DOR Will Not Issue an Early CPA Trust Fund Estimate This Year

Each October, the state's Department of Revenue (DOR) releases an early prediction of the following year's CPA Trust Fund distribution. This year, however, with much volatility in deeds collections, DOR reports that they will not be making an early estimate.  We should see our first look at the October 2011 distribution estimate when DOR issues their annual budgeting memo around March of next year.

Trust Fund Collections Up Over Past Three Months

The recent trend is positive for CPA Trust Fund collections at the Registry of Deeds. Trust Fund Receipts from September to November totaled $7.3 million this year, versus $6.7 million last year -- an increase of $600,000. We will continue to monitor the trust fund revenues and report on the figures in future issues of CPA Update.

CPA Trust Fund Receives Interest Payments
While filing fee revenue is slowly increasing for the CPA Trust Fund, interest earned by the fund has fallen dramatically. Under Section 9b of the CPA law, the interest earned by money in the trust is deposited back into the fund and used as part of the annual matching payments to CPA communities. The interest earned has been substantial since CPA was passed, however, as Trust Fund receipts have declined, interest collected has declined correspondingly. Clink on the link below to see a report showing interest amounts credited to the Trust Fund since 2003.  The report also details the expenses that have been charged to the Trust Fund by DOR to cover administration of the CPA program. 

Click here to see the interest totals and DOR expenses by fiscal year.

One of the strongest arguments for CPA is the ability of communities to use their community preservation funds to leverage other funding sources. A prime example of this is the state's LAND grant program, which provides up to $500,000 in matching funds for municipal open space acquisitions. 

The state recently awarded LAND grants to nineteen communities, and seventeen of those grants went to CPA open space projects -- a whopping 89%. In 2009, nine of the twelve communities that were funded through the state's LAND grant program were CPA communities. 

Like the LAND grant, many state and private grant programs require a local match. In these tough fiscal times, many communities may have a hard time mustering up the matching funds, but CPA communities have a head start. 

 
View a statewide map of the LAND Grant awards, and for more information on the successful grant applications, click here.

Photo of Fuller Farm at Middle Pond courtesy of Town of Barnstable