LEGISLATURE PASSES BILL TO ALLOW MUNICIPAL TRANSFER OF DEPARTMENT FUNDS

BOSTON – The House of Representatives has passed Senate Bill 2192, An Act Further Regulating Municipal Transfers of Appropriations by a unanimous vote of 157-0. This bill grants municipalities the ability to transfer funds between different line items in the final two months or beginning fifteen days of a fiscal year. Sums transferred cannot constitute more than 3% of the budgeted money for that line item. This will allow cities and towns the flexibility to solve fiscal shortcomings in budget items in the last two months of the beginning fifteen days of a fiscal year. This bill is an extension of a provision of the Municipal Relief Act, which

This bill, filed by Senator Pam Resor and Representative James Eldridge, has been widely supported by cities and towns as a method of allowing municipalities to have the ability to adjust to unforeseen circumstances, such as transferring monies to the snow and ice removal fund in the event of a severe winter.

“This legislation will make it substantially easier for municipalities throughout Massachusetts to manage their budgets in times of unforeseen difficulties, such as during severe winters,” remarked Representative Eldridge. “I am pleased that the legislature has taken such a strong stance in support of a seamless integration of town services”

“It's not an exciting bill, but it's an important one,” Senator Resor said. “Towns have effectively utilized this tool to keep their budgets balanced during difficult financial times and now we can ensure that this flexibility is maintained.”