FYI - this would have the possibility of adding some additional funds to our Chapter 90 allocation. Not a huge amount -- about $11,600 increase, bringing our Chapter 90 allocation just over $310,000. Smitty met with Berkshire Managers about this in December and at his request, Mark Pruhenski (Town Administrator in Richmond) and I drafted a template letter of support for Managers and Administrators in the County to send to to Lieutenant Governor on this proposal.

From: http://www.iberkshires.com/story/59401/Pignatelli-Files-Bill-on-Changing-Chapter-90-Formula.html

Pignatelli Files Bill on Changing Chapter 90 Formula

05:42PM / Wednesday, February 27, 2019Print Story | Email Story

BOSTON — State Rep. William "Smitty" Pignatelli has filed a bill that would update the funding formula for the state's Chapter 90 program by shifting the percentages toward road mileage.

H.D.3714, An Act promoting equitable distribution of Chapter 90 funds, introduces a new formula through which cities and towns are reimbursed through the Chapter 90 bond authorizations.

"There is a dire need to maintain and improve infrastructure throughout our commonwealth, especially in the rural parts of our state," said Pignatelli in a statement announcing the filing. "While Chapter 90 funds can serve as a lifeline to communities, the current funding formula creates a disproportionate level of funding for many of the smallest towns in our state."

The Massachusetts Chapter 90 program often serves as the main or sole source of funding for road construction/repair for most cities and towns. The program authorizes funding to every municipality in the state based on a formula consisting of road miles, population, and employment. The current formula places an emphasis on three areas with the following percentages:

Road Mileage — 58.33 percent

Population — 20.83 percent

Employment — 20.83 percent

In Pignatelli's bill, the proposed new funding formula aims to take 5.5 percent of funds from the population and employment categories and applies an additional 11 percent to the road mileage category, allowing smaller communities to gain 17-18 percent in funding:

Road Mileage — 69.334 percent

Population — 15.333 percent

Employment — 15.333 percent.

The Chapter 90 program funding formula was created almost 50 years ago in 1972 and has not been upgraded since. The formula itself has no legislative history, and is overseen entirely by the Department of Transportation. Pignatelli was inspired to file a bill updating the new formula as a direct result of the critical infrastructure challenges facing small communities.

"I want to start a conversation which addresses the inequality of Chapter 90 funding for rural vs. urban communities," he said. "The Massachusetts Municipal Association (MMA) released a report this year updating the statewide estimate of local road funding needs for cities and towns and concluded that communities across the commonwealth need to spend $685 million per year to maintain, repair, and rebuild all of the roads currently under control of the local government. This means that the Chapter 90 formula has to increase in order to adequately complete projects and repair local roads across Massachusetts."

A majority of small towns in the state face such a backlog of road repair need that they often have to use funding allocated through the Chapter 90 program for other outstanding projects or engineering programs. According to Pignatelli's office, 31 out of 32 towns in the Berkshires would benefit from updating the current formula.

"Of the 10 smallest towns in the state, seven are in Western Massachusetts and four are in the district I represent," said the Lenox Democrat. "We must update the process to reflect the true nature of the roadways and lack of funding possibilities for small communities, many of which are heavily based in Western Massachusetts."

Although larger communities could lose 13-18 percent of Chapter 90 funds through the new formula, Pignatelli says these towns are able to recoup those losses through a large diversity of funding opportunities through grants and greater borrowing abilities. Smaller communities are limited to one competitive MassWorks grant every three years.

Many smaller towns put aside their Chapter 90 road funds over a several-year period to raise enough to address significant road issues. Reconstructing and paving a road can top $1 million a mile.

"This is primarily driven to recognize the inherent disadvantages in obtaining Chapter 90 funding where the formula is based on the amount of road miles a town covers but that town is also lacking in population," Lenox Town Manager Chris Ketchen said.

An Act promoting equitable distribution of Chapter 90 funds has been sent to the Joint Committee on Transportation.