Background

The Barnstable County Board of Regional Commissioners recently submitted a letter to members of the state budget conference committee and Cape Cod's legislative delegation supporting Senator Dylan Fernandes' Fiscal Year 2027 budget amendment (FY2027-S4-1035), which would create a commission to study how unrestricted municipal aid is distributed across the Commonwealth and identify potential improvements to the system.

To support that effort, Barnstable County Administration compiled publicly available state lottery, municipal aid, and inflation data to examine how the current distribution system affects Cape Cod municipalities. Barnstable County government does not receive or benefit from UGGA funding and prepared the report solely as an informational resource for local communities.

The analysis examines publicly available data related to lottery revenue, municipal aid, and inflation, highlighting several factors that may warrant further examination, including the role of property values in aid calculations, seasonal population impacts on municipal services, and the long-term effects of inflation on municipal purchasing power.

Commissioners noted that Cape Cod communities continue to invest in wastewater infrastructure, water quality protection, housing, transportation, and other critical public services while balancing the fiscal challenges facing municipalities across the Commonwealth.

Municipal Lottery Sales and UGGA Returns by Town

The Barnstable County analysis compares Massachusetts State Lottery sales generated within Cape Cod communities to the amount of Unrestricted General Government Aid (UGGA) received by each municipality. The chart below illustrates the percentage of lottery sales returned to each town through UGGA.