MA Senate releases their FY 2024 budget

May 9, 2023

Dear Members of the Massachusetts State Senate,

     For the fifth time as Chair of the Senate Committee on Ways and Means, I have the honor to present the Committee’s annual recommendations for the General Appropriations Act—the Fiscal Year 2024 (FY 2024) Budget. 

     Thank you to Senate President Karen Spilka for her ongoing friendship, sage counsel, steady leadership, and continued confidence in me to lead the Committee as we work together to move Massachusetts forward towards a more inclusive and resilient post-pandemic future. 

     I would like to also thank our partners in the House, Chair Aaron Michlewitz and his team in the House Committee on Ways and Means, and in the Healey-Driscoll Administration, Secretary Matthew Gorzkowicz and his team in the Executive Office for Administration and Finance. Without their collaboration, cooperation and partnership throughout the budget development process, support for our residents, our communities, and our long-term economic health would not be possible. 

     Together, over these last four years, we have carefully navigated the COVID-19 pandemic and its many challenges. Adapting to a new normal utilizing an approach rooted in collaboration with our partners across state government, we addressed urgent needs and protected our most vulnerable populations. We maintained stability, built up our reserves, and made meaningful investments to support an equitable recovery for our people. 

     It was an approach that worked. Today, our Rainy Day Fund is projected to close FY 2024 with a historic balance of $9 billion, and we have $1.7 billion in surplus resources available for future use. More recently, Standard & Poor’s (S&P) ratings agency upgraded our state’s bond rating, a recognition that our long-standing adherence to sound fiscal discipline and efforts to reinforce the Commonwealth’s economic foundation is paying dividends.

Continue reading the Message from the Chair - Michael J. Rodrigues, Chair, Senate Committee on Ways and Means online =>    https://malegislature.gov/Budget/SenateWaysMeansBudget 

Mass Municipal Assoc covers the budget release ->  https://www.mma.org/senate-budget-committee-releases-fiscal-2024-proposal/

Common Wealth Magazine covers the budget release ->    https://commonwealthmagazine.org/state-government/senate-budget-embraces-in-state-tuition-for-undocumented-students/

Senate President Karen Spilka and Senate Ways and Means Chair Michael Rodrigues. (Photo by Bruce Mohl)

The MA House Ways & Means budget: via Commonwealth Magazine, Boston Globe, and direct link to budget

Via CommonWealth Magazine: What follows is an explainer about what’s in the House Ways and Means budget proposal for fiscal 2024.

"How big is the House Ways and Means budget?

It comes in at nearly $56.2 billion, and that’s before lawmakers start adding earmarked spending during the budget debate that starts April 26. The budget is about $170 million higher than Gov. Maura Healey’s proposal because the governor wants to give more money back in the form of tax relief while the House would phase in many of its tax breaks over time, allowing the branch to spend more money now.

That spending total seems like a lot of money.

It is a lot. For perspective, the state budget in fiscal 2016 was $38.4 billion. Over the last eight years, the state budget has grown by $17.8 billion, or 46 percent."

Continue reading the article online ->

https://commonwealthmagazine.org/gambling/what-you-need-to-know-about-the-house-budget-proposal/

Boston Globe coverage on the budget -> 

https://www.bostonglobe.com/2023/04/12/metro/mass-house-unveils-millionaires-tax-plan/

The House Ways & Means budget can be found online -> 

https://malegislature.gov/Budget/HouseWaysMeansBudget 

MassBudget provides a budget browser to view comparisons between and among categories and years  https://massbudget.org/budget-browser/

The MA House Ways & Means budget: via Commonwealth Magazine, Boston Globe, and direct link to budget

Healey-Driscoll Administration filed their Fiscal Year 2024 budget recommendation

The Healey-Driscoll Administration today filed its Fiscal Year 2024 (FY24) budget recommendation, a $55.5 billion blueprint for Massachusetts’ future that makes historic investments in climate action, public education and transportation, and workforce development. It also lays out Governor Healey’s plans for first-time use of Fair Share revenue, including the creation of a new Education and Transportation Fund. This budget is being filed alongside the $750 million Healey-Driscoll tax relief package and Article 87 legislation to create the Executive Office of Housing and Livable Communities.  

“Our FY24 budget is what Massachusetts needs to meet this moment and build a strong economy, livable communities and a sustainable future,” said Governor Healey. “Combined with our tax relief proposal, we will set Massachusetts up for success by lowering costs, growing our competitiveness, and delivering on the promise of our people. Additionally, we are taking aggressive action to address our housing crisis by creating the Executive Office of Housing and Livable Communities led by a housing secretary who will coordinate across state government and with cities and towns to move us forward on our housing goals.” 

“Massachusetts is made up of 351 cities and towns that each play an important role in helping Massachusetts reach its potential – from educating our kids, to keeping us safe, to investing in places where we build vibrant, healthy, livable communities,” said Lieutenant Governor Driscoll. “That’s why our budget proposes historic investments in local aid, a down payment on the future of our cities and towns, schools, and kids, and fully funds the Student Opportunity Act with the largest ever increase for K-12 schools in Massachusetts’ history.” 

This budget, filed as House 1, puts forward a responsible proposal to utilize $1 billion in new spending from the Fair Share Amendment. Governor Healey is establishing a new Education and Transportation Fund to ensure that the money collected is used exclusively and transparently for education and transportation.  

On education, House 1 fully funds the Student Opportunity Act with historic investments in Chapter 70 school aid and other local aid accounts. It supports state-subsidized early education and care, increasing child care slots and putting the state on a path toward universal Pre-K, starting in Gateway Cities. It also expands access for high school students to quality early college and career pathways, creates the new MassReconnect program to make community college free for students aged 25 and older, and locks in a four-year tuition freeze across the UMass system. 

On transportation, House 1 includes start-up funding for a means-tested program for thousands of low-income MBTA riders, and to spur progress on key projects like West-East Rail, the Red-Blue Connector, and the electrification of the state’s bus fleet. The administration will also recommend funding for new hiring and training supports for the MBTA in an upcoming supplemental budget to help meet their goal of hiring 1,000 additional workers this year. This budget also dedicates funding within various departments in the Executive Branch to maximize the state’s ability to compete for federal grant dollars with matching funds for infrastructure and other projects. 

The budget follows through on Governor Healey’s commitment to dedicate 1 percent of the state’s overall operating budget to the Executive Office of Energy and Environmental Affairs. The administration will be tripling the budget of the Massachusetts Clean Energy Center to empower local entrepreneurs, decarbonize buildings and make our state the global capital of the clean energy economy.  

The administration is also filing Article 87 legislation to create a new Executive Office of Housing and Livable Communities, headed by a Cabinet level Secretary, that will be charged with dramatically expanding the work now done by the Department of Housing and Community Development. The Executive Office of Housing and Economic Development will be renamed the Executive Office of Economic Development. 

Alongside this balanced budget proposal, the Healey-Driscoll Administration will be filing a comprehensive tax package fully paid for in the FY24 budget at a cost of $742 million on the budget to address the challenges of affordability, equity and competitiveness confronting our families, employers and those who might be considering leaving Massachusetts.  

“We approached this budget with the goal of building a responsible and sustainable spending plan for the Commonwealth that invests thoughtfully in its people, its economy and its future, We’re proud to be able recommend historic investments in areas like higher education and climate, while also delivering on tax relief for families and developing a transparent plan to use new Fair Share revenue to improve our education and transportation systems as voters intended,” said Secretary for Administration and Finance Matthew J. Gorzkowicz. 

House 1 Overview 

House 1 proposes $55.5 billion in gross spending, which represents 4.1 percent spending growth over fiscal year 2023 made possible by the $40.41 billion consensus tax revenue growth estimate of 1.6 percent, as well as $1 billion from Fair Share and other sources of revenue. 

This budget does not utilize any funding from the Stabilization Fund, which has grown to a record high $6.938 billion and is projected to finish fiscal year 2024 at $8.962 billion. The recommendation assumes $1.946 billion in capital gains tax revenue, of which $466 million will be transferred to the Stabilization Fund and other long term liability funds for pension and retiree health insurance costs.  

The budget recommendation maintains the state’s commitment to fully fund its pension liability by 2036 with $4.105 billion in fiscal year 2024, a $361 million increase over the fiscal year 2023 contributions. Projected sales tax revenues will enable a $1.463 billion transfer to support the operations of the Massachusetts Bay Transportation Authority (MBTA), an increase of $138 million over the fiscal year 2023 budgeted contribution, and $1.3 billion will be transferred to the Massachusetts School Building Authority to support school construction across the Commonwealth.  

Fair Share 

The voters of Massachusetts in November 2022 approved a new 4 percent surtax on income above $1 million. They did so with the understanding that the new revenue generated from the tax on higher-income earners would be used to promote high-quality education, repair and maintain roads and bridges and improve our public transit system. 

This budget proposes to keep that commitment by establishing a new Education and Transportation Fund that would receive all surtax revenues and ensure that the money collected is restricted for the use of education and transportation in the most transparent way possible. House 1 also recommends a mechanism to ensure that while all funds remain dedicated to those purposes, they are used in a manner that is sustainable and protected against future downturns and fluctuations in the revenue stream. 

The proposal recommends the establishment of a required minimum fund balance that would be used only in the event of significant revenue decline to preserve base programs funded from Fair Share tax revenue. This balance would grow annually to account for inflation. 

To ensure predictability, a cap would be established on recurring spending with revenue collected above the cap used to support one-time investments in pilot programs, start-up grants, studies, one-time capital investments such as bridges, railroad right-of-way improvements, and other non-recurring projects. 

Continue reading the press release online -> 

https://www.mass.gov/news/governor-healey-and-lieutenant-governor-driscoll-file-fiscal-year-2024-budget-tax-relief-and-housing-bills

The Governor’s filing letter, budget message and specific account information are available here ->  https://budget.digital.mass.gov/govbudget/fy24/

The Governor’s filing letter, budget message and specific account information

Senate President Karen Spilka Statement on Tax Relief

Statement from Senate President Karen E. Spilka (D-Ashland):

"Having consistently stated my support for permanent progressive tax relief, I am excited to see Governor Healey's proposal to provide much-needed financial relief to Massachusetts residents. While the Senate will need time to dive into the details, I am particularly pleased to see support for families, parents with childcare needs, seniors, and persons with disabilities reflected in this proposal. With affordability a top concern on everyone's minds, I look forward to continuing this conversation with my Senate colleagues and partners in the Administration and the House so that we can move forward with tax relief soon this session."

 

“which we do expect to reverse in the second half of this fiscal year”

"STATE REVENUE collections missed the mark by nearly 5 percent in January, with the $3.834 billion that the Department of Revenue reeled in landing $192 million, or 4.8 percent, shy of the previous January’s collections and $185 million or 4.6 percent below the monthly benchmark.

It is the first time since June 2020 that DOR has announced that tax collections have failed to live up to the administration’s monthly expectation. The $21.643 billion that DOR has collected through seven months of fiscal year 2023 is $229 million, or 1 percent less, than actual collections in the same period of fiscal 2022. Tax receipts are the primary source of funding for this year’s state budget, which grew by 10 percent.

The sluggish January numbers may affect the appetite of the Healey administration and the Legislature for tax cuts this year."

Continue reading the article online at CommonWealth Magazine ->

https://commonwealthmagazine.org/uncategorized/state-tax-revenues-miss-mark-for-first-time-since-june-2020/ 

Some of the variability in forecast vs. actual is due to the "pass thru entity" or PTE accounting for which there is a good explanation of in this article.

The golden dome of the State House. (Photo by Andy Metzger)

Consensus on the MA revenue forecast remains to be set but 2 hours of hearing updates gets it started

"TOP BUDGET OFFICIALS from the Legislature say they intend to abide by the will of the voters and make sure all revenue from the new millionaire tax goes to “new initiatives” in transportation and education.

Exactly what would qualify as a “new initiative” hasn’t been decided yet (is a new bus or subway car a new initiative?), nor has any decision been made on whether the money would be evenly split between education and transportation.

“That’s all to be discussed,” said Sen. Michael Rodrigues, the chair of the Senate Ways and Means Committee."

Continue reading the article

https://commonwealthmagazine.org/state-government/special-treatment-considered-for-revenue-from-millionaire-tax/

"STATE REVENUES are expected to rise slightly in the coming fiscal year, but top budget officials from the Legislature and Healey administration say it’s still unclear whether there is enough money to enact permanent tax cuts.

At the end of last year’s legislative session, former governor Charles Baker and Senate leaders wanted to press ahead with $500 million in permanent tax cuts in addition to nearly $3 billion in one-time refunds from the state’s tax cap law."

Continue reading the article

https://commonwealthmagazine.org/state-government/top-budget-officials-still-undecided-on-tax-cuts/

"State revenue officials said Tuesday they could collect at least $1.4 billion — and perhaps up to $1.7 billion — next fiscal year from Massachusetts’ newly enshrined tax on its wealthiest earners, kick-starting months of debate over how to steer the new injection of tax money.

The projection, offered Tuesday in a legislative hearing, marked the first official estimate state officials have provided on what they think the so-called “millionaires tax” will contribute to coffers in its first year since taking effect Jan. 1. Narrowly passed by voters on the November ballot, the measure increases the state’s 5 percent income tax rate to 9 percent on annual income exceeding $1 million."

Continue reading the article in the Boston Globe (subscription may be required)

https://www.bostonglobe.com/2023/01/24/metro/new-millionaires-tax-could-generate-least-14-billion-next-year-state-officials-project/

The 2 hour hearing that generated these articles is available for video replay on your schedule  https://malegislature.gov/Events/SpecialEvents/Detail/403/Video1

The Big 3 on budget issues: From left, Matthew Gorzkowicz, Gov. Maura Healey's secretary of administration and finance; Sen. Michael Rodrigues, chair of the Senate Ways and Means Committee; and Rep. Aaron Michlewitz, chair of the House Ways and Means Committee. (Photo by Bruce Mohl)

Fiscal year 2024 budget cycle timeline changes slightly with a new Governor

The Town of Franklin starts the Fiscal Year 2024 budget cycle as soon as the tax rate is set for FY 2023. The budget cycle flowchart is posted on the Town page ->

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

The assumptions on State aid (Chap 70, etc.) usually come in January with the release of the Governor's Budget. The first year of the legislative 2 year cycle the release is call H1, the second year H2. With a new Governor, the timeline starts later in their first term.

"House 1; House 2

The Governor's budget recommendations for the next fiscal year. According to the Constitution, it must be filed within 3 weeks of the convening of the Legislature in January. Newly-elected governors must file House 1 within 8 weeks. In the second year of a legislative session, the Governor's budget is referred to as House 2."

Incoming Governor Healey is required to release their new budget on or before March 1, 2023.

Last year, we recorded a budget cycle conversation with Comptroller Chris Sandini and Treasurer/Collector Kerri Bertone. We get into the budget cycle and all the ins and outs of the details. The only thing that has changed is during the recording we were talking of the possible AAA rating. Since then, the Town has officially been awarded that. You listen to that discussion here:

https://www.franklinmatters.org/2022/08/inside-town-of-franklin-budget-cycle.html

Visit the Town Budget page for all the info on the cycle and recent budgets

https://www.franklinma.gov/town-budget

The State budget terminology listing can be found online ->

https://www.mass.gov/service-details/budget-terminology

The full State budget timeline can be found ->

https://www.mass.gov/service-details/budget-process-timeline

The FY 2023 & Prior info can be found online ->

https://www.mass.gov/operating-budgets-fy23-and-previous

Town of Franklin budget cycle

"commitments and authorizations under state law that are not fully kept by the Commonwealth"

"THE STATE HAS a $1.2 billion shortfall in aid promised to cities, towns, and school districts, Auditor Suzanne Bump concluded in a report released Thursday. 

The report looked at several major categories of state aid and identified $711.4 million in unfunded mandates related to school aid; $448.3 million related to school transportation; and $103.3 million in government aid, mainly related to the Community Preservation Act. 

“The state should be accountable to fulfill its funding obligations to cities and towns,” Bump said in an interview. “These are mandates that have long been on the books, and it just seems it’s easier to focus on the new and forget about the old.” 

State law prohibits unfunded mandates, requiring the Legislature to fund anything it requires cities and towns to do. But practically, lawmakers have often ignored those obligations. For example, they regularly appropriate only a portion of mandated expenses for school transportation.  

“Insufficient state appropriations or allocations have left programs underfunded, and some programs have seen financial obligations completely ignored despite a commitment under law,” the report says. "

Continue reading the CommonWealth Magazine article online ->

https://commonwealthmagazine.org/state-government/auditor-identifies-1-2-billion-in-unfunded-mandates/

Read your copy of the report online ->  https://www.mass.gov/report/fulfilling-the-promise-of-local-aid-by-strengthening-state-local-partnerships

or download the PDF version -> https://www.mass.gov/doc/report-fulfilling-the-promise-of-local-aid-by-strengthening-state-local-partnerships/download

State Auditor Suzanne Bump

CommonWealth Magazine: after all the he said/she said, tax credit might be less than Gov Baker claimed

"AS THEIR CAREFULLY crafted plans for tax relief and massive spending outlays began to slip away with last Thursday’s stunning news about a 1986 tax law, frustrated Democrats on Beacon Hill went into spin mode.

First, late Friday afternoon, Rep. Christine Barber of Somerville took to the House floor to suggest that plans by the Baker administration to sweep a $225 million fund may have been part of the administration’s move to trigger the 36-year-old law that the Baker administration a day earlier said could force nearly $3 billion in tax relief later this year, or about 7 percent of the income taxes paid in 2021.

“It’s becoming clear that to cover closing costs for 2022 and to possibly pay for the $2.8 billion that will go to the taxpayers under Chapter 62F, there may have been some other need for these funds,” Barber said. “I hope that those funds were not used at the expense of covering low and moderate income families’ health care, but that looks like what might be happening. But we know that rather than spend these funds that were in the Commonwealth Care Trust Fund, the governor swept those funds out and then replaced this new program that we created with a study.”

Continue reading the article online

https://commonwealthmagazine.org/state-government/dems-feel-baker-knew-of-looming-tax-break-blockbuster/ 

"STATE OFFICIALS said on Thursday that tax revenues grew by more than 20 percent in the most recently completed fiscal year, but that growth will nevertheless yield a tax cap credit that is probably more than $600 million less than what the Baker administration estimated last week.

The tax cap is a 1986 law that sets “allowable” tax revenue the state can take in during a given year and requires collections in excess of that amount to be returned to taxpayers in the form of a credit."

Continue reading the article online

https://commonwealthmagazine.org/state-government/tax-cap-giveback-appears-not-as-big-as-forecasted/

CommonWealth Magazine: after all the he said/she said, tax credit might be less than Gov Baker claimed

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

Beacon Hill Updates: MA House passes economic development bill; agreement in principle reached by conf cmte on State budget

"The Massachusetts House Thursday night passed a massive, wide-ranging economic development bill that infuses $4.2 billion into the state economy in the form of tax relief, investments in health care and environmental programs, and support to businesses, as well as a slew of policy changes and earmarks for local projects and programing.

The bill would be paid for by a combination of $2.8 billion in federal American Rescue Plan dollars and expected state surplus money, and $1.4 billion in money the state borrows through bonds.

Much of the spending is meant to target “communities that were hardest hit by the pandemic,” Representative Aaron Michlewitz, a North End Democrat who is the House’s budget leader, said while presenting the bill Wednesday morning. “This is a well-rounded spending package that will help support major sectors of our economy and help us be more competitive with other states.”

Continue reading the article in the Boston Globe (subscription may be required) ->  https://www.bostonglobe.com/2022/07/14/metro/mass-house-set-pass-wide-ranging-economic-development-bill-that-offers-tax-relief-health-care-investments-earmarks/ 

"TWO WEEKS INTO the fiscal year, legislative budget writers have reached an agreement on the fiscal 2023 state budget. 

Ways and Means chairs Rep. Aaron Michlewitz and Sen. Michael Rodrigues issued a joint statement Thursday evening saying House-Senate negotiators have “reached an agreement in principle” resolving the differences between the House and Senate versions of the budget. 

“Staff are currently working to complete the work necessary to finalize the agreement,” Rodrigues and Michlewitz said. “We anticipate a Conference Committee Report being filed in the coming days to ensure that the House and Senate can consider the report on Monday in formal session.” 

Continue reading the article in CommonWealth Magazine -> https://commonwealthmagazine.org/state-government/negotiators-reach-agreement-in-principle-on-state-budget/

Note - the headline on a similar article Thursday initially read "Beacon Hell", a typo caught by an eagle eyed reader and corrected online before the Twitter post went out. Unfortunately all the email subscribers got the 'wrong' version'. Spell check won't catch those mistakes. I need to be more vigilant.

Beacon Hill Updates: MA House passes economic development bill; agreement in principle reached by conf cmte on State budget

Senator Rausch: MA Senate Budget Roundup

FY 23 budget debates, Uvalde, abortion care, and Memorial Day updates from Senator Rausch

View this email in your browser Senator Rausch State House Briefing    Part 2, Chapter 16 (May 31, 2022)    May is always a busy month on Beacon Hill, and I am thrilled and proud to share fantastic news about how I am delivering real results for you and your community.  In this newsletter, you will find updates on the fiscal year 2023 Senate Budget debate, my commitments to protect abortion care and prevent gun violence, Memorial Day observances, in-person Senior Coffees, and more. For real-time updates, please follow me on Twitter and Facebook. If you are a constituent and need assistance, please don't hesitate to contact me and my team via phone (617-722-1555) or email (becca.rausch@masenate.gov). We are here to help.    I wish you and your loved ones strength, health, resilience, and joy.      Yours in service,     Senator Becca Rausch    What is the state budget and how does it work? Watch my explainer here!  Last week my Senate colleagues and I wrapped up our budget deliberations for fiscal year 2023, allocating nearly $50 billion to support our Commonwealth's families and communities. My team and I worked diligently to elevate the needs of the cities and towns in our district, and we delivered massive results. Our communities received more than $1.6 million in state funding for local priorities like tuition-free full day kindergarten, public safety communications, senior centers, and water quality improvements. I also secured more than $1.5 million in statewide budget amendments, including $1,000,000 for youth mental health supports.  These amendments built on the strong base budget that prioritizes you, the people who keep this Commonwealth moving forward. We made major investments in schools, childcare, workforce development, and housing while also boosting state aid to communities.  Here are just a few components of the budget that will yield game-changing impacts for our Commonwealth:  $1.23 billion in state aid to cities and towns (a $63 million increase)  $6 billion in Chapter 70 state funding for public schools, in line with the landmark Student Opportunity Act  Increasing our state's "rainy day" fund to $6.74 billion to ensure stability in times of economic hardship  $250 million for pandemic-related grants to support early education and childcare providers  Numerous boosts for environmental protection, consistent with the Green Budget, including increases for DCR, DEP, climate change adaptation and preparedness, the Ecological Restoration Program, and environmental justice initiatives.  Through the amendment process, I secured several critically needed statewide funding and policy measures:  $1,000,000 to fully fund Hey Sam, a youth mental health support text line run by Samaritans, Inc. The original idea for the helpline came from my Students Speak Legislative Forum after hearing about my young constituents' firsthand experiences with mental illness. I am proud that my chamber and I delivered to help combat the ongoing youth mental health crisis. $200,000 for a statewide car seat recycling pilot program to reduce landfill waste and support Massachusetts families.  $92,000 to conduct survey research on COVID vaccinations for children in Massachusetts to determine barriers to access and strategy to close vaccination gaps.  $300,000 for the MA Womens Suffrage Celebration Coalition of Massachusetts to enhance their educational programming about women's rights, women's suffrage, and women's history in our Commonwealth.  I also co-sponsored an amendment and spoke on the floor about a policy measure to protect people in Massachusetts seeking, accessing, and providing reproductive and gender-affirming health care, consistent with our own state laws. This is critical if (when) the U.S. Supreme Court overturns Roe v. Wade.  In the wake of increased gun violence and racist, antisemitic, Islamophobic, and anti-LGBTQ+ hate crimes, I co-sponsored an amendment that successfully secured $3,000,000 in security grants for community nonprofits and places of worship to protect vulnerable communities against domestic terrorism. Watch my floor speech about combating hate crimes here.   My speech on the Senate Floor about the youth mental health crisis and the Hey Sam youth text line  I also delivered for the towns and cities in my district, securing more than $1,600,000 in collaboration with my Senate colleagues for local projects and initiatives that will have real impact in our communities:  $127,000 to fund and implement full-day kindergarten in Wrentham   $110,000 for food pantries in Attleboro and Natick  $125,000 for a feasibility study for a new council on aging facility in Attleboro  $100,000 for economic development in West Natick  $600,000 for urgent property repairs at Elm Bank Reservation in Dover  $100,000 for electric vehicle charging stations in Wellesley  $5,000 to fund anti-bias curriculum in Franklin Public Schools after an increase in local acts of racism, antisemitism, and homophobia  $10,000 for the annual Franklin Cultural Festival  $8,000 for historical preservation and safety upgrades to the Franklin State Forest   $45,000 for facility upgrades for the Milford Senior Center   $25,000 for backup power generators to ensure the resilience and reliability of the Millis Public Safety radio system  $30,000 to replace the lighting management system at the Millis Public Library  $50,000 for a feasibility study to improve transportation options in Needham  $25,000 for technological upgrades to study water pollution mitigation and support community development in Norfolk  $25,000 to repair and expand the Norfolk Council on Aging parking lot  $25,000 for the operations of North Attleboro's WWII Memorial Pool  $50,000 for a new water pumping and treatment station to access a new water source in Plainville  $50,000 to study and improve the water quality of Sherborn's Farm Pond watershed  $25,000 to upgrade lighting in the Wayland High School Fieldhouse  $50,000 for AEDs at town parks in Medfield  $25,000 for cardiac defibrillators for the North Attleboro Fire Department  $25,000 for the Natick 180 Coalition to address addiction and substance use $30,000 for the Veterans Oral History Project in Natick  My speech on the impact of senseless acts of hate in our communities It is the greatest honor of my life to serve the cities and towns of the Norfolk, Bristol and Middlesex district, and I am grateful for the partnership of our local community members and municipalities to elevate their needs do a statewide level. When we work together, we succeed.    The Senate FY '23 budget now heads to conference committee to reconcile the differences between the House and Senate versions before they head back to our chambers and over to the Governor's desk. Stay tuned!   This newsletter was shortened for publication here. To view the full contents, follow this link ->   https://mailchi.mp/masenate/monthlynewsletter-16310762