Boston — Joined by legislative leaders and local officials, Governor Deval Patrick today signed into law two key pieces of his proposed Municipal Partnership Act that will provide communities with the tools to help relieve the pressure on property taxes by allowing them to join the state health insurance plan and by merging underperforming local pension funds with the state’s high-performing system.
“We need to relieve the pressure to raise local property taxes. The Municipal Partnership Act gives cities and towns more options to save money and increase revenue, and I am proud to sign key parts into law today,†said Governor Deval Patrick. “By permitting municipalities to join cheaper state-run systems, we foster just the kind of engaged partnership we need between state and local government to move Massachusetts forward.â€
“Cities and towns have been grappling with budgetary challenges that affect their ability to stabilize their property tax rates and provide essential services†said Lieutenant Governor Tim Murray. “This new law will empower our municipalities and continue to build a long-lasting partnership between them and the state.â€
"I am happy to see the Governor sign this bill," Senate President Therese Murray said. "It's an important day for Massachusetts. This new law gives municipalities options they never had before and improves their access to affordable, quality health care. It's a valuable tool that helps cities and towns control their health care costs and free up valuable resources to address other needs such as education and public safety. This is a great benefit for the citizens of the Commonwealth."
“These two new laws give cities and towns the tools to save millions of dollars each year – money they can use to cut property taxes or invest in local priorities,†said House Speaker Salvatore F. DiMasi. “These bold reforms, combined with significant local aid and Lottery fund increases, show the Legislature’s continued commitment to putting cities and towns first and I hope they are quickly embraced by communities across the Commonwealth.â€
Group Insurance Commission
Part of the new law will help municipalities lower skyrocketing health care costs by giving them the option to join the state’s Group Insurance Commission (GIC). Increasingly high health insurance costs have forced cities and towns to cut municipal services and increase property taxes. A recent Massachusetts Taxpayers Foundation report found the growth rate for health insurance costs in municipalities is nearly double the rate of increase for health coverage of state government employees over the same time period.
Regional councils, regional planning districts, non-unionized educational collaboratives and Commonwealth charter schools will also be allowed to participate in the GIC.
The measure calls for the appointment of four additional members to the Commission to reflect a broader constituency, including a representative of management and of labor. Another two municipal members will be appointed after 45,000 municipal subscribers are added to the GIC. The bill also includes a $1 million appropriation to cover additional GIC costs.
Pension Reform
The new law both identifies and requires the state’s lowest-performing pension systems to invest with the state Pension Reserve Investment Trust (PRIT). The criteria are based on the funding level and the average rate of return, as compared to PRIT, over the last 10 years.
The Patrick Administration supports keeping local pension decisions with local pension boards, and the new legislation does not change that authority. Pension boards have been able to invest with PRIT since 1985, allowing them to diversify their assets for maximum possible return and increase local revenue.
“This landmark legislation will bring significant financial relief from the fiscal spiral facing so many of our cities and towns†said Representative Rachel Kaprielian, D-Watertown. “Massachusetts is giving new meaning to the words state/local partnership and helping stem the exorbitant cost of providing health insurance for municipal workers.â€
“With this legislation we have achieved our goal to provide local communities tools to control their health care costs and improve their financial situations,†said Sen. Richard T. Moore, D-Uxbridge. “The coalition of legislative leaders, municipal officials, public employee union representatives and retiree representatives deserve the gratitude of every municipality for the funds that will be saved in the long term, and the respect of all residents for their work in providing affordable and quality health insurance for thousands of local employees.â€
"Under these laws, communities will continue to provide high-quality health insurance and a secure retirement, without relying on exorbitant property tax increases. They are truly examples of how we can make government work better for our taxpayers, our communities, and our retirees and public employees," stated Sen. Benjamin B. Downing, D-Pittsfield, chairman of the Joint Committee on Public Service.
“These two bills represent a major step forward and hold out the promise of even greater returns in the years ahead. It’s particularly satisfying that many constituencies and many people of divergent interests were able to come together around these important goals,†said Representative Jay Kaufman, D-Lexington, chairman of the Joint Committee on Public Service.
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Lanesborough Town Meeting to Vote Budget, Bylaws & Vehicle Purchases
By Breanna SteeleiBerkshires Staff
LANESBOROUGH, Mass. — Tuesday's annual town meeting includes a $14 million operating budget, new short-term rentals, accessory dwelling units and sign bylaws, and free cash article appropriations.
Voters will gather at Lanesborough Elementary School on June 9 at 6 p.m. to decide on 20 warrant articles.
The fiscal 2027 budget is up a little over 10 percent. Some of the main increases are the Mount Greylock Regional School District and McCann Technical School: the McCann assessment is up more than 30 percent based on factors including enrollment and the school renovation project, and Mount Greylock's is up 11 percent.
Article 11 is for the town to vote to approve from free cash the sum of $16,298.48 for the McCann Technical School roof and window replacement project so as not to impact the budget. Article 3 is appropriate $7,586,284 for Mount Greylock Regional School assessment.
Another notable increase was in life and health insurance, showing an increase of about 26 percent.
Ambulance Director Jen Weber is planning 24-hour coverage, which means more staff and a hike in her budget. One of the articles asks the town to appropriate $234,100 to operate the Ambulance Enterprise Fund for salaries and expenses.
Many town departments are looking for new vehicles. The Fire Department is looking to replace its outdated 1996 fire engine. There are two articles related to the truck at a total of $813,366. Article 12 would transfer $225,000 from free cash into the Fire Truck Stabilization Fund; Article 13 would transfer $605,000 from the fund and authorize the borrowing of $208,366.08.
The total includes a $100,000 contingency cost to cover any additional costs if a 2026 model-year chassis cannot be secured before new emissions standards go into effect in 2027.
The board at its last meeting moved the $225,000 transfer to come before the borrowing article, changing the stabilization number. If the $225,000 is not voted on, then they will amend the next article's number on the floor, subtracting the $225,000. This shows the borrowing number significantly lower.
Article 17 asks for the transfer of $80,000 from free cash to replace a police cruiser.
Police Chief Rob Derksen's aim is to replace one vehicle every other year, meaning the oldest vehicle gets replaced about every 10 years.
He stressed that if delayed this year, the town may have to double up in a future year to get back on schedule, and that paying later usually costs more. The article will ask for $80,000 from free cash, the vehicles used to be funded by the BHRD.
Lastly, the Highway Department is looking to replace a 2014 International dump truck that will be a total of $330,000 and will take two to three years to receive.
Money will be used from last year's approval of $250,000 from free cash for the replacement of a 2012 highway front-end loader that was underspent $49,261. Town meeting is being asked to approve a transfer of $53,274.85 from free cash and the use of $227,464 from funds from the Sale of Town Real Estate to fund the balance.
Other free cash proposals include $1,200 to purchase software to support tracking and ongoing maintenance schedules of town-owned vehicles; $42,000 for the replacement of the Highway Department's storage shed roof, $200,000 to reduce the tax levy.
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