MESSAGE FROM THE CHAIR

As the Senate Committee on Ways and Means began the process of crafting its budget proposal for fiscal year 2004, we were confronted with the stark reality that Massachusetts, like every other state in the nation, is facing difficult financial times.

Our goal was to develop a budget that balances reform and fiscal responsibility with the mission of government to provide necessary services to our citizens.  Achieving this balance is a difficult but necessary task to ensure the future economic stability of the Commonwealth.   Under the leadership of Senate President Travaglini, I believe we have accomplished this goal. 

Although the state’s current economic situation is fraught with difficulties, it provides us with an historic opportunity to challenge the status quo and improve the lives of Massachusetts’ citizens for generations to come. 

During the economic boom of the mid and late 1990s the Senate chose to invest in our citizens by reforming education and expanding health and prescription coverage to the uninsured.  The result of these efforts is a public school system that stands as a national model and a health care system that provides relief to our most vulnerable citizens.

The economic boom has passed, and while our priorities and goals remain the same, our approach to accomplish them must change. The committee’s proposal for FY04 creates increased transparency by changing the definition of a balanced budget to include all minor funds.  From now on, total spending in the budget must not exceed available revenue.  We have also included a number of initiatives that reform and restructure government in a responsible manner while still providing important services.  These new initiatives include:

Ø         Health and Human Service Reform: HHS agencies will be reorganized into four service categories, offering a more unified approach to providing services and promoting greater communication and coordination between agencies.  The budget proposal streamlines HHS services and addresses each client’s needs on a case-by-case basis. The Executive Office is established as the single-paying Medicaid agency for the State, creating greater opportunity for receiving federal financial participation.  In addition, Elder Affairs remains a secretariat appointed by the governor but is moved to the Executive Office, allowing better coordination and a continuum of care that considers all of the needs of seniors under one agency.

Ø         Environmental Reform:  SWM seeks to find cost savings through the elimination of duplicative services in the Executive Office of Environmental Affairs.  One area where this will be accomplished is through a new Division of Conservation and Recreation under the Executive Office that consolidates DEM and the MDC. 

Ø         Development Reform:  A new entity, the Commonwealth Development Coordinating Council is created to coordinate policy for the Commonwealth addressing the economy, housing, transportation, capital development and the preservation of environmental resources. 

Ø         Court Reform: The budget includes reforms for the Massachusetts judicial system, which reflect recommendations made by the Monan Commission.  It also puts forth specific reforms involving the hiring of outside legal help in order to save on the millions of dollars Massachusetts government agencies spend on private, outside lawyers each year.

Ø         Higher Education: The proposed budget reconfigures the Board of Higher Education to include representatives from the university, state and community colleges.  It is the goal of the committee to help build a more effective and accountable board.  We also propose tuition retention and allow Mass College of Art to implement an innovative proposal to increase enrollment and its financial independence.

Ø         Public Safety Reform: To better capitalize on the attainment and distribution of federal grants, we consolidate the Committee on Criminal Justice and the Highway Safety Bureau to centralize expertise in federal grant-awarding programs within the Executive Office of Public Safety.  A Forensic Sciences Advisory Board is established to advise the legislature how resources can be streamlined to improve forensic services and a new bioterrorism unit is created, combining the resources of the Departments of Health and Public Safety.

Ø         Uncompensated Care Pool: The Senate continues to build on the ideas generated by the Special Commission on Uncompensated Care, created as part of the FY03 budget process by maximizing federal revenue and implementing responsible management reform initiatives.

Ø         Economic Development: The Committee is proposing a number of agency consolidations under a new Secretariat of Economic Affairs. This office will coordinate policy across the departments, improving communication between the state agencies charged with shaping the state’s economic policy.

I am also proud that the Committee has worked to preserve core services such as the Prescription Advantage Program and MassHealth Basic.  These programs provide vital assistance to seniors and the less fortunate members of our communities and, while we recognize that these programs are in need of reform, they should not be eliminated.

The timeframe available for developing this budget precluded the Committee from including all of the restructuring and reforms that we would have liked, however we have included language that creates a number of study committees and working groups designed to fulfill our reform goals in the near future.  In addition, the Committee will soon release a Municipal Relief Package that will relieve some of the regulatory burden facing our cities and towns.  This package, combined with the responsible reforms and restructuring in the FY 04 budget provide new tools and opportunities for innovative thinking and governing in Massachusetts.

I would like to thank the Senate Ways and Means staff for their hard work and guidance throughout the budget process.  I also wish to thank my colleagues on the Committee and in the Senate for their input and willingness to look at creative solutions to the state’s budget problems.  Their combined efforts and suggestions are reflected in this budget.

Sincerely,

Senator Therese Murray
Chairwoman
Senate Ways and Means Committee