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Fiscal Year 2019

House Ways and Means
Budget
House Committee on Ways and Means
Wednesday, April 11

Speaker Robert A. DeLeo
Chairman Jeffrey Sánchez
Current Revenue Picture
1000
$892M: currently above
800 benchmark

600
Federal Tax FY17
400 FY18
Reform Passes
$142M: Assuming
200 normalized
tax filings
0 Benchmark

-200

-400

-600

2.
House Budget is 3.1% over FY18 GAA
$45,000
$40.905 B $40.983 B
$39.745 B
$40,000

$35,000

$30,000

$25,000

$20,000

FY2018 GAA FY2019 House 2 FY2019 HWM

Consensus Add’l Tax Non-Tax Statutory
Revenue Revenue Revenue Transfers
$27.594 B $253 M $18.514 B -$4.615 B

3.
Budget Breakdown
FY2019 House Budget

Debt Service
4% 6%
9% Direct Local Aid
14% EEC
Environment
1%
1% GIC
4% HHS
Higher Ed
41% 15% K-12
MassHealth
Other
Public Safety
2% 3%

4.
Stabilization Fund
The House FY19 Budget directs $88M into the
Commonwealth’s Stabilization Fund.

$1,500
$1,463
$1,450

$1,400
Balance (Billions)

$1,350

$1,300

$1,250

$1,200

$1,150

$1,100

FY15 FY16 FY17 FY18 FY19
5.
MassHealth
MassHealth enrollment remains relatively stable

MassHealth Total Enrollment
2,000,000

1,800,000
Total Enrollment

1,600,000

1,400,000

1,200,000
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

6.
Important Investments over FY18
Local Aid
$220M • $124.6M more for Chapter 70

$66M Early Education and Care provider rates

$37M Substance Use Disorder funding

$22M Housing and Homeless Funding

7.
Local Aid Chart
% Over
Program FY19 HWM Over GAA Over H2 % Over H2
GAA
Unrestricted
General $1,098,945,897 $37,162,422 3.5% $ - 0.0%
Government Aid
Chapter 70 $4,871,530,948 $124,577,233 2.6% $20,957,822 0.4%

Special Education
$300,000,000 $18,768,819 6.7% $8,854,171 3.0%
Circuit Breaker
Charter Schools $90,000,000 $ 9,500,000 11.8% $9,500,000 11.8%

Regional
$ 62,521,000 $1,000,000 1.6% $1,000,000 1.6%
Transportation
Foundation
$ 27,500,000 $27,500,000 - $12,500,000 83.3%
Reserve
McKinney Vento $9,099,500 $1,000,000 12.3% $1,000,000 12.3%

Smart Growth
$500,000 $250,000 100.0% $250,000 100.0%
(40S)
TOTAL $6,460,097,345 $219,758,474 3.5% $ 54,061,993 0.8%

8.
Local Aid – Chapter 70
Chapter 70 has increased $1.020 Billion (26%) since 2011
$4,900 $4.872B
$4.746B
$4,700 $4.628B
$4.512B
$4,500
Fudning in Millions

$4.401B
$4.301B
$4,300
$4.174B

$4,100
$3.991B

$3,900 $3.851B

$3,700

$3,500
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
HWM
9.
Local Aid – Notable Increases
Charter School Special Education Circuit
McKinney Vento
Reimbursement Breaker
$300 $9.1M
$90 M M

$291
M

$80.5 $80.5 $8.1M $8.1M
$281
M M
M

GAA H2 HWM GAA H2 HWM GAA H2 HWM

$27.5M Funding Reserve:
• Districts negatively impacted by the FY17 low income calculation change.
• Districts receiving large numbers of students displaced by 2017 hurricanes.

10.
Early Education and Care
Quality
$30.4M Improvement New Initiative

Center-Based Early Education and
$20M Rate Increase
Care Workforce
Council
Supportive and
$235M • $8.5M initiative
TANF Childcare
• Professional
development
Income Eligible
$270M Early Education
• Coordination with
industry and
community
Head Start
$9.6M Grants colleges
11.
Workforce and Economic Development
Account Description HWM

Adult Basic Educational programs to help adults learn
$32.6M
Education English and earn their high school equivalency.

STEM Starter Academy provides support to
STEM Starter
underperforming students that sets them up for $4.75M
Academy
post-graduation success in STEM fields.

MA
Provides programmatic assistance to small and
Manufacturing $2M
mid-sized manufacturing companies.
Partnership

Connects experienced entrepreneurs and start-
Mass. Tech
up enterprises to create a talent pipeline for $1.5M
Collaborative
innovation companies.
12.
Substance Use Disorder
Account Description HWM

Bureau of Main recovery centers account
Substance • $3.5M for 5 new recovery centers
$137.1 M
Addiction • $1.5M for MA Access-to-Recovery (MA-
Services ATR)

Targeted services drive people away from
Jail Diversion
prisons and toward community-based $5 M
Programs
treatment

Step-Down
Provides a series of recovery curriculum to
Recovery $ 4.9 M
individuals with substance use disorder.
Services

Builds on Nov. 2017 legislative action that created the Substance
Use Disorder Trust Fund to acquire $30M federal funds for
13. additional treatment and services
MRVP Funding Reduces
Shelter Caseload
House investments in permanent housing options have decreased shelter caseload

FY13 FY14 FY15 FY16 FY17 FY18 HWM
5,000
$ 95M
4,800

4,600
$ 85M
4,400

4,200 $ 75M

4,000
$ 65M
3,800

3,600 $ 55M

3,400
$ 45M
3,200

3,000 $ 35M

Total Families in EA MRVP Funding

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Housing and Homelessness
Families
• Massachusetts Rental Voucher Program (MRVP): $100M
• Residential Assistance for Families in Transition (RAFT): $17M
• Emergency Assistance Family Shelters: $148.6M
• HomeBASE: $32M
• Alternative Housing Voucher Program (AHVP): $6.2M
• Housing Services and Counseling: $2.8M
• Tenancy Preservation Program: $500K
• Subsidies to Public Housing Authorities: $65.5M

Individuals
• Homeless Individuals Shelters: $45M
• Home and Healthy for Good: $2.24M
• Housing Subsidies for DMH Clients: $5.5M
• NEW Homeless Individuals Rapid Rehousing: $5M

Youth
• Unaccompanied Homeless Youth: $1M
15.
Mental Health
• Fully funds redesign of the Adult Community Clinical Services (ACCS)
• Fully funds Massachusetts Child Psychiatry Access Program
• $3M investment in DMH’s Crisis Intervention/Jail Diversion Grant Program

$97M Investment in Department of Mental Health
$900,000,000
$870,222,648
$850,000,000

$800,000,000

$750,000,000
12.6%
$700,000,000

$650,000,000

$600,000,000
FY 09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
HWM
16.
SR
Developmental Services
• HWM recommends $1.93B for Community Residential supports

$2,000

$1.93B

$1,900 $1.89B

$1.84B
Funding in Billions

$1,800
$1.76B

$1.69B
$1,700

$1,600

$1,500
FY15 FY16 FY17 FY18 FY19 HWM

• $211M for Community Day and Employment, $8.5M above FY18 GAA
• $65M for Family Respite Services, $1.5M above FY18 GAA
• $5M for the Children’s Autism Waiver, $500K above FY18 GAA
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Criminal Justice
• Targeted investments build on proven, effective programs
• Funding for new programs complements criminal justice reform
legislation

Front-End Back-End
• Specialty Court Expansion
• $2.5M • Community Based Re-Entry
• Trial Court Administration: Programs
• $800K • $3M
• Alternative Dispute • Re-Entry Programs at DOC
Resolution • $500K
• Race and Bias Initiative • Job Training for Ex-Prisoners
• Diversion Programs • $500K
• DMH: $3M
• Substance Use: $5M

18.
Criminal Justice
Massachusetts Legal Rate
$20M Assistance Increase
Corporation
• CPCS Public
Defenders
• CPCS Private
Prisoners’ Legal Counsel
$1.76M Services
Salary
Increase
Mental Health Legal • Assistant
$1.5M Advisors Committee District
Attorneys
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Department of Transitional Assistance
House budget includes $31M over GAA
Highlights
to meet TAFDC caseload increase
TAFDC State Supplement to SSI EAEDC

$350

$300
Healthy Incentives
Program: $3.5M
$250

$200

Removal of “Homeless
Millions

$150

$100
Penalty” in EAEDC

$50

$- Maintains $300 clothing
allowance
20.
Department of Children and Families
House invests $12.7M to meet increased Staffing levels have increased,
caseload at DCF resulting in lower caseload ratios
4000 350
$1,200 327
3500
300
3476
$1,000 $976.8 $989.5
$940.8 3000
$907.6

# of Social Workers
2635 250
$827.1

# of Managers
Funding in Millions

2500
$800 $759.3 $778.9 227
$737.1 200

2000 196
$600 150
1500

100
$400 1000

50
500
$200

0 0

FY14 FY15 FY16 FY17 FY18 FY19
$-
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Social Workers Managers
HWM

21.
Environment
Account Description % over
HWM
GAA
DCR parks, reservations,
State Parks and
campgrounds, beaches, pools, $40,000,000 8%
Recreation
rinks, and natural resources.
Department of Funds environmental planning,
Environmental monitoring, permitting,
$29,000,000 17%
Protection compliance, inspections, and
Admin technical assistance.
Division of
Improves ecosystems for the
Ecological $855,156 36%
benefit of all MA residents.
Restoration
Watershed Protects the drinking water
$1,100,000 14%
Management supply for 2.5M MA residents.

Protect and prepare for the
Climate Change $2,200,000 1363%
effects of climate change.
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Outside Sections
State Police
• Special Audit Unit: Internal to the department of state police, but directed by the Inspector
General.
• Special Legislative Commission: to review the hiring and promotion policies and practices of
the state police.
• Collins Center for Public Management at UMass Boston: Review and make recommendations
on the overall management structure.

Office of Health Equity
• Purpose: To eliminate racial and ethnic health and health care disparities in the
Commonwealth.

Earned Income Tax Credit
• Increases the Earned Income Tax Credit (EITC) from 23% to 30% of the federal tax credit.

Early Education and Care Workforce Council
• Recommends improvements to professional development and higher education
opportunities.

23.