Transcript Fiscal Year 2010 House Committee on Ways and Means Budget

House Committee on Ways
and Means Budget Briefing
Fiscal Year 2011
Chairman Charles A. Murphy
April 14, 2010
HWM Fiscal Year 2011
State Budget
Financial Overview
HWM Proposal – H4600
FY10 General Appropriations Act
$26.93 Billion
FY10 Current Spending
$27.05 Billion
HWM Proposal – H4600
FY10 General Appropriations Act
$26.93 Billion
FY10 Current Spending
$27.05 Billion
Governor’s FY11 – House 2
$28.21 Billion
HWM Proposal – H4600
FY10 General Appropriations Act
$ 26.93 Billion
FY10 Current Spending
$27.05 Billion
Governor’s FY11 – House 2
$28.21 Billion
HWM H4600
$27.80 Billion
HWM Proposal – H4600
FY10 General Appropriations Act
$26.93 Billion
FY10 Current Spending
$27.05 Billion
Governor’s FY11 – House 2
$28.21 Billion
HWM H4600
$27.80 Billion
$411M below Governor’s budget
HWM Proposal – H4600
$27.80 Billion
No new taxes
No elimination of tax exemptions
No draw from stabilization fund
HWM Proposal – H4600
FY11 Structural Budget Gap – $3.2 Billion
HWM Proposal – H4600
FY11 Structural Budget Gap – $3.2 Billion
$4,000
In Millions
$3,500
$3,000
$2,500
FY2011 Budget Gap
$3.2 Billion
$2.5 billion in FY10
One-Time Solutions
$2,000
$1,500
$1,000
$1.3 billion in FY11
Maintenance Growth
$500
$590M C.R. Growth
$0
Revenue
Expenditure
HWM Proposal – H4600
FY11 Structural Budget Gap – $3.2 Billion
Closing the Gap
$1.4 Billion in cuts/savings initiatives
$1.6 Billion in federal stimulus money
$91 Million from canceling stabilization fund transfer
$48 Million from trust fund sweeps
$24 Million from Authorities budget participation
$70 Million in additional revenues
HWM Proposal – H4600
Federal Stimulus Monies
Enhanced FMAP
$690M
Enhanced FMAP Extension
$608M
SSDI Overpayment Reimbursement
$160M
State Fiscal Stabilization Funds for Education
$96M
Total
$1.554B
HWM Proposal – H4600
$1.4B in Cuts & Savings Initiatives
 $745M in Line Item Reductions
 $300M for Long Term Debt Payments
 $234M in Local Aid Reductions
 $111M (net) in MassHealth Savings
Initiatives
 $15M Capping Commonwealth Care
(AWSS)
HWM Proposal – H4600
Bottom Line Overview
The GAA includes 644 line items
Level Funded 120 line items
Reduced 294 line items
Eliminated 15 line items
Anticipated Reduction in FTEs -1517
HWM Fiscal Year 2011
State Budget
Line Item Overview
HWM Proposal – H4600
Local Aid
Funded Ch.70 at $3.93B including SFSF
Funded Unrestricted General Government Aid at $899M
Increased Regional School Transportation by 5%
Increased Special Education “Circuit Breaker” by 1.4%
Level funded PILOT
Level funded Municipal Aid to Public Libraries
Level funded Tax Abatements for Veterans, Widows,
Blind Persons and the Elderly
HWM Proposal – H4600
Education
METCO funding - $17M
Extended Learning Time Grants - $15M
Full-day Kindergarten - $26M
Head Start - $8M
Non-Ch.70 accounts funded $2.6M above current FY10
spending levels
Did not adopt H2 initiative freezing Ch. 766 School teacher
salaries
HWM Proposal – H4600
Higher Education
Provided State Support at FY06 Funding Levels and
$21M in State Fiscal Stabilization Funding
 $419M with $11M in SFSF allocation for UMASS
 $189M with $5M in SFSF allocation for State Colleges
 $207M with $5M in SFSF allocation for Community Colleges
Total Reduction $132M from FY10
HWM Proposal – H4600
Healthcare
$9B to fund 1.2 Million MassHealth enrollees
Includes $256M in Gross Savings
Totals $111M in Net Savings
Reflects $601M increase in spending due to
3% enrollment increase
Provided $20M to providers through Essential
Community Providers Trust Fund
HWM Proposal – H4600
Healthcare
$60M for Aliens with Special Status Coverage


Caps the program at current enrollment
Provides $15M less than H2.
Adopted Governor’s savings initiatives for MassHealth Including:
 $174M (gross) for provider rates
 $58M (gross) in restructuring MassHealth programs
 Including the restructuring of adult dental
 $23M (gross) for program integrity enhancements
HWM Proposal – H4600
Homelessness and Emergency Shelter
Created new line item for $4M Housing Stabilization
Initiative to provide flexible funding for rapid re-housing
efforts
$113M for emergency family shelters
$38M for emergency individual shelters
$35.4M to Mass. Rental Voucher Program
HWM Proposal – H4600
Public Safety
$3.2M to fund new state police class in 2011
$6.5M in Shannon anti-gang grant program
Maintained funds for witness protection
$5M Quinn Bill
HWM Proposal – H4600
Judiciary
Reduced Trial Court by $30M, from projected FY10 spending
Level funded all District Attorney’s Offices
$192M for constitutionally obligated defense
- $32M Public Defenders
- $146M Private Bar Advocates
- $14M Additional Court Expenses
Funded Mass. Legal Assistance Corporation at $9.5M
HWM Fiscal Year 2011
State Budget
Outside Section Overview
HWM Proposal – H4600
Capital Gains Reform
All tax receipts from capital gains over
$1 billion deposited into
Stabilization Fund
5% Over $1B to State Retirees Benefits Trust Fund
Tempers volatile revenue source, for more
stable budgeting
HWM Proposal – H4600
Budget Transparency
Creates comprehensive, one-stop, online database to
track the use of taxpayer monies
Provides transparent check on all state spending
Other Outside Sections
No state monies for registered lobbyists
Study of capital to operating transfers
HWM Proposal – H4600
Substance Abuse Prevention and
Treatment Fund
Creates fund to receive all sales tax revenue from
sale of alcohol.
Monies to be used to fund prevention and treatment of
substance abuse.
Appropriated $96.3 million for FY11