Budget Conference Committee Briefing Fiscal Year 2011

1. Budget Conference Committee Briefing Fiscal Year 2011 Chairman Charles A. Murphy June 24, 2010

2. Financial Overview

3. Consensus Revenue

4. Bottom Line Comparison FY10 GAA $27.20 Billion Governor’s House 2 $28.20 Billion House Final $27.82 Billion Senate Final $27.94 Billion

5. Bottom Line Comparison FY10 GAA $27.20 Billion Governor’s House 2 $28.20 Billion House Final $27.82 Billion Senate Final $27.94 Billion Conference Committee Report $27.94 Billion

6. Bottom Line Comparison FY10 GAA $27.20 Billion Governor’s House 2 $28.20 Billion House Final $27.82 Billion Senate Final $27.94 Billion Conference Committee Report $ 27.94 Billion Without FMAP - $27.62 Billion

7. Contingency for FMAP Funds

8. Contingency Budget Unknown Fate of FMAP funds resulted in a budget with contingencies:

9. Contingency Budget Unknown Fate of FMAP funds resulted in a budget with contingencies: ∙ Section 2 line item amounts contains appropriationswith$687m FMAP funds

10. Contingency Budget Unknown Fate of FMAP funds resulted in a budget with contingencies: ∙ Section 2 line item amounts contains appropriationswith$687m FMAP funds ∙ Pay attention to Fund Splits below line items! ∙ Without FMAP, only a portion will be appropriated

11. Contingency Budget History Systems Board 8000-0110 For the operation of the criminal history systems board, including criminal justice information services, criminal offender record information services, firearms support services and victim services; provided, that funds may be expended for the purpose of enabling local housing authorities‘ access to criminal offender record information when qualifying applicants for state-assisted housing…………………….................................. $2,533,686 General Fund ......................................................................... 78.596% FMAP Budget Relief Fund .................................................... 21.404%

12. Contingency Budget History Systems Board 8000-0110 For the operation of the criminal history systems board, including criminal justice information services, criminal offender record information services, firearms support services and victim services; provided, that funds may be expended for the purpose of enabling local housing authorities‘ access to criminal offender record information when qualifying applicants for state-assisted housing…………………….................................. $2,533,686 General Fund ......................................................................... 78.596% FMAP Budget Relief Fund .................................................... 21.404% Primary Care Recruitment 4510-0715 For the operation of a center for primary care recruitment and placement to improve access to primary care services; provided, that funds may be expended for primary care workforce development and loan forgiveness grant program……………........................................ $157,000 FMAP Budget Relief Fund ....................................................... 100.000%

13. Contingency Budget Certain Outsides only to take effect if FMAP funds are received - Noted inside section language Without the $687m, any programmatic earmarks became “may ” language

14. Budget without $687m FMAP Low number throughout budget -$161m Additional revenue -$150m Including $53m TANF Contingency Fund $25m Updated tobacco payment $19m from DOR Auditors $16m Child support enforcement Stabilization Fund draw -$100m

15. Budget without $687m FMAP MassHealth reductions -$99m Including $56m elimination of AWSS coverage $15m overall reductions $6.8 day rehabilitation hours $6.7m elder home care accounts Suspend Statutory Carry Forward -$95m Additional line item reductions -$67m 40% of line items cut

16. Local Aid Protected ∙Chapter 70 not reduced below 4% ∙ Unrestricted General Government Aid not reduced below 4% ∙ SPED Circuit Breaker level funded from Post 9C ∙ Regional Transportation level funded from FY10 GAA ∙ PILOT reduced by $2m from FY10 GAA

17. Outside Sections

18. Transparency + Budget Capital Gains Reform All tax receipts from capital gains over $1B deposited into Stabilization Fund 5% over $1B to State Retirees Benefits Trust Fund Tempers volatile revenue source, for more stable budgeting

19. Transparency + Budget Budget Transparency Creates comprehensive, one-stop, online database to track the use of taxpayer monies Provides transparent check on all state spending

20. Transparency + Budget Adopted House Tax credit transparency proposal No Public Funds from state agencies or quasi-agencies to registered lobbyists

21. 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 $108m million for FY11 Probation’s substance abuse testing services Substance abuse step-down recovery services Secure Treatment for Opiate Addition Services

22. Pension Reform Caps maximum pension allowed Requires pension boards to make actuarial adjustments according to actual liability Defines interest rates of non-vested withdrawals at 3% Increases minimum benefit available to widows of disabled retirees who left service early from $6k to $9k Requires SJC to pay into pension system prospectively

23. Probation Reform 10-member Commission to Study of Judicial Branch hiring and budgeting 5-year Term for Commissioner of Probation 5% Budget transferability

24. Immigration Reform Immigration Verification needed to access state services in the following areas: MassHealth Health Safety Net and Commonwealth Care Transitional Assistance Unemployment MassGrant scholarship program Verification of eligibility for public housing Debarment of public contractors that violate federal immigration laws

25. Municipal Health Care Held in Conference Committee