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A proposal to overhaul how the state accounts for inflation when it gives financial aid to communities is gaining interest, according to the Haverhill official who first crafted the idea.
Haverhill School Committee member Thomas Grannemann told his colleagues last week his proposed fix gained traction among legislators during an online presentation.
“What was remarkable about this is, Sen. (Pavel M.) Payano had an online video thing—invitation only—for people in the state house, which would include senators, reps and staff. There were 80 people signed up to listen to this topic. I got a sense that they all understood it and knew what we were talking about, This was not something vague to them, this is actually getting, if not traction for a solution, at least recognition of the problem,” he said.
Grannemann hopes to convince legislators to set a formula that automatically adjusts minimum state aid for inflation and account for years where inflation is above the existing 4.5% cap.
WHAV reported last March that Grannemann, a former economist, argues Haverhill should have received approximately $19.2 million in additional state aid since 2023. Inflation between 2022 and 2023 was higher than the state’s existing cap. According to reporting from WHAV in November, the city’s projected loss under the cap was approximately $3 million in 2023, $7.8 million in 2024 and a projected $8.3 million loss in 2024, reducing the district’s purchasing power by approximately 6%.
“So if you look at how that affects purchasing power, in the first year you’ve lost that adjustment, in the second year you’ve lost that adjustment for the previous two years, and in the third and fourth year you’re losing the amount of those two cumulative years even though you’re getting the full inflation adjustment of those years,” he said.
He said he continues to press ahead on his proposal, as no one knows “where inflation is going to be going forward.”
Committee member Paul A. Magliocchetti praised Grannemann, saying he has a “little glimmer of optimism.” Magliocchetti noted, “There were a lot of people from the state house from this call. None of us expected this. Our last meeting, as a matter of fact, with Sen. Payano’s team, I think they started to get a little bit nervous because of all of the reception they were getting on this issue,” he said.
He added, “I think it’s important for the community to understand, we are doing everything we can. We see the shortfalls that we’re going to have this year and we’re taking the fight to Beacon Hill.”
Grannemann’s proposal was also recently backed by the Massachusetts Association of School Committees, who is using the proposal to guide its legislative advocacy efforts.