Investing in Our Communities

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Governor Patrick    FY 2013 Budget Recommendation:
    Issues in Brief

    Deval L. Patrick, Governor
    Timothy P. Murray, Lt. Governor


The FY 2013 budget continues the Patrick-Murray Administration’s unprecedented support for cities and towns.  Major reforms achieved in FY 2012, particularly municipal health reform, will continue to advance and have even greater impact for municipalities in FY 2013.  The Administration’s approach to FY 2013 also includes additional tools to support municipalities in managing through this fiscal crisis and beyond.

Municipal Health Care Reform

Municipal health care reform, signed into law by Governor Patrick in July 2011, is already helping municipalities achieve significant savings.  More than 50 communities have taken steps to address their health care costs in one of several ways: reaching agreement through traditional bargaining, using the new reform’s decision-making process to make changes, adopting the new local option reform or scheduling local votes for the coming months. 

The nine communities that have completed the new reform process as of January 15, 2012, have collectively saved more than $30 M – putting this reform on track to far exceed the initial estimate of $100 M in savings for local governments statewide.  In the first year, more than $16 M of these savings are being realized by local governments, and more than $13 M by local employees through premium reductions and mitigation benefits. 

A dozen other communities have come to agreement through traditional bargaining since Governor Patrick changed the municipal healthcare conversation by proposing the new reform in January 2011, collectively saving another $30 M in the first year of those agreements based on current information.

Success story: Town of Arlington

In August 2011, just weeks after the Governor signed municipal health reform into law, the Town of Arlington and its Public Employee Committee used the new state negotiation process to agree to join the Group Insurance Commission (GIC).  Both the Town and its employees will see significant savings in 2012.

Pie chart of Arlington: $3.75 million Savings for Towns and Employees.  Three pie slices say: $1 million employee mitigation benefits (medium slice), $2 million town savings (large slice), $750,000 employee premium savings (smallest slice).

Local Aid

Aid to cities and towns, or local aid, represents approximately 16% of the Commonwealth’s annual budget.  In FY 2013, local aid programs account for $5.2 B, which reflects the Patrick-Murray Administration’s unprecedented commitment to a strong partnership between the state and its cities and towns:

Additional Initiatives for Fiscal Year 2013

Expanded Gaming Law Benefits for Local Governments

Prepared by the Executive Office for Administration and Finance ·
For more information email: (617) 727-2040