There is plenty of bad news in the House budget for municipalities, which saw a real decrease in local aid (non education) accounts of 32 percent. That is draconian, and will lead to a real decrease in our ability to provide services that are at the core of our function. We recognize the reality, and I will for the time being forego a discussion of additional revenues. But we cannot forego the complete outrage engendered by this type of budget being put forward without immediate and full reform of the higher cost structure imposed on us through state rules with regards to things like health care. As we await the Rosenberg/Donato report on municipal relief it would be fair to say that with these local aid numbers half measures out of that Commission will not be sufficient. One of the ironies of this budget is that the Committee utilizes an increase in employee health care contributions to help balance the budget (doubling the employee health care contribution). This change in plan design is exactly what Mayors have been seeking, and is a tool that has been continually denied to us. And so while the State cuts local aid they continue to insist that we maintain a higher cost model of doing business, and refuse to give us the same rights they excercise to balance their own budget. That is wholly unacceptable. Real reform must come now. As a final note I must ask where the promised pension relief is, and how the Commonwealth expects municipalities to make full funding payments that in good times are budget busters???? Where is the promised extension of that full funding schedule? This nonsense must end now. More to come, including additional analysis of Methuen’s numbers. I have attached the Executive summary of the House budget, as well as the letter from Chair Charlie Murphy.

house-budget-exec-summ

murphy-letter