Municipal Impact Reports - 2022 Five Year Report

An overview of the Municipal Impact Reports released during the report period.

 

 

Table of Contents

Overview

Following the authority granted under M.G.L. c. 11, § 6B, DLM explored various policy concerns having a significant financial impact on municipalities that did not rise to the level of a mandate that required state support. DLM measured the extent of these concerns and issued reports making recommendations related to water infrastructure, regional schools, educational services for children in foster care, municipal police training and accountability, and payments in lieu of taxes (PILOTs). The research consisted of significant analysis of data, stakeholder discussions, meetings with members of the Legislature and their staff, and surveys of municipalities.

These reports have had an impact on ongoing policy discussions and have contributed to higher funding in a number of areas. For example, the report on municipal police training won two national awards for its contribution to the discussion of policing reform and certification in Massachusetts.2 Another municipal impact report, which focused on the disproportionate impact of the State-Owned Land PILOT on western Massachusetts cities and towns, contributed to a significant increase in funding for the program shortly after its release.  A detailed summary of the municipal impact reports that DLM published between 2016 and 2020, as well as actions taken since their publication, is set forth below.

Costs, Regulation, & Financing of Massachusetts Water Infrastructure (January 2017)

In 2016, DLM surveyed municipalities about the cost impacts of state and federal regulations on their water infrastructure systems. This report was a result of municipalities’ responses, finding that there are billions of dollars in significant financial investments needed for clean drinking water delivery, wastewater treatment and handling, and stormwater management.

Some of the major recommendations that resulted in state action include:

  • Increase water infrastructure grant funding.
    • There has been consistent funding for the Municipal Vulnerability Preparedness program and engineering grants since the release of the report.
  • Convene a statewide summit on the impacts of climate change on water infrastructure.
    • The Baker-Polito administration held a climate resiliency summit in September 2017.
Blue and gold banner reads Outcomes. Below are bulleted list of outcomes from the report.

Additional Resources

Supporting Student & Community Success (October 2017)

DLM conducted a study examining regional school districts (RSDs) across the Commonwealth and the financial challenges they face because of their unique governance structure. DLM found that RSDs suffer from budget constraints not seen by other public school districts, especially when they cover smaller student populations despite operating in large geographic areas. Some of the largest financial challenges come from student transportation and enrollment-based assessments imposed on member communities.

Some of the major recommendations that resulted in legislative action include:

  • Increase funding for regional student transportation.
    • Although the Commonwealth has not yet fully reimbursed regional transportation expenses, state reimbursements have increased in the last few fiscal years (FYs)—from $59.1 million in FY 2016 to $82.3 million in FY 2021.3
  • Implement recommendations from the Foundation Budget Review Commission.
    • The Student Opportunity Act, which was signed into law in November 2019, fully implements the recommendations made by the Foundation Budget Review Commission in its 2015 report.4 This sweeping education act will provide relief to RSDs for years to come, especially for the areas of special education and transportation.
  • Examine and act on issues specifically related to RSDs.
    • Rural School Aid was introduced in the FY 2019 state budget, which provides supplemental aid to school districts with low student density and promotes efforts to incentivize regionalization and collaboration.5 The Student Opportunity Act also established a Rural Schools Commission that would examine rural and regional school districts with declining student populations.6
Blue and gold banner reads outcomes. Below are bullet list of outcomes from the report.

 

Additional Resources

Educational Services for Students in Foster Care and State Care (April 2019)

In 2019, DLM examined how a myriad of state and federal laws, regulations, and funding requirements established a complex system for providing quality education to students in foster care. DLM found that school districts expend significant financial resources to fulfill these requirements (such as transportation arrangements) and that district officials devote considerable time and effort to ensure students in foster care are receiving appropriate services.

Some of the major recommendations that resulted in state action include:

  • Increase collaboration between Department of Children and Families (DCF) field offices and school districts.
    • Since the release of the report, there have been increased training sessions between the Department of Elementary and Secondary Education (DESE), DCF, and local educators.
  • Examine and take action on issues related to school transportation expenses.
    • DCF and DESE cooperated in securing partial federal reimbursement for transportation expenses related to children in foster care. A special legislative commission on student transportation also released its final report in December 2020, bringing existing issues to light.7
Blue and gold banner reads Outcomes. Below are bulleted list of outcomes from the report.

Additional Resources

Municipal Police In-Service Training: Funding and Cooperation across the Commonwealth (Nov. 2019)

DLM released a study that examined how state laws concerning municipal police training affect local government budgets. In its study, DLM found that the Commonwealth did not provide sufficient opportunities to allow officers to meet state-mandated training requirements via the Municipal Police Training Committee (MPTC) and had no mechanism to hold officers and municipalities accountable for noncompliance.

A comprehensive police accountability bill that was signed into law in December 2020 fulfilled some of the major recommendations made by DLM. They include:

  • Establish a Peace Officers Standards and Training (POST) system.
  • Governor Baker signed a police accountability bill into law in December 2020, with the core of the bill consisting of the establishment of the POST Commission.8 The POST Commission will serve as the main entity responsible to ensure compliance with training goals and standards of professional conduct. The commission will also work with MPTC on various matters, including establishing minimum standards for officer certification.9
  • Improve accountability by tracking compliance with training requirements and improving guidance to municipal police departments.
    • The police accountability act contains a provision that establishes a database within the POST Commission’s Division of Police Certification containing officers’ training records.10 A separate provision establishes a separate database within the Division of Police Standards detailing various types of officer conduct complaints, including data about whether an officer failed to follow training requirements.11 The act also establishes punishments for officers who fail to complete training.12
Blue and gold banner reads Outcomes. Below are bulleted list of outcomes from the report.

The Impact of the State-Owned Land PILOT and Solar Taxation Policies on Municipalities (Dec. 2021)

DLM examined whether municipalities receive adequate compensation for hosting tax-exempt state lands and solar facilities, particularly through two state programs that involve payments in lieu of taxes (PILOTs). DLM found that the state-owned land PILOT reimbursement formula is underfunded and advantages cities and towns whose property values are rapidly growing at the expense of communities with stagnant growth. DLM also found that the Appellate Tax Board’s interpretation of a tax exemption that previously applied only to residential solar panel installations extended to commercial entities, leading to confusion among municipal officials on how to tax solar facilities.

Some of the major recommendations made by DLM that were fulfilled by legislative action include:

  • Strengthen the state-owned land PILOT program by increasing its appropriation.
    • The Legislature’s FY 2022 budget increased funding for the state-owned land PILOT from $31 million to $35 million, a $4 million increase.13
  • Clarify the solar property tax exemption.
    • Governor Baker signed an expansive climate bill into law in March 2021, which included a provision that clarified the exemption.14 The provision now allows residential and commercial solar facilities to seek the exemption based on specific parameters of energy capacity and output. The provision also protects existing solar PILOT agreements and encourages PILOT agreements for entities that do not qualify for the exemption.15
Blue and gold banner reads Outcomes. Below are bulleted list of outcomes from the report.

Additional Resources

2. Massachusetts Office of the State Auditor, Division of Local Mandates. (2021, April 28). “Bump’s office receives national award for police reform efforts.” https://www.mass.gov/news/bumps-office-receives-national-award-for-police-reform-efforts; Massachusetts Office of the State Auditor, Division of Local Mandates. (2021, August 2). “Bump’s office recognized by National Conference of State Legislatures for study on police training and accountability.” https://www.mass.gov/news/bumps-office-recognized-by-national-conference-of-state-legislatures-for-study-on-police-training-and-accountability

3. Massachusetts Department of Secondary and Elementary Education. (2021, October 27). Transportation. https://www.doe.mass.edu/finance/transportation/

4. St. 2019, c. 132. https://malegislature.gov/Laws/SessionLaws/Acts/2019/Chapter132; Massachusetts Department of Secondary and Elementary Education. (2021, May 18). Student Opportunity Act (SOA) Plans. https://www.doe.mass.edu/commissioner/spec-advisories/soa.html

5. General Court of Massachusetts. (2018). FY 2019 Final Budget (see line item 7061-9813). https://malegislature.gov/Budget/FY2019/FinalBudget

6. St. 2019, c. 132, § 22. https://malegislature.gov/Laws/SessionLaws/Acts/2019/Chapter132

7. Special Commission on Improving Efficiencies Relative to Student Transportation. (2020, December 10). Final Report. https://malegislature.gov/Bills/191/SD3131

8. St. 2020, c. 253, § 30. https://malegislature.gov/Laws/SessionLaws/Acts/2020/Chapter253

9. Id.

10. Id.

11. Id.

12. Id.

13. Department of Revenue, Division of Local Services. (2021, November 8). Municipal Cherry Sheet, Receipts & Charges. https://dlsgateway.dor.state.ma.us/reports/rdPage.aspx?rdReport=CherrySheets.CSbyProgMunis.cs_prog_munis; General Court of Massachusetts. (2021). FY 2022 Final Budget (see line item 1233-2400). https://malegislature.gov/Budget/FY2022/FinalBudget

14. St. 2021, c. 8 § 61. https://malegislature.gov/Laws/SessionLaws/Acts/2021/Chapter8

15. Id.

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