State Aid (Cherry Sheets)
"State aid" also known as "local aid" is funding that flows from the state budget to city and town budgets, helping to fund vital local services such as public education, public safety, health and human services, and more. For Bellingham, approximately 20% of the general fund operating budget relies on state aid.
Levels of wealth range widely across the 351 communities of our Commonwealth yet each of them is tasked with providing vital public services. To this end, local aid is distributed to help offset the inequality of local services that would otherwise not exist if cities and towns had to fund their budgets chiefly with local property tax revenue. There are many reductions to state aid, known as assessments, which are automatically withheld by the state. These include funds to support Norfolk County, Metro Area Planning Council, regional transportation services, mosquito control, and charter school tuitions. State aid is segregated into three categories: general, public education ("Chapter 70"), and program specific state aid. Towns must allocate this aid according to the ascribed programs for which it is receiving funds such as education, veterans benefits, and transportation while the general aid ("UGGA") may be used for any lawful purpose.
For Bellingham, net state aid revenue is, and has been, declining over the past several years. This has been putting downward pressure on the rest of the budget.