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Executive Summary

 

In this Executive Summary, the Senate Committee on Ways and Means provides highlights of its fiscal year 2005 budget recommendations. 

 

In fiscal year 2004, the Senate began to chart a course of reform. We initiated several major agency reorganizations, significantly changing the way government is organized and services are delivered, including health and human services, the environment and economic development. We developed a reform agenda in fiscal year 2004 and we continue to fulfill that outline with these recommendations by proposing reforms that are fiscally sound and socially responsible. 

 Transportation Reform

 

The Senate continues to restructure state government in the name of responsible reform by proposing a reorganization of our transportation system. We seek to optimize the coordination among transportation agencies, authorities and commissions to build a 21st century transportation infrastructure.

 

In order to meet the challenges of building the pathways of the future, while maintaining fiscal discipline, we restructure the Executive Office of Transportation. Under the Senate reform plan, the new Executive Office of Transportation will manage the Commonwealth’s transportation resources and will be responsible for developing and implementing a statewide coordinated transportation plan.  The coordination required by this reform is a vital component of efforts to strengthen the Massachusetts economy by modernizing our roads, bridges, transit systems, ports and railways. 

 

Ø      Three functional areas within The Executive Office of Transportation are created under this proposal: roadways, transit, and airport/port.  Each transportation organization will report to the EOT Secretary.

 

Ø      MassHighway will enter into a memorandum of understanding with the Department of Conservation and Recreation, under which MassHighway will manage, operate and maintain the former Metropolitan District Commission roadways and bridges and will leverage any federal highway funding available for such purposes.  Ownership and oversight of these roadways will remain with DCR, which will continue its preservation of scenic byways and park conservation responsibilities.

 

Ø      The Secretary of Transportation will assume the role of Chairman of the Massachusetts Aeronautics Commission, and the Commission will be required to include an expert on airport or homeland security and a person who is a resident of a city or town in which a regional airport is located.

 

Ø      The Secretary of Transportation will assume the role of Chairman of the Massachusetts Turnpike Board, effective December 31, 2005, after the projected date for substantial completion of the Central Artery/Tunnel Project.

 

Ø      Starting on December 31, 2005, Turnpike Board members will serve without compensation, saving the authority $100,000 per year.

 

Ø      The Regional Transit Authority Council will be formed with the 15 RTA administrators as members.

 

Ø      The Secretary of Transportation will retain the role of Chairman of the Board for the Massachusetts Bay Transportation Authority and assume the role of Chairman for the Massachusetts Port Authority. The Secretary will also chair the Regional Transit Authority Council.

 

Ø      The Secretary of Transportation will be responsible for formulating a five-year plan that prioritizes transportation projects and creates criteria to measure progress in the areas of roadways, transit, airports and seaports. The Secretary will file an annual report detailing these plans. 

 

Ø      The Secretary of Transportation will coordinate transportation security planning among transportation agencies, commissions and authorities.

 

Toll and Commuter Relief

 

Ø      The Senate provides much-needed toll and fare relief for commuters who use FastLane transponders on the Massachusetts Turnpike; who purchase weekly or monthly MBTA transit passes for the subway, bus, or commuter rail; who pay regularly for ferry, regional transit authority bus and other transit services.

 

Ø      The Senate has created a special toll payer and fare payer income tax deduction from 2004 Massachusetts taxes, which will be available to commuters who pay $150 or more for their FastLane, transit pass, or other transit services in 2004. 

 

Ø      Up to $750 of FastLane, transit pass and other transit costs will be deductible under this toll and fare relief plan. 

 

 

Pension Reform

 

The Senate continues to reform and refine the pension system while maintaining its commitments to the many hard-working state and local employees who are its members.  Under the Senate reform plan, loopholes will be closed to promote fairness and changes will be implemented to enhance the administrative efficiency of the system. Specifically the Senate:

 

Ø      Establishes an overall cap on pension benefits, so that no one will be able to count more than $150,000 of income in the calculation of their contributions or benefits.

 

Ø      Eliminates a loophole that allowed certain beneficiaries to collect a double benefit.

 

Ø      Provides retirees who want to rejoin the workforce a mechanism for re-instatement. 

 

Ø      Ends the practice of granting a full year of service for less than a full year of work to certain officials.

 

Ø      Establishes a market-based interest rate for certain make-up payments so that the contributions of each member will be fairly and equally counted.

 

Ø      Requires employers and prosecutors to notify the pension system when a person forfeits his pension benefits due to criminal activities so that the system can take the necessary steps to terminate benefits.

 

Ø      Permits the pension system to adopt an updated mortality table that has not been updated since 1928.

 

Ø      Makes uniform provisions for additional benefits granted to children of members who were killed in the line of duty and other similar benefits when the children are full-time students, from age 21 to age 22.

 

Ø      Creates a special commission to study the pension system and recommend further improvements. 

 

 

Early Education and Care Reform

 

Every student should enter school ready and able to learn.

 

Research clearly shows the importance to children of environments that foster physical, intellectual, and social development and the value to parents of safe, affordable, high-quality child care. The pre-school years are a crucial phase in a childs development, a time when the foundations of a child’s well being, emotional maturity, language development and physical and social skills are established.  Reliable and affordable childcare also underlies the efforts of parents to balance work and family commitments.

 

The Senate has long championed increased access to early education and care and will once again be at the forefront of efforts to expand access to childcare. In the very near future, high-quality early education programs will be accessible to all families in Massachusetts.

 

The Senate Committee on Ways and Means budget recommendation writes into the Massachusetts General Laws the basis for a system of universally accessible, high-quality early childhood education. 

 

Ø      A new Board of Early Education and Care will be formed on January 1, 2005 and will appoint a commissioner in April 2005.  On July 1, 2005, a new Department of Early Education and Care will be operational.

 

Ø      During the transition, the Early Education and Care Council, made up of the Commissioners of Education, the Office of Child Care Services, and the Department of Public Health and informed by a fifteen-member advisory council, will plan for the consolidation of early education and care programs.

 

Ø      In the interim, new data sharing authority will aid DOE and OCCS in administering their programs in an efficient manner.

 

Ø     The Senate funds up to eight pilot communities, or groups of communities, to plan for universally accessible systems funded through a combination of federal, state, local, and private sources. These pilots will both benefit the communities involved and identify successful strategies for replication across the state.

 

Housing Reform

 

Lack of affordable housing is one of the most pressing problems facing the Commonwealth.  Massachusetts has some of the highest housing prices in the nation. At the same time, we are experiencing an alarming rate of conversion of open space to new development.   Our goal to provide affordable housing is straightforward; we must encourage more production to meet demand.  Additionally, we also want to encourage communities to grow smartly.

 

Smart Growth Zoning Districts

The Senate proposes to stimulate production by providing incentives to cities and towns to authorize new housing.  We give the authority to cities and towns to declare parts of the community in which residential development would be particularly suitable as “smart growth zoning districts.”  Such districts could be located near transit stations, town or city centers and other areas where there are existing opportunities for residential development, because of existing infrastructure.  Municipalities would be able to use design standards to ensure that projects within the district would be developed in a manner that is most suitable to the existing surroundings of the town. 

 

The Department of Housing and Community Development must approve a proposed district.  As an incentive for municipalities, the state will make the following financial commitments:

 

Ø      Density bonus payments of $2,000 per multi-family unit and $4,000 per single-family unit of new construction in the district. One–third of this money would be paid after the town approves the district and remaining balance would be paid on a per unit basis as the municipality issues building permits.

 

Ø      The state would protect cities and towns from any increase in school costs that are not offset by additional municipal revenues resulting from the increased development.

 

Expedited Permitting

The Senate also proposes to authorize cities and towns the choice to enact an "expedited permitting" system.  Communities that accept this option would receive additional payments of up to 3% of their aggregate total amount of local aid.  From this amount, payments would be distributed to individual municipalities based on a formula to be developed by the Division of Local Services.

 

Together, these two local option proposals encourage our cities and towns to grow, and to grow smartly.  In addition, the Senate continues its support for critical housing programs.

 

Ø      The Senate increases funding for Housing Consumer Education Centers by 48%. HCEC providers are highly effective in connecting at-risk households to useful information and services in order to prolong tenancies and prevent homelessness.

 

Ø      The Senate has increased funding for the Department of Housing and Community Development by 11% in fiscal year 2005.

 

Ø      The Senate funds subsidies to Local Housing Authorities at maintenance funding levels and prevents the need to raise rents for the second consecutive year.

 

 

 

 

 

 

School Building Assistance Reform

 

The School Building Assistance Program has benefited countless students by funding quality school buildings since 1948. Through School Building Assistance, the Commonwealth provides financial assistance for cities and towns to build and renovate schools.

 

In recent years however, as school buildings have aged and the population patterns have shifted, the pace of school construction and renovation has increased dramatically. The overwhelming demand for reimbursement has threatened our ability to support the School Building Assistance Program. With 420 projects on a stalled waiting list and $4.1 billion in construction costs and perhaps as much additional in financing costs, it is clear that the state must stabilize the programs.

 

The Senate will address the future of this program in separate Legislation this spring.

 

Ø      The Senate budget moves $395.7 million off-budget as the first step in the creation of a new School Building Assistance Authority.

 

Ø      The Authority will issue bonds to clear the waiting list within the next three and one-half years, allowing the current moratorium on new applications to be lifted at the end of fiscal year 2007.

 

Ø      Over the next seven years, the proposal will redirect one penny of the state’s sales tax to the Authority to pay for reimbursements for projects currently receiving funds from the state and debt service on new trust bonds.

 

Ø      The Senate proposes to invest $150 million of the projected fiscal year 2004 surplus to ease the impact on the rest of the budget of the phase-in of one penny of the sales tax.

 

Ø      The Senate is committed to construction and management reforms.

 

This dedicated revenue will enable the Commonwealth to meet its commitments to new schools in the future, ending the current disruptive uncertainty at the local level and shadowy liability at the state level.

 

 

Procurement Reform

 

The operation of state and local government requires the purchase of billions of dollars of good and services each year. The recent economic downturn has compelled the Senate to address the question of how it could reduce the operational expenses of state government, freeing up money that could be used in vital areas such as health care, education, and public safety.

 

The recent report by the Senate Committee on Post Audit and Oversight reviewed how the Commonwealth could secure the best value for its dollar. The report highlighted the following areas, among others, as ripe for reform:

 

Ø      Improve coordination of purchasing for all government agencies, departments, secretariats, and commissions to ensure the state can maximize its leverage for the best prices.

 

Ø      Streamline state contracts and offer additional volume to vendors in exchange for lower prices.

 

Ø      Reviewing existing equipment maintenance programs and identifying opportunities for savings in state warranty agreements on IT, printers, fax machines and other hardware.

 

Taking into consideration the report, the Senate recommends the following cost saving proposals:

 

Ø      Government-wide procurement reform, saving the Commonwealth $28 million. By reviewing the way the state purchases administrative goods and services, the Senate was able to allocate the savings realized through this reform to the preservation of core services to the Commonwealth’s citizenry.

 

Ø      The creation of the Energy Savings Commission. This 16-member special committee will study the annual energy consumption by state agencies and recommend measures to increase savings and reduce consumption by at least 10%. The creation of this Commission illustrates the Senate’s support of a responsible energy policy as well as its continued pursuit of fiscally responsible reforms.

 

Construction Reform

 

Based on the recommendations of the Special Legislative Commission on Construction Reform, the Senate will propose construction reforms in separate legislation this spring.  The legislation is expected to address alternative delivery methods, project management of public projects, contractor pre-qualification, procurement thresholds, contractor evaluation and other reforms.

 

 

Local Aid

 

In addition to these major reforms, a central goal of our fiscal year 2005 budget was to maintain the promise to municipalities that state government will help them cope with their own fiscal challenges and preserve vital services. 

 

The Legislature took the first step toward restoring stability last year by passing a Municipal Relief Package. The Municipal Relief Package offered local governments relief from restrictive state regulations and mandates and provided cities and towns with the necessary tools to preserve essential local services. The Senate recognizes the work ahead and is committed to continuing its collaboration with local governments to make sure that fiscal year 2005 will be a year of fiscal stability for cities and towns.

 

Chapter 70

 

Chapter 70 is the primary form of state aid to public school districts. It is designed to provide both equitable and adequate funding to ensure school districts have the resources necessary to educate their students.

 

The Senate has always been a leader in education and will maintain its commitment to school districts by ensuring that every district stays at foundation for fiscal year 2005. The Senate allocates $3.186 billion in Chapter 70 for fiscal year 2005, up from $3.111 billion in fiscal year 2004.

 

The Senate is working to resolve long-standing inequities in the distribution of Chapter 70 aid to cities and towns:

 

Ø      A Senate working group has been meeting this spring to resolve issues of regional assessments, local contribution requirements and aid levels.

 

Ø      The Senate plans to take up a bill this session to reform Chapter 70.

Lottery and Additional Assistance

 

Lottery Distributions and Additional Assistance to cities and towns are the two largest discretionary accounts for municipalities. These revenues are used to support critical services such as schools, police, fire fighters and public works.

 

The Senate Committee on Ways and Means recommends $661 million in lottery proceeds and $378 million in additional assistance be allocated to cities and towns for a total of over $1 billion in unrestricted revenue.  These allocations represent level funding for cities and towns and would bring a measure of stability to municipal finances.

 

In addition, the Senate commits to lifting the cap on the lottery distribution over five years starting in fiscal year 2008 and returning all profits of the lottery to cities and towns as was originally intended when the state lottery was created some thirty years ago.

 

Payment-in-Lieu-of-Taxes (PILOT)

 

The Senate reinforces its commitment to local governments and funds the PILOT program at $12.5 million, an increase of $4.5 million. The increased funding will help to alleviate some of the cuts that cities and towns have suffered over the past two years.

 

MWRA Rate Relief

 

The Senate recognizes the burdens that current water rates place on a municipality and individual property owners. In this budget, we double the Massachusetts Water Resources Authority Rate Relief Program from $5 million in fiscal year 2004 to $10 million in fiscal year 2005. 

Education

 

The Senate remains committed to providing all students a quality education in a safe and healthy environment. In the past 10 years, the Commonwealth has nearly tripled the money it sends to cities and towns; in return, the state demands accountability of school districts in order to invest in our young people and retain the state’s position as one of the nation’s leaders in education.  These standards challenged our students to reach new academic heights and have encouraged partnerships between parents, schools and communities. 

 

The Senate continues to believe that children can only succeed if given the appropriate tools for learning. In order to provide those tools, we must invest in our schools, not just in the short term, but also with a long-range plan for the future.

 

To that end, the Department of Education budget funds increases in two areas where cities and towns have been particularly vocal about the need for additional support – regional transportation and the special education circuit breaker. 

 

Ø      The Senate budget includes an $80 million increase brings special education funding to $201million. Reimbursements for eligible costs for high-cost special education placements will rise from approximately 35% in fiscal year 2004 to approximately 65% in fiscal year 2005.

 

Ø      Regional transportation reimbursements are increased from $26.4 million in fiscal year 2004 to $38 million in fiscal year 2005, supporting a reimbursement rate of approximately 65-70%, compared to an estimated 45-50% rate in 2004.

 

Ø      A new line item reimburses towns that agree to pay for transportation to out-of-district vocational programs.  Until changes in the law last fall, this transportation was required.  The addition of incentive funds will encourage towns to provide this service voluntarily.

 

The Committee also recommends increases to a variety of education grant programs.

Ø      Funds for academic support services to help students struggling to pass the MCAS are increased from $10 million to $14 million.  Grants will support a variety of out-of-school-time programs including innovative partnerships with local community colleges and other supporters of public education.

Ø      Grants to METCO districts increase by $2 million to $15.6 million. This increase will improve the educational opportunities of urban minority students and to widen the horizons of suburban students.

Ø      Funds for YouthBuild are more than doubled from $500,000 to $1.2 million.  YouthBuild participants, young people ages 16-24, work toward their GED or high school diploma while learning construction and leadership skills on projects such as building affordable housing.

 

Higher Education   

 

Higher education advances individual opportunity and increases the strength of the Commonwealth as a whole. Public institutions of higher education attract federal dollars for research and to develop new technologies. Both create jobs and teach knowledge and proficiencies for an educated populace and a skilled workforce.

 

The Committee recognizes that the University of Massachusetts and the state and community colleges have shown extraordinary determination in reacting to years of funding reductions with creativity and hard work to preserve and extend the many strengths of public higher education.

 

Within the limited means available, the Committee attempts to prevent further cuts to higher education and to begin to rebuild campus resources by level funding all campuses. Additionally, the Senate recommends the following:

 

Ø      Collective bargaining reserves to fund the fiscal year 2005 salary costs of all signed and filed collective bargaining agreements. 

 

Ø      Sufficient funds are appropriated to meet contractually increased health and welfare costs at the university and to solve the growing deficit in the state and community college health and welfare account.

 

Ø      Community college workforce training is increased from $900,000 in fiscal year 2004 to $2.9 million in fiscal year 2005.

 

Ø      To preserve access to higher education, the Senate budget level funds scholarships at $82.4 million.

 

Ø      The Senate extends the opportunity for immigrant students who have attended Massachusetts high schools for at least three years and who have achieved graduation from a high school in the Commonwealth to attend Massachusetts institutions of higher education at in-state tuition rates.

 

Health Care

 

Health Care is the single largest non-discretionary expense in the Massachusetts budget. The Senate remains steadfast that our mission to provide quality health care to our citizens should not collapse under the weight of the current fiscal crisis.

 

Improving the delivery of health care and essential services for the citizens of the Commonwealth is difficult even in the best of times. The Senate confronts these challenges by expanding access to prescription drugs, funding basic health care coverage to low-income and uninsured residents and providing basic public health services. 

 

Medicaid

 

In January of this year, the Executive Office of Health and Human Services recommended $6.85 billion in order to fully fund the state’s Medicaid programs.  Since that time, enrollment in 2004 is almost 50,000 members lower than originally projected.  Using the most accurate enrollment data available, the Senate recommends a revised total funding of $6.6 billion for MassHealth programs.  This will fully fund all MassHealth programs and includes the following:

 

Ø      The Senate budget proposal invests an additional $587 million into MassHealth compared to fiscal year 2004 projected spending.  This is a spending growth of 10%, in line with the national average for Medicaid programs. 

 

Ø      The Senate provides funding for a 7% overall caseload increase in fiscal year 2005. This will support over 1,000,000 members in fiscal year 2005. 

 

Ø      The Senate rejects enrollment caps, which result in waiting lists. It is counter-productive to cap enrollment for MassHealth programs at a time when the number of uninsured in Massachusetts is growing.

 

Ø      $2.8 million for Breast and Cervical Cancer Program.

 

Ø      $8.3 million to fully fund the MassHealth HIV program without the need for a waiting list.

 

Ø      The Senate provides a $5 million increase for the CommonHealth program and an additional $6 million for the Premium Assistance program.

 

Ø      The Senate budget proposal projects $50 million in cost savings through reform-minded management and efficiency savings initiatives that do not affect provider rates or benefits rendered.

 

Ø      The Senate protects non-probate assets from potential recovery in Medicaid’s estate recovery program. 

 

Ø      The Senate preserves current penalties for transferring assets prior to Medicaid enrollment for less than fair market value and “look-back” periods for such transfers. 

 

Hospitals

 

The Senate recognizes that hospitals not only play an essential role in our state’s public health, but also provide an indispensable stimulus to the state’s economy and workforce capacity.  Therefore, the Senate budget:

 

Ø      Provides $11.7 million in payments to hospitals with high volumes of public payer patients.

 

Ø      Increases payments to pediatric hospitals from $6.25 million in fiscal year 2004 to $10 million in fiscal year 2005.

 

Ø      Maximizes intergovernmental transfers to eligible hospitals, including $140 million in federal funds to Boston Medical Center and Cambridge Health Alliance, which provide the largest amount of free care.

 

Ø      Dedicates $16 million in new, enhanced rates especially for physicians.  Funding will come through an accompanying supplemental appropriation.

 

Ø      Continues the Essential Community Provider Trust Fund, with $20 million dedicated to hospitals, community health centers, and providers that are under extreme financial pressure. 

 

Uncompensated Care Pool

 

The Senate also acknowledges the unique and vital role that safety-net hospitals play in treating the most vulnerable citizens of the Commonwealth.  In fiscal year 2004, the shortfall between available funding and free care costs will be close to $200 million. 

 

This is an unsustainable burden for hospitals and community health centers to bear. Free care costs are projected to increase again in 2005. Until a long-term solution is developed, the state cannot simply assume that these providers will be able to absorb such substantial and overwhelming expenses.

 

Therefore, the Senate recommends:

 

Ø      $891 million in Uncompensated Care Pool funds in hospital fiscal year 2005, almost $200 million more than fiscal year 2004.

 

Ø      $665 million of Uncompensated Care Pool funds to help reimburse hospitals’ free care costs, an increase of $165 million from fiscal year 2004.

 

Ø      $56 million for free care provided at Community Health Centers.

 

Ø      $5 million for a disease management program within the Uncompensated Care Pool to provide more efficient care to free care users with chronic diseases. 

 

Ø      $160 million for MassHealth Essential.  This funding level will allow this health care program for the long-term unemployed to expand in fiscal year 2005.  Providing affordable and cost-effective health coverage to this population directly mitigates utilization of the Uncompensated Care Pool.

 

Ø      $100 million in Federal Medical Assistance Percentage funds received pursuant to health care expenditures in fiscal year 2004 in the Uncompensated Care Pool.

 

Children’s Health Care

 

In fiscal year 2005, the Senate renews its commitment to providing universal health care to all children in the Commonwealth.  In order to ensure that all children have access to basic health coverage, we propose:

 

Ø      Increasing in the Children’s Medical Security Plan from $11.7 million in fiscal year 2004 to $21.4 million in fiscal year 2005. 

 

Ø      Adding $8 million to fully fund the Healthy Start Program.

 

Ø      Increase accessibility to dental services provided to children statewide by requiring the Executive Office of Health and Human Services to remove current barriers that prevent dentists from participating in the MassHealth Dental program.

 

Ø      Fully fund for the Children’s and Seniors Fund, so that the 300,000 children and families who are enrolled in programs paid for from this fund will not face possible drastic cuts in benefits and services.

 

Ø      $10 million for Pediatric Hospitals and Pediatric Units.

 

Prescription Advantage

 

The high cost of prescription drugs places a heavy burden on seniors.  Many have no access to prescription drug coverage or the coverage they do have is too expensive and too limited. 

 

The Senate has worked tirelessly over the past decade to ensure that prescription drugs are available to the Commonwealth’s senior citizens. Since its inception, the Prescription Advantage program has provided uninsured and disabled citizens with the means to meet their prescription needs. The Senate has been and will continue to be at the forefront of this issue.

 

In fiscal year 2005, the Senate Committee on Ways and Means reinforces its commitment to prescription drug coverage for seniors and expands the program.

 

Ø      We increase funding by $14 million to a total of $110 million.

 

Ø      We provide coverage for 18,000 new members and will open enrollment for a month this fall to all eligible applicants.  The Senate also supports ongoing enrollment for individuals who will turn 65 in the next year.

 

Ø      The recommendation maintains the current system and introduces no new premiums or deductibles. It also preserves the out-of-pocket spending limit at its current level.

 

Ø      The Senate is dedicating an additional $9 million to help offset the cost of co-payments for members in the Prescription Advantage program. 

 

 

 

Elder Affairs

 

The Senate is once again committed to providing seniors with the resources they need to secure their health and independence. The Senate is focused on providing more home and community-based care options, empowering seniors with the resources that are necessary to allow them to live healthy, active, and independent lives.

 

Ø      The Senate increases funding for Home Care services by $2.8 million. This program provides crucial services to seniors who are able to stay in their home.

 

Ø      We preserve funding at $37.5 million for the Enhanced Community Options Program, which provides services to elders at imminent risk of entering a nursing home.

 

Ø      Consistent with our efforts to allow seniors to receive care in the community, we also require the Secretary of Elder Affairs to further expand the population eligible for home and community based services in this program by seeking a waiver to expand the existing 2176 waiver. 

 

Ø      The Senate maintains funding at $9.6 million for the Elder Protective Services Program, a program essential to protecting the Commonwealth’s most vulnerable citizens.

 

Ø      Finally, we increase funding by $600,000 for the Councils on Aging Program.  This program provides important financial support for community-based elder benefits across the state.

 

Nursing Homes

 

In fiscal year 2003, the legislature implemented an innovative method to generate revenues for the Commonwealth’s nursing homes.  By assessing a per-patient fee to each nursing home, which is matched by the federal government, $288 million in revenue is collected and subsequently returned to the nursing homes. 

 

The Senate continues this initiative and distributes funding through increased Medicaid rates that include:

 

Ø      $50 million to increase nursing staff wages and to improve staff to patient ratios.

 

Ø      $17 million for nursing homes capital costs, prioritizing under-bedded areas, quality-improving projects and de-institutionalization initiatives.

 

Ø      $9 million in funding for nursing home bed hold days, ensuring seniors retain their bed after a medical or non-medical leave of absence.

 

Ø      The Senate continues its commitment to nursing home quality. We appropriate $1 million to continue the innovative Extended Care Career Ladders Initiative, which provides grants to nursing homes for career-ladder training for direct care workers in long-term care settings. 

 

Ø      Funding for the successful Certified Nurses’ Aide Scholarship program is doubled to $500,000.

 

Human Services

 

The mission of government is to ensure that our citizens are provided with the resources they need to live safe, healthy and productive lives.  Massachusetts’ human service agencies serve our state’s most vulnerable populations. The Senate has once again remained true to our mission to assist these individuals and has funded many critical human service accounts.

 

Ø      The Senate provides $20 million in funding to increase salaries for private human service providers that deliver vital human and social services under contracts with the Commonwealth.  These funds will be used solely to adjust wages for those human service workers who earn less than $40,000 per year, and will help providers attract and retain qualified staff. 

 

Department of Mental Retardation

 

The Senate continues with its strong commitment to individuals with mental retardation and their families. The Senate has increased overall funding for the Department of Mental Retardation by more than $48.3 million to $1.07 billion.

 

Ø      We fully fund the Community Day and Work programs at $109 million. This will ensure that all participants will continue to have jobs and be productive members of society.

 

Ø      The Senate preserves funding for all Turning 22 services at $20 million. This allocation will ensure that no eligible graduate of the state’s special education programs will be denied services as a result of their turning a certain age.

 

Ø      The Senate increases funding for the Community Residential Services account by over $26 million. The increase will fully fund the Rolland Settlement agreement at $15.65 million to move clients out of nursing homes and into community residential programs. 

 

Ø      We increase the Boulet Settlement by $20 million and fully fund the states obligation to the Master Settlement Agreement. These additional funds will allow DMR to move 400 clients off waiting lists and provide them with much needed services.

 

Ø      The Senate has also included a health care provider assessment on DMR clients who receive services in Intermediate Care Facilities for the Mentally Retarded (ICF/MR).  This assessment will allow the Commonwealth to leverage $18 million in federal reimbursements. 

 

Department of Mental Health

 

Ø      The Senate Committee on Ways and Means increases the Department of Mental Health administrative account to $35.4 million in order to maintain current staffing and program levels. 

 

Ø      Child and Adolescent Services, under our recommendations, receive an increase of $2.55 million for a total of $68.3 million.  This includes a $2.5 million initiative to expand the Child Psychiatric Access Pilot Project into each of the department’s five geographical regions, creating consultation teams to provide clinicians with timely access to child psychiatrists.  The five consultation teams would be coordinated by a central project management team and would allow coverage for about 600,000 children. 

 

Ø      The Senate re-affirms its commitment to Adult Mental Health Services increasing funding by $2.74 million for a total of $274.4 million. 

 

Massachusetts Rehabilitation Commission

 

Ø      We recommend doubling the level of funding for Turning 22 programs to expand services to those on the agencies waiting list.

 

Ø      The Senate increases funding for employment services to $7.8 million. This will allow severely disabled individuals to continue to receive job training and job placement services at community-based worksites.

 

Ø      The Senate continues its commitment to providing residential or community based services for individuals and families who are coping with severe head trauma injuries. We increase the Statewide Head Injury program to $6 million.

 

Ø      The Senate maintains its support for the Independent Living Centers in Massachusetts and increases their funding to $7.5 million. These centers provide an array of services that help individuals living with disabilities to live more independently.

 

Department of Transitional Assistance

 

We made reasonable increases to the work requirements in the TAFDC program and recognize the importance of education and training in moving recipients to self-sufficiency.   The work requirement for families whose youngest child is between the ages of two and school age remains 20 hours per parent per week.  For families whose youngest child is between the ages of school age and nine, the work requirement increases from 20 hours to 24 hours per parent per week.  Finally, each parent in families whose youngest child is over nine years of age is required to work 30 hours per week. The Senate allows education and training (or housing search for those families in shelter), to count towards the work requirements for all families. 

 

Ø      We increase funding for the Transitional Aid to Families with Dependant Children account by $4.5 million in order to fund caseload growth and maintain current eligibility levels. 

 

Ø      We increase funding for the Employment Services Program from $16.8 million to $20.1 million.  The Employment Services Program provides crucial job search, educational and transportation services to DTA clients subject to work requirements. 

 

Ø      We maintain full funding for the Emergency Aid to Elderly, Disabled, and Children, thereby ensuring no changes to the current program.

 

Ø      The Senate increases the Emergency Assistance Family Shelters to $75 million. Included in this amount is $4 million for the Residential Assistance for Families in Transition program.  This innovative program addresses the problem shared by hundreds of homeless families who can afford the monthly costs of renting, but need assistance in overcoming the barrier of one-time move-in costs.  

 

Ø      We also create a new program to help transition families out of shelters to permanent housing by allowing a family that begins to earn over 100% of the federal poverty level to remain in the shelter for six months while they look for permanent housing.  During this time, DTA would reserve that portion of the family’s earnings in an escrow account that can be used by the family for housing costs when they leave the shelter.  

 

Department of Public Health

 

Ø      The Senate increases the funding for school health services by $1.5 million. This increase will allow DPH to enhance services and fund more schools in the form of grants for school nurses and school-based health centers. 

 

Ø      We increase our support for the Bureau of Substance Abuse Services from $33.8 million to $36.2 million. 

 

Ø      The Senate recognizes the importance of the Hepatitis C program and has created a new account funded at $562,876 to support this program.

 

Ø      We increased funding for Family Health Services by 40% to $6.7 million. This will strengthen services for family planning and outreach, rape crisis centers and primary care services.

 

Ø      This budget increases funding for the Universal Immunization Program to $25 million. This increase will ensure that all children in the Commonwealth receive vaccinations and fully restores the adult vaccination program.

 

Ø      We fully fund Early Intervention Services allowing all infants and children who are developmentally challenged to receive this critical service. The Senate increases the annual insurance cap, which will generate $3.5 million to fund the expected increase in the caseload.

 

Ø      This budget doubles funding for community-based suicide prevention to provide grants to municipalities for prevention and intervention services.

 

Office of Child Care Services

 

Ø      The Senate provides $5 million to increase salaries and provide professional development to child care workers statewide.  This funding will enable providers to attract and retain qualified staff, which will address the high levels of turnover and staff shortages that directly impact the quality of care provided to the children of the Commonwealth. 

 

Ø      The Senate continues our commitment to the vital programs of the Children’s Trust Fund by preserving funds for the Healthy Families Newborn Home Visiting program.  This innovative program reduces incidences of child abuse, helps teen parents attain their education goals, engages teen fathers in the parenting process and significantly lowers the number of repeat teen births.

 

Ø      We propose an increase for the Licensing and Field Operations account from $6.9 million to $7.1 million. This will provide the Office of Child Care Services with the resources needed to effectively license childcare facilities across the state.

 

Ø      In order to avoid drastic reductions in services to families in need of childcare, we maintain funding for the Regional Administration Account at $10 million.

 

Department of Youth Services

 

Ø      The Senate allocates $2 million for a critical girls initiative in order to address the needs of the increasing female population in DYS custody.  These funds will be used to establish a clinically intensive stabilization unit for girls focusing on serving those with the most severe mental health needs.

 

Ø      DYS will also develop a community-based independent living program for girls in order to improve the transition from a locked facility to the community and to help the girls attain useful life and work skills.

 

Ø      The Senate includes language that directs DYS and the Department of Education to collaborate in order to set a foundation budget for DYS children using either the parameters of Chapter 70 aid or another appropriate manner.  This is the first step to identifying and quantifying the unique and often complex educational needs of children in the custody of DYS. 

 

 

Department of Social Services

 

Ø      The Senate increases the Services for Children and Families program from $249 million to $261 million. This increase will account for caseload growth and fund an essential $5.5 million initiative to increase foster care subsidy rates by about $2 per child per day.

 

Ø      The funding for Services for Children and Families will also provide for the recruitment and retention of foster parents by developing Foster Care Recruitment Teams.  This initiative will help to recruit new foster families with the help and insight of current foster parents.  

 

Ø      We create a $1 million Social Worker Safety Technology initiative that will be used to purchase mobile phones with Global Positioning System capabilities to help ensure the safety of social workers. 

 

Ø      The Senate recognizes the demanding needs of all the DSS programs and increases the Social Worker account by $3.7 million. This will allow DSS to hire additional social workers to reduce the current casework load. 

 

Public Safety

Safeguarding the citizens of the Commonwealth is a core mission of state government. We now live in a climate where we must continually upgrade our public safety resources in the face of an ever-changing world.  In order to do so, we must provide our first responders with the tools and resources they need to adequately serve the public.

 

Ø      The Senate recommends $11 million to fund two State Police classes.  These two new classes will train an additional 300 state troopers and will return our State Police force to pre-September 11th levels.

 

Ø      The Senate provides $2.3 million in funding for directed patrols in high-crime areas and $750,000 to combat gang-related activities in our urban centers.

 

Ø      The Senate provides funding for the establishment of an anti-terrorism unit in the State Police.

 

The Senate Ways and Means Committee also broadens its efforts to give public safety officials the necessary tools to provide Massachusetts with the most advanced public safety technology available. Toward this effort the Committee proposes the following reforms and initiatives:

 

Ø      The Senate establishes an Undersecretary of Public Safety for Forensic Sciences.  The Undersecretary will coordinate all forensic science resources, appropriations and grants and oversee the Office of the Chief Medical Examiner and the State Police Crime Laboratory.

 

Ø      The Senate establishes a Forensic Sciences Advisory Board, which will advise the Secretary of Public Safety on ways to improve and better coordinate the administration and delivery of criminal forensic science services in the Commonwealth.

 

Ø       The Senate also designates an existing Undersecretary of Public Safety as the Undersecretary of Homeland Security to ensure the coordinated response of first responders to threats to the Commonwealth’s security. 

 

Ø      The Senate recognizes the demands on the Chief Medical Examiner’s Office and allocates an additional $2.2 million, a 60% increase, for fiscal year 2005.

 

Ø      We provide $1.5 million in funding for the State Police Crime Lab as it dedicates itself to reducing the backlog of DNA tests, improving the turnaround time for prosecutors relying on the tests for convictions, and the continued process of cataloging the genetic fingerprints of all convicted felons to the state DNA database.

 

State Sheriff’s Departments

 

Ø      The Senate appropriates $2.6 million to re-establish two regional behavioral and evaluation stabilization units to provide forensic mental health services to inmates in eastern and western Massachusetts.

 

Ø      The state Sheriffs receive $3.1 million in additional funding to help maintain current staffing levels.

 

Ø      Similarly, the state's subsidy to county Sheriffs increases by $4.1 million.  This recommendation fully annualizes the cost of the new facility in Barnstable and provides additional funding to help maintain current staffing levels.

 

District Attorneys

 

Ø      The Senate recommends a $2.8 million increase for all of the District Attorneys.  This increase will help the District Attorneys maintain current effectiveness while maintaining the rising costs of DNA testing and Expert Witness Fees, as well as an increased emphasis on monitoring Sexually Dangerous Persons.

 

Ø      The UMass Drug Lab, also facing a sharp increase in sample requests, was increased by $150,000 to $450,000.

 

Ø      The State Police Overtime appropriation, which helps absorb costs to pay police officers working overtime to investigate homicides, rapes, gang related activity and other serious crimes, was increased by $1.6 million

 

Ø      The Senate also helped to create a pilot Sex Offender Management Program to be carried out with the combined efforts of the Cape and Islands District Attorney as well as the Barnstable County sheriff. The three main components to the initiative include the following:

 

 

 

Economic Development

 

The American economy is changing rapidly and Massachusetts’ economy must change to keep pace. To assist the growth of business and jobs in Massachusetts we must continue to provide the technical assistance and specialized training our workforces needs, the financial incentives to create jobs that our businesses desire, and provide support for affordable housing so that Massachusetts workers can actually afford to live in the Commonwealth.

 

Other industries, such as international trade and international and domestic tourism play an important roll in our state’s economy.  The Senate’s budget reflects the need to promote these industries as part of our long-range economic plan for the future.


Economic Stimulus

 

In addition, the Senate will be offering a companion economic stimulus package to drive job creation and job growth in the Commonwealth.   Many of the initiatives included in this proposal were part of the original Senate economic stimulus proposal, but did not end up in the final package that was signed by the Governor.  These initiatives include:

 

Ø      Stem cell research

Ø      Health Care Technology Fund

Ø      Workforce Development and Training Council

Ø      Streamlined permitting

 

The Senate remains committed to these initiatives and will provide the necessary funding, with new initiatives to stimulate the economy, by filing separate legislation dedicating a portion of the fiscal year 2004 surplus to these proposals.

 

Workforce Training Fund

 

Massachusetts’ workers must receive ongoing training to master the skills necessary to compete in the global marketplace.  This is particularly important during times of economic stress and job losses.  The Senate’s budget is committed to getting the state back to work. 

 

Ø      The Senate appropriates $21 million for workforce training grants and preserves the Workforce Training Fund.

 

Ø      The Senate dedicates $3.75 million to the Commonwealth’s Career Centers and on-the-job training initiatives.

 

Tourism         

 

Ø      The Senate’s commitment to tourism, the Commonwealth’s third largest industry, is reflected by an increase of $4 million in funding for the Massachusetts Office of Travel and Tourism.

 

Ø      The Senate continues its mission to recapture the global tourism dollar by dedicating an additional $2 million for a marketing campaign that will increase Massachusetts’ appeal as a primary destination spot for International Tourists.  The Senate created the marketing initiative in last year’s Economic Stimulus Package.

 

Ø      The Senate is pleased to repeat an initiative first suggested in the economic stimulus bill last fall.  The Senate recommends a new $1 million Mass Cultural Council line item for grants for cultural economic development to encourage growth in the creative economy at the intersection of the arts community and the tourism industry.

 

 

Judiciary

 

Trial Court

 

Ø      The trial court line items for each individual court were consolidated into seven main line items, according to the trial court department. This restructuring will promote much-needed fiscal responsibility and management by forcing the courts to appropriate funds based on caseload and actual need.

 

Ø      Since most courts in the Commonwealth face the burden of a backlog, the Senate significantly increases funding for Alternative Dispute Resolution services by over $1 million to $1.6 million.

 

Ø      The Senate also increases the Permanency Mediation to $676,598. Permanency Mediation is a true cost saver to the Commonwealth, serving as an alternative to contested and often prolonged court proceedings dealing with the termination of parental rights for abused and neglected children in Massachusetts.

 

Ø      In order to guarantee that our most vulnerable citizens are granted equal access to social justice, the Senate fully funds the Massachusetts Legal Assistance Corporation at $7.5 million; Correctional Legal Services at $500,000; and the Mental Health Legal Advisors at $501,085.

 

Committee for Public Counsel Services

 

Ø      The Senate increases funding for public counsel services from $15.2 million to $16.2 million.

 

Ø      Our proposal creates a Sexually Dangerous Persons Office and funds the new line item with a $650,000 appropriation.

 

Ø      The Senate creates a Committee for Public Counsel Services Commission to conduct an investigation and study of the current matters facing the committee. The commission is charged to report on the impact of the tightening of indigence verification as well as the feasibility of a bar advocate pay rate increase.

 

Ø      The Senate adopts more rigorous indigency Verification procedures to be used in all trial courts across the Commonwealth. These guidelines coordinate the resources of the Departments of Revenue, Transitional Assistance, and Medical Assistance as well as the Registry of Motor Vehicles in order to determine a defendant’s financial status and eligibility for free counsel.

 

Ø      The Senate creates a Pilot Verification Program in Middlesex County that will employ consultants using real time resources to determine, before representation is granted, whether or not a citizen seeking indigent status has fully declared all his assets.

 

Environment

 

The Senate is committed to protecting the State's environment and providing quality parks, beaches and forests for preservation and recreation. For fiscal year 2005 the Senate demonstrates this commitment with the following initiatives:

 

Ø      The Senate recommends increasing the funding for the Commonwealth Zoological Corporation by 37% to $4 million.

 

Ø      Over $22 million is recommended in total funding for the Executive Office, which will ensure that important programs such as the state's recycling coordination, the Office of Toxics Use Reduction, and the Office of Geographic Information have the resources to maintain their current level of services.

 

Ø      The Senate budget also recommends transferring the Office of Administrative Appeals to the Department of Administrative Law Appeals.

 

Ø      The Senate fully funds the Department of Fish and Game. This will end the department’s practice of charging other programmatic accounts for operational costs of the agency.

 

Ø      An additional $6 million over fiscal year 2004 funding levels for the State Revolving Fund program is recommended. The program assists municipalities and wastewater districts in the financing of water pollution abatement projects that help community public water suppliers comply with federal and state drinking water requirements.

 

Ø      The Senate establishes a new account for wetland program activities in the amount of $1.2 million.  The account will be funded through increased wetland permitting fees.

 

Ø      We recommend increased funding for the river ways protection program to promote the restoration and protection of the ecological integrity of the Commonwealth's watersheds.

 

Watershed Division Initiative

 

Ø      The new agreement between the Massachusetts Water Resources Authority and the Department of Conservation and Recreation, funded by the new trust fund established in the Senate’s budget, serves all parties well.

 

Ø      The Authority is able to gain more discretion in spending, and to work more closely with DCR on how employees and other resources can be used to further the Authority’s goals of securing and protecting the watersheds that serve greater Boston.

 

Ø      The Department is able to devote more resources to the land and work more closely with the Authority for which the Department manages the lands, especially in the area of management plans. 

 

Senate Committee on Ways & Means • Budget Recommendations • Executive Summary