Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2008

Governor's Budget Recommendation FY2008

Office of the Secretary of Administration and Finance


Suggestions Awards Board

SECTION 5.   Section 31A of chapter 7 of the General Laws, as so appearing, is hereby amended by striking out, in line 19, the words "subject to appropriation, expend sums" and inserting in place thereof the following words:- retain a portion of new revenues received or savings generated in other items of appropriation and may expend these retained amounts without further appropriation.

 

Establish Unified Carrier Registration Trust Fund

SECTION 6.   Chapter 10 of the General Laws is hereby amended by inserting after section 35CC the following section:-

          Section 35DD. There is hereby established and set up on the books of the commonwealth a separate fund to be known as the Unified Carrier Registration Trust Fund for commercial motor vehicle enforcement. There shall be credited to that fund all revenues received by the commonwealth from fees levied on motor carriers and related entities required by state or federal law to register with state transportation officials; from appropriations; from gifts, grants, contributions and bequests of funds from any department, agency or subdivision of federal, state or municipal government, and any individual foundation, corporation, association or public authority; or the revenue derived from the investment of amounts credited to the fund. The state treasurer shall not deposit the revenues in, or transfer the revenues to, the General Fund. The state treasurer shall deposit monies in the fund in accordance with section 34 and 34A of chapter 29 in the manner that will secure the highest interest rate available consistent with the safety of the fund. All funds credited under this section shall remain in the Unified Carrier Registration Trust Fund to be expended without further appropriation by the director of the transportation division of the department of public utilities for projects including but not limited to bus inspections, bus company safety audits, federal new entrant audits, railroad grade crossing safety investigations, and administrative support for any such programs, including the operation of the division. Funds in excess of those that may be retained by the commonwealth as determined by formula set by the uniform carrier registration board of the federal motor carrier safety administration may be transferred to a depository account established by that board.

 

Inland Fish and Game Fund

SECTION 10.   Section 1 of chapter 29 of the General Laws is hereby amended by striking out, in line 37, as so appearing, the words "and by section 2C of chapter 131".

 

Emergency Spending Authority

SECTION 12.   Chapter 29 of the General Laws is hereby further amended by adding the following section:-

          Section 72. (a) In addition to other emergency powers allowed by law, the governor may declare a state of emergency whenever a catastrophic event, natural disaster, pandemic outbreak, terrorist threat or other occurrence or imminent danger threatens the health, safety or welfare of the people, or the fiscal or economic stability of the commonwealth. In such an emergency, the governor may direct any agency, authority, or political subdivision of the commonwealth to take appropriate action to eliminate the immediate threat or danger and to aid its citizens, including but not limited to temporary re-deployment of personnel, contractors or other resources. Upon notice in writing of the declaration of emergency to the comptroller and the clerks of the senate and the house of representative, there shall be appropriated an amount requested by the governor not to exceed $25,000,000 from the Commonwealth Stabilization Fund, and the comptroller shall transfer that amount into a separate emergency account for the costs incurred under this section.
          (b) Agencies, authorities and political subdivisions directed by the governor to act under this section need not comply with procurement and personnel restrictions for obligations incurred in performance of directives under this section for the period of the emergency, but shall consult with the operational services division to use, to the greatest extent possible, existing state contractors and certified small, minority or women-owned businesses, to provide necessary goods or services under this section to obtain the most cost effective prices and quality services available. The comptroller may take whatever actions are necessary to enable obligations and payments under this section, shall advise agencies about the most efficient payment processes, including electronic payment options, and shall direct agencies in the proper accounting for all encumbrances and payments under this section in the state accounting system. Expenditures may be charged to other items of appropriation and to other subsidiaries as directed by the secretary of administration and finance in consultation with the comptroller. Every 60 days after an emergency is declared under this section, and until the governor declares that the emergency has terminated, the governor shall report in writing the specific amounts and purposes of expenditures under this section to the house and senate committees on ways and means.
          (c) Any funds remaining in the emergency account at the conclusion of the fiscal year in which the emergency arises shall not revert at the end of the fiscal year, unless the emergency has terminated, but shall remain available for expenditure without further appropriation until the emergency ceases and all payments for all costs incurred under this section, at which time any remaining funds shall be transferred to the Commonwealth Stabilization Fund.

 

Repeal Health Care Security Trust Fund

SECTION 13.   Chapter 29D of the General Laws is hereby repealed.

 

Establish State Retiree Benefits Trust Fund

SECTION 14.   Chapter 32A of the General Laws is hereby amended by adding the following section:-

          Section 24. (a) There shall be a State Retiree Benefits Trust Fund, in this section called the fund, for the purpose of depositing, investing and disbursing amounts set aside solely to meet liabilities of the state retirement system for health care and other non-pension benefits for retired members of the system. The trust shall be revocable only when all such benefits, current and future, under this chapter 32A have been paid or defeased.
          (b) The PRIM board established by section 23 of chapter 32, in this section called the board, shall be the trustee of and shall administer the fund, and for the purposes of this section the secretary of administration and finance and the executive director of the group insurance commission, or their designees, shall be members of the board. Except as otherwise provided in this section, said section 23 shall apply to the management of the fund.
          (c) Ninety per cent of the monies received in any fiscal year as a result of any claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action undertaken by the attorney general against a manufacturer of cigarettes including, but not limited to, the action known as Commonwealth of Massachusetts v. Philip Morris, Inc., et al., Middlesex Superior Court, No. 95-7378, shall be deposited in the fund. The remaining 10 per cent of these monies shall be deposited in the General Fund, to be used subject to appropriation for tobacco control programs.
          (d) The board may expend amounts in the fund without further appropriation to pay the costs of health care and other non-pension benefits for retired members of the state retirement system, at the request of the group insurance commission.
          (e) The group insurance commission shall remain responsible for administering the payment of and determining eligibility for health care and other non-pension benefits for retired members of the state retirement system.
          (f) Any other retirement system of the commonwealth may participate in the fund, using the same procedures as participation in the PRIT Fund under section 22 of chapter 32, if the board decides to allow such participation.

 

Date of ATB Decision for Purposes of Payment of Disputed Tax

SECTION 15.   The first paragraph of paragraph (3) of subsection (e) of section 32 of chapter 62C of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by adding the following sentence:- For purposes of this paragraph, the date of a decision by the appellate tax board shall be determined without reference to any later issuance of finding of facts and report by the board or to any request for a finding of facts and report.

 

Move Nursing Home Assessment to General Fund for MassHealth

SECTION 25.   Section 25 of said chapter 118G, as appearing in the 2004 Official Edition, is hereby amended by striking out, in lines 24 and 25, the words "Health Care Security Trust Fund established by chapter 29D" and inserting in place thereof the following words:- General Fund.

 

Uniform Carrier Registration Fee

SECTION 33.   Chapter 159B of the General Laws is hereby amended by striking out section 10, as so appearing, and inserting in place thereof the following section:-

Section 10. Each interstate carrier by motor vehicle transporting over the ways within the commonwealth for compensation shall register and identify with the department under the federal Unified Carrier Registration Act of 2005. Each registration shall be accompanied by a fee, the amount of which shall be determined by the board of directors of the federal Unified Carrier Registration Plan.

 

Pension Cost of Living Adjustment

SECTION 40.   The amounts transferred under paragraph (1) of section 22C of chapter 32 of the General Laws shall be made available for the commonwealth's Pension Liability Fund established under section 22 of said chapter 32. The amounts transferred under said paragraph (1) of said section 22C of said chapter 32 shall meet the commonwealth's obligations under said section 22C of said chapter 32, including retirement benefits payable by the state employees' and the state teachers' retirement systems, for the costs associated with a 3 per cent cost-of-living adjustment under section 102 of said chapter 32, the reimbursement of local retirement systems for previously authorized cost-of-living adjustments under said section 102 of said chapter 32, and for the costs of increased survivor benefits under chapter 389 of the acts of 1984. The state board of retirement and each city, town, county and district shall verify these costs , subject to the rules adopted by the treasurer. The treasurer may make payments upon a transfer of funds to reimburse certain cities and towns for pensions to retired teachers, including any other obligations which the commonwealth has assumed on behalf of any retirement system other than the state employees' or state teachers' retirement systems and also including the commonwealth's share of the amounts to be transferred under section 22B of said chapter 32 and the amounts to be transferred under clause (a) of the last paragraph of section 21 of chapter 138 of the General Laws. All payments for the purposes described in this section shall be made only pursuant to distribution of monies from the fund, and any distribution and the payments for which distributions are required shall be detailed in a written report filed quarterly by the commissioner of administration with the house and senate committees on ways and means and the joint committee on public service in advance of this distribution. Distributions shall not be made in advance of the date on which a payment is actually to be made. The state board of retirement may expend an amount for the purposes of the board of higher education's optional retirement program under section 40 of chapter 15A of the General Laws. To the extent that the amount transferred under paragraph (1) of section 22C of said chapter 32 exceeds the amount necessary to adequately fund the annual pension obligations, the excess amount shall be credited to the Pension Reserves Investment Trust Fund of the commonwealth for the purpose of reducing the unfunded pension liability of the commonwealth.

 

Phase-in Deposit of Tobacco Litigation Proceeds

SECTION 41.   Notwithstanding subsection (c) of section 24 of chapter 32A of the General Laws, inserted by section 14, for fiscal years 2008 to 2011, inclusive, of the 90 per cent of the monies received in that fiscal year as a result of any claim or action undertaken by the attorney general against a manufacturer of cigarettes to recover the amount of medical assistance provided pursuant to chapter 118E or any other claim or action undertaken by the attorney general against a manufacturer of cigarettes including, but not limited to, the action known as Commonwealth of Massachusetts v. Philip Morris, Inc., et al., Middlesex Superior Court, No. 95-7378, the following portions shall not be deposited in the State Retiree Benefits Trust Fund but rather shall be deposited in the General Fund:
          (a) for fiscal year 2008, all of the 90 per cent of those monies;
          (b) for fiscal year 2009, 3/4 of the 90 per cent of those monies;
          (c) for fiscal year 2010, half of the 90 per cent of those monies;
          (d) for fiscal year 2011, 1/4 of the 90 per cent of those monies.
In each such fiscal year, the remainder of the 90 per cent of those monies shall be deposited in the State Retiree Benefits Trust Fund.

 

Stabilization Fund: Cancel Deposit and Transfer Interest

SECTION 42.   Notwithstanding any general or special law to the contrary:
          (a) during fiscal years 2007 and 2008 the comptroller shall not transfer 0.5 per cent of the total revenue from taxes in the preceding fiscal year to the Commonwealth Stabilization Fund as otherwise required by clause (a) of section 5C of chapter 29 of the General Laws; and
          (b) as of June 30, 2008, the comptroller shall transfer from the Commonwealth Stabilization Fund to the General Fund the lesser of: (1) the interest paid on the Commonwealth Stabilization Fund during fiscal year 2008, or (2) $75,000,000.

 

Transfer Fund Balances

SECTION 44.   (a) Beginning July 1, 2007, the comptroller shall transfer $380,520,000 from the General Fund to the State Retiree Benefits Trust Fund established by section 24 of chapter 32A of the General Laws, according to a schedule developed in consultation with the state treasurer and the secretary of administration and finance.
          (b) As of June 30, 2007, the comptroller shall transfer to the General Fund the balance in the Health Care Quality Improvement Trust Fund, established by section 2EEE of chapter 29 of the General Laws.
          (c) As of July 1, 2007, the comptroller shall transfer $50,000,000 from the Health Care Security Trust to the General Fund, to be used subject to appropriation for the following programs of the department of public health: substance abuse services, public health promotion and disease prevention, and universal immunization.
          (d) As of January 1, 2008, the comptroller shall transfer the balance in the Health Care Security Trust to the State Retiree Benefits Trust Fund.

 

Transfers Among Health Care Funds

SECTION 47.   (a) Notwithstanding any general or special law to the contrary, the comptroller shall, in consultation with the state treasurer, the secretary of administration and finance and the secretary of health and human services, develop a schedule for transferring funds among the General Fund, the Commonwealth Care Trust Fund established by section 2OOO of chapter 29 of the General Laws and the Health Safety Net Trust Fund established by section 35 of chapter 118G of the General Laws. Not less than $628,800,000 shall be transferred from the General Fund to the Commonwealth Care Trust Fund and not less than $33,900,000 shall be transferred from the Commonwealth Care Trust Fund to the Health Safety Net Trust Fund. The schedule shall provide for transfers in increments considered appropriate to meet the cash flow needs of these funds. The transfers shall not begin before July 1, 2007 and shall be completed on or before June 30, 2008. The secretary of administration and finance, in consultation with the secretary of health and human services and the executive director of the commonwealth health insurance connector, shall from time to time evaluate the revenue needs of the health safety net program funded by the Health Safety Net Trust Fund and the Commonwealth Care subsidized health insurance program funded from the Commonwealth Care Trust Fund, and if necessary, transfer monies between these funds for the purpose of ensuring that sufficient revenues are available to support projected program expenditures.
          (b) Notwithstanding any general or special law to the contrary, on or before October 1, 2007 and without further appropriation, the comptroller shall transfer from the General Fund to the Health Safety Net Trust Fund established under section 35 of chapter 118G of the General Laws, an amount not to exceed $45,000,000 for the purpose of making initial gross payments to qualifying acute care hospitals for the hospital fiscal year beginning October 1, 2007. These payments shall be made to hospitals before, and in anticipation of, the payment by hospitals of their gross liability to this fund. The comptroller shall transfer from this fund to the General Fund not later than June 30, 2008, the amount of the transfer authorized in this section and any allocation of that amount as certified by the director of the health safety net office.

 

UMass/Health and Human Services Interagency Service Agreements

SECTION 49.   Notwithstanding any general or special law to the contrary, the executive office of health and human services under section 16 of chapter 6A of the General Laws, acting in its capacity as the single state agency under Title XIX of the Social Security Act and as the principal agency for all of the agencies within the executive office, and other federally assisted programs administered by the executive office, may enter into interdepartmental services agreements with the University of Massachusetts medical school to perform activities that the secretary, in consultation with the comptroller, determines are appropriate and within the scope of the proper administration of Title XIX and other federal funding provisions to support the programs and activities of the executive office. These activities shall include: (1) providing administrative services, including, but not limited to, activities such as providing the medical expertise to support or administer utilization management activities, determining eligibility based on disability, supporting case management activities and similar initiatives; (2) providing consulting services related to quality assurance, program evaluation and development, integrity and soundness and project management; and (3) providing activities and services for the purpose of pursuing federal reimbursement or avoiding costs, third party liability and recouping payments to third parties. Federal reimbursement for any expenditures made by the University of Massachusetts medical school relative to federally reimbursable services the university provides under these interdepartmental service agreements or other contracts with the executive office of health and human services shall be distributed to the university, and recorded distinctly in the state accounting system. The secretary may negotiate contingency fees for activities and services related to the purpose of pursuing federal reimbursement or avoiding costs, and the comptroller shall certify these fees and pay them upon the receipt of this revenue, reimbursement or demonstration of costs avoided. Contracts for contingency fees shall not extend longer than 3 years, and shall not be renewed without prior review and approval from the executive office of administration and finance. The secretary shall not pay contingency fees in excess of $40,000,000 for state fiscal year 2008. The secretary of health and human services shall submit to the secretary of administration and finance and the senate and house committees on ways and means a quarterly report detailing the amounts of the agreements, the ongoing and new projects undertaken by the university, the amounts spent on personnel and the amount of federal reimbursement and recoupment payments that the university collected.