HWM FY2008 Budget Released April 11, 2007

from the DLS (Division of Local Services)
On April 11, 2007 the House Ways and Means Committee (HWM) released their version of the FY2008 budget. The Division of Local Services has posted updated local aid estimates based on the HWM budget recommendations. The appropriations for chapter 70, lottery and additional assistance are consistent with the amounts in the legislative resolution approved on April 4, 2007.

Other than the Chapter 70 allocations appearing in the legislative resolution approved on April 4, 2007, the only significant change between the HWM proposals and the amounts appearing under the House 1 column (original Governor's budget) are the reimbursements for real estate tax exemptions granted to Veterans, Blind Persons and Surviving Spouses. We have updated these estimates to reflect the estimated increases in state reimbursement for new exemption amounts. Chapter 260 of Acts of 2006 as amended by Chapter 310 of the Acts of 2006 increased the exemptions amounts granted to these real estate taxpayers. Since communities should be accounting for the increased exemption amounts in the overlay account, we are showing the increased state reimbursement on the preliminary cherry sheet as a revenue source to offset the increases to local overlay accounts. In October of 2006, the Bureau of Municipal Finance Law issued
Bulletin 2006-15B
detailing the changes to this program.

It is important for local officials to remember that local aid estimates are still preliminary and are subject to changes as the legislative budget process unfolds.

For the benefit of local officials, the Department of Education (DOE) has released updated FY08 updated FY08 required local contributions and net school spending
requirements
based on the the amounts in the legislative resolution approved on April 4, 2007.

If you have questions regarding the updated local aid estimates, please contact Lisa Juszkiewicz, Jared Curtis or Donnette Benvenuto at (617)626-2384.