MassBudget: Explaining the State Budget for FY 2018 Including Veto Overrides

MassBudget Information. Participation.  Massachusetts Budget and Policy Center Democracy. Explaining the State Budget for FY 2018 Including Veto Overrides In the Massachusetts Budget and Policy Center's latest Budget Monitor, "The State Budget for FY 2018 Including Veto Overrides," we see the Fiscal Year 2018 (FY 2018) budget season ending much the way it started: with our state facing difficult fiscal conditions and unable to make the kinds of long-term investments that could significantly improve the quality of life in Massachusetts and expand opportunity in all communities. At this point in the process -- after the Legislature enacted the budget, the Governor made a number of line item vetoes, and the Legislature overrode virtually all those vetoes and approved some supplemental funding -- we have a state budget that makes some modest investments, particularly in education, child welfare, and in addressing substance use disorders. The budget, however, continues to rely significantly on temporary fixes: counting 13 months of sales tax revenue in the 12 months of FY 2018; underfunding a number of accounts that will eventually need to be funded -- such as paying for snow and ice removal; and a number of similar strategies. Altogether the budget includes about $750 million in temporary revenue and underfunded accounts. This makes it highly likely that the state will continue to face serious fiscal challenges next year. A bright spot, however, is tax revenue growth so far this year has been stronger than projected. If that trend continues, it would reduce the need to rely on temporary fixes this year and would put the state in better fiscal condition next year. In the long term, however, there is a significant danger that the federal government will -- to pay for the costs of federal tax cuts -- impose deep cuts in Medicaid, education, and other services currently funded together by the state and federal governments. This Budget Monitor includes the final funding levels of FY 2017, the current FY 2018 budget, and significant policy changes in each area of the budget. Current 2018 budget levels are also compared to 2001 budget where relevant. For more comprehensive data on historic spending levels for each line item and category of the budget, see MassBudget's Budget Browser. For additional detail on programs in the state budget that affect children see our Children's Budget. Click here to read the full Budget Monitor, "The State Budget for FY 2018 Including Veto Overrides," or click below on individual sections: Child Welfare Disability Services Early Education Economic Development Elder Services Environment and Recreation Higher Education Housing Juvenile Justice K-12 Education Law and Public Safety Libraries Local Aid MassHealth and Health Reform Mental Health Other Human Services Pensions Public Health Revenue (tax and non-tax) State Employee Health Insurance Transitional Assistance Transportation Additional Line Item Overrides Summary Chart 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

screen grab of MassBudget webpage

MassBudget: Budget Explainer: Transportation

Transportation funding in one chart, plus two fact sheets comparing MA taxes to other states

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Budget Explainer: Transportation  Better transportation infrastructure makes the economy more productive, connects people to jobs, and reduces the amount of time people waste in traffic. Where do the resources come from to operate our transportation system, and where is the money invested? The flow chart below displays state revenues and spending, with the width of the arrows representing the dollar amounts. Read the fact sheet with a larger chart. MassBudget has also recently updated two fact sheets that compare Massachusetts taxes to other states:  Massachusetts Ranks near Middle for Taxes in FY 2014 compares state and local taxes in the Commonwealth to other states, and finds we're in the middle of the pack. Where Does the Taxachusetts Label Come From? describes how the state's old label as a high-tax state has more to do with history than reality. 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: A preview of the Fiscal Year 2018 budget challenges

Two transparency reforms would improve the process

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. A Preview of the Fiscal Year 2018 Budget Challenges  Our state budget is how our Commonwealth funds the things we do together to strengthen our communities, make life better for our people, and build a vibrant economy. The budget process works best when the choices are clear to everyone and made in as deliberate of a manner as possible, considering long-term issues as well as immediate challenges. As budget writers prepare for Fiscal Year (FY) 2018, it appears that the Commonwealth again faces a significant gap between ongoing revenue sources and the cost of maintaining current services. This has been the case for many years in Massachusetts, with a series of budgets balanced using temporary revenue sources and savings initiatives that may prove to be temporary in nature (such as early retirement strategies that can lose their fiscal effectiveness if it turns out that the people who retired need to be replaced). Because the Commonwealth has been using temporary revenue to balance the budget during this period of economic expansion, we have not been able to build up the level of reserves to be prepared for the next recession. We have also seen a pattern of instability, with mid-year budget cuts and, this year, major changes to the budget very late in the budget process. This pattern is caused partly by a lack of adequate transparency in the budget process. Two steps by state government would allow for a significantly more transparent process and, likely, fewer unwanted budget surprises in the future. Continue reading the entire Budget Preview here... 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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A Preview of the Fiscal Year 2018 Budget Challenges - Table 1

"the toll structure may not meet the Legislative intent to ensure equitable tolling"

"State Sen. Karen Spilka is taking the lead in questioning the rates and privacy of the Mass. Pike's new All Electronic Tolling System by sending a letter to state transportation officials. 

The system is set to go live on Oct. 28. 

In the letter sent to Secretary of Transportation Stephanie Pollack Friday, the Ashland Democrat says many in Legislature worry about the impact to drivers based on recent news reports. The letter is signed by 10 other senators."

Continue reading the article online (subscription may be required)
http://www.milforddailynews.com/news/20160826/ashland-state-senator-takes-aim-at-tolls

• The text of the letter from Senator Spilka:

Dear Secretary Pollack,

Based on a series of articles over the past week related to the transition to an All Electronic Tolling System (AETS) on the Western Turnpike, Metropolitan Highway System, and the Tobin Bridge, we are concerned about the impact of changes to the toll structure and the privacy rights of those traveling on Massachusetts roads.

In particular, we are surprised to read about proposed changes to the toll rates on the Western Turnpike. According to these articles, the Massachusetts Department of Transportation noted that some drivers will see increases while others will see decreases depending on where they enter and exit the turnpike. As you know, the Legislature has long advocated for toll equity and we are deeply concerned about the impact of any toll increases either overall or individually on our constituents. In fact, the 2013 transportation finance law includes language prohibiting revenue collected from toll increases from counting toward the Massachusetts Department of Transportation's own source revenue benchmarks unless an equitable system is established to place tolls on other non-tolled roads. As currently proposed, the toll structure may not meet the Legislative intent to ensure equitable tolling on the Western Turnpike and other roads.

In order to get a better understanding of the proposal, please provide a response to the following questions:

1. What are the exact locations of the gantries as compared to the current toll plaza locations?
2. How do the toll rates compare based on the location of each current toll plaza and each gantry, including differences based on having a Massachusetts-issued transponder, an out of state transponder, and no transponder (including processing fees)?
3. Will there be a grace period to give travelers time to obtain E-ZPass transponders?
4. What is the proposed amount of the assessment, in addition to the toll, for drivers who do not obtain a transponder?
5. How will the new toll rates be conveyed to drivers? Will there be signs or other forms of notification posted at the gantries?
6. What was the methodology used to determine the location of the gantries, the number of gantries, and the amount each toll proposed at each gantry compared to the current toll plazas?
7. If the hearings result in significant feedback, will the timeline for the new toll structure be delayed or comments incorporated?
8. Will all current toll plazas be taken down at the same time? What is the cost of tearing the toll plazas down?
9. What is the expected cost of the early retirement incentive program for toll collectors?
10. What is the expected savings of the AETS broken down by fiscal year?
11. What is the expected toll revenue collected on the Western Turnpike under the AETS compared to the current toll revenue collected on the Western Turnpike?
12. When will the bond obligations be paid in full? If, in January 2017, the bonds are fully paid how much is expected to be required on a fiscal year basis to deem the turnpike in good condition and repair?
13. How much toll revenue was collected in fiscal year 2015 and fiscal year 2016? How much of that toll revenue was used to pay the bond obligations and how much was used for maintenance and repair on the turnpike? Was there any surplus from the toll revenue on the turnpike in any of the previous 5 years?
14. What region or district on 1-90 from the New York state border to mile marker 122.6 will face the greatest impact, either an increase or a decrease, as a result of the proposed changes to the toll structure?
15. What specific driver and vehicle information be maintained? 
16. How long will driver and vehicle information be maintained?
17. Will the data be maintained by a third party or by the Massachusetts Department of Transportation?
18. Who will have access to the data collected by the gantries?
19. How will gantry data collection differ from current data collection?

Following receipt of the above-referenced information, we request a meeting to discuss the proposal in detail. Thank you for your time and consideration in regard to this request. We look forward to hearing from you on this matter.

Devices on new gantries above the Massachusetts Turnpike will soon collect tolls. For now, they’re capturing data on driving speeds.- ARAM BOGHOSIAN FOR THE BOSTON GLOBE

A PDF copy of the letter including the ten signatures

MassBudget: Conference Preview - Differences Between House & Senate Budgets for FY 2017

What's at stake in each budget area?

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Conference Preview: Differences Between House and Senate Budgets for FY 2017  During three days of budget debate last week the Senate adopted 453 amendments adding $61.3 million to the bottom line of the Ways and Means proposal (about one seventh of one percent). To read MassBudget's full analysis, click HERE. In the end, the House and Senate budgets are very similar. Not only are the budget totals within 0.1 percent of each other (which makes sense since they had essentially the same amount of revenue to work with), but the two proposals are also within half of one percent of each other in every major category. For example, the House proposes 0.2 percent more for Health Care, including slightly larger investments in public health and more support for MassHealth, while the Senate proposes 0.45 percent more for education, including modestly more than the House for local public schools and higher education. Over the next few weeks a House and Senate Conference Committee will work to compromise on these difference and build together a final budget that funds our schools and local services; maintains our roads, bridges, and public transit; keeps our air and water clean; provides supports for those facing difficult challenges; protects our public health; and keeps open our parks, playgrounds, swimming pools and libraries. This Budget Monitor describes the funding and policy differences between the House and Senate in each major area of the budget, and provides links to in-depth descriptions of programs and issues addressed in each budget proposal. The tables near the end of this Monitor also show funding differences between the House and Senate budgets not discussed elsewhere. You can read the new Budget Monitor HERE. 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 revenue comparison for FY 2017