Many Franklin County towns may see a drop in their annual reimbursements for state-owned land, as proposed by Gov. Charlie Baker’s 2020 budget – even as their values are set to increase in the region overall.
In the budget each year, the state allocates a certain amount to each towns’ state-owned land, in lieu of taxes. Next year, statewide funding is proposed to stay at $28,478,131 – the same amount allotted in this year’s budget.
While statewide funding is proposed to stay steady, some Franklin County communities may see a sharp decline in their reimbursements. Of the region’s 26 towns, 18 are facing a possible decrease in funding. Affected towns include Greenfield, Bernardston, Buckland, Hawley, Colrain, Deerfield, Gill, Hawley, Heath, Erving, Monroe, New Salem, Northfield, Rowe, Shutesbury, Sunderland, Warwick, Wendell and Whately, according to the state Department of Revenue.
The most significant percentage drop is in Gill, whose reimbursements are proposed to shrink by 51.5 percent, from $36,043 this year to $17,471 next.
Meanwhile, the value of state-owned land will increase next year in most Franklin County towns. On the whole, the county saw a jump of $4.1 million in state-owned land value for a total of $124.1 million next year, according to the Mass. Department of Revenue.
According to state Sen. Adam Hinds, D-Pittsfield, the state land funding formula has some “deeply concerning elements” upon his close examination. Hinds takes issue with two aspects of the formula in particular: that state land can lose value as it increases in size, and that funding is linked to property value.
To fix the problem, Hinds has proposed to establish a commission to study how state-owned land is funded. Hinds proposed the same bill last year, but it was not adopted in the conference committee.
“You can’t go into a room with leaders of small towns and not talk about it,” Hinds said. “It’s pretty persistent year over year – it’s one of those items most folks may not know about, but really affects them.”
State Rep. Paul Mark, D-Peru, a bill co-sponsor, raised concerns about whether funding is distributed fairly across the state. The Rural Policy Advisory Commission has made this issue a priority, Mark, a member, said.
“It’s unfair to expect that the people of a small town are going to be responsible for the burden of protecting this land,” Mark said. “We want to look at … is this formula fair? Is it properly accounting for the smallest tax base, but the highest percentage of state-owned land?”
Mark noted that towns with lower state-owned land reimbursements may incur a property tax hike as a consequence. He lives in Peru, a town of 900 people and no businesses.
“The only avenue they really have is property taxes,” Mark said.
Hawley is proposed to see a drop of 14.2 percent in state reimbursements: $63,452 this year down to $54,473 next year. As only about 400 people live in Hawley, and half of its land is owned by the state, the issue could be burdensome.
“It’s actually a problem we’ve been dealing with for decades,” Selectboard member Hussain Hamdan said, adding that annual reimbursements are “generally a lot lower than the towns would like.”
View the bill to assess the state-owned land funding formula at https://malegislature.gov/Bills/191/S1861.
Reach Grace Bird at
gbird@recorder.com or
413-772-0261 ext. 280.