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State withheld some Holyoke aid pending Schedule A; treasurer says cash flow managed and funds expected in June

3585424 · May 29, 2025

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Summary

Auditor and treasurer told the council the state withheld certain Cherry Sheet aid because the city had not filed Schedule A; the treasurer said the administration has managed cash flow and expects withheld aid to be released in June once filings are complete.

Councilors pressed the auditor and treasurer about a Department of Revenue (DOR) practice that withholds some state Cherry Sheet aid when a municipality has not filed the required Schedule A. Tanya (Auditor) said Schedule A had not yet been filed; Rory (Treasurer) told the council that the state begins withholding aid in February when a Schedule A is missing.

Rory said he had met with DOR and the Bureau of Accounts and that the state indicated the withheld aid would be released in June once the city’s reconciliations and Schedule A are complete. He told the council he has been managing cash flow by staging investments to mature in case cash was needed; he said the city had not engaged in short‑term external borrowing to cover the gap.

Councilors asked for specifics. When asked about the scale of the withheld aid, Rory estimated that the city receives roughly $8,000,000 in monthly local aid and suggested the cumulative withheld amount could be on the order of multiple monthly payments (discussed as a rough $32 million figure during the hearing). He said the state’s commitment this morning was that the aid would be released before June.

Auditor Tanya said the Schedule A and final free‑cash calculations remained a work in progress; she said staff were completing final adjustments and hoped to submit in time. The mayor and treasurer both said they had discussed the situation with state officials and felt confident the technical filing issues would be resolved shortly.

Councilors asked for a formal update to the council once the Schedule A is filed and the state releases the withheld funds. Rory agreed to provide a communication to the council president and to the council when the matter is resolved.

No formal action was taken; discussion focused on timing and the administration’s plan to complete reconciliations, file Schedule A and push the certified free‑cash amount to support year‑end budget adjustments.