Lawmakers are satisfied they've preserved local aid in the state's proposed budget, but local officials beg to differ.

The House Ways and Means Committee unveiled the $27.99 billion budget on Wednesday, highlighting the fact that Gov. Deval Patrick's original commitment to cities and towns was safe.

Not so fast, says Mansfield Town Manager John D'Agostino.

"When you have revenue numbers remaining static and an increase in costs and inflation, it will cost more for us," D'Agostino said.

Mansfield will receive $17.2 million in education funding, a $1.96 million increase over last year. But the total Lottery and Additional Assistance funds will remain the same, respectively $2 million and $725,000. "I think these numbers are going to hurt cities and towns in 2009 and 2010 more than before, because of the economic downturn," D'Agostino said.

Mansfield still faces a $900,000 deficit out of a $73.5 million budget.

To close the deficit, the town had to cut more than $750,000 in services, such as trash fees and professional development in the fire department.

"We may not be able to hire captains and lieutenants at this point," D'Agostino said. "And the option in revenue is limited."

On Wednesday, Mansfield's finance committee proposed using the city's stabilization fund to fill in the deficit.

Even if local aid represents the second biggest state investment, the additional $223 million - 6 percent more than last year - will only go to education under Chapter 70, bringing total Chapter 70 spending to $3.95 billion for the next fiscal year.

But when the $811 million from the Unrestricted Lottery distribution funds are added, the General Lottery funds will remain the same as last year at $935 million.

The Additional Assistance funds are unchanged as well. The total local aid is $5.26 billion.

Geoffrey Beckwith, executive director of the Massachusetts Municipal Association, said falling Lottery revenues led to a $124 million shortfall, which required the Legislature to raid its rainy day fund.

"The good news is that major municipal accounts are level-funded," Beckwith said. "The bad news is that this significant increase will only show up as level-funding." Beckwith said that considering the state budget deficit and the economic situation, the Legislature showed that it is aware of municipalities' needs.

But he said it does not solve the financial crisis cities and towns are facing.

"In a very tight budget year, it's a very significant and helpful step," Beckwith said. "It prevents municipal aid from being cut, but level-funding puts an extreme fiscal pressure on cities and towns."

With local aid still below 2002 levels for most municipalities, the cities and towns still face increasing costs and inflation, adding to the struggle to balance their budgets.

"We were expecting an increase," said Bill Bowles, Attleboro city council finance chairman who also is a candidate for state representative. "Costs are skyrocketing and salaries increasing. The $7.1 million budget that we have is essentially a cut for us."

Attleboro will receive $7.1 million in lottery funds, and $30.2 million for Chapter 70 education.

Bowles said that legislators should have considered taking a small percentage out of the rainy day fund (3 to 4 percent) to ensure a net increase in local aid.

"Taking a small amount from this and distributing it among cities and towns would have been the appropriate thing to do," he said. "There would be an increase to cover salaries and other increases."