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State oversight on local aid welcome


Published: August 5, 2008

Massachusetts cities and towns are forever clamoring for more aid from the state. But how well do municipalities spend the money they get? The Legislature and Gov. Deval Patrick want to find out.

A provision in the new, $28.3-billion state budget will create a special commission to examine how communities spend their money. The idea came from House Speaker Salvatore DiMasi who believes municipal governments need to be accountable for how they spend the money they receive from the state, his spokesman told Statehouse reporter Edward Mason.

Cities and towns will receive $5 billion in state aid in the current budget.

The commission will be selected by DiMasi, Senate President Therese Murray, Patrick's budget director, Leslie Kirwan, and a number of other state officials. The commission will be empowered to file legislation that could impose changes in municipal budgeting.

This kind of oversight is long overdue. Municipal governments give away millions in taxpayer money. Local elected officials too easily agree to public employee contracts that grant generous raises or overindulgent benefits, then beg the state for the money to cover what they laughably describe as "fixed costs." And when they do try to impose cost controls, they are hamstrung by ludicrous collective bargaining rules designed to preserve the status quo for employees.

One measure the commission should support would be to give local officials the power to unilaterally enact cost-saving measures. The Legislature last year passed a bill allowing municipalities to cut their health-care costs by transferring their employees to the state Group Insurance Commission. But currently any such move can be vetoed by local unions. Legislators could remove that "poison pill" from the law and help communities save.

Communities are going to continue to need and receive state aid. Some communities will need more than others.

It's important that all communities, rich or poor, spend the money they receive prudently. To the extent that this commission fosters that, it's a good thing.