Franklin, MA: Finance Committee meeting - Agenda for Dec 7, 2022 - 7 PM

Finance Committee 

Meeting Agenda & Meeting Packet 

Wednesday, December 7, 2022 - 7:00 PM

Agenda

1. Call to Order

2. Public Comment

3. Approval of Minutes: November 9, 2022

4. 2023 Finance Committee Schedule

5. Updates:

a. S&P Bond Ratings Report - November 2022

b. Stabilization Funds

c. FY23 Budget Update

6. The Bill Dowd “Deep Dive” Series

a. Discussion: Franklin Public School Department 

7. Future Agenda Items

8. Executive Session

a. Considering the purchase, exchange, lease or value of real property, because an open meeting may have a detrimental effect on the negotiating position of the Public Body

9. Adjourn

The agenda and released documents for this meeting can be found ->

https://www.franklinma.gov/sites/g/files/vyhlif6896/f/agendas/12-07-2022_finance_committee_agenda.pdf

Franklin, MA: Finance Committee meeting

Finance Committee gets update on FY 2023 budget year to date and recommends approval of $542K in transfers (audio)

FM #876 = This is the Franklin Matters radio show, number 876 in the series. 

This session of the radio show shares the Finance Committee meeting held on Wednesday, Nov 9, 2022. 

Seven members of the Finance Committee participating (2 absent) were in the Council Chambers along with Town Administrator Jamie Hellen, Assistant Administrator Alecia Alleyne, Comptroller Chris Sandini, and Treasurer/Collector Kerri Bertone. 

The primary discussion around the current progress to date on the budget. There was a resulting action for approval of $542K to transfer among accounts prior to the rating set later this month. 

The meeting recording runs about forty minutes, so let’s listen to the Finance Committee meeting Nov 9, 2022.

Audio file ->  https://franklin-ma-matters.captivate.fm/episode/fm-876-franklin-ma-finance-committee-mtg-11-09-22

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Meeting agenda document ->   https://www.franklinmatters.org/2022/11/finance-committee-meeting-agenda.html 

 

My notes ->   

https://drive.google.com/file/d/1gArra7vxwfjHBmtFW9sVKePFI6fDzwa3/view?usp=share_link

 

Link to Finance Committee => https://www.franklinma.gov/finance-committee 

YouTube recording =>  https://youtu.be/Nz2XFmTQZ64 

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The music for the intro and exit was provided by Michael Clark and the group "East of Shirley". The piece is titled "Ernesto, manana"  c. Michael Clark & Tintype Tunes, 2008 and used with their permission.

I hope you enjoy!

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Finance Committee gets update on FY 2023 budget year to date and recommends approval of $542K in transfers (audio)

Finance Committee Meeting - Agenda - November 9, 2022 at 7 PM

Finance Committee Meeting 

November 9, 2022

Meeting will be held at the Municipal Building

2nd floor, Council Chambers

355 East Central Street

Agenda

1. Call to Order

2. Public Comment

3. Approval of Minutes:10-26-2022

4. FY23 Operating Budget Adjustment

a. Town Administrator Memo

b. FY23 Budget Revenue and Control Sheet, adjusted

c. Resolution

5. Future Agenda Items

6. Adjourn

Please find the agenda and links here:   https://www.franklinma.gov/sites/g/files/vyhlif6896/f/uploads/fin_com_mtg_agenda_nov_9_2022.pdf 

Finance Committee Meeting - November 9, 2022 at 7 PM

FY 2023 Budget Adjustments for Review by Finance Committee - Nov 9, 2022

November 4, 2022

 

Memorandum

 

To: Finance Committee

From: Jamie Hellen, Town Administrator

Alecia Alleyne, Assistant to the Town Administrator

Re: FY23 Budget Adjustment & Five-Year Fiscal Forecast Update

We are requesting the Finance Committee to support the amendment to the FY23 Town operating budget as outlined in this memo and recommend the changes to the full Town Council for their approval prior to setting the annual tax rate on November 30th.

Overall, the budget appears to be right on track through 9/30/22. Revenues have hit targeted projections and the staff has done a terrific job of managing cost increases in their expense budgets. We have attached an updated revenue sheet for local receipts through 9/30/22.

Five-Year Fiscal Forecast Update

There is very little updated news since the published forecast in August 2022. Click here for the forecast. Since August, the Federal Reserve has raised interest rates an additional ¾ of 1%. Home mortgage rates have reached a near 40-year high and many economic experts continue to predict a recession within the next 12 to 18 months. The federal government also announced the federal deficit is at $31 trillion. We have attached a recent Massachusetts economic analysis from MassBenchmarks, which is published through a partnership between the UMass-Amherst Donahue Institute and Federal Reserve Bank of Boston, that notes in its October 27, 2022 quarterly report the state’s “declining workforce and interest rate exposure in key industries make the Commonwealth vulnerable to an economic downturn”. The Town should be cognizant of these dynamics and will present new fiscal pressures on the operating budget in the coming fiscal years.

The only additional commentary is it will be our objective throughout the fiscal year to monitor the Town’s financial situation through the lens of the recently awarded AAA bond rating from the rating agencies. As anyone can see in the report, recent financial actions by the Town have resulted in a top rating. As the global economy continues to adapt to geo-political situations, it is prudent to follow these trends, which will ensure the Town maintains its AAA bond rating. This policy approach is a key technique to maintain services within the tax levy.

For those who have not read the ratings report, please click here. It is the most important document to read.

 

Revenue Adjustments

The following is a macro-synopsis of the revenue adjustments to the FY23 budget from the budget approved earlier this year at the annual budget hearings in May:

1. According to the Assessors, New Growth should attain approximately a $271,000 increase.

2. The Local Receipts bottom line will stay the same except for the additional funds received from the J&J opioid settlement and Host Community Agreement (HCA) funds. Two revised items are:

a. Host Community Agreements, as predicted, will decline. The numbers here depict actual receivables to date and NOT anticipated. I expect this revenue source to be eliminated at a date uncertain in this fiscal year. The Town still has the local option excise tax at 3%.

b. J&J Opioid settlement is a new line item of revenue received due to the national opioid settlement. The Town has received $67,505 to date. Expenditure for these funds have strict restrictions per state law, but amounts will be as follows:

i. SAFE Coalition will receive $50,000 for direct substance abuse support; and

ii. Franklin Fire and Franklin Police will receive $17,505 for narcan, training and support in responding to opioid cases in Franklin.

3. State Aid, Assessments & Other Revenues should see an overall increase of approximately $290,000 after the state local aid, education, county assessment and state budget formulas settle out.

Expense Adjustments

The attached resolution depicts the changes within each departmental account on the voting document. All of the changes to this document reflect the actual costs of the municipal collective bargaining agreements that have been ratified, as well as the 2.5% COLA adjustment for all municipal nonunion staff. The exceptions are:

1. The Town Administrator’s expense budget increased just over $103,000, which is where the opioid and host community agreement funds will be expended from.

2. Line item 164 Elections increased $14,738 due to state laws on mail in and early voting.

3. Line item 610 Library is noted due to the large shift from Expenses to Personnel due to collective bargaining agreement. The germane note is that the overall budget maintains the state required funding (“MAR”) requirement.

4. Line items 710/750 Debt & Interest have increased $225,044 to reflect the actual costs of the borrowing for the Municipal Building improvements and the Horace Mann drainage project.

5. Line item 910 - Comp Reserve is reduced approximately $430,000, which are the funds transferred for the COLA and CBA’s. The remaining amount in comp reserve will go toward the usual reasons for appropriation, such as unforeseen personnel decisions, retirement costs, recruitment and retention of employees, collective bargaining, etc. Additionally, I expect some funds to be used to begin implementing the Compensation & Classification Plan, which should be completed later this Fall. Any unused funds revert to the Town’s Free Cash allotment for the annual Capital Plan.

Please let us know if you have any questions

Shared from the Finance Committee agenda ->

https://www.franklinma.gov/sites/g/files/vyhlif6896/f/uploads/fin_com_mtg_agenda_nov_9_2022.pdf

Town of Franklin (MA): Five Year Fiscal Forecast - FY 2023 (part 2 of 5)

This continues to share the Five Year Fiscal Outlook for the Town of Franklin as published by the Town Administrator, Jamie Hellen:

FY23 Financial Outlook

Revenues

As the Town enters FY23, revenues look to be stable in all areas: local receipts, state aid, and new growth. Up until FY23, state aid has remained at less than a 1% annual increase due to the dynamics of the Chapter 70 formula, town demographics and the Town’s growing affluence. Local receipts have remained on a steady increase due to the incredible work of our municipal staff due to an increased demand in services, such as ambulance, EMS services and permitting. FY22 saw a decrease in New Growth from FY19, FY20 and FY21. I expect a modest, stable year again. It is important to reemphasize that our permitting boards continue to see a lukewarm construction market relative to the pre-pandemic years with a notable leveling off of applications before the permitting boards. With supply chain problems continuing globally, I expect property improvement investments will maintain a plateau until there is greater confidence in those goods being provided and/or cost increases subside.

Property values, which are the foundation of the entire town budget through the property tax levy, remain strong due to supply and demand dynamics in the real estate and housing markets. Property taxes are the baseline, as well as largest source of revenue, for the town's services. As long as property values maintain a high value, the town will see decent stability in the budget.

As usual, once the state legislature is done with the legislative session and the various legislative packages being considered are complete, including the state budget, staff will see where all the numbers fall later this summer and propose any adjustments to the Town budget prior to the tax rate hearing in December. I anticipate an increase in state aid, but as discussed for years, not by enough to make a significant new investment impact in the local budget. Any additional revenues will be used to cover shortfalls in other areas due to rising costs of goods and services and labor/personnel.

Expenditures

As of this publication, the main fiscal concerns and challenges for the Town in FY23 are the issues we are all seeing in the news: rising interest rates; inflation; gas/diesel and electricity/gas costs; rising costs of goods and services; health care costs; labor and personnel costs; and the overall uncertainty of the economy. FY23 appears to be a “settle into a new normal” year of actually feeling the impacts of inflation within the local budget.

There will be stress on the FY23 budget due to inflation and increased costs. For example, the Town is looking at a doubling of the cost of fuel/diesel over FY22. Additionally, we are looking at escalating electricity rates of possibly two-plus cents a KW higher. As basic operating costs, such as utilities rise, this will have an impact on other areas of the budget.

We are also seeing bids for construction projects coming in much higher than anticipated. For example, the recent SNETT trail project we are working on with the state DCR was estimated at $200,000 a year ago when the work was designed and approved by the Conservation Commission. The bids came in between $400,000 to $800,000 - double to four times the estimated cost from one year ago! We are seeing similar issues on smaller projects. The Red Brick Schoolhouse bids came in $50,000 to $250,000 over the estimated cost, which was just designed four months ago! These examples depict an environment everyone will need to get used to: money will not be going “as far” as it did a year ago. The Town is only one month into the fiscal year and inflation is going to settle into the budget.

To weather this storm, the Town must use nimble strategies throughout the fiscal year to make sure there are no significant cost overruns by next spring. The community should be prepared

 

that costs for basic services, such as snow and ice removal, parts, supplies, personnel, goods, services, etc., will all place a strain on the FY23 budget throughout the year and therefore may require services to be reduced in areas of the budget. FY23 has all the markings of an adjustment year in terms of what levels of service the tax levy can support and how consistent the economy can be for revenues.

FY23 should also see all major collective bargaining agreements being resolved, which is good for labor relations and recruitment, staff morale, as well as financial predictability. The downside is that to complete these contracts, the use of one-time revenues for the school and town unions sets up an inflationary situation within the Town’s operating budget come the expiration of those funds in the next couple of years.

FY23 capital projects

To ensure the Town is ready for the altering dynamics in FY23, any new capital improvement projects (facilities, roads, infrastructure, borrowing) that come to our attention after August 1st, 2022 will be postponed and put on hold for discussion to ensure the Town has the accurate resources to fund current projects. All capital projects currently authorized by the Town Council or in the Town Council’s goals for 2022-2023 will continue to move forward. However, as we move through the phases of a project (design, procurement, borrowing, awarding contracts, beginning work), I will not commit to any new projects until the town has greater certainty around the cost effects of that project. In other words, unless there is a significant public emergency, do not expect new projects entering the pipeline. As described above, inflation is caused by the high demand in spending with not enough supply to accommodate the demand. Franklin will need to consider doing our part to decrease the demand in the marketplace.

I will have to evaluate and view the FY22 capital program in a new light when free cash is certified later this fall. I cannot make any commitments for new projects due to rising interest rates and the fact that many of the projects currently in the pipeline are seeing cost increases that may need to be augmented from capital funding later this fall and winter.

The American Rescue Plan Act (ARPA) federal stimulus money is proving to be a bridge for the town on many fiscal obligations that could have had a negative effect on the town’s budget and delivery of services. ARPA money allowed the town to push the implementation date of the new stormwater utility fee out one year to FY24 (July 1, 2023), which has provided financial relief to all citizens for this upcoming FY23. Other financial obligations such as water main infrastructure, sewer infrastructure, personnel and labor costs, and the mental health crisis are all areas that the Town would not have been able to subsidize or invest in without these funds.

Speaking of sewer, an issue to watch in FY23 is the Beaver Street Interceptor project: the 109-year old pipe that hauls ⅔ of all town sewerage to the Charles River Pollution Control District. This will be one of the most expensive and complicated public works projects in town history. Sewer rates are expected to rise in late FY23/FY24 to pay off the borrowing with this project. While some may say to put a project like this on hold, the truth is the cost of inaction will be far more expensive and damaging to the community than the cost of the rate increases. Nonetheless, a project of this size and importance will be taken step by step to ensure the best return on investment for the ratepayers and may require nimble decision making based on market conditions as the project moves forward. These rate increases will only affect sewer system customers, not private septic residents.

In closing, FY23 appears to be a transitional year toward a new, inflated normal with inflation, interest rates and rising costs. I remind all readers, what happens in the news on a daily basis around the economy can take months or years to actually settle in at the local level. That relates to both the good and bad news. Also, reversal of these trends also can take months or years (even decades) to recover from. As everyone knows, every day has both positive and negative signs for future economic fortunes. I have provided a few economy related reference points as the fiscal year starts to offer context as to how international and national affairs have an impact on the state and local budgets:

● The Federal Reserve has recently increased interest rates multiple times and will continue to raise them until a recession-like economy is inevitable.

● On July 27, 2022, WBUR provided a great summary on the national economics and the Federal Reserve. Many of the trends in this story ring true in Franklin.

● Massbenchmarks’ latest “Current and Leading Index” report shows what we all know: inflation, labor supply, labor and personnel costs, and uncertainty weigh on consumers in Massachusetts.

● The message coming from Fortune 500 CEOs shows a recession is inevitable.

One thing is for certain: economic volatility and mixed signals will continue for the foreseeable future, as the country struggles to get into a pre-pandemic economic rhythm. ALL departments need to be cautious about overspending. The effects of inflation could be significant as the fiscal year evolves.

Continue reading the full report in this PDF ->     https://www.franklinma.gov/sites/g/files/vyhlif6896/f/uploads/2022-08-15_fy23_to_fy27_town_administartor_fiscal_forecast_1.pdf

Part 1 (FY 2022 closing) was shared previously

https://www.franklinmatters.org/2022/08/town-of-franklin-ma-five-year-fiscal.html

Town of Franklin Earns AAA Bond Rating

Governor Charlie Baker Signs Fiscal Year 2023 Budget

Governor Charlie Baker today (7/28/22) signed the Fiscal Year 2023 (FY23) budget, a $52.7 billion spending plan that supports the Commonwealth’s communities, families, businesses, and workers. The budget fully funds the continued implementation of the Student Opportunity Act, while expanding proven programs and making record investments in early education and childcare, housing and homeownership, college financial aid, economic and workforce development, behavioral health care and local aid.

The FY23 budget is in balance, does not rely on one-time revenue sources, and does not raise any new taxes or fees; rather, it incorporates $315 million to support permanent tax reductions that are expected to be enacted through separate legislation pending in the Legislature. Several of the expected tax measures were first proposed in the Administration’s FY23 budget plan filed in January, including an increase to the rental deduction cap, expansions of the dependent care and senior circuit breaker tax credits, and estate tax reforms.

“With the Commonwealth in a historically strong fiscal position, the FY23 budget supports tax relief for hundreds of thousands of taxpayers, while making record investments in education and local aid,” said Governor Charlie Baker. “Since coming into office, our Administration has worked closely with the Legislature to ensure the budget is structurally sound and protected from unpredictable economic fluctuations, and I am pleased to sign another budget that maintains this commitment while making investments help Massachusetts’ families and communities grow and thrive.”

“The FY23 budget maintains our Administration’s strong support for the Commonwealth’s cities and towns and expands services in acute areas of need, like housing stability, education and childcare access, workforce development, transportation, substance addiction treatment and behavioral health care,” said Lieutenant Governor Karyn Polito. “This funding will further our work to encourage the economic growth of our communities, promote equitable access to opportunity and support the health and wellbeing of all residents.”

The FY23 budget incorporates an upgraded $39.576 billion base tax revenue forecast, an increase of $2.66 billion above the total FY23 consensus tax projection set in January. This revenue supports a total of $52.7 billion in gross spending, excluding the Medical Assistance Trust Fund transfer, which reflects approximately 9.3% growth in appropriations over Fiscal Year 2022 (FY22).

As enacted, the budget anticipates a sizable deposit into the Stabilization Fund of nearly $1.5 billion, which would increase the balance of the Fund from an already historic high of $6.9 billion to $8.4 billion. This would represent a $7.3 billion increase in the balance of the Stabilization Fund since the Baker-Polito Administration came into office in 2015 – an achievement made possible by the Administration and Legislature’s close collaboration and commitment to responsible management of the Commonwealth’s finances. 

“Fiscal responsibility has been a cornerstone of the Baker-Polito Administration, and we are proud of the work that has been done over the last seven years to bring the budget into structural balance and build up reserves, which will protect the Commonwealth from economic volatility and ensure the continuity of vital government services in the long-term,” said Administration and Finance Secretary Michael J. Heffernan. “We thank our colleagues in the Legislature for their partnership in developing this impactful spending plan that sustains critical supports for the Commonwealth’s communities, families, and workers.”

The revenue upgrade incorporated into the budget also affords a number of substantial one-time transfers and reserves in FY23, including: a $266 million reserve to support MBTA safety and workforce initiatives; a $175 million transfer to a new trust fund dedicated to supporting high-quality early education and care; a $150 million transfer to the Student Opportunity Act Investment Fund; $100 million for a supplemental transfer to the Commonwealth’s Pension Liability Fund; and $100 million for a transfer to the State Retiree Benefits Trust Fund.

Investing in Massachusetts’ Future

The FY23 budget makes record investments in the Massachusetts education system across all levels, from childcare to higher education. It continues to fully fund the implementation of the Student Opportunity Act with a $5.998 billion annual Chapter 70 investment, along with a $67.7 million increase over FY22 for special education circuit breaker reimbursement for cities and towns and a $89.2 million increase in charter school reimbursement funding. The Governor also signed a new one-time investment of $110 million that will support a pilot free school meal program for students in K-12 schools.

In addition to the $175 million trust fund transfer to support high-quality early education and care, the FY23 budget provides a total of $1.184 billion for the Department of Early Education and Care (EEC). Notably, this includes $250 million for grants to help stabilize early education and childcare providers through the pandemic recovery period, $60 million for childcare provider rate increases and funding to support the full implementation of a more equitable parent fee scale that will result in virtually all subsidized families paying a fee that is 7% of their income or less in FY23.

The FY23 budget also provides $1.61 billion for college affordability, degree completion, and workforce readiness. This funding supports more than $190 million in support for financial aid, which includes an expansion of the MASSGrant Plus program that will enable all low-income, in-state undergraduate students to attend public higher education without incurring debt for mandatory tuition and mandatory fees. The budget also includes over $30 million to scale up college and career pathway programs for high school students with a focus on equity and recruitment of high-need student populations.

The budget furthers supports job readiness and efforts to connect students and workers to high-demand career pathways with increased funding for programs within the Executive Office for Labor and Workforce Development (EOLWD). It includes $28.5 million for the YouthWorks Summer Jobs program, $23.9 million in total funding for the Career Technical Initiative, $17 million for the Workforce Competitiveness Trust Fund, and $15 million for MassHire one-stop career centers.

As Massachusetts’ economic recovery continues, the budget supports the Baker-Polito Administration’s focus on promoting equitable growth and opportunity for communities and businesses across the Commonwealth. The budget provides $32.2 million for the Small Business Technical Assistance Grant Program, which supports diverse entrepreneurs and small businesses, along with $20 million for the Community Empowerment and Reinvestment Grant program, $17.2 million for local economic development projects, and $10.7 million to support Massachusetts tourism and hospitality. 

The FY23 budget builds on the Administration’s efforts to promote equality and opportunity for communities of color with more than $50 million across the budget supporting targeted programs and initiatives aligned with the recommendations of the Governor’s Black Advisory Commission (BAC) and Latino Advisory Commission (LAC). The budget also fully funds the Supplier Diversity Office (SDO), which promotes diversity, equity, and inclusion in state contracting and ensures accountability and compliance with diversity goals.

To continue supporting local communities throughout Massachusetts, the FY23 budget increases the Unrestricted General Government Aid (UGGA) investment by $63.1 million above FY22, for a total of $1.231 billion. A further $20.7 million in funding is provided for Community Compact-related programs including best practices and regionalization and efficiency grants.

Recognizing the challenges of the housing market, particularly in the aftermath of COVID-19, the FY23 budget makes investments to create long-lasting improvements in housing stability and access to homeownership. Building on the Eviction Diversion Initiative (EDI), the budget implements major reforms and significantly increases funding for rental assistance, re-housing benefits and housing vouchers. Along with eligibility expansions that will multiply the number of households served and increase benefits, the budget invests a historic $150 million in Residential Assistance for Families in Transition (RAFT), an increase of $128 million (582%) above FY22, and it provides $59.4 million for HomeBASE, a 129% increase vs. FY22. It also supports $110 million for homeless individual shelters, a 90% increase above FY22, and $154.3 million for Massachusetts Rental Voucher Program (MRVP), which will support enhanced benefits and reforms that will give families more housing choice and flexibility.

The budget sustains support for core health care programs and makes investments to expand services for the most vulnerable, while improving access to health care for all residents. Within the $19.480 billion gross / $7.301 billion net MassHealth budget, $115 million will fund nursing facility staffing rate increases and supplemental payments. The MassHealth budget also incorporates a gross increase of $73.2 million to expand the Medicare Savings Program, which will reduce out-of-pocket health care spending and prescription drug costs for approximately 65,000 low-income seniors and disabled individuals.

The MassHealth budget includes $115 million to support the expansion of outpatient and urgent behavioral health services; further FY23 investments in behavioral health care include $20 million for a clinical behavioral health worker loan forgiveness program and a $20 million for a trust dedicated to supporting the expansion of access to and utilization of behavioral health services.

The COVID-19 pandemic exacerbated substance addiction issues across Massachusetts, and the FY23 budget continues to ramp up funding to combat this public health crisis. The budget includes $597.2 million in total funding for a wide range of harm reduction, treatment, and recovery programs that support individuals struggling with substance addiction and programs that work to prevent substance addiction through education, prescription monitoring, and more.

The budget also continues efforts to ensure survivors of sexual assault and domestic violence have access to necessary services and supports, a priority of the Baker-Polito Administration. $132 million in total FY23 funding is allocated for services to prevent and treat sexual assault and domestic violence, a 104% increase in funding since FY15.

Outside Sections and Earmarks

As part of the budget-signing, Governor Baker vetoed $475,000 in gross spending, signed 153 outside sections, and returned 41 to the Legislature with proposed amendments.

Notable outside sections returned with amendment include:

• Adding the most important provisions from the Administration’s dangerousness bill into the section that would provide free phone calls to inmates.
• Amending an outside section relating to the Children and Family Legal Representation Trust Fund to require that money in the fund may only be spent on expanded guardian ad litem appointments in care and protection cases
• Requiring the Health Connector to study implementation steps and costs of a Connector Care pilot program

FY23 Budget Highlights:

K-12 Education

• Fully funds the implementation of the landmark Student Opportunity Act, adding a total of $651.8 million in new spending above FY22:
• $494.9 million increase in Chapter 70 funding, including an increase in minimum per-pupil aid from $30 to $60, for a total Chapter 70 investment of $5.998 billion
• $67.7 million increase for special education circuit breaker reimbursement for local cities and towns
• $89.2 million in additional funding for charter school reimbursement
• $150 million for a one-time transfer to the Student Opportunity Act investment trust fund
• $110 million for a pilot free school meal program for students in K-12 schools
• Over $30 million to scale up college and career pathways
• $15 million for scholarships and loan forgiveness programs for public school teachers

Early Education and Childcare

• $1.184 billion for Early Education and Care (EEC), including:
• $250 million to support continued stabilization of childcare facilities
• $60 million for center-based childcare provider rate increases
• In addition to the above funding, a one-time $175 million transfer to a new trust fund dedicated to supporting high-quality early education and care

Higher Education

$1.61 billion for the Department of Higher Education, University of Massachusetts, and state universities and community colleges, including:

• More than $190 million to support financial aid, including $18 million to support an expansion of the MASSGrant Plus program that will enable all low-income, in-state undergraduate students to attend public higher education without incurring debt for mandatory tuition and mandatory fees and $15 million for financial aid increases at the University of Massachusetts
• $22 million in financial aid for Massachusetts students attending private institutions
• $8.8 million for foster care financial aid and fee waiver programs to maintain support for over 1,400 students attending private and public campuses who are currently or were previously in DCF custody and care, or who have been adopted through DCF

Supporting Local Government

Total investment of $1.231 billion in Unrestricted General Government Aid (UGGA) for local cities and towns

• $20.7 million for Community Compact related programs including best practices and regionalization and efficiency grants, an increase of 63% above FY22, including $5 million for the Public Safety Staffing Grant Program and $3 million for district local technical assistance

Housing and Homelessness

$884.6 million for the Department of Housing and Community Development, a $300.5 million (51%) increase above FY22, which includes:

• $219.4 million for the Emergency Assistance family shelter system
• $154.3 million for MRVP to support more than 10,000 vouchers in FY23
• $150 million for Residential Assistance for Families in Transition (RAFT), an increase of $128 million above FY22
• $110 million for Homeless Individual Shelters and $5 million to continue an innovative model to create new housing opportunities with wraparound services for chronically homeless individuals
• $92 million in funding for Local Housing Authorities
• $59.4 million for HomeBASE Household Assistance
• $12.5 million for a collaborative program through which the Department of Mental Health provides mental health services and DHCD provides rental assistance

Economic Development

• $32.2 million for the Small Business Technical Assistance Grant Program for entrepreneurs and small businesses, especially those owned by women, immigrants, veterans, and people of color
• $20 million for the Community Empowerment and Reinvestment Grant program to support development in socially and economically disadvantaged communities
• $10.7 million to support the Massachusetts tourism and hospitality sector

Labor and Workforce Development

• $28.5 million for the YouthWorks Summer Jobs Program to subsidize summer job opportunities and provide soft job skills education for youths
• $23.9 million in total funding for Career Technical Institutes, which provide pathways to high-demand vocational trade careers, including plumbing, HVAC, manufacturing, and robotics
• $15 million for MassHire one-stop career centers
• $600,000 for a new appropriation to expand research and analytics capabilities to enhance data-driven workforce development strategies

Health and Human Services

• $230 million for Chapter 257 human service provider funding
• $115 million to expand outpatient and urgent behavioral health services at MassHealth, plus an additional $20 million at the Department of Mental Health for clinical behavioral health worker loan forgiveness
• $73.2 million gross to expand the Medicare Savings Program, reducing out-of-pocket health care spending and drug costs for approximately 65,000 low-income older adults and disabled individuals
• $720.4 million for the Executive Office of Elder Affairs, including $24.9 million for grants to Local Councils on Aging, $7.9 million for supportive senior housing, and $2.5 million for geriatric mental health services
• Fully funds the Turning 22 program at the Department of Development Services and other agencies
• $1.2 billion for the Department of Children and Families (DCF), an increase of $368.7 million (45%) since 2015, including $13.4 million to support families that are fostering children in DCF care and to encourage recruitment of new foster families
• $174.2 million in funding for Veterans’ Services and the Chelsea and Holyoke Soldiers’ Homes, which includes a $13.2 million (37%) increase above FY22 for the Chelsea Soldiers’ Home to support the Fall 2022 opening of a new 154-bed state-of-the-art Community Living Center
• $15 million in grants to local health departments to support municipalities' capacity to respond to the COVID-19 pandemic

Substance Addiction Prevention and Treatment

• $597.2 million for substance addiction prevention and treatment services across the budget, an increase of $478 million since FY15

Sexual Assault and Domestic Violence

• $132 million, a 104% increase since FY15, in support of services to prevent and treat victims of sexual assault and domestic violence, including $1.5 million in new investments to combat human trafficking

Promoting Equality and Opportunity

• More than $50 million supporting the recommendations of the Black Advisory Commission (BAC) and the Latino Advisory Commission (LAC)

Transportation

• $1.55 billion in total budget transfers for the MBTA
• $457 million for the Massachusetts Department of Transportation (MassDOT), including $95 million for snow and ice operations and $3.4 million to support implementation of new funds provided through the Infrastructure Investment and Jobs Act
• $266 million for a reserve to support MBTA safety improvements and workforce initiatives
• $96.5 million for Regional Transit Authorities
• $11.6 million for the Merit Rating Board

Energy and the Environment

• $134 million for the Department of Conservation and Recreation, including funding for the Summer Nights program and the Swim Safe Massachusetts program to enhance and promote water safety
• $45.4 million for Environmental Protection Administration
• $30.6 million for the Massachusetts Emergency Food Assistance Program
• $5.4 million for climate change and adaptation preparedness

Criminal Justice and Public Safety

• $445.1 million for the State police public safety and crime lab operations, including funding to support the 87th and 88th Massachusetts State Police Recruit Training Troops
• $12.3 million in funding for the Shannon Grant program to fund anti-gang and youth violence prevention efforts
• $10.4 million to fully fund tuition and fee waivers for National Guard members
• $11.7 million for the Municipal Police Training Commission to implement bridge academies, expand training capacity, and annualize training requirements such as de-escalation and school resource officer trainings
• $5.8 million to support the Peace Officer Standards and Training (POST) Commission and four other new commissions created in the Police Reform bill
• Eliminates all parole and probation fees, building upon the 2018 Criminal Justice Reform legislation which eliminated fees for parolees on supervision for less than a year

Securing and Modernizing Government IT

$163.3 million for the Executive Office of Technology Services and Security to support:

• Management of Cyber Security Operations Center (SOC)
• Continued migration of applications and infrastructure to cloud, third-party on-premise, and Software as a Service (SaaS)
• Continuation of EOTSS customer engagement initiative to enhance IT and security service offerings across Commonwealth agencies 
• IT strategy consulting services in support of priority state agency and cross-secretariat initiatives
• Business intelligence (BI) and data analytics support for state agencies
• Centralized software and IT contract compliance program

To view the FY23 budget, click here

https://budget.digital.mass.gov/summary/fy23/

Video of the Governor's press conference when he signed the legislation including the follow-up questions from the press present  https://youtu.be/l_81lhjV3zE

MA State budget items for Franklin thanks to our Legislative Delegation

Per email from State Representative Jeff Roy:

Here is what was included for Franklin in the State budget for FY23. The delegation has been strongly advocating for each of these pieces and we are happy to share the results:

• Chapter 70 - $28,885,721
• UGGA - $2,862,319
• 0640-0300 (Mass Cultural) - not less than $10,000 shall be expended for the annual cultural festival in the city known as the town of Franklin
• 0810-1205 (AGO) - not less than $50,000 shall be expended for the SAFE Coalition, Incorporated to provide support, education, treatment options and coping mechanisms for those affected by substance use disorder in the city known as the town of Franklin
• 2511-0107 (DAR) not less than $50,000 shall be expended for the Franklin Food Pantry, Incorporated building project
• 2810-0122 (DCR) not less than $8,000 shall be expended for historical preservation, safety enhancements and related work at the Franklin state forest
• 2810-0122 (DCR) not less than $50,000 shall be expended for replacement of the playground at Fletcher field in the city known as the town of Franklin
• 7008-1116 (Massachusetts Marketing Partnership) not less than $25,000 shall be expended for the Franklin Downtown Partnership, Inc. to promote economic development in the city known as the town of Franklin
• 7010-1192 (DESE) not less than $500,000 shall be expended to communities in the Metrowest region, including the city of Framingham and the towns of Ashland, Franklin, Holliston, Hopkinton, Medway and Natick to address mental health needs in schools
• 7010-1192 (DESE) not less than $5,000 shall be expended for anti-bias curriculum in the city known as the town of Franklin
• 7010-1192 (DESE) not less than $15,000 shall be expended for the K-5 anti-bias curriculum in the city known as the town of Franklin
• 7010-1192 (DESE) not less than $70,000 shall be expended for mental health screenings in the Franklin public schools
• 8000-0313 (EOPSS) not less than $50,000 shall be expended for a Stop the Bleed pilot program to fund the procurement of trauma kits and bleeding control training for school faculty and staff in the towns and towns of Bellingham, Dover, Medfield, Milford, Millis, Needham, Norfolk, Plainville, Sherborn and Wrentham and the city known as the town of Franklin

 

Jeff

 

	Jeffrey N. Roy State Representative Chair, Committee on Telecommunications, Utilities and Energy State House Room 43 Boston, MA 02133
	617-722-2030 (w) 508-618-7126 (fax) jeffrey.roy@mahouse.gov
	jeffreyroy.com

For those doing the math, aside from Chap 70 & the UGGA (unrestricted local aid), there is $283,000 specifically for Franklin (excluding the unknown portion of the 7010-1192 (DESE) $500,000 and the unknown portion of the 8000-0313 (EOPSS) $50,000 - 'unknown portions' as both of these amounts are grand totals covering several communities and the breakout is not available).

By my view, both the Chap 70 & UGGA (unrestricted local aid) amounts are more than what was put into the Town of Franklin budget approved by the Town Council in May. You can compare to the voting doc in the budget book posted online ->   https://www.franklinma.gov/sites/g/files/vyhlif6896/f/uploads/appendix_a_town_of_franklin_budget_book_fy23_2.pdf

The audio of the May vote by the Town Council and associated documents for the meeting can be found -> https://www.franklinmatters.org/2022/05/town-council-approves-fy-2023-budget.html

MA State budget items for Franklin thanks to our Legislative Delegation

CommonWealth Magazine: "State budget is a lot more than just a spending plan"

"In theory, the budget is the vehicle used to fund state government. In practice, the state budget is frequently used as a catch-all policy vehicle, a way to use a bill that is guaranteed to pass to further policies that for whatever reason have not passed as standalone legislation. This year is no different, with policies included in the fiscal 2023 budget that range from extending universal free school meals to all students regardless of income to requiring sheriffs and corrections officials to provide free calls to incarcerated people. Lawmakers sent the bill to Baker on Monday. 

Some of the provisions have a clear nexus to state spending. But other “outside sections,” as the policies are called, have little connection to the budget itself.  

For example, advocates for certain segments of the Asian community have had a long-running disagreement over what types of demographic information should be collected when a form asks about ethnicity. The concern is that the label Asian-American is overly broad and does not distinguish between distinct ethnic groups.  

An outside section of the budget states that any government agency that collects demographic race and ethnicity data must have separate tabulations for a huge number of subpopulations, including Asian groups (like Chinese, Japanese, Filipino, Korean, etc.), Pacific Islander groups (Native Hawaiian, Guamanian, Samoan, etc.), Black groups (African American, Jamaican, Haitian, etc.), Latino groups (Mexican, Puerto Rican, Cuban), and Whites (German, Irish, English, and so on)."

Continue reading the article online 

https://commonwealthmagazine.org/state-government/state-budget-is-a-lot-more-than-just-a-spending-plan/ 

From this link -> https://malegislature.gov/Budget/ConferenceCommittee

You can download H.5050  https://malegislature.gov/Bills/192/H5050.pdf

• 11A Insides ->    https://malegislature.gov/Reports/13689/FY%202023%20Conference%2011A.pdf
• 11A Outsides ->   https://malegislature.gov/Reports/13690/FY23%20Outside%20Sections%2011A%20FINAL.pdf

The Conference Committee report on MA FY 2023 budget for your reading pleasure

“We think that’s important to provide this tax relief immediately”

"THE MASSACHUSETTS SENATE released a $4 billion economic development bill on Monday that includes some key spending differences from a House bill in areas like education, human services, and housing. The House and Senate are largely in agreement on a $1 billion proposal to reduce a slew of taxes, but with two key differences, one related to the estate tax and another to the timing of when the tax breaks go into effect. 

The Senate plans to take up the bill Thursday, leaving just 11 days for the House and Senate to reconcile their differences and get a bill to Gov. Charlie Baker before the legislative session ends."

Continue reading the article online 

https://commonwealthmagazine.org/state-government/senates-4b-economic-development-bill-provides-faster-tax-relief/

 

The legislation doc can be found -> https://malegislature.gov/Bills/192/S2989

The MA Senate press release can be found ->  https://www.franklinmatters.org/2022/07/ma-senate-passes-wide-ranging.html

MA  Senate Passes Wide-Ranging Transportation Infrastructure Bond Bill