Author: Christopher Ketchen - Local Payments Bureau Chief
If you're a new local official entering the unique arena of Massachusetts municipal finance, there’s a good chance you understand the concept of state aid (i.e. the stream of funds that flow from the Commonwealth’s budget that help fund municipal and local school operations). What you may not be aware of are the resources here at DLS that allow municipal officials to follow the various iterations of state aid proposals throughout the budget process as well as the means to track payments that are made to local entities throughout the year.
The Bureau of Local Payments (BLP) has two highly visible functions in state and local public finance. The first is publication of the “Cherry Sheets.” These are the colloquially named notices that estimate the state aid and assessments contained in each budget proposal put forward, starting with the Governor, followed by iterations from the House and the Senate, culminating with the final budget approved by the Legislature (known as the Conference Committee budget). The term “Cherry Sheet” refers to the color of paper they were once printed on before the days of websites and email. Officially, they represent budget estimates used for tax rate setting purposes. Because state aid and assessments are such a large part of municipal revenue and expense, cities and towns will also use these estimates when preparing their annual operating budgets.
A second significant role we play is in the distribution of state aid once a final budget is approved. Over $8 billion is paid by the Commonwealth to cities, towns, and schools for the various aid programs – most notably Chapter 70 (education) and Unrestricted General Government Aid (UGGA). BLP will also deduct from these payments those amounts that are assessed by other state and regional entities, including state qualified bonds. A detailed breakdown of the monthly local aid payments is available here. All payments from the Commonwealth to cities and towns, local aid or otherwise, are also searchable through the Treasurer’s CTHRU website.
BLP also distributes funds for the Community Preservation Act, Smart Growth, Community Compact grants, and other one-time payments. To view more information and resources available for local officials, check out our Bureau of Local Payments website. If you have any questions, please contact us at LocalAid@dor.state.ma.us.
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Editor: Dan Bertrand
Editorial Board: Tracy Callahan, Sean Cronin, Janie Dretler, Jessica Ferry, Emily Izzo, Christopher Ketchen, Paula King, Jen McAllister and Tony Rassias
| Date published: | June 18, 2025 |
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