Rep.
Hynes State House Report May, 2006 The Massachusetts House has passed its version of the fiscal year 2007 Budget. The bill now goes to the Senate for consideration. Differences in the matters adopted by the branches will be ironed out in a conference committee during June and final adoption by both the House and Senate will occur later that month, allowing time for the Governor’s review, veto of disapproved sections, and signing, so that the fiscal year can begin on time July 1, with the budget in place. The House spending plan will cost $25.5 billion, relying on $19 billion in state tax revenue, and the remainder from fees and federal government revenues. About 60% of the budget is spent on just two matters: Health Care which receives about $8.5 billion and Local Aid, and other local government grant accounts, totaling about $6.4 billion. This spending plan, particularly in these two areas, seeks to restore the recession reductions made in the years 2002-2004. Health Care: The principal health costs are for the $7.5 billion Medicaid account, which provides health care coverage for almost one million low income and disabled Massachusetts citizens. This account increases this year by about 6% over last year due largely to medical cost inflation and expansions caused by recent passage of the new health care access bill. The other major portion of the Commonwealth’s health care costs are the insurance benefits it provides as an employer for health insurance coverage for 265,000 state employees, dependants, and retirees. Local Aid: The House Budget provides $6.4 billion in direct aid and grants to the Commonwealth’s cities, towns, and public school districts. The bulk of this money, called CH 70, is direct revenue sharing to the state’s 262 public school districts. The House’s final budget increases this educational fund by $173 million, $10 million above the governor’s recommendation in January, for a total of $3,463 billion. This educational increase was the principal contentious issue during the House debate, in which I played, with others, a central part. When Ways and Means released its budget recommendations several weeks ago, this account was deemed unsatisfactory by me and many of my colleagues. We were acutely aware that education aid had been reduced by 20% three years ago, programs were cut, teachers laid off, and new fees instituted in many communities, as well as more frequent calls for overrides of Proposition 2 ½ , with consequential increases in property taxes. I called for a meeting of interested legislators to meet with Administration, Department of Education and House Ways and Means staff, to first understand the funding characteristics contained in the CH 70 formula and determine how best to modify those factors which would more favorably treat suburban communities. I then joined forces with Rep. Ann Paulsen of Belmont and other like minded suburban legislators holding several meetings to discuss budget amendments and strategies for success. In the end we gained $81 million above the Ways and Means figure and Marshfield and Scituate benefited accordingly. Marshfield will see a 13.5% increase over FY ’06 and Scituate an 11.5% growth over the same period. Another local aid account which benefited from House action was the Lottery account. In the recession years of 2002-2004, the state reduced and diverted some of this aid account away from communities to state purposes. Last year’s budget restored 20% of that diverted amount and in the proposed budget we restore all, and fully fund the Lottery at $920 million. Scituate will receive a 17% increase or, $232,000 in Lottery monies and Marshfield 18.5% or $384,000. Higher Education: The House appropriates almost $1 billion for Higher Education, most of which goes directly to the 29 campuses of Public Higher Education in the state. This is a 7% increase over last year and includes collective bargaining increases negotiated with the Administration. Modest gains were also achieved in scholarship/financial aid and certain workforce development grants. In general, with current increases in revenues, the House has tried to restore the funding of critical local aid and educational accounts to their 2002 level. In some instances because of the nature of distribution formulas, the account may exceed those 2002 accounts or fall short. t the same time, however, this budget remains structurally out of balance in that ongoing expenditures are not sustained by ongoing revenues. To meet the obligations of the 2007 fiscal year we take about $300 million from the Stabilization Fund, about half of what is used to fund the 2006 budget. Hopefully higher tax revenue collections will continue and this structural deficit can be eliminated in the upcoming year. Bird Flu Pandemic: I recently participated in a Health Care hearing in which the Public Health Commissioner, local public health officials, and representatives of Emergency Medical Services provided some information regarding their continuing activities to prepare to meet an influenza pandemic. Much talk has taken place in the last several months about the likelihood of the breakout of a new influenza virus against which the human population has no immunity. Already in certain sections of the world, outbreaks of influenza are occurring in birds. Thus far this disease has been confined in the human population to people infected because of direct exposure to diseased birds. When the disease mutates to transmission among humans directly, pandemic potential will increase with outbreaks occurring simultaneously worldwide because of the increase in global transportation, urbanization, and overcrowded conditions. Epidemics of this new flu are likely to take hold quickly in all sections of the world. It will take several months for vaccines to become available and medical facilities will be overwhelmed. Significant shortages of personnel, due to illness, will occur. Essential health and community services, as well as routine business activity, will face long term prolonged disruptions. The state, regional, and local public health departments and emergency response agencies are developing a system for alert, response, and disaster management. The Governor and Legislature are seeking to provide financial resources so that more direct preparations can be made, such as developing specific contingency plans, stockpiling of antiviral medications, strengthening risk communications, investing in pandemic vaccine research and promoting domestic production of influenza vaccines. The primary message at the hearing is that relevant state and local officials and emergency medical professionals are working hard, under the direction of the Department of Public Health, to protect the citizens of the Commonwealth in the unfortunate event of an influenza pandemic. Hopefully this preparation will help control and manage the illness so that when it hits, its consequences will be less severe. Reflection : “Make the most of yourself, for that is all there is of you.” ….Ralph Waldo Emerson |