The state estimates its 169 cities and towns will collect more than $4.2 billion as their fiscal 2016 allocation of state aid to fund education and other municipal services.
The state Office of Policy and Management has released Friday its Estimates of State Formula Aid to Municipalities for the fiscal year that began July 1 and ends June 30, 2016.
Due to an error, the approximate sums being allocated to each city and town are being recalculated and were unavailable Friday, an OPM spokesman said via e-mail. More accurate numbers likely will available when a revised estimates book is issued sometime next week, the spokesman said.
Breaking down the aid tally currently estimated for FY 2016, the state will provide $3.2 billion in aid to towns and cities; $2.76 billion in education aid; and $438 million in general aid to municipal general governments.
Overall state funding for cities and towns — including non-formula items not included in the book, such as state payment for teachers’ retirement costs — tops $4.26 billion.
In addition, there are also over $800 million in new state bond authorizations for municipal school construction, local transportation projects, open space, clean water projects and various other non-formula programs that are not included in the estimates booklet.
“State aid holds down property taxes,” OPM Secretary Ben Barnes said in a statement. “Municipalities spend more than $13 billion statewide, so state aid pays for roughly one-third of all local services. Without that aid local governments would have to make up the difference or cut services.”
