By Mr. Moore, a petition (accompanied by bill, Senate,
No. 1174) of Richard T. Moore for legislation to revise
the fiscal year of cities, towns, and districts.
Municipalities and Regional Government. |
By Mr. Moore, a petition (accompanied by bill, Senate,
No. 1174) of Richard T. Moore for legislation to revise
the fiscal year of cities, towns, and districts.
Municipalities and Regional Government. |
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Section 56 of chapter 44 of the general laws, as appearing in the 2004 Official Edition, is hereby amended by striking out said section, and inserting in place thereof, the following new section:-
Section 56. The fiscal year of all towns of the commonwealth shall begin with October first and end with the following September thirtieth, and the returns made to the director under section forty-three shall show the financial condition of the town at the close of business on September thirtieth; provided, however, that the treasurer shall, until October fifteenth, enter in his books all items for the payment of bills incurred and salaries and wages earned during the previous fiscal year, excepting payment of school teachers’ salaries which have been deferred under the provisions of section forty of chapter seventy-one, and expenditures thereof shall be deemed to be as of June thirtieth preceding.
SECTION 2. Section 56A of chapter 44 of the general laws, as appearing in the 2004 Official Edition, is hereby amended by striking out said section, and inserting in place thereof, the following new section:-
Section 56. The fiscal year of all towns of the commonwealth shall begin with October first and end with the following September thirtieth, and the returns made to the director under section forty-three shall show the financial condition of the town at the close of business on September thirtieth; provided, however, that the treasurer shall, until October fifteenth, enter in his books all items for the payment of bills incurred and salaries and wages earned during the previous fiscal year, excepting payment of school teachers’ salaries which have been deferred under the provisions of section forty of chapter seventy-one, and expenditures thereof shall be deemed to be as of June thirtieth preceding.
SECTION 3. Notwithstanding the provisions of any other general or special law to the contrary, all appropriations for state aid to cities towns and districts shall be allocated on the basis of five quarters in the first year in which the municipal fiscal year is changed from July 1 to October 1 and shall be allocated on the basis of three quarters in the next fiscal year, in order to coincide with the new fiscal year schedule. Cities, towns, and districts will be authorized to develop a five quarter budget for the first year in which the fiscal year is changed from July 1 to October 1, and shall be authorized to appropriate a three quarter budget for the next fiscal year. Thereafter, all state aid and all budgets for cities, towns, and districts shall conform to the October 1 through September 30 fiscal year.
SECTION 4. This act shall take effect for the state fiscal year beginning July 1, 2009.
Explanation: The current system of the state and local budgets based on a July 1 – June 30 fiscal year makes it difficult for cities, towns, and districts to plan accurately for their budgets since state aid numbers are not usually settled before mid June. If the state budget, with local aid numbers, was required to be in place by June 30, and local budgets did not begin before October 1, more accurate budget planning could occur. Undoubtedly, other sections of general law may need to be changed if there is agreement to change the local and district fiscal year. The purpose of this bill is to initiate a discussion of the issue.
