State plans to lift Lottery cap, send aid to cities, towns

Thursday, April 06, 2006 posted 02:48 AM EDT

Mayor Michael J. McGlynn almost fell off his chair when he heard last week's announcement that the state plans to lift a cap imposed in 2003 on the amount of aid available to cities and towns from the state Lottery.

McGlynn said this is the first time he has heard the state Ways and Means Committee classify local aid as a top priority.

"The announcement is very encouraging," he said.

More than two months after Gov. Mitt Romney unveiled a budget that stopped the diversion of Lottery aid to the state, House Speaker Salvatore DiMasi last week told business leaders the House budget will match that proposal.

The House budget, to be unveiled in early April and debated at the end of the month, will include $158 million more in local aid through the Lottery, hiking total Lottery aid to more than $920 million.

"Local aid is one of the most worthwhile investments we make each year," DiMasi told business leaders gathered for the Greater Boston Chamber of Commerce meeting.

Senate budget writer Therese Murray said the Senate budget will also lift the cap. Murray, a Plymouth Democrat, said her budget team made the decision a few weeks ago and have been informing municipal leaders statewide to plan on receiving additional state money.

"We have an opportunity to do it this year, so we're going to," Murray said before last week's Senate session.

The March 29 announcement prompted immediate praise from the head of a group that lobbies for Massachusetts' 351 cities and towns. Geoffrey Beckwith, Massachusetts Municipal Association executive director, said the extra aid will ease pressure on property tax increases and help municipal government's stabilize their budgets.

Beckwith said the timing of the announcement, as towns gear up for their budget debates, was essential.

"We have praise and applause for the speaker's announcement on ending the Lottery cap," Beckwith said.

Northampton Mayor Clare Higgins, the president of the MMA, said ending the diversion of Lottery funds is the association's top priority.

But locally, news of the cap lift, while helpful, may not mean a lot. McGlynn said although he pleased to receive additional funds, it is not going to make a big difference this year. He said the cost of health insurance is going up again which means this new money will just about cover the increase.

"Th money is gone before it gets here," said McGlynn. "It's not going to turn everything around."

McGlynn added the key to getting Medford back on its feet is increasing Chapter 70 funds and re-working the formula that disperses money to charter schools.

Rep. Carl Sciortino, D-Medford, agrees.

"Increasing local aid is so important to Medford," he said. "We need to do more. We need to raise Chapter 70 aid to Medford's schools and reduce Medford's dependence on residential property taxes. This is a great first step."

Rep. Paul J. Donato, D-Medford, also agrees that lifting the Lottery cap really illustrates the Legislature's commitment to cities and towns throughout the commonwealth. He said this move will bring in an additional $1 million to Medford and help the city prepare for the upcoming budget.

"I think that's an important step," he said. "That's a significant amount of money. This is going to help a great deal."

Donato added although the House of Representatives has not yet taken a formal vote on lifting the Lottery cap, the commitment among the leadership to do so is there.

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