Plugging the hole?

Governor Duval Patrick released his proposed FY09 budget last week, giving towns and cities a first glimpse at the levels of state aid they may be receiving next year.

The state aid to a town consists of roughly 17 distinct line items, many being earmarked for specific use within town (notably the Chapter 70 aid which is dedicated to the School Department budget). The various elements of the state aid package (and the charges, or 'assessments', which the town must pay back to the state) are detailed in the Cherry Sheet.

Largest 'general government' component of the state aid is the Lottery Aid - a portion of the state's lottery profits distributed to cities and towns to help fund their annual budgets. State Lottery revenues have been weak in recent years, so this important element of aid has been at risk. In Governor Patrick's statement regarding the budget, he notes:

We are protecting cities and towns from what would otherwise be an anticipated $124 million deficit in the State Lottery Fund, plugging this hole with license fees the state would receive from my proposal to create three destination resort-style casinos.

The Lottery Aid to Andover this year was $2.2 Million. The Governor's proposed budget would result in this same level of Lottery Aid for next year (which is the level assumed by the Long Range Financial Planning subcommittees in projecting the town budget deficit for next year). If the Governor's concepts for introducing gambling casinos is not approved (or is delayed) by the state legislature, then Andover's Lottery Aid will be reduced by approximately $295,000.

It seems that Andover would be prudent to plan on NOT receiving this $295K in Lottery Aid this year, despite the Governor's apparent confidence that his casino proposal will be successful...