Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2009

Governor's Budget Recommendation FY 2009

Independent Agencies and Constitutional Officers


Online Advertising of State Procurements

SECTION 4.   Chapter 7 of the General Laws is hereby amended by inserting after section 22 the following section:-
Section 22 1/2. Notwithstanding any general or special law to the contrary, whenever a law requires a state agency, department, office, commission or authority to publish in a newspaper a notice of a public procurement or solicitation, it shall be sufficient instead to post that notice on a public government internet website, including the commonwealth's electronic bidding website.

 

Consolidated Net Surplus Distribution

SECTION 5.   (A) Section 35FF of chapter 10 of the General Laws, inserted by section 10 of chapter 140 of the acts of 2007, is hereby amended by adding the following 3 sentences:- The secretary of energy and environmental affairs, in this section called the secretary, shall be the trustee of the fund. The secretary shall expend monies in the fund, without further appropriation but subject to approval of an annual spending plan by the secretary of administration and finance, to promote alternative and clean energy investments. The secretary shall adopt regulations, after a public hearing, governing these expenditures.

(B) Said chapter 10 is hereby further amended by inserting after section 69 the following 3 sections:-

Section 69A. (a) There shall be established and set up on the books of the commonwealth a separate fund to be known as the Bay State Competitiveness Investment Trust Fund, in this section called the fund. The comptroller shall administer the fund and shall be its trustee. There shall be credited to the fund amounts transferred under clause (b) of section 5C of chapter 29 and amounts deposited from other sources by law.

(b) At the end of each fiscal year, the comptroller shall transfer from the fund, without further appropriation, the following amounts:
(1) not more than $25,000,000 to the Massachusetts Life Sciences Investment Fund established by section 5 of chapter 23I; and
(2) after making the transfer required by clause (1), the balance as follows, but if the balance in the fund is insufficient the following transfers shall be proportionately reduced accordingly:
(i) $15,000,000 to the Affordable Housing Trust Fund, established by section 2 of chapter 121D;
(ii) $7,000,000 to the Massachusetts Cultural Facilities Fund, established by section 42 of chapter 23G;
(iii) $15,000,000 to the Workforce Competitiveness Trust Fund, established by section 2WWW of chapter 29;
(iv) $15,000,000 to the Heating Assistance Trust Fund, established by section 69B;
(v) $3,000,000 to the Regional Efficiency Assistance Grants Trust Fund, established by section 69C; and
(vi) $20,000,000 to the Massachusetts Alternative and Clean Energy Investment Trust Fund, established by section 35FF of chapter 10.

Section 69B. (a) There shall be established and set up on the books of the commonwealth a separate fund, to be known as the Heating Assistance Trust Fund, in this section called the fund. The fund shall consist of the monies transferred under subclause (iv) of clause (2) of subsection (b) of section 69A, and all other monies credited or transferred to the fund from any other fund or source pursuant to law.
(b) The director of housing and community development shall be the trustee of the fund and shall expend monies in the fund, without further appropriation but subject to approval of an annual spending plan by the secretary of administration and finance, to supplement funds from the federal Low Income Home Energy Assistance Program, 42 U.S.C. sections 8621 et seq., for the purpose of assisting low-income elders, working families and other households with the purchase of heating oil, propane and natural gas, electricity and other primary or secondary heating sources. The director shall adopt regulations, after a public hearing, governing these expenditures.

Section 69C. (a) There shall be established and set up on the books of the commonwealth a separate fund, to be known as the Regional Efficiency Assistance Grants Trust Fund, in this section called the fund. The fund shall consist of the monies transferred under subclause (v) of clause (2) of subsection (b) of section 69A, and all other monies credited or transferred to the fund from any other fund or source pursuant to law.
(b) The deputy commissioner of revenue for local services shall be the trustee of the fund. The deputy commissioner shall expend monies in the fund, without further appropriation but subject to approval of an annual spending plan by the secretary of administration and finance, and in consultation with the department of housing and community development and other relevant agencies, to provide competitive grants to municipalities, regional planning agencies and councils of government, to encourage regional cooperation and efficiency. The deputy commissioner shall adopt regulations, after a public hearing, governing these expenditures.

(C) Chapter 29 of the General Laws is hereby amended by striking out section 5C and inserting in place thereof the following section:-

Section 5C. The comptroller shall annually, on or before October 31, certify to the secretary of administration and finance the amount of the consolidated net surplus in the budgetary funds at the close of the preceding fiscal year. The amounts so certified shall be disposed as follows:

(a) an amount equal to 1/2 of 1 per cent of the total revenue from taxes in the preceding fiscal year shall be available to be used as revenue for the current fiscal year and 1/2 of 1 per cent of the total revenue from taxes in the preceding fiscal year, less the interest received during the preceding fiscal year on amounts in the Commonwealth Stabilization Fund, shall be transferred to the Commonwealth Stabilization Fund;

(b) an amount of not more than $100,000,000 shall be transferred to the Bay State Competitiveness Investment Trust Fund established by section 69A of chapter 10; and

(c) any remaining amount of the consolidated net surplus after amounts made available in clauses (a) and (b) shall be transferred to the Commonwealth Stabilization Fund.

All transfers specified in this section shall be made from the undesignated fund balances in the budgetary funds proportionally from those undesignated fund balances, but no such transfer shall cause a deficit in any of those funds. Before certifying the consolidated net surplus in accordance with this section, the comptroller shall, to the extent possible, eliminate deficits in any fund contributing to the surplus by transferring positive fund balances from any other fund contributing to the surplus.

(D) This section shall take effect as of June 30, 2008.

 

Emergency Spending Authority

SECTION 10.   Chapter 29 of the General Laws is hereby 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.

 

Deposit of Tobacco Litigation Proceeds

SECTION 11.   (A) Section 24 of chapter 32A of the General Laws, as inserted by section 8 of chapter 61 of the acts of 2007, is hereby amended by inserting after subsection (b) the following subsection:-
(b 1/2) 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 and other health care programs.

(B) Notwithstanding subsection (b 1/2) of section 24 of chapter 32A of the General Laws, inserted by subsection (A), for fiscal years 2009 to 2012, 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 2009, all of the 90 per cent of those monies;
(b) for fiscal year 2010, 3/4 of the 90 per cent of those monies;
(c) for fiscal year 2011, half of the 90 per cent of those monies;
(d) for fiscal year 2012, 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.

 

Certain Revenues to Transportation Fund

SECTION 16.   (A) Section 2O of chapter 29 of the General Laws is hereby repealed.

(B) Chapter 64A of the General Laws is hereby amended by striking out section 13, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:-
Section 13. All sums received from the excise imposed on aviation fuel, and related penalties, forfeitures, interest, costs of suits and fines, less all amounts for reimbursement under sections 7 and 7A, shall be credited to the Transportation Fund and may be used for airport development projects approved and carried out at airports and landing facilities under 49 U.S.C. App. section 2210; and all other sums received under the excise imposed in section 4, and relative penalties, forfeitures, interest, costs of suits and fines, less all amounts for reimbursement under sections 7 and 7A, shall be credited as follows:
(a) 99.85 per cent shall be credited to the Transportation Fund to be used for transportation-related purposes, and
(b) 0.15 per cent shall be credited to the Inland Fisheries and Game Fund, established by section 2C of chapter 131.

(C) Section 34 of chapter 90 of the General Laws, as so appearing, is hereby amended by striking out , in lines 13, 20 both times, 44 and 93, the word "Highway" and inserting in place thereof, in each instance, the following word:- Transportation.

(D) All purposes for which funds could have been expended under section 2O of chapter 29 of the General Laws, repealed by subsection (A), shall be purposes for which funds may be expended from the Transportation Fund established by section 34 of chapter 90 of the General Laws, as amended by subsection (C). Any balance in the Infrastructure Fund on the effective date of this section shall be credited to the Transportation Fund. The repeal of said section 2O of said chapter 29 shall not affect in any way the obligations of the commonwealth relating to special obligation revenue bonds issued under that section, and the pledge of pledged funds, as defined in said section 2O of said chapter 29 to secure the payment of such bonds is hereby ratified and confirmed in all respects.

(E) Whenever the name "Highway Fund" or "Infrastructure Fund" appears in any general or special law, regulation, contract or other document, it shall mean the Transportation Fund on and after the effective date of this section.

 

Hospital Assessments for DHCFP/HSNO Administrative Funding

SECTION 20.   Section 5 of chapter 118G of the General Laws, as amended by section 21 of chapter 205 of the acts of 2007, is hereby further amended by inserting after the second sentence the following sentence:- The assessed amount shall not be less than 65 percent of the total expenses appropriated for the division and the health safety net office.

 

Trial Court Transferability

SECTION 24.   Notwithstanding subclause (a) of clause (xxiii) of the third paragraph of section 9 of chapter 211B of the General Laws, or any other general or special law to the contrary, the chief justice for administration and management may, from the effective date of this act through April 30, 2009, transfer funds from any item of appropriation within the trial court to any other item of appropriation within the trial court. These transfers shall be made in accordance with schedules submitted to the house and senate committees on ways and means. The schedule shall include the following: (1) the amount of money transferred from 1 item of appropriation to another; (2) the reason for the necessity of the transfer; and (3) the date on which the transfer is to be completed. A transfer under this section shall not occur until 10 days after the revised funding schedules have been submitted in written form to the house and senate committees on ways and means.

 

Pension Cost of Living Adjustment

SECTION 27.   Notwithstanding any general or special law to the contrary, the amounts transferred pursuant to subdivision (1) of section 22C of chapter 32 of the General Laws shall be made available for the commonwealth's Pension Liability Fund, established in section 22 of said chapter 32. The amounts transferred pursuant to said subdivision (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 pursuant to section 102 of said chapter 32, the reimbursement of local retirement systems for previously authorized cost-of-living adjustments pursuant to said section 102 of said chapter 32, and for the costs of increased survivor benefits pursuant to 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 pursuant to section 22B of said chapter 32 and the amounts to be transferred pursuant to 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 such 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 pursuant to section 40 of chapter 15A of the General Laws. To the extent that the amount transferred pursuant to said subdivision (1) of said 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.

 

Transfers Between Operating and Capital Funds

SECTION 28.   (a) Whenever the commonwealth has borrowed funds as authorized by law to fund the acquisition of equipment that would have otherwise been funded under an item of appropriation in section 2, the secretary of administration and finance may authorize the transfer of funds from the item of appropriation in section 2 from which the equipment acquisition would have been funded to any other item of appropriation for the purpose of funding personnel or other operating-related expenses that would have otherwise been funded in the fiscal year 2009 capital budget from the proceeds of bonds. The secretary may establish an appropriation account to receive this transfer if none exists under section 2. Any amount transferred under this section shall not exceed the cost of the related equipment acquisition, and the aggregate amount of all such transfers shall not exceed $50,000,000.
          (b) Before making any transfer authorized by this section, the secretary of administration and finance shall submit a transfer report and certification to the house and senate committees on ways and means. The report and certification shall include the following: (1) a schedule showing the cost of equipment acquisition that would have been funded from an item of appropriation in section 2, the item of appropriation from which the equipment would have been funded and the bond authorization against which bonds may be issued to fund the acquisition of the equipment; (2) a schedule showing the cost of all personnel and other operating expenses that would have been funded from the fiscal year 2009 capital budget, identification of each of the agencies that pay the related expenses, the item in the capital budget and the bond authorization from which the personnel or operating expenses would have been funded, and the item of appropriation in section 2 from which the personnel or operating expenses will be funded; (3) a schedule of each amount that will be transferred from one item of appropriation in section 2 to another under subsection (a) in order to effectuate the transactions described in clauses (1) and (2); and (4) a certification of the secretary confirming that the equipment will be acquired in fiscal year 2009 with bond proceeds pursuant to the fiscal year 2009 capital budget and the bond authorization identified in clause (1).

 

UMass/EHS Interagency Service Agreements

SECTION 34.   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 2009. 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.

 
top of page link top of page