Bill would let towns amortize emergency costs, clarify school‑bus procurement and permit longer school bond terms

Administration witnesses said the Municipal Empowerment Act would make permanent a policy that allows municipalities to amortize emergency‑related spending — spreading large, unplanned costs across three years to avoid single‑year budget crises that can force layoffs or program cuts.

“Section 35 allows municipalities to amortize emergency related spending over 3 years rather than having to pay for it all in 1 year,” Secretary Matt Gorkowitz told the committee, calling the change a permanent addition to the municipal toolbox after a successful one‑time FY24 provision.

Officials and municipal managers also urged clarification of school‑transportation procurement rules. Assistant Secretary Mark Fine noted an older statutory limitation (chapter 71, §7C) that can prevent state funds from supporting in‑house school‑transportation services when a private contractor is available. The administration asked the legislature to clear that provision so districts can consider in‑house options when competitive markets are thin.

Separately, Salem Mayor Dominic Pangallo and others asked for optional bond‑term flexibility for large school construction projects, arguing a 40‑year amortization choice would better match the longer service life of modern schools and reduce annual taxpayer costs. Mayor Pangallo cited Salem’s planned new high school and the higher absolute capital costs of modern construction as justification for broader bond‑term options.

Municipal speakers said these financial tools — amortization for emergencies, school‑transportation flexibility and bond‑term options — would help cities and towns manage capital costs and operating pressures more sustainably.