The below is a statement issued by the Massachusetts Municipal Association on the apparent decision by the Patrick Administration to include revenue from the proposed licensing of three casinos in Massachusetts in the local aid numbers for FY2009.

January 20, 2008
For further information, contact
MMA Executive Director Geoff Beckwith at 617-426-7272
Statement of the Massachusetts Municipal Association
Regarding Gov. Patrick’s Proposed Budget for Fiscal 2009

Cities and towns are facing widespread fiscal distress, a fact that has been widely
reported during the past year. Communities are essential to our state’s economic
competitiveness, delivering the vital services that keep and attract families and businesses to
Massachusetts, and the fiscal unrest that confronts our localities weakens our economy, a
dangerous trend that must be averted. After adjusting for inflation, fiscal 2008 local aid is $621
million below fiscal 2002 levels. In order to make up the difference and balance their budgets,
cities and towns have been forced to increase their reliance on the property tax, cut services, or do both.
An area of great concern in the Administration’s fiscal 2009 budget proposal is the highly
controversial and unfortunate decision to tie $124 million in local aid to the question of
legalizing casinos. The Governor’s budget threatens a $124 million cut in Lottery distributions if
the casino legislation fails. Local aid to cities and towns cannot be cut, and should not be
contingent on giving a green light to expanded gambling, or other such initiatives.
Lottery revenues have slumped for the past two years, and municipal leaders deeply
appreciate the state’s action to protect cities and towns during this time. The state has honored the budgeted Lottery distribution of $920 million in fiscal 2007 and $935 million in fiscal 2008.
Legislators have recognized that a cut in Lottery aid would trigger a fiscal crisis at the local
level. Cities and towns need at least level-funding of Lottery aid at $935 million, and this
amount should not be tied to, or contingent on, the Governor’s casino bill.
We look forward to examining the Governor’s entire budget proposal, and working with
the members of the House and Senate to make sure that local aid is protected, and that cities and towns have the resources they need to end the local fiscal distress that is eroding our economy.