Cambridge May See Boost in Aid

Massachusetts Gov. W. Mitt Romney announced a $183 million increase in state payout to towns and cities last Friday, part of which, it is hoped, will benefit the city of Cambridge.

Romney is expected to release his budget proposal on Jan. 26, after which it will be voted on by the state legislature.

“We’re very pleased with the governor’s announcement,” said Cambridge Public Information Officer Ini Tomeu. “We believe it should have a positive impact on Cambridge.”

However, Cambridge Mayor Michael A. Sullivan remained skeptical as to whether the proposal would in fact bring extra dollars into Cambridge.

“With this governor, you need to get details,” he said.

In fiscal year 2005, Cambridge received $31,567,430 in state aid, in the categories of Chapter 70 School Aid, Lottery Aid and Additional Assistance.

That number held steady from fiscal year 2004, despite a 4.8 percent increase in Cambridge’s operating budget for fiscal year 2005.

The state’s possible increase in spending for its cities and towns would constitute a 4.3 percent increase over that of the current fiscal year. Approximately $81 million of that would come in the form of increases in Chapter 70 spending, the state’s direct funding of local schools, which is a 2.5 percent increase over last year.

Still, this increase may do little in the face of the estimated 15 percent drop in real state expenditures per pupil in Massachusetts between 2002 and 2004, a figure cited in a report by the Massachusetts Budget and Policy Center.

Romney told the Boston Globe that the Chapter 70 money will be directed to the poorest school districts in the state. Given this uneven distribution and relatively high level of funding, it seems unlikely that the city will receive too large a part of the pot.

In fiscal year 2005, Cambridge was already among the top third of state districts receiving Chapter 70 assistance. According to Cambridge Budget Director David Kale, Cambridge’s Chapter 70 income from the state has traditionally been stable.

Romney’s proposal would also include a $100 million increase in Lottery Aid, the distributed revenues from the state lottery that go to support local services.

The governor will also propose to begin phasing out the Lottery Aid cap implemented in 2002, which limits the amount of Lottery Aid that can be distributed as local aid, in 2006, according to a press release, which is a year ahead of schedule.

The statewide cap is currently at $778 million.

Cambridge is ineligible for the third area of state spending expansion, the Payment in Lieu of Taxes (PILOT) program, which benefits only a handful of areas in central Massachusetts.

The governor’s announcement comes just as Cambridge is beginning work on its own budget for fiscal year 2006; city budget meetings will begin later this month.

—Staff writer Jessica R. Rubin-Wills contributed to the reporting of this article.

—Staff writer Susan E. McGregor can be reached at mcgreg@fas.harvard.edu