House Committee on Ways and Means Budget Briefing Fiscal Year 2011

1. House Committee on Ways and Means Budget BriefingFiscal Year 2011 Chairman Charles A. Murphy April 14, 2010

2. HWM Fiscal Year 2011 State Budget Financial Overview

3. HWM Proposal – H4600 FY10 General Appropriations Act $26.93 Billion FY10 Current Spending $27.05 Billion

4. HWM Proposal – H4600 FY10 General Appropriations Act $26.93 Billion FY10 Current Spending $27.05 Billion Governor’s FY11 – House 2 $28.21 Billion

5. 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

6. 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

7. HWM Proposal – H4600 $27.80 Billion No new taxes No elimination of tax exemptions No draw from stabilization fund

8. HWM Proposal – H4600 FY11 Structural Budget Gap – $3.2 Billion

9. HWM Proposal – H4600 FY11 Structural Budget Gap – $3.2 Billion In Millions

10. 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

11. 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

12. 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)

13. HWM Proposal – H4600 Bottom Line Overview The GAA includes 644 line items Level Funded 120 line items Reduced 294 line items Eliminated 15 line items Anticipated Reduction in FTEs -1517

14. HWM Fiscal Year 2011 State Budget Line Item Overview

15. HWM Proposal – H4600 Local Aid Funded 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 PILOT Level funded Municipal Aid to Public Libraries Level funded Tax Abatements for Veterans, Widows, Blind Persons and the Elderly

16. HWM Proposal – H4600 Education METCO funding - $17M Extended Learning Time Grants - $15M Full-day Kindergarten - $26M Head Start - $8M Non-Ch.70 accounts funded $2.6M above current FY10 spending levels Did not adopt H2 initiative freezing Ch. 766 School teacher salaries

17. HWM Proposal – H4600 Higher Education Provided 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

18. HWM Proposal – H4600 Healthcare $9B to fund 1.2 Million MassHealth enrollees Includes $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

19. 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

20. 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

21. 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

22. HWM Proposal – H4600 Judiciary Reduced 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

23. HWM Fiscal Year 2011 State Budget Outside Section Overview

24. HWM Proposal – H4600 Capital Gains Reform All 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

25. HWM Proposal – H4600 Budget Transparency Creates comprehensive, one-stop, online database to track the use of taxpayer monies Provides transparent check on all state spending Other Outside Sections No state monies for registered lobbyists Study of capital to operating transfers

26. 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