Chapter
70 - School Aid Spared Reductions
Today the Romney Administration has put forward the specific budgetary
reductions, which they deem necessary to balance a potential $650
million shortfall in the $23 billion state budget. The Governor has
made $344 million of line item reductions in the F.Y.03 state budget.
The Administration has proposed approximately $143 million in potential
savings in the current year budget, which require legislative approval.
Apparently, it will be several weeks before a potential shortfall,
based upon the capital gains revenue projections will be known. The
Governor intends to cover the potential capital gains shortfall by
transferring up to $162 million from existing reserve funds. Chapter
70 - School aid was spared from any cutbacks. |
Lottery
Aid and Additional Assistance Reduced
The Additional Assistance line item distributes approximately $478
million to cities and towns. This account was reduced by nearly $42
million for the fiscal year 2003 state budget.
The Lottery distribution for the current year was approximately $778
million which has been reduced almost $73 million by Governor Romney.
|
Education
Reductions
The School Readiness Grant Program was funded in the F.Y.03 State
Budget in the amount of $94 million, which has been reduced $10 million
by Governor Romney.
The Early Literacy Grant Program has been reduced by $11.8 million
from its 2003 appropriation of $18.3 million.
Finally, $3.1 million has been cut from the $5.3 million current year
appropriation for the Universal School Breakfast Grant disbursement. |
Proposed
Legislative Changes to Achieve $143 Million in Savings in F.Y. 2003
The Governor has proposed $76 million in various federal, trust, and
minor fund transfers, including $50 million from prior 9C cuts; $12
million from the Workforce Training Fund; $8 million from the Affordable
Housing Trust; $2 million from federal funding for One-Stop Career
Centers; $3 million from the Clean Elections Judgment Trust Fund;
and $1.5 million from the Fisherman’s Partnership.
The Administration estimates $39 million in savings from changes to
Medicaid managed care plans, including $23 million by changing the
reimbursement schedule to nursing homes; $14 million by eliminating
earmarks in user fee language; $800,000 by freezing new MassHealth
enrollment for individuals earning more than 133 percent of the federal
poverty level, bringing it in line with the federal standard; $700,000
by eliminating nursing home bed hold payments; and $500,000 by eliminating
non-emergency MassHealth coverage for special status immigrants.
The Governor estimates $21 million in savings by increasing the share
of health care premiums for state employees from 15 percent to 25
percent beginning on April 1, 2003.
Finally, it is estimated that there will be $7 million in savings
by implementing a facility fee for intermediate, home and community
care Department of Mental Retardation providers.
It is anticipated that the legislature will consider the Governor’s
proposals expeditiously, possibly during the week beginning on February
3, 2003. |
Romney
Files Municipal Relief Package
Lt. Governor Healey has put together a legislative package to help
offset reductions in state aid to cities and towns. The Administration
estimates that the legislation may save cities and towns an estimated
$50-$75 million annually.
Among the proposed reforms to be considered by the legislature are
the following:
• Eliminate Civil Service for municipalities, excluding
police officers and firefighters
• Reduce municipalities maximum health care coverage contribution
to 75 percent, in line with the Governor’s proposal to require
state employees to pay 25 percent of their health coverage premium;
• Allow cities and towns flexibility to move funds within
accounts in the last two months of the fiscal year;
• Re-issue an early retirement option for municipalities,
allowing for a reduction in payroll costs without the need for layoffs;
• Exempt construction projects costing less than $100,000
and communities of less than 5,000 people from the prevailing wage
law;
• Introduce design-build contracting and eliminate the filed
sub-bid law, which will drastically reduce the costs and length of
local projects;
• Revise the Uniform Procurement Act by raising the limit
at which municipalities must solicit bids from three or more vendors
from $25,000 to $100,000; and
• Allow cities and towns to post public notices electronically
instead of the current requirements that public meetings be advertised
in the newspaper.
Healey noted that local option taxes are not part of the package,
and Governor Mitt Romney has threatened to veto any local option tax
bill sent to him if it is not tied to a local referendum. |
Send
MASC Your Suggestions For Regulatory and Mandate Reform
Given the likelihood of a reduction in F.Y.2004 Local Aid, please
ask your Superintendent and Business Manager to prepare suggestions
as to costly state regulations and mandates that M.A.S.C. will review,
prepare a report and deliver at a meeting with the Administration.
It would be very helpful to receive your suggestions by the third
week in February. Please email them to Glenn Koocher. |
|