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Executive Summary

 

 

Through this executive summary, the Senate Committee on Ways and Means provides highlights of its fiscal year 2007 budget recommendations which focus on building a better future for the Commonwealth.

 

 

Local Aid

 

There is no question that the Commonwealth’s 351 cities and towns have struggled financially over the past several years.  It is essential that reinvesting at the local level is a top priority. In order to facilitate that investment, the Committee’s recommendations include substantial increases in the area of local aid.

 

Lottery Aid

 

In response to the state’s continuing recovery from the fiscal crisis of past years, the Committee recommendations “uncap” the lottery revenue distribution.  All of the state’s share of lottery profits will be distributed directly to cities and towns, resulting in a $158.7 million in increase in aid to municipalities.

 

 

Payment in Lieu of Taxes

 

To reimburse communities which host state land, these recommendations increase Payment in Lieu of Taxes Payments (PILOT) by $9.2 million for a total of $25.3 million.  This funding will enable cities and towns with state-owned land within its borders to recover more of the property tax revenue they have recently been unable to collect. 

 

Chapter 70

 

The Senate Committee on Ways and Means’ recommendations for Chapter 70 funding in fiscal year 2007 take an important step forward in addressing issues of equity and adequacy in education spending.  Aided by the work of the Senate Task Force on Education Finance in 2004 and the Joint Committee on Education’s listening tour, our plan will provide immediate help to school districts and create a framework of reform that can be built upon in future years.  In addition to structural changes, the Committee is recommending an increase in Chapter 70 aid of more than $210 million over fiscal year 2006, and maps out a commitment over the next five years.

The Committee’s plan makes targeted increases to the foundation budget and works to ensure fairness in the calculation of state aid and local contributions.  Changes to the foundation budget will better reflect actual district need and spending.  To gain a more accurate picture of municipal ability to pay, aggregate income and property values are weighed equally.  Additionally, the plan guarantees that, over five years, each school district will receive state aid amounting to at least 20 percent of its foundation budget.  Finally, the plan increases both the assumed in-district special education enrollment as well as the per-pupil allotments for English language learners and students from low-income families. 

 

 

Education

 

Investments in education are investments in the economic vitality of the Commonwealth. From early childhood education and care through to our public colleges and universities, the Committee’s recommendations continue to make the education of our children a priority.   

 

Early Education and Care

 

Giving our children a strong start in life is a key component of their successful development. Therefore, the Committee recommends an increase in funding for the Department of Early Education and Care of $31.7 million. Specifically, the funding includes a $1 million increase to the Head Start Program; an additional $1.6 million in additional early literacy and family learning funding; $1.4 million for a preschool mental health pilot program designed to reduce expulsions and suspensions; and, $3 million for scholarship grants to early education teachers, ensuring our children receive high quality care from seasoned providers.

 

The Committee’s recommendations also increase childcare availability for troubled families who have active cases with the Department of Social Services, and allow the Department of Early Education and Care to continue to reduce the waiting list for subsidized child care.

 

Also recognizing the commitment of the Commonwealth Early Education and care providers, the Committee recommendations include a $12.5 million salary rate reserve. This funding will help attract the best candidates in the field, and promote quality in our child care system. 

 

 

K-12 Education

 

Along with the $210.4 million increase in Chapter 70 funding, the Committee has further invested in K-12 education in the Commonwealth. To assist regional school districts with the sharply rising cost of providing transportation in very large landscapes, the recommendations include a $5 million increase for regional transportation reimbursements.  In order to find a long-term solution for dealing with the cost of regional transportation, the Committee proposes a pilot program, to be conducted by the Department of Education, which will develop ways to reform regional transportation by maximizing efficiency, seeking cost saving alternatives, and reducing the length of bus rides for students in regional districts.

As part of the state’s statutory requirement of a 75 percent reimbursement for costs of funding Special Education, the Committee increases the special education circuit breaker account by $6.6 million. 

Recognizing that the rising cost of fuel has become a reality in our daily lives, the Committee’s recommendations provide an increase of $1 million in fuel cost relief for the Metropolitan Council for Educational Opportunity (METCO) by $1 million.

  

Higher Education

With one of the greatest public higher education systems in the nation, our young adults have the opportunity to obtain a degree from a top-notch school. To continue that tradition of excellence in our public colleges and universities, the Committee’s recommendations invest in our public higher education system.

 

In February of 2006, the Senate passed a higher education reform bill to meet certain objectives of the Senate Task Force on Higher Education’s spring 2005 report.  Some of these objectives include a return to stability, improved affordability and increased capacity of our higher learning institutions. 

By maintaining the promises of this bill, the Committee continues its strong support for the state’s public higher education system by increasing funds to state and community colleges by $30.9 million and the University of Massachusetts by $26.7 million.  This is achieved by decreasing each college’s funding gap by 14 percent, in the process of addressing the areas used by the Board of Higher Education to determine funding for each institution. 

The recommendations also allow the University of Massachusetts and every state and community college to retain all tuition and fee revenue.  Allowing the revenue generated from tuition and fees to remain at the local campuses will be less complicated administratively, allow for more financing flexibility, and give institutions more certainty in their annual budgeting. It will also allow students and their families to know the real cost of their education.

 

Health Care

 

Health Care Reform

 

Fiscal year 2007 represents a year of great opportunity and promise for our state’s health care services.  Historic health care reform legislation, passed this spring, creates the fundamental framework necessary to implement an innovative plan for near-universal health care coverage in Massachusetts. 

 

The Committee’s budget recommendations for fiscal year 2007 represent an important step toward realizing affordable, accessible health care for all residents of Massachusetts. These recommendations contain the responsible investments necessary to fulfill the commitment of the new law, while fully integrating the structure, language, and funding of those reforms into the state budget. The Committee’s recommendations to fulfill the parameters of health care reform include:

  • The funding transfer to the Commonwealth Care Trust Fund necessary to support the provisions of the health care bill, including the new low-income subsidy program called the Commonwealth Care Health Insurance Program;
  • $18.2 million to increase MassHealth eligibility for children in families with incomes up to 300percent of the federal poverty level;
  • $42.1 million to restore certain benefits to over 500,000 MassHealth members, including dental coverage and eyeglasses;
  • $7 million for a MassHealth smoking cessation pilot program;
  • $10 million increase of the Insurance Partnership program which provides subsidies to small businesses for health insurance costs.

MassHealth

 

The Committee takes steps to enhance the health care reform plan, by continuing to dedicate the necessary funds to provide quality, cost-effective health coverage to over 1,030,000 low-income residents through the MassHealth program.  The recommendations also include increased funding in order to expand enrollment in existing MassHealth programs for all who qualify.  In total, the Committee’s recommendations provide $7.5 billion for MassHealth programs in FY07.  This will allow caseload in existing programs to increase by more than 45,000 members, a 4.3percent increase over FY06. Specifically, the Committee recommends:

  • $77 million increase to the MassHealth Essential program, in order to enroll 17,000 more eligible members;
  • $5.2 million increase to the CommonHealth and MassHealth HIV programs in order to avoid enrollment caps;
  • $3.9 million to fully fund the MassHealth Breast and Cervical Cancer Program;
  • $15.9 million for the Healthy Start Program to provide essential pre-natal care to low-income, uninsured pregnant women;
  • $1.5 million to newly expand MassHealth coverage to approximately 600 young-adults aging out of the state’s foster care system;
  • Permanently reforming the premium structure for the Children’s Medical Security Plan in order to provide relief to low-income families and ensure the program is affordable for all families to provide primary health insurance for every child in the Commonwealth.

 

In line with the goals of health care reform, these investments will begin to reduce the number of uninsured individuals and families in Massachusetts, and will reduce costly, unnecessary hospitalizations by providing primary and preventative care to our most vulnerable citizens.

 

Hospitals and the Uncompensated Care Pool

 

Hospitals play an essential role in both sustaining the health of residents and as a vehicle for economic growth. The Committee’s recommendations support these institutions through this transition year of health care reform by including $11.7 million in payments to hospitals with high volumes of public payer patients and $14 million in payments to pediatric hospitals and specialty units.

 

The health care reform bill does contain most of the provisions necessary to protect the safety-net of hospitals and community health centers that bear the cost of treating the uninsured in the Commonwealth through the Uncompensated Care Pool.  It does this by increasing free care payments by $14 million, in order to ensure that all hospitals, urban and community receive fair reimbursement from the state for free care costs.  This level of support will allow providers to seamlessly transition as the number of uninsured is reduced throughout the year.  The FY07 recommendations:

·        Increase hospitals free care payments to $480 million;

  • Maintain Community Health Center free care payments at $56 million;
  • Continue authorization for a $5 million audit of the Uncompensated Care Pool by the Inspector General’s office to increase provider accountability and provide useful data on Pool utilization throughout the year.

 

MassHealth Senior Care

As the Committee has done in years past, it continues the tradition of utilizing an innovative funding method to generate financial support for the Commonwealth’s nursing homes.  The Committee maintains nursing home funding through the Nursing Home User Fee and provides funding through increased Medicaid rates that include:

 

    • $50 million to increase nursing staff wages and to improve staff to patient ratios;
    • $17 million for nursing homes capital costs, prioritizing under-bedded areas; quality-improving projects and de-institutionalization initiatives;
    • $9 million in funding for nursing home bed hold days, ensuring seniors retain their bed after a medical or non-medical leave of absence.

 

 

The Committee also supports changes to MassHealth Senior Care eligibility requirements that will assist elderly residents in retaining the necessary assets to allow them to remain in their home or community as long as possible. These changes include restoring the community spouse resource allowance to previous levels and allowing spouses of nursing home residents to remain in the community.  The Committee also recommends utilizing new federal flexibility to increase the eligible home equity level for seniors as a reflection of the high property values in Massachusetts.

 

Department of Public Health

 

Early Intervention

 

Early Intervention programs have a proven track record in serving at-risk 0-3 year olds, who may have developmental, mental, speech or emotional impairments. Through this program they receive physical, occupational, and speech therapy, as well as other services that attempt to eliminate the developmental gap. By working to eliminate these impairments early, the Commonwealth saves millions of dollars in special education costs.  The Committee recognizes the importance of this programming and provides over $600,000 in order to increase capacity for these services.

 

Providing competitive salaries ensures that the children in early intervention programs are served appropriately. Recognizing the current workforce challenge, the recommendations include $1,417,500 in funding as a new line item to provide a 3 percent rate increase for early intervention workers in order better recruit and retain high quality staff.  

 

 

Specialty Care Unit at Massachusetts Hospital School

 

Unlike other states, the Commonwealth of Massachusetts does not have a children’s rehabilitation unit, and the Committee realizes that this must be addressed. To that end, the Committee provides $2.79 million in funding for a 24 bed Specialty Care Unit at the Massachusetts Hospital School. The facility, which is located in Canton, provides medical care, rehabilitation, recreation, and educational services to children and young adults who are physically disabled. The unit will serve families whose children undergo a traumatic injury such as paralysis or severe head injury and will also have the capacity to treat multi-handicapped adolescent and young adult patients.

 

School Based Health

 

School based health centers play a central role in providing for the health and well-being of our children.  Many times they act as the sole providers of medical care for children, as well as the liaison to health insurance benefits and mental health services if needed. Therefore, the Committee recommendations include an additional $3 million for the school cased health Centers.

 

 

Substance Abuse

 

The Senate has made a significant commitment to programs for the prevention and treatment in substance abuse in the FY 2006 supplemental budget, which the Senate and House have agreed to move along with the FY 2006 economic stimulus legislation.

 

Adding to the significant increases in the supplemental budget, the Committee’s recommendations include $4 million to create a 60 bed community-based substance abuse program for men who are civilly-committed as an alternative to incarceration.

 

 

Department of Mental Health

 

Adult Mental Health

 

Once again, the Committee continues to assist some of the most vulnerable citizens of the Commonwealth through a commitment to mental health services. In order to support and expand services for those transitioning from the various adolescent programs into adult mental health programs, the recommendations provide for an additional $3 million investment bringing the total amount to $6 million for FY 07.

 

The ability to provide a stable place of residence allows those who are homeless and suffering from mental illness to have a place to receive mental health services in an environment which will foster recovery. The Committee provides $2.75 million in housing for the homeless mentally ill, enabling the Commonwealth to obtain federal funding. This will allow the Commonwealth to build additional single occupancy units to house additional homeless clients.

 

 

Department of Mental Retardation

 

Residential Rate Initiative

 

The Committee provides $2 million for a residential rate initiative which will allow the Department of Mental Retardation to have a more standardized way  of  initiating contracts with vendors in the future, and will allow for certain adjustments for those vendors who are currently receiving inadequate rates.  By streamlining the process, the Department will create a more equitable and transparent system that rewards quality and performance.

 

Division on Autism

 

The Committee continues its strong support for this new division of the Department of Mental Retardation. This is an important program and additional funding is necessary in order for it to grow and carry out its mission.  Therefore, the Committee’s recommendations include an additional $1.8 million to allow the program to submit their Home and Community Based Waiver application to the federal government, and begin to provide intensive in-home services to eligible children ages 0-8 years old in FY07.

 

 

Massachusetts Rehabilitation Commission

 

Independent Living Assistance

 

In order to increase capacity and programming so recipients can continue to live successful and productive lives within the community, the Committee increases funding for independent living assistance. Additional funding is also provided for assistive technology, so that citizens of the commonwealth could, with the help from assistive technology, live more independently.

 

 

To keep up with this increased demand for services, the recommendations also include a $2 million increase in funding for the eleven independent living centers across the Commonwealth. 

 

 

Public Safety

 

Providing resources for law enforcement and public safety is an essential component in improving the quality of life for the Commonwealth’s residents. The Committee’s commitment to investing in public safety continues in fiscal year 2007.  By distributing additional funds to the Massachusetts State Police, our 11 district attorneys’ offices, our 14 state and county sheriffs and both the State Police Crime Lab and the Chief Medical Examiner’s Office, this Committee takes a strong stance against the disturbing rise in violence the Commonwealth is experiencing.

 

Massachusetts State Police

 

To complete the Commonwealth’s three year strategic plan to maximize troop strength, the recommendations include $1.2 million in funding for a new State Police maintenance class. Knowing that gang violence is a growing concern, the Committee has also included $1.05 million to combat this serious problem in some of our neediest communities.

 

District Attorneys

 

With District Attorneys’ Offices facing a very high turnover rate because of the low salaries, the Committee proposes to increase payroll funding for the 11 District Attorney offices in the Commonwealth by 10 percent.  This funding will help to ensure that the District Attorneys can retain the most highly-skilled and experienced prosecutors. 

 

State & County Sheriffs

 

To address the issues with our decaying correctional facilities, the Committee recommends over $12 million in funding to open and operate the new correctional facilities in Middlesex, Franklin and Hampden counties. In addition, the Committee continues to fully fund the two regional forensic mental health units for county and state inmates. This allows inmates who present mental health issues to be observed and assessed instead of sending them immediately to Bridgewater State Hospital, helping to better stabilize the inmates and saving the Commonwealth significant resources.

 

Fire Safety & Prevention

 

Providing children with fire safety education saves lives. To continue this critical education effort, these recommendations include full funding for the Student Awareness of Fire Education (SAFE) program at $1.07 million. The Committee also recommends allowing the Department of Fire Services to retain $300,000 in citation revenue to train fire safety enforcement officers. 

 

Office of the Chief Medical Examiner & State Police Crime Lab

 

In our continuing efforts to provide the Office of the Chief Medical Examiner with the resources necessary to clear pending cases quickly and effectively, the Committee proposes increasing funding for the Office of the Chief Medical Examiner by over $1.1 million. This increase will allow the Chief Medial Examiner’s office to continue hiring much-needed pathologists.

 

Additionally, the recommendations increase funding for the State Police Crime Lab by $4 million to support hiring, training and equipment for DNA chemists, evidence technicians and administrative support.

 

Massachusetts Emergency Management Agency

 

Planning for disasters, whether natural or otherwise, must continue to be a priority for the Commonwealth. In that vein, the Committee’s recommendations include a $430,000 increase to support the agency’s evacuation and disaster recovery initiative.  By working with local officials, the agency will carry out evacuation and disaster recovery plans in each town, coordinated on a regional level.

 

 

 


Transportation

 

Our roads, bridges, and transportation services are the backbone of the Commonwealth. We must continue to ensure that roads and bridges are maintained properly, and that we are able to keep them clear during the winter months.

 

With 351 cities and towns across the Commonwealth, the Committee understands the importance of regional transit to our state.  In order to expand the unmet service needs in RTA districts, the Committee has proposed to make excess registry fees available to the Regional Transit Authorities effective fiscal year 2008.

 

The Committee also recommends placing $20 million of the Commonwealth’s total snow and ice removal appropriation in non-reserve accounts to allow Mass Highway to purchase salt and materials in bulk during the off-season, thereby reducing costs.  The Committee also realizes the importance of the Inter-District Bus Service, and recommends $2 million to continue fully funding this program.

 

 

Economic Development

 

One of the key factors in a strong economic future for the Commonwealth is our continued investment in economic development. Every aspect of our lives is touched by the economy. A strong economy means more revenue, more job opportunities and a better quality of life for residents.  The Committee makes this investment by maintaining or increasing funding for economic development.

 

Tourism is essential part of promoting our economic vitality. As one of the top three industries in the Commonwealth, increasing tourism affects all facets of our economy.  With that in mind, the Committee recommendation’s fully fund our local tourist councils. Another part of promoting tourism is our support of arts and culture.  Massachusetts is quite literally where our nation was born. No other place in the country can make that claim, and the efforts to promote that history and our unique culture is critical for our economy. To further those efforts, the recommendations also include a $1.25 million increase for the cultural councils.

 

Massachusetts Manufacturing Extension Partnership

 

For our manufacturers to stay competitive and thrive in a global market, the recommendations include $850,000 for the Massachusetts Manufacturing Extension Partnership. By providing services that allow businesses to be competitive, the Commonwealth is better able to retain and expand existing companies as well as attract new industry.

 

 

Extended Care Career Ladder Initiative

 

To aid in supporting the nursing community, the Committee includes $1.5 million for the Extended Care Career Ladder Initiative in its recommendations. Through training, education, and other workforce development programs, the initiative seeks to improve quality of care, promote skill development, institute career ladders and other workplace practices that support and develop workers, and improve retention of Certified Nursing Assistants.

Human Services

 

Fulfilling the needs of the Commonwealth’s most vulnerable citizens is an obligation that must continue to be met. By helping people overcome obstacles, they are able move forward to live a healthy, safe, productive life.

 

 

Department of Transitional Assistance

 

Even as our economy continues to recover, many families are struggling to put food on the table. Hunger decreases workforce productivity, creates severe public health issues, and hinders the ability of children to learn and grow.  In order to ensure that our citizens have access to adequate nutrition, the Committee proposes $3.9 million in additional food stamp program spending.

 

This funding will allow the Department of Transitional Assistance to hire additional caseworkers, and provide much needed updates to their technology, as well as allow the Department to more quickly and efficiently get this assistance into the hands of hungry families.

 

In addition, the Committee proposes to fund a new initiative in partnership with Project Bread to better-identify those eligible for foods stamps who are not receiving benefits.  This program will generate an additional $103 million in federal benefits which the state can utilize to help feed hungry families.

 

 

Department of Agricultural Resources -Emergency Food Assistance Initiative

 

An additional resource in our fight against hunger is the four regional food banks who serve as an invaluable tool in providing food to individuals across the Commonwealth. With increased need from the public, these food banks’ resources stretched to the maximum. To ease that strain, the Committee continues the Senate’s commitment to eliminate hunger by nearly doubling the funding for the Massachusetts Emergency Food Assistance Program to a total of $12.5 million.

 

 

Department of Social Services

 

The health and well being of our children must be a priority. Therefore, the Committee recommendations provide for $5.5 million to the Department of Social Services to lower the state-wide social worker to client ratio from 18:1 to 17:1. With this additional funding, caseworkers will be able to spend more time with each individual child, promote safe and healthy home environments, and better protect our most vulnerable population.

 

Additionally, the Committee recommends that $1 million be provided to the Department of Social Services for new medical staff. These medical professionals will collaborate with social workers by performing medical evaluations. This measure would dramatically improve the department’s ability to recognize abuse and neglect through more thorough multidisciplinary reviews.

Human Service Providers

 

The dedicated men and women who provide for our neediest citizens are very often underpaid. In order to provide for these dedicated professionals, the Committee’s recommendations include $28 million to increase the salaries of contracted human services workers.

 

Juvenile Offenders

 

Providing troubled youth with the tools to improve their lives is an essential component of putting them on the path to a productive life.  The Committee understands this need and continues the commitment by recommending a $3.3 million initiative to improve the quality of education for youth detained by the Department of Youth Services. This funding will increase teacher salaries and program quality as well as help to reduce the rate of recidivism.

 

 

Veterans

 

With every passing day, we realize the sacrifice that the men and women in the armed forces make to protect our state and our nation. To honor that sacrifice, the Committee fully funds the Veterans’ Welcome Home Bill, an investment of over $7.9 million. This includes increasing annual annuity payments to veterans from $1,500 to $2,000 per year, and provides $1.1 million to help Massachusetts National Guard members pay their life insurance premiums.  Along with these benefits, the Committee continues to fund the bonus payments for veterans returning from Iraq and Afghanistan.  

 

For those veterans in need of treatment, the Committee recommendations also provide increases for the state’s two veterans’ hospitals in Chelsea and Holyoke.

 

 

Environment

 

Protecting our environment is investing in the future of the Commonwealth which is why the Committee remains committed to its mission to ensure clean air and water,  the safe management of toxic and hazardous materials, the recycling of solid and hazardous wastes, the timely cleanup of hazardous waste sites and spills, and the preservation of wetlands and coastal resources.  In addition, it is critical that we promote and enhance the viability of agriculture and the conservation of fisheries and wildlife throughout the state.

 

In order to provide necessary resources to assess high-risk sites throughout the Commonwealth that have yet to be properly assessed or evaluated, the Committee has included $500,000 for the Hazardous Waste Site cleanup program’s new c.21E Source Discovery and Enforcement program.  These sites are considered to have a high probability of being significant sources of contamination, but due to resource constraints, DEP has been unable evaluate the threat and take action.  This funding will allow DEP to create a credible program to examine these sites in a methodical approach.

 

 

Department of Conservation and Recreation

 

In this year’s recommendations, the Committee continues it’s commitment to state and urban parks by maintaining funding for the Department of Conservation and Recreation. This funding will allow all pools and beaches to remain open and staffed for the full summer season, from Memorial Day weekend through Labor Day weekend. 

 

Along with maintaining the funding for existing Department of Conservation and Recreation, the Committee also funds new programs that will enhance our natural resources for years to come.

 

With the threat of a failing dam in Taunton, it became clear that the Commonwealth must focus on dam safety. Through $1.045 million in funding for the Office of Dam Safety, the Committee has provided resources for this office to assist in regulating the 3,000 dams across the Commonwealth, many of which are known to be deficient and in need of significant repair. 

 

 

Housing and Community Development

 

Ensuring that the basic needs of the people of the Commonwealth are addressed is one of Massachusetts’ first responsibilities. With that in mind, the Committee’s recommendations provide for a continued investment in housing initiatives.

 

Tenancy Preservation Program

 

The tenancy preservation program works with tenants, including families, who are facing eviction as a result of a behavior related disability.  In consultation with the housing court department, it functions as a neutral party to the landlord and tenant to determine whether the disability can be reasonably accommodated and the tenancy preserved.  The Committee recommendations include $250,000 to expand the existing program.

 

 

SoftSecond Loan Program 

 

Giving working families the ability to buy a home for the first time allows them to set roots in a community. To aid these families, the Committee increases the SoftSecond loan program by $2.5 million.  This program gives first-time homebuyers increased purchasing power through two mortgages – a conventional first mortgage with a subsidized second mortgage. 

 

Housing Education Centers

 

By providing services to help residents find homes, we are able to reduce the number of transient and homeless people. The best tool for this is the nine housing education centers located throughout the Commonwealth.  The Committee recommends increasing the centers funding by $600,000 for additional staff so they are able to meet the demands to provide information and services for housing consumers and providers in obtaining tenancies.