Speaking With One Voice 020509

SPEAKING WITH ONE VOICE

Agenda overview:

Agenda overview:

Current fiscal status

Suburban Coalition positions

Next Steps

Current Status:

FY09 - $2.1 billion budget deficit

$128 million (10% mid-year cut to local aid)

FY10 - $3.1 billion budget gap

$375 million cut to local aid on Governor’s FY10 budget

Relief proposals from Governor:

1% increase in hotel/motel and meals taxes

Close telecommunications tax loophole

Easier access to GIC

Local option meals tax

Health Insurance :

All aspects of health insurance must be bargained at the municipal level

To move to GIC (state plan), must get 70% union approval from all unions in a municipality

Only 22 municipalities have joined GIC

GIC is not the best solution for all municipalities

At the state level, state can make plan design changes w/out union approval

Municipalities should be allowed the same latitude in plan design

If changes were made:

Many towns would save $$ on insurance premiums

More competition in the marketplace would help keep costs down

Allowing municipalities the same latitude is recommended by:

Suburban Coalition

Readiness Finance Commission

Massachusetts Municipal Association

Massachusetts Association of School Committees

Massachusetts Association of School Superintendents

Special Education :

Special education placements are mandated by child’s IEP

High cost, the “snow and ice” of the school budget

Tuition increases can happen at any time during the year.

Rate setting commission approves tuition increases in the double digits

Taming tuition increases would help districts predict and control budget

Suburban Coalition Positions :

Limit private school tuition increases to no more than statewide increase in Chapter 70 funding and stop allowing mid-year increases

Review reasons why districts are reluctant to bring cases before the BSEA

Individual Tuitions Charged and Increases Approved By Rate Setting Commission for FY10 School FY09 Tuition FY10 Tuition $ Increase % Increase Latham Center 163,582 173,000 9,418 5.8% Boston Higashi (residential) 148,542 166,539 17,997 12.1% Kolbourne School 131,347 139,326 7,979 6.1% The Walker School 69,075 86,400 17,325 25.1% Franciscan Children's Home $43,759 * 69,359 25,600 58.5% Boston Higashi(day program) 53,201 69,087 15,866 29.9% Massasoit School 51,403 55,100 3,697 7.2% Landmark 39,428 44,350 4,922 12.5% Learning Prep 27,583 31,935 4,352 15.8%

Local Revenue:

Governor’s FY2010 Budget Recommendation decreases Local Aid by $375 million

Mitigation Proposals in Governor’s budget:

Raise meals tax 1% ($125 million)

Raise hotel/motel tax 1% ($24 million)

Close telecommunications property tax loophole ($80 million)

Allow 1% hotel/motel and meals tax at local option

The Suburban Coalition supports all these proposals

Charter schools:

Current funding formula drains money from public schools in an unfair way.

Money follows student – Charter school gets average per pupil expenditure of district for each student.

Choice tuition is $5000/student

Charters are able to build unlimited reserves, public schools must return unused funds to municipality

Charter tuition should be the same a choice tuition. Additional costs should be covered by the state

Reserves should be limited to the same amount as regional districts

OR – Support funding proposals in Governor’s budget recommendation

Capital spending:

No file sub-bids would allow better coordination between general and sub-contractors and would result in higher quality projects

Raising the dollar amount that triggers Prevailing Wage would allow municipalities to use local contractors for smaller jobs and would be cost effective

Next steps: