MassBudget: Senate Ways & Means budget proposal

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Analyzing the Senate Ways & Means Budget Proposal Like the proposals from the Governor and the House, the Senate Ways and Means (SWM) Committee budget for Fiscal Year 2018 (which begins July 1) would generally maintain existing service levels while making small targeted new investments in several areas, particularly in education. This budget also joins the House in addressing a major fiscal challenge identified by the Governor: the increases in MassHealth costs related to declines in employer-provided health care and increases in private-sector employees receiving their health coverage through MassHealth.  The Governor had proposed a $2,000 per-employee assessment on employers who failed to meet certain benchmarks for providing coverage to their employees. While this amount is significantly less than the $5,000 or more it would generally cost employers to provide coverage for their employees directly, the assessment has been criticized by some in the business community.  The Senate Ways and Means Committee, like the House, authorizes the administration to develop a plan that addresses concerns raised by the business community and generates $180 million in revenue (the Governor's original plan would have generated $300 million in FY 2018). In the House and SWM proposals, the assessment would also expire after two years. By creating only a temporary revenue source for what is likely to be an ongoing expense, the legislature would increase the budget's reliance on temporary revenue, which will make it more difficult to produce a balanced budget in future years. The SWM budget proposes increased investment in early education and care, local public schools, and higher education.  It proposes an increase of almost $15 million for the Commonwealth Preschool Partnership Initiative, which will expand access to early education, particularly for three-year-olds.  The SWM budget also proposes an increase of $129 million in Chapter 70 local aid for education, modestly more than the Governor and House. Unlike those budgets, it recommends substantial increases in higher education funding ($42 million over current funding levels). Like proposals from the Governor and House, this budget does not propose significant new funding to make progress on some of the big challenges our Commonwealth faces, such as significantly expanding early education; making sure that our schools have the resources they need to provide high quality education for all children in the Commonwealth; or fixing our existing transportation infrastructure while constructing the infrastructure for future growth. While tax revenue in FY 2017 has been coming in below projections, the SWM budget, like those of the Governor and the House, continues to use the consensus revenue estimate previously agreed to by the House, Senate and Governor.  There is some uncertainty about what the FY 2017 tax revenue numbers will mean for FY 2018. Revenue connected with people filing and paying their 2016 taxes in April was down substantially, which  reflects economic conditions in the prior year.  On the other hand, the most recent data on withholding taxes - which track current economic performance - were strong (although sales tax receipts, which also reflect current conditions, have not been strong). In other words, while the decline is cause for concern, it is not clear how it will affect the trend going forward. State finance law directs the Governor to make that determination and update his budget accordingly: "If the governor determines ... that the tax revenues or non-tax revenues supporting the general appropriation bill have materially decreased... the governor shall submit to the general court by message recommended corrective amendments to the governor's original budget submission to ensure that total appropriations recommended in the general appropriation bill do not exceed total revenues supporting said bill. Such message shall be submitted to the general court within 15 days from the date of such determination." The rest of this Budget Monitor examines the Senate Ways and Means Committee proposals for major state programs in greater detail. Links from the Table of Contents below allow readers to jump quickly to specific sections. Each section also provides links to our on-line budget tools including our Budget Browser (which provides funding information for every account in the state budget going back to FY 2001) and, where applicable, to our Children's Budget and Jobs and Workforce Budget. Click on a Budget Monitor section below: Child Welfare Disability Services Early Education Economic Development Elder Services Environment and Recreation Juvenile Justice K-12 Education Higher Education Housing Law and Public Safety Libraries Local Aid MassHealth and Health Reform Mental Health Other Human Services Pensions Public Health Revenue State Employee Health Insurance Transitional Assistance Transportation To read the full Senate Ways and Means Budget Monitor, click here (LINK). The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

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MassBudget: What's the actual state cost of MassHealth?

What is the Actual State Cost of MassHealth? This year, the MassHealth program (the name for Massachusetts' Medicaid program) will provide health insurance for 1.9 million residents: children in low-income households; low-wage workers; elders in nursing homes; people with disabilities; and others with very low incomes who cannot afford insurance. This is more than one-quarter of the Commonwealth's population, including close to one-half of all children. Not surprisingly, such a significant program represents a large share of the state's budget. But how much? MassBudget's new fact sheet, "What is the Actual State Cost of Mass Health in 2018?," explains that since Medicaid is a partnership between state and federal governments, much of this essential health care coverage is actually paid for by the federal government. The Governor's proposed Fiscal Year (FY) 2018 budget includes approximately $16.6 billion for MassHealth. This total (or "gross" amount) is approximately 37 percent of total state budget appropriations. The federal government then reimburses Massachusetts for more than half of this spending. After receiving these reimbursements, the state's net cost for MassHealth is $8.0 billion, 24 percent of the total net budget. To read the full MassBudget fact sheet on the actual cost of MassHealth, click here (LINK). #   #   # The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108 Sent by nberger@massbudget.org in collaboration with Try it free today

Senate Ways and Means Releases FY 2018 Budget Recommendations

The Senate Committee on Ways and Means today (Tuesday - May 16)  announced a $40.79 billion budget for Fiscal Year 2018. The budget recommends targeted investments in a variety of areas to sustain and advance our shared prosperity and future growth, directing resources to programs and services essential for children, families and communities.

“This budget focuses on the fundamentals: education, health and human services, and housing,” said Senator Karen E. Spilka (D-Ashland), Chair of the Senate Committee on Ways and Means. “The Committee is clear-eyed about the fiscal environment in which we release our recommendations, but we stand firm in our belief that money invested in securing hope and opportunity for our people is money well spent. As we face unsteady times, we must be prepared to act responsibly. But we must never lose sight of the fact that our fortunes rise and fall together, and that taking care of each other is a core Massachusetts value.”

“This Senate budget makes strategic investments in the Commonwealth’s most critical programs and services, while still working within the context of our fiscal realities,” said Senator Sal DiDomenico (D-Everett), Vice Chair of the Senate Committee on Ways and Means. “As the chair of the Senate Kids First working group, I am particularly pleased with the targeted investments and wide range of supports we included for children and their families. I am proud to have once again worked with Chairwoman Spilka to craft a sustainable and compassionate budget that both reflects the shared priorities of the Senate and addresses the pressing needs of communities throughout the Commonwealth.”

“Once again, we face a very challenging budget year. Our revenues are inadequate to meet many needs and commitments in education, transportation, and housing, among other critical areas” said Senator Pat Jehlen (D-Somerville), Assistant Vice Chair of the Senate Committee on Ways and Means. “Chairwoman Spilka and her team have listened to senators and advocates. With compassion and innovative ideas, they worked hard to reconcile those needs with our current resources.”

The FY 2018 budget includes $40.79B in total spending, an increase of 3.3% over FY 2017 estimated spending, and invests in key areas related to local aid, education, health and human services, housing and workforce development. The Committee’s budget recommendations limit the use of one-time revenue sources and protect the state’s Stabilization Fund.

In line with the Senate’s Kids First framework to invest in our children, the Committee directs funding to high quality education for everyone, from children at birth to adults making midlife career transitions.

• $4.76B in Chapter 70 education funding, including a minimum increase of $30 per pupil aid, 85% effort reduction to bring school districts closer to their target spending and steps to implement the Foundation Budget Review Commission’s recommendations for health care and special education costs.

• $545.1M for community colleges and universities and $529.5M for the University of Massachusetts, to support lifelong learning and workforce development initiatives at our state higher education institutions.
• $293.7M to fully fund the Special Education Circuit Breaker for the 6^th year in a row, reimbursing school districts for the high cost of educating students with disabilities.
• $15.1M to expand access to high quality preschool for low income 4 year olds.
• $10M to boost salaries for early educators.

The Committee’s budget takes steps to contain health care costs and invests in health and human services to ensure access to high quality, affordable health care and to support children, seniors, people with disabilities and veterans.

• $143M for a range of substance abuse treatment, intervention and recovery support services.
• $91.4M for mental health services for children and young people, including $3.7M for the Massachusetts Child Psychiatric Access Program and $100K for a new pilot program to increase care coordination and referral resources for children with behavioral health needs.
• $24.2M to fully fund Department of Developmental Services Turning 22 services to help young people with disabilities transition to the adult services system.
• $13.2M for Family Resource Centers, providing an array of services for families across the state, including multi-cultural parenting programs, support groups and early childhood services.
• $3.5M to encourage collaboration among agencies, schools and community partners to strengthen programming for early detection and screening for mental illness in children.

The Committee’s budget invests $464.1M in low income housing and homelessness services, with a focus on preventative and supportive resources to connect people with affordable, stable housing, as well as assistance for those in crisis. In addition to increasing funding, the budget expands access to housing and homelessness prevention resources by increasing the income threshold for rental vouchers, expanding eligibility for the Residential Assistance for Families in Transition (RAFT) program and increasing the HomeBASE re-housing subsidy cap to better divert families to housing.

• $165.9M for Emergency Assistance Family Shelters.
• $100M for the Massachusetts Rental Voucher Program, providing funding for 350 to 400 new rental assistance vouchers.
• $46.2M for assistance for homeless individuals.
• $32.6M for the HomeBASE diversion and rapid re-housing program.
• $18.5M for RAFT, providing short-term financial assistance to low income families who are homeless or at risk of becoming homeless.
• $5.5M for the Alternative Housing Voucher Program to provide over 100 new rental assistance vouchers for low income people with disabilities.
• $2.5M for housing and supportive services for unaccompanied homeless youth.

The Committee’s budget also makes targeted investments to promote self-sufficiency among low income families and create opportunities for people to develop the skills they need to compete in the workforce and boost our economy.

• $30M for adult basic education services.
• $14.6M for the Department of Transitional Assistance Employment Services Program to help people move toward economic independence and self-sufficiency.
• $12.5M for summer jobs and work-readiness training for at-risk youth.
• $4M for the Workforce Competitiveness Trust Fund.

The Senate Ways and Means budget continues the Senate’s strong partnership with municipalities in directing significant investments to local aid and community services.

• $1.06B for Unrestricted General Government Aid (UGGA) to support community investments in education, health care, public safety and roads and bridges.
• $83M for Regional Transit Authorities.
• $27.7M for the Board of Library Commissioners, $10.4M for regional library local aid, $9.8M for municipal libraries and $2.3M for technology and automated resources.
• $16.5M for the Massachusetts Cultural Council to support the state-wide creative economy and local arts and culture.
• $14M for local Councils on Aging to strengthen programs and services in senior centers.

Senators can file amendments to the Senate Ways and Means recommendations until Thursday at 5 p.m. The full Senate will then debate the Fiscal Year 2018 budget in formal session beginning Tuesday, May 23^rd. The FY 2018 Senate Ways and Means Budget Recommendations are available on the Massachusetts legislature’s website: https://malegislature.gov/Budget/SenateWaysMeansBudget.

MassBudget: Analyzing the House budget proposal

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Analyzing the House Budget Proposal for Fiscal Year 2018 The House largely followed the recommendations of its Ways and Means (HWM) Committee in crafting its budget proposal last week.  The state budget is how we as a Commonwealth determine how much we will spend in the coming year to educate our children, provide local services, ensure access to health care, protect public safety, and accomplish everything else we do through our government. In two days of debate the House adopted amendments to the Fiscal Year 2018 budget that increased funding by just under two tenths of one percent from the levels its budget committee proposed last month. MassBudget's new Budget Monitor describes the changes adopted by the House in each major section of the budget.  While many of the House amendments provide targeted funding to specific programs in particular communities, a few address significant issues of statewide concern, including the following: An increase of $5.0 million (above the $15.0 million proposed by the HWM Committee) for early education and care rates. This additional funding would provide enhanced support for early education quality efforts including salary and benefit increases along with professional development for early educators. A study on the feasibility of creating a common application for MassHealth and several other public benefit programs. In particular, creating a common application for MassHealth and the Supplemental Nutrition Assistance Program (SNAP or "food stamps") would help identify people who are potentially eligible for SNAP but are unenrolled (the so-called "SNAP Gap"). Doing so would simplify the application for the program and would get more low-income residents in the Commonwealth on SNAP, a fully federally-funded program that is central to combating food insecurity across the state. The rest of this Budget Monitor examines the House amendments to major state programs in greater detail. Links from the Table of Contents below allow readers to jump quickly to specific sections. Each section also provides links to our on-line budget tools including our Budget Browser (which provides funding information for every account in the state budget going back to FY 2001) and, where applicable, to our Children's Budget and Jobs and Workforce Budget. Click on a Budget Monitor section below: Child Welfare Disability Services Early Education Economic Development Elder Services Environment and Recreation Juvenile Justice K-12 Education Higher Education Housing Law and Public Safety Libraries Local Aid MassHealth and Health Reform Mental Health Other Human Services Pensions Public Health Revenue State Employee Health Insurance Transitional Assistance Transportation To read the full House Budget Monitor, click here (LINK). The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108 Sent by nberger@massbudget.org in collaboration with Try it free today