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TR-2012-58 OPPOSING CUTS TO LOCAL AID TR-2012-58 RESOLUTION OPPOSING LEGISLATION ALLOWING FOR 9C STATE CUTS TO LOCAL AID (Sponsored by Councilor George Bitzas and the Legislative Sub-Committee) WHEREAS, Governor Deval Patrick announced that the state is facing a $540 million shortfall in its fiscal 2013 budget; WHEREAS, Governor Deval Patrick announced that he proposed legislation to expand his 9C authority so that he can cut $9 million or 1% from local aid to cities and towns; WHEREAS, any cut-to local aid could potentially destabilize local budgets in the middle of the fiscal year and force reductions in community services-, WHEREAS, local aid has already been cut 32% or $416 million below original figal 2009 levels and any additional cuts will be painful for cities and towns A- oss e -7c-) commonwealth-, WHEREAS, a cut in local aid from the Commonwealth of Massachusetts wousno in the best interests of the Town of Agawam; and NOW THEREFORE, BE IT RESOLVED that the Agawam City Council We*reby —C) strongly opposes the Governor's proposed legislation requesting expanded 9C powers to ""uce non-executive agencies by 1%, including a 1% cut in local aid for every city and town. The Agawam City Council further resolves to send a copy of this resolution to the Governor, our state senator and our state representative. Dated this 7+ day of i"Vils.X 2013. PER ORDER OF THE AGAWAM CITY COUNCIL I h n, President, Agawam City Council P Chris�ophe_r C. Jo UO APPROVED A TO FORM AND LEGALITY cc- Vincent Gioscia, City Solicitor C MAYORAL ACTION Received this day of 2013 from Council Clerk. Signed by Council President this I�� day ofkAW 2013. APPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Aga Charter, as arperided, I hereby approve the passage of the above legislation on this day of 2013. Richard A. Cohen, Mayor DISAPPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as amended, I hereby veto the passage of the above legislation on this day of 2013 for the following reason(s): Richard A. Cohen, Mayor RETURN OF LEGISLATION TO COUNCIL CLERK Returned to Council Clerk this dayof_d���, 2013. INTEROFFICE MEMORANDUM TO: FULL COUNCIL FROM: COUNCILOR Gl--,'ORGE BITZAS SUBJECT: rR-2012-58 DATh: DI--,'Cl--�'MI3F-'R 18, 2012 As you know, the Legislative Sub-Comnuittee met on Monday, December 17 h to discuss 'IR-2012-58 which is a resolution opposing legislation allowing for 9C state cuts to local aid. After a brief discussion, I asked for the comn-11ittee's support and they overwhelmingly agreed. Not only did they support it, but when I asked them to be co-sponsors of the resolution, the comrruittee strongly agreed. 1, along with our Legislative Sub-Comn-littee, hope to see the SUMUnding communities draft slrm*lar resolutions in a joint effort to avoid any further cuts to local aid which could potentially destabilize local budgets in the middle of the fiscal year and force reductions in community services. Thank you and Happy Hohdays! cc: Mayor, SoHcitor INTEROFFICE MEMORANDUM TO: FULL COUNCIL FROM: COUNCILOIZ Gl--,'ORG]7. BITZAS SUBJECT: 'f R-2012-58 DATE: 18, 2012 As you know, the Legislative Sub-Comn-littee met on Monday, December 17 h to discuss TR-2012-58 which is a resolution opposing legislation allowing for 9C state cuts to local aid. After a brief discussion, I asked for the committee's support and they overwhelmingly agreed. Not only did they support it, but when I asked them to be co-sponsors of the resolution, the cornnuttee strongly agreed. 1, along with our Legislative Sub-Comrrtittec, hope to see the surrounding communities draft simi'lar resolutions in a 'Joint effort to avoid any further cuts to local aid wl-iich could potentially destabilize local budgets in the middle of the fiscal year and force reductions in community services. 'I'hank you and Happy Hohdays! cc: Mayor, Solicitor TR-2012-58 RESOLUTION OPPOSING LEGISLATION ALLOWING FOR 9C STATE CUTS TO LOCAL AID (Sponsored by Councilor George Bitzas) WHEREAS, Governor Deval Patrick announced that the state is facing a $540 million shortfall in its fiscal 2013 budget-, WHEREAS, Governor Deval Patrick announced that he proposed legislation to expand his 9C authority so that he can cut $9 million or I% from local aid to cities and towns: WHEREAS, any cut to local aid could potentially destabilize local budgets in the middle of the fiscal vear and force reductions in community services; WHEREAS, local aid has already been cut 32% or $416 million below original fiscal 2009 levels and any additional cuts will be painful for cities and towns across the commonwealth; WHEREAS, a cut in local aid from the Commonwealth of Massachusetts would not be in the best interests of the Town of Agawam; and NOW THEREFORE, BE IT RESOLVED that the Agawam City Council hereby strongly opposes the Governor's proposed legislation requesting expanded 9C powers to reduce non-executive agencies by 1%, including a 1% cut in local aid for every city and town. The Agawam City Council further resolves to send a copy of this resolution to the Governor, our state senator and our state representative. Dated this day of 2013. PER ORDER OF THE AGAWAM CITY COUNCIL Christopher C. Jolinson, President, Agawarn City Council rAjO:VtES LTOFOI RM AND LEGALITY Vincent dioscia, City Solicitor MMA Alert Contact: Pat Mikes 617-426-7272 ext. 131 IfW773FT 77 77 .7 GOVERNOR CITES S540M STATE BUDGET SHORTFALL IN FY 2013 Gov. Implements S225M in Prouram Cuts Using His 9C Budget Powers Reduces Municipal and Education Accounts by S28.75M Gov. Files Bill with Legislature to Cut Unrestricted Local Aid by M Earlier this afternoon, Governor Deval Patrick announced that the state is facing a $540 million shortfall in its fiscal 2013 budget.. and he unveiled a plan to close the budget gap this year. He announced that he is using his budget powers to implement $225 million ill immediate cuts to state-funded programs in executive agencies under his control, and he proposed legislation to expand his 9C authority so that he can cut $9 million, or 1%, from Unrestricted General Government Aid', as well as 1% cuts to the judiciary, constitutional offices, and the Legislature. His plan would also withdraw $200 million from the state's rainy day fund. $28.75 MILLION IN IMMEDIATE CUTS TO KEY SCHOOL AND MUNICIPAL PROGRAMS Using his existing authority to declare a fiscal emergency and reduce executive branch spending, generally refer-red to as 9C powers, the Governor has unilaterally reduced funding for state agency accounts under his control by $225 million. Many of these cuts will be painful for cities, towns and school districts. The MMA has identified the local government accounts impacted the most, listed in order of the size of the mid-year budget cut: * S 11.5 million from the Special Education Circuit Breaker program (a 4.8% cut) * $6 million from Municipal Regionalization and Efficiencies Incentive Grants (a 41.2% cut) * $5.25 million from the McKinney-Vento homeless student transportation account (a 46.5% cut) * S2.5 million from the Chapter 70 "Pothole" account (a 71.4% cut) * $1.3 million from Veterans' Benefits reimbursements (a 2.9% cut) * $1 million from Regional School Transportation (a 2.2% cut) * $I million from Charter School Reimbursements (a 1.4% cut) * $83 thousand from School-Based Health Programs (a 0.7% cut) * $68 thousand from Universal Pre-Kindergarten (a 0.9% cut) * $45 thousand from the Municipal Police Training Committee (a 1.8% cut) * In addition. a shortfall in sales tax collections will reduce the total sales tax revenue amount that flows to the School Building Assistance program by $20 million, which A&F officials say should not impact planned projects (we recommend contacting SBA if you have a project pending to receive an update on the status of your project and make sure there is no impact). ASK YOUR LEGISLATORS TO OPPOSE THE GOVERNOR'S LEGISLATION TO IMPOSE A $9 MILLION MID-YEAR CUT TO UNRESTRICTED GENERAL GOVERNMENT AID In a move that surprised the Legislature and local officials, the Governor has filed legislation requesting expanded 9C powers to reduce non-executive agencies by I%. This includes a proposal to have the Legislature approve a 1% cut in Unrestricted General Government Aid (UGGA) for every city and town, for a 'd t I I mi -year reduction of$9 million. The Governor's bill includes language saying that any unexpected increases in Lottery profits would go to cities and towns before the end of the year, potentially offsetting a portion of the cut, but this is no guarantee and, given the economy, very unlikely, The MMA will strongly oppose any cut to unrestricted municipal aid, because that would destabilize local budgets in the middle of the fiscal year, and force reductions in community services. Unrestricted municipal aid has already been cut 32%, or $416 million below original fiscal 2009 levels. and an), additional cuts will be painful for cities and towns across the state. Please Call Your RMUsentatives and Senators Today and Ask Them to Oppose the Governor's $9 Million Cut to Municipal Aid.