funding capacity of the MSBA. The Suburban Coalition recommends that the MSBA:

Finish the development of all contracts and application materials. Many communities are currently waiting for resolution on the owner’s project manager contract, designer contract and feasibility study agreement to move forward with the process.

Show flexibility regarding the 120 day schedule from MSBA board approval to a local vote. The MSBA must understand that the local debt exclusion process is slow and painstaking.

Provide better communication through the website regarding specific materials and timelines of which communities need to be aware.

Funding Local Infrastructure

State funding for local roads and infrastructure has long been inadequate and the costs associated with the repairs, particularly the price of asphalt, have risen substantially. In addition, repairing arterial roads often takes priority, leaving municipalities less for maintenance on local roads and infrastructure. Conditions have worsened and repair costs are soaring at the same time as local roads are experiencing heavy commuter traffic due to new commuter patterns. The Coalition's recommendations are to:

If the state receives significant project funds from a federal stimulus package, include local roads and bridges in the priorities for those funds

Provide sufficient Chapter 90 funding to enable adequate current maintenance and to begin reducing the backlog of road repairs.

Create a no-interest loan program for local road projects

Restore the Chapter 81 Highway Program

Encouraging the Development of Affordable Housing

Increasing the stock of affordable housing throughout Massachusetts is essential to keeping residents in the state. However, Chapter 40B sometimes results in badly planned, high density developments and forces unnecessary choices between open space and affordable housing. Chapter 40R and 40S legislation provides financial assistance and fosters partnerships between officials and developers. This is positive and encouraging. However, more can be done to encourage affordable housing.

The Community Preservation Act (CPA) is an avenue to fund affordable housing, open space and historical preservation. As more communities participate in the CPA, less funding is available from the state for each community. The program simply becomes reliant on property taxes to fund initiatives. To address affordable housing and make these programs more appealing to local communities, the Coalition believes that the state should:

Vet the new regulations being prepared by the Department of Housing and Community Development through a representative group of local officials before they are promulgated.

Lower the threshold that allows communities with Production Plans to deny comprehensive permits for twelve months. This threshold should be lowered from three-quarters of one percent to one-half of one percent.

Allow all existing housing that meets rent and income criteria for affordable housing to be included in a municipality's affordable housing stock.

Provide sufficient revenues to guarantee 100 percent CPA matching funds.

About the Suburban Coalition

The Suburban Coalition was founded in the mid-1980s by local officials to provide input to state officials about local services, state funding and state regulations. By speaking with one voice, our communities can address mutual problems more effectively at the state level. The Coalition is bipartisan and does not support parties or individual candidates.

Over the years, the Coalition has been instrumental in furthering policies that have benefitted local communities and their citizens. The Coalition was actively involved in passage of the senior circuit breaker, giving seniors property tax relief and the Special Education Circuit Breaker, providing relief to school districts for extraordinary special education costs. It was also the first organization to call for a minimum funding floor for Chapter 70, a policy currently being implemented by the legislature.

Each year, the Coalition releases a position paper that summarizes its views. Members also meet with individual legislators, host a Legislative Breakfast at the state house, testify at legislative hearings, participate in forums, and present the Coalition's views to the media. The current officers of the Suburban Coalition are:

President: Dorothy Presser

Lynnfield School Committee

DorothyPresser@suburbancoalition.org

Immediate Past President: Jerry Wasserman

Needham Board of Selectmen

JerryWasserman@suburbancoalition.org

Vice-President: Nancy Gallivan

Walpole School Committee

NancyGallivan@suburbancoalition.org

Secretary: Susan Welby

Needham School Committee 1996-2005

SusanWelby@suburbancoalition.org

Treasurer: Stu Sklar

Harvard School Committee

StuSklar@suburbancoalition.org

Membership: John Desmond

Walpole School Committee

JohnDesmond@suburbancoalition.org

The Coalition is dedicated to the idea that excellent educational and municipal services and facilities, coupled with sound fiscal management are the right of every citizen in the Commonwealth.