Massachusetts Department of Revenue (DOR) issues FY2009 CPA Trust Fund Projection

For the first time in the seven-year history of the CPA, it is anticipated that the statewide CPA Trust Fund will have insufficient revenue to issue a 100% match to CPA communities in FY09. Today, the DOR issued the following information on the trust fund match in their FY2009 Budget Issues and Procedures Bulletin (#2008-04B):

Community Preservation Fund

There are 127 cities and towns that have adopted the Community Preservation Act and are eligible for state matching grants in FY09. As a result of decreasing collections of fees at the Registry of Deeds and the increased number of communities participating in the program, the Division estimates that the balance in the state trust fund will be sufficient to provide a first round match of approximately 65 percent of the surcharge levied by each city and town. This will trigger a second round or equity distribution for those communities that have adopted the maximum three percent surcharge. With the equity distribution, the total state reimbursement for qualifying communities will increase to between roughly 66 percent and 100 percent, depending on the community's quartile and total surcharge amount (see below). Please note that these estimates are subject to change if Registry collections decline further between now and September.

The state matching grants for FY2010 are projected to be considerably lower than the FY09 forecasted percentage given the downward trend in Registry fees and the expected balance in the state fund after the FY09 state match and equity distributions are paid in October of 2008.

There are 71 communities that have adopted CPA with a 3% surcharge, and those communities will receive additional funds from second/third rounds of the trust fund distribution. Each of the 71 communities are ranked according to the formula contained in the Act for these additional rounds. In the bulletin, the DOR provided a spreadsheet showing the decile ranking for all communities in the state.

Click here to access the CPA Trust Fund decile rankings

The Community Preservation Coalition will be providing additional information on the trust fund distribution in an upcoming issue of our newsletter, CPA Update, due to be released March 28, 2008.