Another Year - Another Budget

The Fiscal Year state budget process in Massachusetts begins with the release of the Governor's budget in January and continues with the release of the House Ways and Means budget in April.

The Massachusetts House Ways and Means Committee (HWM) has released its spending recommendations for Fiscal Year 2013 coming in at $32.3 billion.  There are some stark comparisons between this proposal (House 4100) and the Governor’s budget (House 1) that was released in January.  The major difference is an increase in funding to municipalities across the Commonwealth (local aid) including funds for municipal services (fire and police), so-called Chapter 70 - pursuant to the education reform law of 1993, special education funding, and school transportation costs among others.  
 
The HWM budget fully funds capacity for Unrestricted General Government Aid (UGGA) providing local officials with a realistic view forward to assist with budget preparations.  Many localities have been hit hard with the downturn in the economy and services over the past 4-5 years have been reduced considerably in many communities.  The HWM budget reflects an increase in local aid over FY 2012.  Highlights of local aid funding:
      

• Unrestricted General Government Aid fully funded - no reliance potential, one time, funding sources - at $898M;
• Increases Chapter 70 to $4.15B (a $163M increase) for local, regional and voc schools;
• Special Ed “circuit breaker” funding increased to $221.5 (an $8.4M increase);  
• Homeless student transportation for the first time in state history at $11.3M;
• Increases funding for regional school transportation by $2M ($45 M total).

The HWM budget does not include a proposal included in House 1 to increase taxes on cigarettes and candy which would have brought in an estimated $260 M.  This initiative was proposed in the FY 2012 Governor’s budget as well and met a similar fate.  The HWM budget also did not include the administration’s proposal to adjust the corporate excise tax factor which would have brought in an estimated $10 million in new revenue.  House leaders thought the this would send the wrong message to businesses given the current state of the economy.     
 
Other highlights of the HWM FY 2013 budget include: 
 

• Electronic benefit transfer cards used by public assistance recipients;
• Close a mental health hospital in Taunton,
• Repeal the ban on gifts to doctors from pharmaceutical companies;
• Adoption in part of Gov’s initiative (as highlighted in his State of the Commonwealth Address) to change the governance of the community colleges and improve curriculum coordination between the community colleges.  The Globe editorialized on April 18th “ Wisely, the new House Ways and Means budget protects the administration’s efforts to require the two-year colleges to play a stronger role in economic development.  (Boston Globe Editorial April 18, 2012).

Formal debate on the FY 2013 House budget will begin on Monday April 23, 2012 at which time House members will consider and debate some 870 amendments that have been filed with the House Clerk’s office.  

The House budget document, amendments and additional information can be found here.    
The Governor's budget can be found here.