March 25, 2005
To the Honorable Senate and House of Representatives:
Pursuant to the final paragraph of section 7H of Chapter 29 of the Massachusetts General Laws, I am writing to bring to your attention several adjustments to my House 1 budget recommendations for Fiscal Year 2006, which will offset the reduction in projected tax revenues resulting from the changes included in the substitution to House Bill 21, "An Act to Update and Improve Certain Tax Provisions of the Commonwealth," which I filed today. I respectfully request that you include these revisions in your budget recommendations. A total of $85 million in revisions are described below.
Technical Revenue Adjustments:
House 1 was filed with a surplus of $15 million. Please apply the surplus, in part, to address the $85 million reversion.
Based on the State Comptroller's March 1, 2005 certification of MBTA base sales tax revenues for Fiscal Year 2006, the amount of sales tax dedicated to the MBTA in Fiscal Year 2006 will be $712.6 million. This is a reduction of $3.8 million from the previous estimate used in House 1.
Several accounts included funding in House 1 to cover occupancy lease payments, which are currently funded from the capital budget. I continue to support paying for these costs from operating funds, and therefore, recommend appropriating the funds in Fiscal Year 2005, and making these additional amounts available for expenditure in Fiscal Year 2006. The accounts and corresponding adjustments to House 1 are as follows:
Economic Stimulus Initiatives:
|1102-3210 ||Division of Capital Asset Management and Maintenance ||$4,481,406|
|2000-0100 ||Executive Office of Environmental Affairs ||$3,178,669|
|6010-0001 ||Massachusetts Highway Department ||$6,275,000|
The accounts below included additional funding in House 1 to help create jobs and stimulate the economy. I propose accelerating these efforts by funding these items with Fiscal Year 2005 dollars and allowing these dollars to be expended in both Fiscal Year 2005 and 2006. The accounts and corresponding adjustment to House 1 are as follows:
Capital Project Funding:
|7002-0012 ||At-Risk Youth Program ||$2,000,000|
|7003-0702 ||Industry-Driven Training Grants ||$3,790,000|
|7007-0312 ||Small Business Initiative ||$1,500,000|
|1599-0015 ||Capital Projects Reserve |
The one-time capital projects identified for funding from this $24 million reserve will instead be funded from existing capital budget funding sources.
Contract Assistance Adjustments:
The savings from a recent refunding and lower than projected interest rates result in approximately $3.0 million in savings. The accounts and corresponding adjustments to House 1 are as follows:
|1599-0093 ||Water Pollution Abatement Trust ||$2,119,860|
| ||Clean Water Contract Assistance |
|1599-3838 ||Water Pollution Abatement Trust ||$880,140|
| ||New Drinking Water Projects Contract Assistance ||$3,000,000|
|1599-3384 ||Judgments, Settlements and Legal Fees|
A companion supplemental budget proposes to fund the $7.5 million recommended in
House 1 by appropriating this amount in Fiscal Year 2005, and making this additional amount available for expenditure in Fiscal Year 2006. Please eliminate funding for this account in House 1 and support the companion bill.
|4403-2000 ||TAFDC Cash Assistance|
The most recent utilization data reveals that House 1 overfunded the account by $2.2 million. Please reduce the House 1 value by $2,200,000 to $307,034,813.
|4403-2120 ||Emergency Assistance - Family Shelters and Services|
The most recent utilization data reveals that a surplus in this account exists in Fiscal Year 2005. A companion supplemental budget proposes to balance that surplus forward into Fiscal Year 2006. Please reduce the House 1 figure by $8,299,682 to $62,147,644, and support the companion bill.
cc: The Honorable Therese Murray, Chair, Senate Committee on Ways and Means
The Honorable Robert A. DeLeo, Chair, House Committee on Ways and Means
The Honorable Michael Knapik, Ranking Member, Senate Committee on Ways and Means
The Honorable Vinny deMacedo, Ranking Member, House Committee on Ways and Means