Melrose Faces $430K Net Local Aid Cut in House Ways and Means Budget Proposal

Melrose would take a $430,469 net local aid cut in the House Ways and Means Committee's fiscal 2012 budget proposal released yesterday—about $15,000 more than Gov. Deval Patrick's proposed budget for next year.

In terms of Melrose's local aid, the House budget largely mirrors Patrick's proposal, which was . The differences are:

• Almost $70,000 more in charter school tuition reimbursement, a total of $390,770.
• However, that additional reimbursement is offset by a $70,000 increase in charter school tuition charges.
• Eliminating any funding for the Police Career Incentive program—known as the Quinn Bill—which gives bonuses to police officers with college degrees. Melrose would receive $17,408 for that program in the governor's proposal.

Last week, after filing his city budget proposal with the Melrose Board of Aldermen, is based on the almost half-million dollar local aid cut in the governor's proposal, Dolan said.

The mayor said that he believed the House Ways and Means budget would include an even larger local aid cut, but "we're still using the governor's number because we think when push comes to shove at the end of the day, it's going to be around that half-million dollar figure. If it doesn’t, we have some room in which to deal with it."

The Senate Ways and Means Committee traditionally introduces its budget proposal last, before the Legislature hashes out a final version sent to the governor's desk for approval.

The most contentious proposal included in the House budget proposal would give cities and towns "plan design" for health insurance—i.e., allowing municipalities to adjust the co-pays and deductibles of their employees' health insurance plans to offset health insurance cost increases, while bypassing any union approval.

Patrick has already filed a bill that would require cities and towns to join the state Group Insurance Commission (GIC)—whose members include state employees and all retired teachers—unless each municipality crafts its own health insurance agreement with its local unions that provides equal or better cost savings compared to the GIC. Melrose union members currently receive health insurance through the GIC and for another three years.

Dolan pushed for the move to the GIC and supports "plan design." He testified on Beacon Hill last month about rising health care costs alongside other local officials.