Disproportionate effects of Massachusetts mandates on municipal budgets: a quantitative study.

• Online Access: http://hdl.handle.net/2047/D20319827

This study used quantitative methodologies to examine whether there are differences in the fiscal impacts of state mandates in Massachusetts municipalities based on the size of the municipality. Municipalities have the task of allocating resources on a variety of mandates as they balance their fiscal responsibilities. This study focuses on the Massachusetts Public Records Law changes of 2016 and its impact on how municipal clerks manage their operational responsibilities. The Massachusetts Public Records Law requires municipalities to have at least one Records Access Officer. The Public Records Law states that the municipal clerk is one of the Record Access Officers; therefore, this study utilized clerk budget data for understanding the operational responsibilities and, as a result, the fiscal impact on municipal clerks' departmental budget. Proposition 2 ½, limits the amount of taxes that can be levied by municipalities. The research considered Proposition 2 ½ and its limitations on municipalities to determine whether Massachusetts Public Records law has a more significant impact on smaller municipalities. Using a Difference-in-Differences econometrics technique, the study found that there is no significant difference in the impact of this mandate on small municipalities compared to larger municipalities. However, this study concludes that there is a need to authorize further research by the Massachusetts Legislature with regard to the way the State's Auditor's Division of Local Mandates calculates impacts for potential reimbursement by the Commonwealth. There are implicit assumptions that the implementation of state mandates is more fiscally challenging to small municipalities. The intent of the study was to explore the assumption that small municipalities realize a greater fiscal impact, proportionally, from state mandates than do large municipalities.