MassBudget: Analyzing the Governor's FY 2020 budget proposal

Includes some new revenues, accompanied by modest plan to update education funding

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. February 5, 2019 Analyzing the Governor's FY 2020 budget proposal Proposal includes some new revenues, accompanied by modest plan to update education funding The Governor's Fiscal Year (FY) 2020 budget proposal provides modest increases in funding for public education, human services, and several other important investments. This new funding does not, in many cases, reverse deep cuts imposed across the state budget after the tax cuts of the late 1990s and early 2000s - despite a decade of expansion in the economy. Lost revenue from tax cuts has limited the Commonwealth's ability to adequately fund education, infrastructure, and other building blocks of healthy communities and a strong economy. While the Governor's proposal would increase year over year funding for several programs, it provides the same or less funding for programs such as Public Health, Local Aid, Juvenile Justice, Transitional Assistance, and others, according to an analysis by the Massachusetts Budget and Policy Center (MassBudget). The Governor's proposal recommends 16 percent less funding for Early Education and Care compared to FY 2001 (adjusting for inflation). Funding for Local Aid is similarly down 38 percent and Environment and Recreation programs remain 29 percent below 2001 levels. Making the necessary investments in our schools, transportation, housing, and other essential programs will require bold, new revenue sources. Tax revenue growth was unusually strong in FY 2018 and may continue to be strong for most of FY 2019. The Department of Revenue expects that, without policy changes to increase revenue, overall revenue growth will slow markedly in FY 2020 - putting a strain on our capacity to support public programs and invest in infrastructure. While the Governor's FY 2020 budget proposal includes a variety of new and expanded taxes and other revenues, a number of previously-scheduled tax cuts and other revenue-losing policy changes will take a significant bite out of revenue totals in FY 2020 and beyond. Much of the additional revenue proposed by the Governor would come from a variety of consumption taxes, which typically are regressive (meaning people with lower incomes contribute a larger share of their household incomes toward these taxes than do people with higher incomes). Meanwhile, the tax revenue reductions mostly come from progressive revenue sources. Therefore, these proposals do not help turn Massachusetts' upside-down tax system right-side up. The Governor's proposal is accompanied by a plan to overhaul Massachusetts' school funding formula that could help ensure that all schools, especially those in low-income districts, are adequately funded. The plan makes some progress, over a seven-year timeline, to implement the 2015 Foundation Budget Review Commission (FBRC) recommendations related to health insurance, special education, and greater support for low-income and English Language Learner students. However, without substantial, new revenues the Commonwealth can only adopt a moderate plan to implement the FBRC recommendations. The budget proposal includes other notable initiatives. For instance, the Governor proposes creating a trust fund to prevent childhood lead exposure and increasing the "Real Estate Transfer Tax" to invest in climate change adaptation. Further, the Governor proposes new systems for negotiating the cost of drugs used under MassHealth and expands eligibility for low-income elders to qualify for the Medicare Savings Plan. Read the full analysis here. http://massbudget.org/report_window.php?loc=Analyzing-the-Governor%27s-Budget-for-FY-2020.html 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: 14 Options for Raising Progressive Revenue

To help invest in our community

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. January 15, 2019 14 Options for Raising Progressive Revenue Good schools, public parks, reliable transit, and smooth roads help increase well-being and make a community prosperous. Together, we pay for these fundamentals through state and local taxes. How to collect enough revenue to pay for these investments - and how to collect that revenue fairly - are questions that every community, including our Commonwealth, must answer. Massachusetts' state and local tax system remains "regressive," meaning low- and moderate-income taxpayers pay a larger share of their incomes in taxes than those with higher incomes. A "progressive" tax system is one in which higher-income taxpayers pay a larger percentage of their incomes in taxes. A new Massachusetts Budget and Policy Center (MassBudget) paper, 14 Options for Raising Progressive Revenue, explores ways the Commonwealth could make its tax system more progressive. The options described in the paper include: Personal income tax options, like raising both the personal income tax rate and progressive exemptions, Wealth tax options, like raising the estate tax, and Business tax options, like enacting a surtax on companies where CEOs' pay rates are excessively high compared with median worker pay rates. Read a PDF version of the report. 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: 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

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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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