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Executive Summary
This executive summary highlights recommendations of the Senate Committee on Ways and Means for Fiscal Year 2008. Through these recommendations, the Committee maintains its commitment to the well-being of our residents, the vitality of our economy, and the role of the Commonwealth as a leader in the 21st century.
Financial Overview
The Senate Committee on Ways and Means recommends a fiscal year 2008 operating budget of $26.677 billion. Like our colleagues in the administration and the House, we faced the reality of closing a daunting budget gap while striving to maintain core services and avoiding excessive borrowing.
Our consensus tax revenue growth for fiscal year 2008 was 3%, which amounted to $579 million in new available revenue. $164 million of this revenue is dedicated to our pension obligations, the MBTA, and the School Building Authority. Much of the remaining balance of $415 million was used to cover increases in both health care reform and Medicaid.
The remainder of the budget was balanced by finding prudent areas for savings initiatives, limiting spending growth, and making targeted investments in areas most likely to improve the long-term health of our economy.
Utilizing our Resources for Economic Development
The Senate Ways and Means budget is balanced, in part, by borrowing $150 million from the Stabilization Fund. Five of the last six General Appropriation Acts have been balanced in part by borrowing from the Stabilization Fund. In spite of this dependence, the Stabilization Fund remains a primary source of fiscal strength for the Commonwealth.
To help understand the role played by the Stabilization Fund in the state’s fiscal health, two documents are available via the Internet.
The first document is the most recent Statutory Basis Financial Report for fiscal year 2006, which was published by the Comptroller at the end of October, 2006.
http://www.mass.gov/Aosc/docs/reports_audits/SBFR/2006_SBFR.pdf
The second document is the most recent information statement issued by the Executive Office of Administration and Finance, which was generated in connection with the state’s most recent bond offering at the end of April, 2007. The Committee is making this information statement available here simply for informational purposes, and is not necessarily implying agreement with its contents.
http://www.dacbond.com/GetContent?dctm_r_object_id=0900bbc7800b3bc7
The Comptroller’s transmittal letter with the fiscal year 2006 report describes the strength of the Commonwealth’s Stabilization Fund. In the most recent survey, the Commonwealth ranked second in the nation, among states with more than $10 billion in General Fund expenditures, in terms of stabilization balance as a percentage of expenditures. At the close of fiscal year 2006, the Commonwealth’s Stabilization Fund comprised 8.4% of budgeted expenditures – more than four times the national average. The Comptroller notes that as of the end of the 2005 fiscal year, eight states had no balance in their Stabilization Funds.
These data indicate that the Commonwealth is working from a position of fiscal strength with respect to the Stabilization Fund.
Job Growth
Although this borrowing is minimized, the Committee’s recommendations do depend, in part, on borrowing from the Stabilization Fund to balance the budget. FY08 represents the fourth consecutive year, and sixth out of seven years since the fiscal crisis, in which the state’s budget depends in part on borrowing from the Stabilization Fund.
This dependence will not yield unless we grow the state’s economy and create more jobs. Massachusetts was still below our 2001 peak for job numbers before the most recent recession and subsequent fiscal crisis. Given the strength of the state’s Stabilization Fund, it is no wonder that our state’s budget has come to rely on the Stabilization Fund for budgeting purposes. At the same time, since the operating budget is undeniably tight, options are limited for substantial new dollars to be dedicated to job creation.
The Senate Ways and Means budget recommendations propose a new job creation initiative to help Massachusetts fulfill its economic potential. This proposal is designed to help state government free itself from dependence on the Stabilization Fund, without breaking the operating budget. This proposal takes advantage of one of Massachusetts’ most significant job creation assets, the existing supercluster of biotechnology and life science companies, which utilize the high-powered research universities and hospitals that make their home in the state. Simultaneously with promoting job growth, this proposal confronts a significant barrier in our economic development, the high cost of housing in Massachusetts.
The Committee proposes that some of the consolidated net surplus generated each year by state operations be dedicated to four existing trust funds. These funds address housing costs and foster the continued growth of life sciences and other emerging technologies in Massachusetts. At the close of each fiscal year, the Comptroller would first deposit $50 million of the consolidated net surplus into the Stabilization Fund. The Comptroller would then distribute $75 million as follows:
If the consolidated net surplus is less than $125 million, the difference between $50 million and the consolidated net surplus would be distributed to those four funds according to the same pro rata percentages. Amounts greater than $125 million would continue to be distributed to the Stabilization Fund. In seven of the last ten years, with the exception of the three fiscal years at the heart of the most recent fiscal crisis, the consolidated net surplus has satisfied this condition. In only one of the last ten fiscal years has the Commonwealth been required to borrow from Stabilization to close the books without generating a consolidated net surplus.
The state’s Stabilization Fund is healthy and mature. Rather than automatically investing surplus dollars in our state’s burgeoning “savings account,” the state should instead make some relatively modest investments in our economy and our future.
Local Aid
Cities and towns across the Commonwealth continue to struggle financially. In order to aid our communities, the Legislature committed to provide $235 million in additional local aid for FY08. This resolution included $220 million to implement the second year of the five year plan to reform Chapter 70 education funding and an additional $15 million in lottery revenue.
The Committee acknowledges the struggles municipalities face in trying to generate increased revenue from property taxes. In order to compensate communities with state-owned land within their borders, the Committee recommends increasing the Payment-In-Lieu-Of -Taxes (PILOT) program by $3 million over FY07, for a total of $28.3 million.
Education
Providing quality education for our children, from preschool through college, is an investment in their future and that of the Commonwealth. Through its recommendations, the Committee continues to prioritize our children, teachers, and places of learning.
In addition to the increase of $220 million for Chapter 70 education funding, the Committee has included several funding initiatives to improve education in Massachusetts.
A strong start to a child’s education can make a lifetime of difference. With that in mind, the Committee remains committed to providing quality, affordable, and accessible early education opportunities for the families of the Commonwealth. In order the meet these goals, the Committee invests $11.4 million over fiscal year 2007 for subsidized early education and care. In addition, the Committee recommends increasing supportive child care spending for families involved with the Department of Social Services by $10.5 million. These combined investments will dramatically improve the educational outcomes of numerous children across the Commonwealth.
Retaining a skilled workforce is an essential component in ensuring quality early education. Our early childhood educators are dedicated professionals who accept modest pay along with the enormous responsibility of educating children in their formative years. In order to retain these professionals, the Committee’s recommendations include $7 million to increase the rates paid to these providers. Moreover, $4 million is included in scholarship funds for early educators.
In order to provide the best early education experience possible, it is essential to acknowledge the unique challenges teachers face. Addressing mental health issues amongst preschoolers is one such challenge. The Committee recommends that an additional $1 million over fiscal year 2007 be expended on early education mental health programs. This investment will provide struggling children with much needed resources, and improve the classroom experiences of all young children.
K-12 Education
America’s first public school system was founded in Massachusetts. Over 360 years later, we are still seeking ways to perfect this system, and to provide for the young people of the Commonwealth.
Funding has become one of our greatest challenges. As part of our efforts to reform public education financing, our recommendations include the first comprehensive study on the adequacy of the Chapter 70 foundation budget since it was developed in 1993.
In addition, the Committee’s recommendations provide $3.5 million in the Foundation Reserve Aid account to the needs of cities and towns facing extraordinary circumstances in their education budgets. As part of this initiative, an additional category is added within the account that will allow communities with declining enrollment in rural, economically challenged areas in the Commonwealth to apply for additional education funds.
To further improve public education, the Committee provides $13 million for Expanded Learning Time Grants, which will afford 17 school districts and over 8,000 students with at least 300 additional hours of classroom time per year. In addition, the Committee recognizes the importance of kindergarten as the building block for a strong future. These recommendations provide a total of $33.8 million for Kindergarten Expansion Grants, allowing more school districts to offer full-day kindergarten.
Recognizing the strain that rising special education costs put on school district budgets every year, the Committee adds $12.3 million in funding over FY07 for the Special Education Circuit Breaker to help defray the costs for these services in FY08.
Higher Education
The Senate’s commitment to quality education also extends to our public institutions of higher learning. With that in mind, the recommendations made by the Committee provide an additional $25.6 million for our state and community colleges, and $25.9 million for the University of Massachusetts system to help close the revenue gap and meet collective bargaining obligations.
Recognizing the great financial burden pursuing a college education can place on many of the Commonwealth’s families, the Committee recommends increasing the Massachusetts State Scholarship Program by $2.1 million. This program, administered by the Board of Higher Education, funds a number of need and merit-based scholarships for qualified students and complements the financial aid administered directly by individual colleges and the University of Massachusetts
In addition, the recommendations establish a new trust fund, the Commonwealth Covenant Fund, which will provide loan forgiveness as an incentive for students to pursue degrees in the fields of science, technology, engineering, mathematics and healthcare. The fund will accept both public and private donations and will be exclusively for students who demonstrate need, meet certain eligibility criteria, and work in their field of study for at least one year after graduation. The Committee includes $3.75 million for the fund’s first year.
Health Care
Since passing health care reform legislation last spring, Massachusetts has taken a number of historic steps to expand access to high-quality, affordable health insurance. In the past year, more than 110,000 people, or one-quarter of the state's uninsured, have signed-up for health insurance programs through the state. This accomplishment would not have been possible without the continued efforts of an unprecedented coalition of stakeholders dedicated to the bill’s success.
The Committee’s budget recommendations for fiscal year 2008 represent another important step toward realizing the goal of accessible health care for all residents of Massachusetts. These recommendations:
In addition, the Committee’s recommendations also position Massachusetts as a nationwide leader on health quality and cost issues. Improving quality and reducing cost is critical to the long-term financial sustainability of health care reform.
The recommendations promote improvements in health care quality by implementing the first year of a “pay-for-performance” initiative within MassHealth. This proposal would reserve $20 million in hospital rate increases to meeting certain performance benchmarks.
To work on expanding statewide access to primary care services in cost-effective settings, the Committee provides $1.7 million in matching funds for a primary workforce development and loan forgiveness program at community health centers. This funding will enhance the recruitment and retention of primary care physicians and other clinicians at community health centers throughout the Commonwealth.
In addition, the Committee fully funds the Health Care Quality and Cost Council at $1 million. This Council will begin to develop and coordinate the implementation of health care quality improvement goals that are intended to lower or contain the growth in health care costs while improving the quality of care.
MassHealth
The Committee takes steps to expand health care beyond the parameters of the health care reform plan by continuing to dedicate the necessary funds to provide quality, cost-effective health coverage to over 1.1 million low-income residents through the MassHealth program. The recommendations also include an increase in funding to expand enrollment in existing MassHealth programs for all who qualify. In total, the Committee’s recommendations provide 5 percent increase over FY07 for MassHealth programs such as Breast and Cervical Cancer Screening Program and the Healthy Start Program.
Within MassHealth the recommendations also permanently reform the premium structure for the Children’s Medical Security Plan. This will 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 addition, certain program line-items are consolidated in order to allow the Office of Medicaid the ability to maximize efficiencies, offset unforeseen deficiencies, and better manage MassHealth expenditures.
Health and Human Services
The well-being of Massachusetts residents is the greatest responsibility we have. The Commonwealth must rise to fulfill this obligation and meet the most basic needs of our citizens in order for them to live healthy, happy, productive lives.
Department of Public Health
From health education to disease prevention, the Department of Public Health plays an integral part in maintaining the vitality of the Massachusetts workforce, and ensuring the well-being of our citizens. In that regard, the Committee dedicates itself to improving and expanding public health programming in FY08.
As a part of our effort to ensure the health of children, the Committee’s recommendations provide over $9.9 million to fund two new vaccinations. With the funding for the new Rotavirus and Meningococcal Conjugate vaccines, the Commonwealth will provide children and adolescents with the current necessary childhood vaccinations recommended by the Centers for Disease Control.
To encourage young people to make healthy decisions that will affect the rest of their lives, the Committee recommends $2 million in funding for teen pregnancy prevention and access to family planning. Currently, the greatest challenge to the Commonwealth’s comparatively low teen pregnancy rate lies within our foster care system. Statistics show that 48 percent of young women in foster care become pregnant by age 19. The Committee has targeted additional funding to educate those in foster care and group home situations about family planning and pregnancy prevention.
Additionally, the Committee fully funds the statewide Shaken Baby Prevention Program at $350,000. This prevention program will provide information and resource materials to parents before they leave the hospital with their newborns. Although it is a small portion of the information parents receive about their new babies, it is valuable, life-saving information that serves to protect the youngest members of the Commonwealth.
In continuing the Senate’s commitment to implementing the landmark health care reform passed last year, these recommendations include full-funding for the Department of Public Health’s Health Promotion and Disease Prevention Programs. By consolidating these initiatives, the administration receives the flexibility it needs to implement and enhance a more comprehensive strategy for disease prevention in Massachusetts.
State Office for Pharmacy Services
In order to streamline drug purchasing and ensure the lowest pharmaceutical costs, the Committee recommends the addition of the Department of Youth Services, Chelsea Soldier’s Home, Holyoke Soldier’s Home and the state and county sheriffs, to the State Office of Pharmacy Services. Currently, the Departments of Mental Health, Mental Retardation, Public Health and the Department of Corrections utilize these services, resulting in large cost savings for both drugs and administration. Through this program, the Committee recognized a chance for significant cost savings and streamlined administration. Therefore, our recommendations create a new line item from which all drug purchasing and administrative costs for agencies with large pharmacy needs will be paid.
Early Intervention
Due to the increased cost of providing early intervention services and complexity of the cases, investing in this important cost-saving programming would improve the lives of children and families throughout the Commonwealth. In addition to increasing the retained revenue ceiling for Early Intervention, the Committee also recommends increasing the funding by $1 million over FY07. This additional funding will allow the providers of early intervention programming to ensure children who need assistance and services will be able to receive them.
Department of Social Services
For many families and children across Massachusetts, the Department of Social Services (DSS) it a vital safety net. In order to ensure that DSS continues to serve families in the most effective and efficient manner possible, the Committee recommends restructuring the way in which the Commonwealth appropriates funding to its programs. Included in this is the creation of new line items designed to specifically target critical programming.
In addition to restructuring DSS, the recommendations increase funding by $29.3 million over fiscal year 2007. With this additional funding, DSS will be provided with new resources to promote healthy families and secure homes for children across the Commonwealth. Included in this initiative is $1 million for new medical and psychiatric staff. These employees will collaborate with social workers and perform evaluations on some of the most challenging cases of abuse and neglect. Such an investment broadens the safety net for children who have been referred to the Department.
Homelessness Services
There are few in the Commonwealth more in need than those individuals and families with no place to call home. Each year, thousands turn to homeless shelters across the state as a last resort. In order to provide for these residents, and put them on the path to adequate, permanent housing, the Committee recommends investing over $6 million in increased funding for shelters and services.
In addition, the Committee continues to seek new and innovative ways to find an end to chronic homelessness. In FY07, the Legislature formed a partnership with the Massachusetts Housing and Shelter Alliance to find such an end. Last year, the Alliance, along with providers across the state, implemented the Home and Healthy for Good program. The program, housed over 120 homeless individuals, some of who had been living on the street for over 30 years. With this success in mind, the Committee recommends doubling the funding for this program in FY08 for a total of $1.2 million.
Human Service Workers’ Salary Reserve
Each day, dedicated professionals work to ensure that the Commonwealth’s human service delivery system reaches those needing assistance. While the services these individuals provide are invaluable, their pay does not always reflect the expertise and experience they possess. To address this disparity, the Committee’s recommendations provide $20 million to increase the salaries of contracted human service workers.
Public Safety
Ensuring safety and security in all our communities is paramount to maintain a high quality-of-life for our residents. The Committee is cognizant of the unique public safety needs facing cities and towns, particularly in urban areas.
The Committee’s efforts to improve public safety include $21.3 million for Community Policing Grants, to keep officers on the street and $4.1 million for Municipal Police Grants, which will fund 50 new police officers for municipalities. Moreover, the Committee provides an increase of $10.8 million over FY07 in funding for the 14 sheriffs’ departments across the state, and an increase of $3.5 million over FY07 for the Commonwealth’s 11 District Attorneys’ Offices.
Preventing predatory lending and identity theft are critical components in protecting Massachusetts consumers. With the increased incidences of such crimes within the Commonwealth, the Committee provides an additional $1.6 million for the Office of the Attorney General which, in part, will be used to expand their consumer protection and predatory lending prevention programs.
Youth Anti-Violence Initiative
The rise in youth violence is a major concern for the citizens of Commonwealth. In order to address this increasing problem, the Committee includes $2 million for a new youth violence prevention program. Administered through the Department of Public Health, this pilot program would be targeted at youth who are not in the Department of Youth Service’s custody or involved in a gang, but otherwise have been deemed as “at risk”. This initiative would be a comprehensive, multifaceted approach to confronting teen violence, focused on issues including: bullying, teen dating violence, suicidal behavior, and workplace violence.
Enhanced Emergency Measures for Institutions of Higher Education
In the wake of the tragic loss of life that occurred April 16, 2007 on the campus of Virginia Polytechnic Institute, the Committee proposes a two- point strategy to enhance and ensure the safety of the thousands of students, faculty, staff and visitors at Massachusetts’ institutions of higher education.
First, the Committee recommends $250,000 in funding for the Board of Higher Education to establish text-messaging emergency notification systems at all state and community colleges as well as all five University of Massachusetts campuses. This program would be carried out in coordination with the Executive Office of Public Safety.
Secondly, the Committee establishes a task force comprised of a wide array of experts in the fields of higher education, public safety and mental health, as well as those most familiar with college campuses including college presidents, faculty and students. The task force would assess campus readiness as well as root causes of such violence and make recommendations to the Legislature on how Massachusetts can take proactive steps towards preventing violence in our schools.
Electronic Tracking of Sex Offenders
As part of its recommendations, the Committee includes an additional $2.77 million for the Commissioner of Probation, allowing the Department to meet the legislative mandate which requires all sex offenders, and certain domestic violence offenders, who are on probation to be electronically monitored.
Student Fire Awareness Program
Educating children about fire prevention saves lives. Recognizing this, the Committee fully funds the Student Awareness of Fire Education (SAFE) program.
Economic Development
In order to turn our economy around, it is essential that Massachusetts remain focused on economic development. With that in mind, the Committee’s recommendations include initiatives designed to strengthen our existing businesses, attract new industries and outside investments, and invigorate our highly-skilled workforce.
Expedited Permitting Program
The Committee’s recommendations provide an additional $4 million in funding for the Expedited Permitting Program. Created in the Legislature’s 2006 Economic Stimulus Bill, this initiative makes it easier for businesses to move to Massachusetts, and encourages investments in our local economy.
The $4 million Expedited Permitting Program provides a transparent, efficient process for municipal permitting in the Commonwealth. It is a proactive approach to growing our industries, while protecting the interests of local communities. The program allows for grants of up to $150,000 to aid in professional staffing assistance, local government reorganization, and consulting services for municipalities. Moreover, it guarantees local permitting decisions on priority development sites within 180 days. It also provides priority consideration for PWED,CDAG, Brownfields remediation assistance, MORE infrastructure funds and other financing through quasi-public organizations. Guaranteeing a timeframe for development eliminates unnecessary risk for entrepreneurs, and is critical in creating a business friendly climate in the Commonwealth.
Massachusetts Manufacturing Extension Partnership
Further encouraging business development, the Committee continues its investment in the Massachusetts Manufacturing Extension Partnership (MMEP). MMEP aids our state’s manufacturers by better preparing them for competition in the global marketplace. Such assistance encourages growth amongst our existing businesses, and enhances the role of Massachusetts in the international economy.
Cultural Facilities Fund
As the state’s third largest industry, tourism is a critical component to the Commonwealth’s economy. In order for the state to thrive in the competitive tourism marketplace we must invest in the Commonwealth’s wealth of cultural facilities. To this end, these recommendations transfer $1.2 million to the Cultural Facilities Fund. This fund was established in the 2006 Economic Stimulus Bill, and provides capital grants to non-profit organizations that seek to expand, renovate, or repair their cultural facilities. This modest investment will leverage anywhere from $16 to $20 million in private investment and bonds in the Cultural Facilities Fund.
Regional Tourism Councils
To promote local tourism, the Committee includes an additional $1.5 million in discretionary funding for the Massachusetts Office of Travel and Tourism as well as an additional $1 million in funding for the Commonwealth's Regional Tourism Councils. The Massachusetts Office of Travel and Tourism represents the state as a whole in the domestic and international tourism markets. The thirteen Regional Tourism Councils develop advertising and marketing initiatives that are tailored to best showcase each of their respective regions.
Youth-At-Risk Program
Promoting positive working environments for young people helps to ensure their success in society. To encourage such success, the Committee includes $6.7 million for the Youth-At-Risk Program. The program, administered through the Commonwealth Corporation, awards funds to the 21 Massachusetts cities most in need of youth intervention, and supports wages for at-risk, low-income youth. Inclusion of this funding will allow these young people to access jobs in public, private or non-profit organizations. In addition, the recommendation allows the Youth-At-Risk Program to utilize $4.4 million in FY07 funds for FY08. This flexibility will allow the Commonwealth Corporation to provide year-round programming.
Division of Career Services One-Stop Career Centers
With many Massachusetts residents still looking for jobs, the Committee includes a total of $5 million for the Division of Career Service’s One-Stop Career Centers, an increase of $1 million over FY07, to aid these citizens in their job searches. Under the Department of Workforce Development, 32 centers will continue to be a “one-stop shop” for job search assistance and would provide a pool of available applicants for employers.
Extended Care Career Ladder Initiative
Massachusetts residents are living longer than ever before, and as a result, the need for long-term care is on the rise. To ensure that long term care facilities are able to retain qualified aides, the Committee’s recommendations continue funding for the Extended Care Career Ladder Initiative. This initiative, through the Commonwealth Corporation, provides grants to facilities that create innovative career ladder programs for their certified nurses’ aides. In doing so, the program ensures the quality of care for facility residents by increasing the work experience and skills of aides.
For FY08, the Committee continues to strongly support the services and program provide to the Commonwealth’s older citizens. Over $1 million in new spending is committed to the elder protective services program. With this funding, the Department of Elder Affairs will be able to promote safety, health, and investigate reports of elder abuse. In addition, funding is provided for money management education, which protects elders against fraud.
The Committee recognizes the health and care needs of the elderly, particularly those wishing to live at home. As such, over $6.2 million in additional funding is provided for home care programming. This funding will allow over 260 nursing home-eligible elders to stay in their own communities. In addition, we recommend providing an open enrollment period for the Commonwealth’s Prescription Advantage program. Doing so will provide elders with the chance to take part in this low-cost pharmaceutical program.
The Committee also realizes the financial hardship that many seniors face who reside in long-term facilities on a fixed income. In response, the Committee provides $5 million to increase the personal needs allowance for seniors from $60 to $72.80 per month. This is the first increase in the personal needs allowance in over 16 years.
Veterans
Our veterans are heroes in the truest sense of the word. Through their bravery and selflessness they have stepped forward to protect each one of us, our state, and our country. They deserve to be recognized for their service and provided with benefits that they have earned and deserve.
In its recommendations, the Committee maintains its commitment to our veterans. For FY 08, programs included in the Welcome Home Bill, veterans outreach and benefits, and local veterans’ services are fully funded. In addition, $1 million in new money is invested in the Department of Veterans’ Services.
In addition, the Committee recommends creating the Soldiers’ Homes Trust Fund. Proceeds from “Veteran” license plates will be deposited into the fund, which benefits the Chelsea and Holyoke Soldiers’ Homes. By moving this funding from the budget and into a trust, the Solders’ Homes are allowed to better-access funding to serve veterans in their care.
The cost of housing in the Commonwealth is a significant insurmountable challenge for a large percentage of our population. Recognizing the importance of affordable housing in our economy, the Committee has committed a total of $125.9 million for housing programs to address rising costs.
In order to assist low income families, these recommendations increase funding for the Massachusetts Rental Voucher Program (MRVP) by $2.475 million. MRVP provides families with vouchers that allow them to rent in approved apartments or developments. Through increased funding for the Chapter 707 rental subsidies program, additional rental vouchers will become available for eligible clients of DMH. The Committee also increases funding for local housing authorities by $4.25 million. These funds will go towards the maintenance and operation of the authorities, allowing them to better carry out their mission of providing housing for low-income families and individuals.
Many families are struggling to make ends meet, but are determined to set roots in their community by purchasing a home. To help make that dream a reality, the Committee recommends an increase of $250,000 for the Soft Second Home program, which assists low and moderate income families in purchasing their first home.
In addition, the Committee maintains funding for the Rental Assistance for Families in Transition (RAFT) program, which provides one-time financial assistance that enables families to obtain or retain housing, and ultimately avoid homelessness and the Housing Consumer Education Centers. These centers provide housing assistance, services and information to tenants, landlords, prospective buyers, and homeowners.
Environment
Massachusetts is filled with environmental treasures. Our parks, forests, beaches, lakes, rivers, and seashores promote not only our health and enjoyment, but also our tourism economy. The Committee’s recommendations provide for the care and maintenance of these important resources.
Ensuring that all residents of the Commonwealth, whether they live in urban or rural areas, are able to utilize and enjoy their parks and open spaces is an important component of the state’s responsibility to its citizens. In that regard, the Committee’s recommendations increase funding for the Department of Conservation and Recreation (DCR) beaches by $1.1 million, maintain funding for public pools under the control of DCR, and maintain funding for our state and urban parks across the Commonwealth.
To ensure the longevity of our environmental resources and the health of our citizens, the Committee increases funding for the Department of Environmental Protection. This additional funding will be used to ensure clean air and water, safe management of toxic and hazardous materials, and the timely clean up of hazardous waste sites and spills.
To support the proper management and protection of our marine fisheries, wildlife management land, river way protection, upkeep of boating and fishing access, and hunting and fishing licenses, the Committee maintains funding for the Department of Fish and Game in order to support the proper management and protection of our marine fisheries, wildlife management land, and river-ways. Moreover, this funding will ensure the upkeep of boating and fishing access points, as well support licensing for hunting and fishing. The Committee also continues the $1.045 million in funding for the Office of Dam Safety.
For the Department of Agricultural Resources, the Committee provides $1.5 million for the Agricultural Innovation Center to continue education and technical assistance. Such funding will aid farmers who desire to establish and maintain essential agriculture activities throughout the Commonwealth.
In addition, through the Department of Agriculture Resources, the Committee includes a total of $10.5 million in funding for the Massachusetts Emergency Food Assistance Program. This funding will provide the state’s four regional food banks with additional resources to fight the increasing problem of hunger in Massachusetts.
Other Post Employment Benefits
New accounting standards adopted by the Government Accounting Standards Board direct government entities to identify and develop a method of pre-funding future costs for retiree benefits other than pensions. Beginning in Fiscal Year 2008, the Commonwealth of Massachusetts will be required to disclose this liability on all financial statements.
The Committee, in recognizing the need to address this matter, adopts a new mechanism to fund the state’s $13 billion Other Post Employment Benefits (OPEB) liability. For FY08, the Committee establishes the State Retiree Benefits Trust Fund (SRBTF), an irrevocable trust that will help reduce the Commonwealth's liability by half. This liability is similar to the retiree pension liability paid through Pension Reserve Investment Trust.
The Committee’s recommendations provide approximately $425 million in initial funds to be deposited into SRBTF through a repeal of, and transfer from, the Health Care Security Trust Fund. Additionally, a transfer of retiree benefits payments from the Group Insurance Commission and a portion of the Master Tobacco Settlement Agreement payments are deposited into this new trust fund. The recommendations also create a study commission to make recommendations on a funding schedule and identify of other potential funding sources to eliminate the liability.
Responsibility, Accessibility, and Openness
In the FY08 budget recommendations, the Senate Committee on Ways and Means continues to work to increase responsibility, accessibility, and information sharing. Through these recommendations, the Committee continues to strive to ensure accountability within government.
In particular, the Committee intends to enforce a $1,000 fine assessed on agencies that fail to follow reporting requirements contained in the budget. Moreover, the Committee puts forth initiatives that seek to improve transparency in state funding, such as the restructuring of the Department of Social Services.
Through its budget recommendations, the Committee has taken great care in an attempt to maximize revenues, curb rising costs, and streamline functions. To increase the ability of the public to see and understand the budget process, the Committee provides these recommendations and other supporting fiscal information to the public via the Internet. As part of this initiative, the web addresses for the state bond rating and the Statutory Basis Financial Report is contained within this document.
In addition, the Committee recognizes the need for all people to have access to their government, and therefore recommends $239,000 to improve accessibility to the State House for those who are hard of hearing or have other physical challenges, so that they may be able to see and hear their government in action.