House Committee on Ways and Means Budget Briefing

Fiscal Year 2011

Chairman Charles A. Murphy

April 14, 2010

HWM Fiscal Year 2011 State Budget

Financial Overview

HWM Proposal – H4600

FY10 General Appropriations Act $26.93 Billion

FY10 Current Spending $27.05 Billion

HWM Proposal – H4600

FY10 General Appropriations Act $26.93 Billion

FY10 Current Spending $27.05 Billion

Governor’s FY11 – House 2 $28.21 Billion

HWM Proposal – H4600

FY10 General Appropriations Act $ 26.93 Billion

FY10 Current Spending $27.05 Billion

Governor’s FY11 – House 2 $28.21 Billion

HWM H4600 $27.80 Billion

HWM Proposal – H4600

FY10 General Appropriations Act $26.93 Billion

FY10 Current Spending $27.05 Billion

Governor’s FY11 – House 2 $28.21 Billion

HWM H4600 $27.80 Billion

$411M below Governor’s budget

HWM Proposal – H4600

$27.80 Billion

No new taxes

No elimination of tax exemptions

No draw from stabilization fund

HWM Proposal – H4600

FY11 Structural Budget Gap – $3.2 Billion

HWM Proposal – H4600

FY11 Structural Budget Gap – $3.2 Billion

In M

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Revenue Expenditure$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$590M C.R. Growth

$1.3 billion in FY11 Maintenance Growth

$2.5 billion in FY10 One-Time Solutions

FY2011 Budget Gap $3.2 Billion

HWM Proposal – H4600

FY11 Structural Budget Gap – $3.2 Billion

Closing the Gap$1.4 Billion in cuts/savings initiatives$1.6 Billion in federal stimulus money$91 Million from canceling stabilization fund

transfer $48 Million from trust fund sweeps$24 Million from Authorities budget participation$70 Million in additional revenues

HWM Proposal – H4600

Federal Stimulus Monies

Enhanced FMAP $690M

Enhanced FMAP Extension $608M SSDI Overpayment Reimbursement $160M

State Fiscal Stabilization Funds for Education $96M

Total $1.554B

HWM Proposal – H4600

$1.4B in Cuts & Savings Initiatives $745M in Line Item Reductions $300M for Long Term Debt Payments $234M in Local Aid Reductions $111M (net) in MassHealth Savings

Initiatives $15M Capping Commonwealth Care

(AWSS)

HWM Proposal – H4600

Bottom Line OverviewThe GAA includes 644 line items

Level Funded 120 line items

Reduced 294 line items

Eliminated 15 line items

Anticipated Reduction in FTEs -1517

HWM Fiscal Year 2011 State Budget

Line Item Overview

HWM Proposal – H4600

Local AidFunded Ch.70 at $3.93B including SFSF

Funded Unrestricted General Government Aid at $899M

Increased Regional School Transportation by 5%Increased Special Education “Circuit Breaker” by 1.4%

Level funded PILOTLevel funded Municipal Aid to Public LibrariesLevel funded Tax Abatements for Veterans, Widows,

Blind Persons and the Elderly

HWM Proposal – H4600

EducationMETCO funding - $17M

Extended Learning Time Grants - $15MFull-day Kindergarten - $26M

Head Start - $8MNon-Ch.70 accounts funded $2.6M above current FY10

spending levels

Did not adopt H2 initiative freezing Ch. 766 School teacher salaries

HWM Proposal – H4600

Higher EducationProvided State Support at FY06 Funding Levels and

$21M in State Fiscal Stabilization Funding

$419M with $11M in SFSF allocation for UMASS$189M with $5M in SFSF allocation for State Colleges$207M with $5M in SFSF allocation for Community Colleges

Total Reduction $132M from FY10

HWM Proposal – H4600

Healthcare

$9B to fund 1.2 Million MassHealth enrolleesIncludes $256M in Gross Savings Totals $111M in Net Savings

Reflects $601M increase in spending due to 3% enrollment increase

Provided $20M to providers through Essential Community Providers Trust Fund

HWM Proposal – H4600

Healthcare$60M for Aliens with Special Status Coverage

Caps the program at current enrollment Provides $15M less than H2.

Adopted Governor’s savings initiatives for MassHealth Including: $174M (gross) for provider rates $58M (gross) in restructuring MassHealth programs

Including the restructuring of adult dental $23M (gross) for program integrity enhancements

HWM Proposal – H4600

Homelessness and Emergency Shelter

Created new line item for $4M Housing Stabilization Initiative to provide flexible funding for rapid re-housing efforts

$113M for emergency family shelters

$38M for emergency individual shelters

$35.4M to Mass. Rental Voucher Program

HWM Proposal – H4600

Public Safety

$3.2M to fund new state police class in 2011

$6.5M in Shannon anti-gang grant program

Maintained funds for witness protection

$5M Quinn Bill

HWM Proposal – H4600

JudiciaryReduced Trial Court by $30M, from projected FY10 spending

Level funded all District Attorney’s Offices

$192M for constitutionally obligated defense- $32M Public Defenders - $146M Private Bar Advocates

- $14M Additional Court Expenses

Funded Mass. Legal Assistance Corporation at $9.5M

HWM Fiscal Year 2011 State Budget

Outside Section Overview

HWM Proposal – H4600

Capital Gains ReformAll tax receipts from capital gains over

$1 billion deposited into Stabilization Fund

5% Over $1B to State Retirees Benefits Trust Fund

Tempers volatile revenue source, for more stable budgeting

HWM Proposal – H4600

Budget TransparencyCreates comprehensive, one-stop, online database

to track the use of taxpayer monies

Provides transparent check on all state spending

Other Outside SectionsNo state monies for registered lobbyistsStudy of capital to operating transfers

HWM Proposal – H4600

Substance Abuse Prevention and Treatment Fund

Creates fund to receive all sales tax revenue from sale of alcohol.

Monies to be used to fund prevention and treatment of substance abuse.

Appropriated $96.3 million for FY11