Cherry Sheet Aid	Fiscal Year 1999 Estimated Spending	Fiscal Year 2000 Recommended Spending
Treasurer	1,162,262,978	1,199,262,978
Municipal Services and Abatements	26,145,985	24,279,136
Veterans' Services	7,413,000	7,706,310
Libraries	23,745,181	23,745,181
Education	2,934,493,247	3,137,246,909
Public Safety	20,460,923	20,460,923
Transportation and Construction	43,472,110	43,472,110
Total:	4,217,993,424	4,456,173,547

The Division of Local Services, within the Department of Revenue, annually notifies cities, towns, and regional school districts of the aid and assessments the Commonwealth will provide them in the upcoming fiscal year. These notifications were originally printed on cherry-colored paper, and were therefore given the name "cherry sheets."

In Fiscal Year 2000, cherry sheet appropriations will total $4.5 billion, providing cities and towns with a direct local aid increase of $238 million, or 6% over Fiscal Year 1999 levels. This represents the eighth consecutive annual local aid increase. Since Fiscal Year 1992, cherry sheet aid has increased by $2.4 billion, or 113%, demonstrating the Cellucci/Swift Administration's continuing commitment to the Commonwealth's municipalities.

The direct local aid distributed to cities and towns through the cherry sheets is comprised of 28 line-item appropriations administered by a variety of state agencies and departments. These programs, and their Fiscal Year 2000 funding levels, are described below.

In Fiscal Year 2000, additional assistance, teachers' pensions, and the local share of the racing tax are funded at Fiscal Year 1999 levels. Payments-in-lieu of taxes for state-owned land will increase by $3 million, representing the third year of a five-year plan to fully fund the program. In Fiscal Year 2000 the distribution of lottery proceeds to cities and towns will be $670 million, an increase of $39 million over estimated Fiscal Year 1999 spending. The increase reflects the Cellucci/Swift Administration's commitment to phase out the lottery cap and distribute the funds to cities and towns through the lottery formula. Fiscal Year 2000 is the last year of the lottery cap. Beginning in Fiscal Year 2001 the distribution to cities and towns will equal the prior year's distribution plus any new growth from the State Lottery. If the State Lottery Fund revenue growth exceeds current projections in Fiscal Year 2000, the additional increase will be distributed through the same formula at the end of the fiscal year.

The Department of Housing and Community Development administers the Federally-Aided Urban Renewal, State Urban Renewal, and Urban Revitalization and Development Grant programs. These programs reimburse cities and towns for a portion of the costs related to urban renewal projects, which are targeted at redeveloping downtown areas, neighborhoods, industrial parks, and commercial zones. Fiscal Year 2000 funding for the Urban Revitalization and Development Grant program is level-funded at the Fiscal Year 1999 service level. The Federally-Aided Urban Renewal and State Urban Renewal programs are being phased out and are, therefore, receiving decreased funding in Fiscal Year 2000.

The Commonwealth also provides reimbursements to cities and towns for tax exemptions granted to qualifying veterans, blind persons, surviving spouses, and elderly persons, as well as reimbursements for tax abatements. Fiscal Year 2000 funding for these reimbursements will provide the same level of support as in Fiscal Year 1999.

The Office of Veterans' Services, within the Executive Office for Administration and Finance, administers veterans' benefits programs, which reimburse cities and towns for 100% of the costs of benefits for veterans and their dependents. These benefits include assistance for food, clothing, shelter, heat, medical, and burial expenses. Fiscal Year 2000 funding will ensure that service levels can continue at Fiscal Year 1999 service levels.

The Board of Library Commissioners oversees two cherry sheet programs: aid to local public libraries and aid to regional public libraries. The state aid distributed through these two programs assists municipalities in providing free library services at local libraries and defraying the costs of regional public library services. With state aid, regional libraries are able to provide support services to municipal libraries, including interlibrary loans, research and reference searches, and the delivery of materials between libraries. The Fiscal Year 2000 funding level for libraries is equal to the Fiscal Year 1999 funding level.

The cherry sheet contains aid for several education programs. Fiscal Year 2000 total cherry sheet education funding will increase $203 million over Fiscal Year 1999 levels. Direct financial assistance distributed to school districts through the Education Reform formula will increase by $155 million, reflecting the Cellucci/Swift Administration's commitment to fully fund the seventh, and last, year of Education Reform. School Building Assistance reimbursements, which provide municipalities and regional school districts with financial assistance for the planning and construction of school buildings, will increase by $41 million. Additionally, the Commonwealth will increase Fiscal Year 2000 funding for regional school transportation by $6.6 million, representing the second year of a three-year commitment to fully fund the program.

The Executive Office of Public Safety administers the police career incentives program, through which the Commonwealth reimburses cities and towns for 50% of the costs associated with providing incentive education programs to police officers. These incentives are offered in the form of salary increases as the officers earn undergraduate and graduate degrees. The Fiscal Year 2000 recommended funding will equal the Fiscal Year 1999 funding level.

To reimburse municipalities for costs incurred in the construction, maintenance, and policing of local streets and roads, the Commonwealth distributes Highway Fund monies (funded through the motor vehicle fuels excise tax) to the 351 cities and towns in Massachusetts. In Fiscal Year 2000, Highway Fund distributions will equal Fiscal Year 1999 distributions.

The Cellucci/Swift Administration will continue to pursue a comprehensive local aid policy to ensure the fiscal autonomy and stability of each city and town in the Commonwealth. To achieve this goal, there are local aid programs that the state administers in addition to those programs which appear on the cherry sheet. These programs provide either programmatic assistance or direct monetary aid to communities, and like cherry sheet aid, are an important part of the Administration's effort to support the delivery of quality local services. In Fiscal Year 2000, the Administration will continue a commitment to local aid by increasing funding for education, transportation, the District Attorneys, and water and sewer assistance.

In addition to the education aid distributed through the cherry sheet discussed in the previous section, the Cellucci/Swift Administration is undertaking several important expansion initiatives which will further increase the Commonwealth's investment in education.

The Administration recommends $20 million in funding for a new program to increase the number of teachers in the state's public schools. The Administration is also recommending $24 million in expansion for the Early Education and Care program, increasing the appropriation to $109 million in Fiscal Year 2000. The Department of Education will use this funding to enhance the educational quality of child care programs in the Commonwealth. The Administration is also recommending $5 million in additional funding to provide nutritious meals to school children. The Department of Education will use the additional funding to enhance the school breakfast program and provide meals for children after school and during the summer months.

In Fiscal Year 2000, the Administration requests $1.4 million in funding for a lease program to assist transit carriers with the purchase of buses as part of the Inter-City Bus Capital Assistance Program. This program enhances the availability of transportation for residents who live in communities which are not served by the Massachusetts Bay Transportation Authority. In exchange for the state lease, transit carriers will agree to maintain bus routes in otherwise underserved areas.

The Fiscal Year 2000 recommendation for District Attorneys reflects the Cellucci/Swift Administration's strong commitment to law enforcement. The budget includes an additional $4.7 million for the District Attorneys, which represent a 7% increase over Fiscal Year 1999 spending.

In Fiscal Year 2000, the Cellucci/Swift Administration will address statewide infrastructure concerns by supporting additional funding for the financing of local water and sewer improvement projects. This budget provides $1.8 million, a $163,045 increase above Fiscal Year 1999 funding, which will allow the Massachusetts Water Pollution Abatement Trust (MWPAT), through the conduit of the State Revolving Fund, to support 31 new safe drinking water projects in 27 communities. An increase of $7 million for clean water contract assistance will allow 125 new projects across the Commonwealth to go forward. Finally, the Administration is recommending $861,525 to implement a new local pipeline assistance program. Modeled on existing MWPAT financing programs, this program will provide low- or zero-interest loans to communities for targeted local water pipeline improvements. This proposal would allow the MWPAT to leverage $60 million in contributions from the Massachusetts Water Resources Authority and provide over $500 million in financing over 20 years for local pipeline improvements.

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Executive Office for Administration and Finance
Fiscal Affairs Division
State House, Room 272
Boston, MA 02133
(617) 727-2081


Last updated on January 27, 1999

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