GOVERNOR HEALY’S UPDATES AT MASS MUNICIPAL CONFERENCE

Speaking this morning to more than 1,300 local leaders from across Massachusetts, Gov. Maura Healey and Lt. Gov. Kim Driscoll announced their local aid and road funding proposals for fiscal 2025 and unveiled a new multifaceted package of “resources, tools and flexibilities” called the Municipal Empowerment Act.

Healey said the state budget plan she files next week will include a 3% increase for the main discretionary local aid account (known as UGGA), bringing the account to $1.31 billion, and will fully fund the state’s commitment to education aid as called for in the Student Opportunity Act. Notably, her proposed increase in Unrestricted General Government Aid is higher than the consensus forecast of state revenue growth, which is 2%.

Full funding of the fourth year of the six-year Student Opportunity Act schedule would boost Chapter 70 aid to local public schools to $6.86 billion, an increase of $263 million (4%) over fiscal 2024.

On local road funding, the governor said she’ll file a $400 million, two-year Chapter 90 bond bill next week, and her budget bill will include another $100 million in supplemental Chapter 90 funding and $24 million for Rural Road Aid, both funded through the Fair Share Amendment.

Municipal Empowerment Act

Healey and Driscoll shared the podium to discuss their new package of municipal reforms, the Municipal Empowerment Act, that would allow cities and towns to increase local-option meals and lodging taxes and create a new local-option motor vehicle excise surcharge, reform procurement rules and update borrowing rules for school projects, and make permanent a number of popular pandemic-era allowances for hybrid public meetings, outdoor dining permits, and to-go cocktail sales.

The bill would also establish enforcement mechanisms for prohibitions on doubled-up utility poles, provide new tools for addressing critical local workforce challenges, and centralize the valuation of telecommunications and utility property at the state level. A new OPEB Commission would be established to take a fresh look at opportunities to address unfunded liabilities from non-pension employee benefits.

Driscoll said the package is “a direct result“ of input from local officials during a listening tour she conducted around the state this past fall, when she heard from more than 130 managers and administrators representing 112 different municipalities, as well as professional associations representing local leaders and employees.

“This package reduces red tape that municipal leaders far too often encounter, and gives them more options to utilize tools that will make their communities stronger,” Driscoll said.

The announcement received an enthusiastic response from the local leaders gathered in Boston.

“We greatly appreciate that the administration made the concerted effort to listen to municipal officials across the state about the challenges they face, and then acted on that input with a robust package of very meaningful reforms,” said MMA Executive Director Adam Chapdelaine. “The Municipal Empowerment Act will improve the efficiency and effectiveness of local government and the delivery of essential services in all of our communities.

“For a number of years, municipalities have been facing cost increases in key areas that are far outpacing the growth in their revenues, so the opportunity to boost locally generated revenue and remove barriers to efficiency is welcome news.”

Written by John Ouellette, MMA Deputy Communications Director