Local Government’s Share of Budget Actions in Excess of State Investment

During a series of briefings held on December 15, 2009 before the House Ways and Means Committee, the Department of Budget and Management (DBM) provided an overview of FY 2010 Budget Actions.   The pie chart on page 7 of the DBM presentation summarized the General Fund budget actions by category.  The chart specified that Local Aid represents 19% of the actions.  When asked by Committee members whether the percentage of actions by category specified on the pie chart tied to the percentage of funding in the budget, it was stated that Local Aid was cut by 19% when it is 40% of the State General Fund.

In a response to the House Ways and Means Committee, MACo contends that a fair assessment of budget actions that examines changes in funding from all sources (federal, special and general) demonstrates that local governments “share” of the budget resolution has been well in excess of its “share” of State budgetary investment.  Total funding to local governments is down some 60% from the level of just three years ago and for the same time frame, State funding to county and municipal governments has declined by over $500 million while funding for education and libraries, entitlements, and State agencies has increased by over $1 billion each.

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