Home 
About MMA MMA News MMA business meeting features lively discussions
The MMA’s Annual Business Meeting on Jan. 12 featured an address from U.S. Sen. John Kerry, an MMA presentation about its new e-advocacy program, a preview of a new MMA revenue-sharing informational video, a state fiscal forecast, and a lively and engaging discussion of the association’s local aid and revenue-sharing priorities.
The MMA-produced video/television program presents the compelling case for a comprehensive state tax revenue-sharing policy. The program features interviews with key local leaders as well as leading economists, all of whom recognize the fiscal crisis facing cities and towns, and the critical importance of local fiscal health to the sustainability of the state’s economy and quality of life.
The MMA is providing the program as a resource tool for local use in educating the public and community leaders on the need for revenue sharing. Copies of the DVD were distributed to all those in attendance at the business meeting, and additional copies can be ordered on www.mma.org. The video can also be viewed on the MMA Web site.
The state fiscal forecast was presented by Massachusetts Taxpayers Foundation President Michael Widmer, who warned that the state is facing a tough budget stretch, with growing costs – particularly health care, pensions and energy – and slowing revenue growth.
The local aid resolution adopted by the MMA membership at the meeting renews the MMA’s call for a new permanent revenue-sharing structure. The new program would distribute 40 percent of state growth taxes (personal income, sales and use, and corporate excise) for the main municipal and school aid accounts, with the dedication of an amount equal to one-quarter of this amount (10 percent of growth taxes) for a new municipal aid account.
This aggressive revenue-sharing structure would be phased in over a five-year period. The new municipal aid program would replace the existing two-part program of Lottery distributions plus Additional Assistance.
For the past decade, municipal aid increases have been based on growth in Lottery revenues and state government promises and schedules to distribute these revenues to cities and towns as un-earmarked municipal revenues. One of the crucial issues facing communities is the forecast that actual Lottery revenues will continue to lag for the foreseeable future and will not be sufficient to provide an adequate amount of new municipal aid each year.
The 40 percent and 10 percent targets reflect historic approaches to local aid policy dating back to the 1980s and more recent analysis and recommendations.
The 40 percent amount has been proposed by the Massachusetts Taxpayers Foundation and is a key component of the 2006 MMA-Northeastern University report “Revenue Sharing and the Future of the Massachusetts Economy.”
The 10 percent set-aside proposed in the resolution for municipal aid is intended to ensure that municipal aid is not crowded out by appropriations for key school aid programs.
On the school side, the resolution calls for at least full funding of the Chapter 70 program as reformulated last year and supports an increase in the statewide state share of the foundation budget from 44 percent to 50 percent.
In total, the resolution envisions an increase in revenue sharing of almost $450 million, or about 7 percent over the fiscal 2008 level.
During the business meeting, members discussed and added a provision to support legislation to draw from the state’s stabilization fund to return diverted Lottery proceeds to cities and towns.
The resolution calls for at least $150 million annually for the Chapter 90 local road fund portion of the state’s capital budget.
The resolution proposes local option alternatives to the property tax, consistent with the MMA’s ongoing support for a local option sales tax on meals and an expansion of the local option lodging tax. The resolution also calls for elimination of the telecommunications property tax loophole, which costs cities and towns about $80 million in lost revenue statewide.
About MMA MMA News MMA business meeting features lively discussions
MMA business meeting features lively discussions
The MMA’s Annual Business Meeting on Jan. 12 featured an address from U.S. Sen. John Kerry, an MMA presentation about its new e-advocacy program, a preview of a new MMA revenue-sharing informational video, a state fiscal forecast, and a lively and engaging discussion of the association’s local aid and revenue-sharing priorities.
The MMA-produced video/television program presents the compelling case for a comprehensive state tax revenue-sharing policy. The program features interviews with key local leaders as well as leading economists, all of whom recognize the fiscal crisis facing cities and towns, and the critical importance of local fiscal health to the sustainability of the state’s economy and quality of life.
The MMA is providing the program as a resource tool for local use in educating the public and community leaders on the need for revenue sharing. Copies of the DVD were distributed to all those in attendance at the business meeting, and additional copies can be ordered on www.mma.org. The video can also be viewed on the MMA Web site.
The state fiscal forecast was presented by Massachusetts Taxpayers Foundation President Michael Widmer, who warned that the state is facing a tough budget stretch, with growing costs – particularly health care, pensions and energy – and slowing revenue growth.
The local aid resolution adopted by the MMA membership at the meeting renews the MMA’s call for a new permanent revenue-sharing structure. The new program would distribute 40 percent of state growth taxes (personal income, sales and use, and corporate excise) for the main municipal and school aid accounts, with the dedication of an amount equal to one-quarter of this amount (10 percent of growth taxes) for a new municipal aid account.
This aggressive revenue-sharing structure would be phased in over a five-year period. The new municipal aid program would replace the existing two-part program of Lottery distributions plus Additional Assistance.
For the past decade, municipal aid increases have been based on growth in Lottery revenues and state government promises and schedules to distribute these revenues to cities and towns as un-earmarked municipal revenues. One of the crucial issues facing communities is the forecast that actual Lottery revenues will continue to lag for the foreseeable future and will not be sufficient to provide an adequate amount of new municipal aid each year.
The 40 percent and 10 percent targets reflect historic approaches to local aid policy dating back to the 1980s and more recent analysis and recommendations.
The 40 percent amount has been proposed by the Massachusetts Taxpayers Foundation and is a key component of the 2006 MMA-Northeastern University report “Revenue Sharing and the Future of the Massachusetts Economy.”
The 10 percent set-aside proposed in the resolution for municipal aid is intended to ensure that municipal aid is not crowded out by appropriations for key school aid programs.
On the school side, the resolution calls for at least full funding of the Chapter 70 program as reformulated last year and supports an increase in the statewide state share of the foundation budget from 44 percent to 50 percent.
In total, the resolution envisions an increase in revenue sharing of almost $450 million, or about 7 percent over the fiscal 2008 level.
During the business meeting, members discussed and added a provision to support legislation to draw from the state’s stabilization fund to return diverted Lottery proceeds to cities and towns.
The resolution calls for at least $150 million annually for the Chapter 90 local road fund portion of the state’s capital budget.
The resolution proposes local option alternatives to the property tax, consistent with the MMA’s ongoing support for a local option sales tax on meals and an expansion of the local option lodging tax. The resolution also calls for elimination of the telecommunications property tax loophole, which costs cities and towns about $80 million in lost revenue statewide.
Written by MMA Publications/Web Director John Ouellette
