The Commonwealth of Massachusetts

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DEVAL L. PATRICK GOVERNOR TIMOTHY P. MURRAY LIEUTENANT GOVERNOR

Executive Department State House  ·  Boston 02133 (617) 725-4000

July 25, 2007.

To the Honorable Senate and House of Representatives:

   Pursuant to Article LVI, as amended by Article XC, Section 3 of the Amendments to the Constitution of the Commonwealth of Massachusetts, I am returning to you for amendment House Bill No. 4096, “An Act Relative to the Use of Certain School Building Assistance Program Reimbursements to the City of Medford.”

   This bill allows the City of Medford to use funds that it received from the School Building Assistance Program for any purpose during fiscal years 2007 and 2008.  The Commonwealth granted these funds to reimburse the city’s general fund for the Commonwealth’s share of debt service payments on money the city borrowed to repair the Medford High School roof.  Section 2 of this bill requires the city to  restore these funds to the grant reserve account by fiscal year 2014 by making equal annual payments beginning in fiscal year 2009.  

   I appreciate the difficult financial challenges Medford faces.  I recognize that, under certain circumstances, it may be reasonable to authorize municipalities to use restricted funds for other purposes on a temporary or limited basis.  For this reason, my administration worked with the city to arrive at a reasonable repayment period of three years for restoring the diverted grant funds.  The city’s home rule petition reflected that understanding by providing that repayment be made by fiscal year 2011.  To extend that period for another three years, as provided in this bill, is not sound fiscal policy.  Using restricted, non-recurring revenues to support ongoing operations for this period of time is likely to put the city in a position where it will need to make greater service reductions in future years. 

I am committed to empowering cities and towns across the Commonwealth with the tools to bring them economic health, independence and development.  The Municipal Partnership Act, parts of which I am signing today, provides additional, financially responsible, tools that all communities should consider.  The Act would provide cities and towns with recurring streams of revenue as well as tools to control costs.  Using these tools would allow Medford to restore the grant funds in a shorter, more reasonable period of time.

   In order to minimize the financial risks of this legislation, I recommend that the repayment period be restored to the three years proposed in the city’s home rule petition.

For these reasons, I recommend that House Bill No. 4096 be amended by striking out section 2 and inserting in place thereof the following section:-

SECTION 2. The city of Medford shall restore any amount appropriated under this act to the reserved grant funds by fiscal year 2011 by making annual payments of equal increments in each fiscal year beginning in fiscal year 2009.  The city shall notify the commissioner of revenue of the annual payments, and if payments are not equal to or in excess of the amount necessary to achieve full restoration on the annual payment schedule by fiscal year 2011, the state treasurer shall deduct from Medford’s total state school aid, as defined in section 2 of chapter 70 of the General Laws, sufficient funds to make the payments and deposit the funds in the reserved grant fund.  If the city pays in excess of the required incremental payment, then the excess shall carry over and apply to the next fiscal year payment.  The amount to be repaid shall not include amounts paid by the city of Medford for debt service on the repair project that would have been funded by the reserve in fiscal years 2008, 2009 and 2010 if transfers had not been made under section 1.

Respectfully submitted,

                                                                                       DEVAL L. PATRICK,

                                                                 Governor.