Budget Amendment ID: FY2027-S4-296

GOV 296

UGGA Distribution Review Commission

Ms. Rausch moved that the proposed new text be amended by inserting following section:-

“SECTION X. (a) There shall be a special commission to study the distribution method used to allocate unrestricted general government aid to municipalities, including unrestricted general government aid, lottery aid as provided in section 18C of chapter 58 of the General Laws and additional assistance aid to municipalities. The study shall not include foundation aid as defined in section 2 of chapter 70 of the General Laws.

The commission shall examine the distribution method used to allocate unrestricted general government aid to municipalities, evaluate the effectiveness and equity of said method and make recommendations to establish a formula to fairly distribute unrestricted general government aid to municipalities. The commission shall review all aspects of general local aid including, but not limited to: (i) the current allocation of local aid to municipalities; (ii) the extent to which a municipality’s needs are reflected in the proportional distribution of the unrestricted general government aid; (iii) any equity discrepancies that exist between municipalities across the commonwealth related to local aid distribution; (iv) the ability to account for a municipality’s change in population or tax base in a general local aid funding distribution method, including, but not limited to, economic and job market shifts; and (v) the potential to calculate municipal costs based on a municipality’s need for municipal services.

(b) The commission shall consist of the following members: the secretary of administration and finance or a designee, who shall serve as chair; the chairs of the joint committee on ways and means or their designees; the ranking members of the joint committee on ways and means or their designees; the chairs of the joint committee on municipalities and regional government or their designees; the executive director of the Massachusetts Municipal Association, Inc. or a designee; the president of the Massachusetts Taxpayers Foundation, Inc. or a designee; the president of the Massachusetts Budget and Policy Center, Inc. or a designee; and 3 members appointed by the governor who shall: (i) have experience in public sector finance; and (ii) reflect a diverse geographic distribution and stakeholder representation.

(c) The commission shall submit a report on its findings and recommendations to the clerks of the senate and house of representatives, the chairs of the senate and house committees on ways and means and the chairs of the joint committee on municipalities and regional government not later than March 1, 2027.”