Representative Lombardo supports FY17 House budget that holds the line on taxes and increases local aid

BOSTON – State Representative Marc Lombardo, R-Billerica, joined with his colleagues in the House of Representatives to approve a $39.5 billion state budget for Fiscal Year 2017.  The budget was engrossed on a vote of 156-0 on April 27, 2016.

Representative Lombardo was able to successfully secure $75,000 in the budget to fund important local initiatives for Billerica.  This funding will be used for the Yankee Doodle Bike Path ($50,000) and for the Shawsheen Valley Technical High School’s athletic field project ($25,000).

Like the budget proposal Governor Baker released in January, the House budget does not contain any tax increases and significantly reduces the state’s reliance on one-time revenues.  It also provides for increased local aid for cities and towns.

“As legislators, our first priority is to the taxpayers of the Commonwealth and making sure their tax dollars are being spent wisely and efficiently,” said Representative Lombardo.  “The Baker-Polito Administration has set a high standard for fiscal responsibility, and the House budget in many ways reflects this pro-taxpayer approach.”

State tax revenues for Fiscal Year 2017 are expected to total $26.86 billion, which represents a 4.3 percent increase over the current revenue projections for Fiscal Year 2016.  However, both Governor Baker and the House have attempted to limit spending growth to just 3.5 percent.

The House budget funds Chapter 70 education aid at $4.6 billion, which is $96 million more than the current fiscal year and $24 million higher than the Governor’s proposal, allowing for a guaranteed statewide minimum increase of $55 per pupil.  Unrestricted general government aid, which can be used for a wide range of municipal spending purposes, is increased by $42.1 million to a total of $1.022 billion.

The House budget increases funding for the “Pothole” account from $2.5 million to $10 million to provide extraordinary relief to school districts that experience a substantial shortfall between their Chapter 70 aid and target Chapter 70 aid.  The budget also includes $276.6 million for Special Education Circuit Breaker reimbursements – fully funding the state’s share of special education aid for local school districts at 75 percent – while also providing $85.5 million for charter school reimbursements and $60 million for regional school transportation reimbursements.

For the second consecutive year, the House budget does not draw money from the state Stabilization Fund.  Instead, it provides for $210 million to be deposited into the fund, which will bring the balance to $1.47 billion.  The House budget also relies on $253 million in one-time revenues, which is about $350 million less than the current budget.

The budget now moves to the Senate, which is expected to release its own spending proposal in mid-May.