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  June, 2001 State House Report

REP. HYNES REPORT 
The Massachusetts House of Representatives completed its consideration on the FY 2002 budget earlier this month after six days of eleven hour deliberations. Unlike previous years the debate proceeded in a more orderly fashion without any late night or all night sessions. The final outcome of the debate substantially supported the House Ways and Means proposed spending plan. This reflects a total budget of $22.7 billion for the upcoming fiscal year. The following matters were the subjects of controversy and consensus resolution, in which I played a prominent role. 
Local Education Funding: The state provides about 41% of the Commonwealth’s 360 local school districts’ “foundation budget” through Chapter 70 Aid. The formula for distributing this aid, however, is widely disparate and uneven; some districts (primarily older, urban cities) receive 80% and more of their basic education monies from the state, while more affluent districts (mainly suburban towns) receive 15% or less. The formula for distributing this state revenue sharing was adopted in 1993, as part of the so-called Education Reform Act. 

The present debate centers around the creation of a new formula to distribute education assistance in the next several years. Although we were able to increase Scituate and Marshfield’s Aid for next year by $254,948 and $278,174 respectively, the factors for the new distribution formula are deeply disturbing. This new formula has yet to be fully developed, articulated and formally adopted by the Legislature and Governor. Nevertheless, several of the principles which the Governor and Legislative leaders hope will drive this new aid guided both the Governor’s and House’s budget proposals. Simply stated, the new formula seeks to provide significantly more assistance to older urban districts and requires more financially comfortable suburban communities to rely more directly on their own property tax. As in 1993, I am opposing this approach arguing that at least half of the new increased state aid distributed each year should be the same amount for every pupil in each school district – roughly $125 per pupil for each of the 950,000 public school students statewide. This, I believe, would be fair, predictable, reliable and understandable each year. I have spoken with the School Committees in both Scituate and Marshfield asking them to weigh in with their state-wide associations so that their collective voice might better influence the ultimate new formula proposal which will be made and debated in the Legislature this fall. 

Fair Hospital Financing: The Health Care System in the nation and in the Commonwealth is in a very troubled state. Particularly in Massachusetts, Hospital finances are in a terribly weakened condition. Over 65% of the state’s hospitals have been in the red in the last three years and nearly 30 hospitals have gone out of business or been absorbed by others during the last 20 years. Furthermore, all payers of hospital bills pay less than what it costs to deliver services. Medicaid, the state-federal government insurance program for poor people, is the worst offender – paying only 75 cents on the dollar. 
Additionally, hospitals are required to pay over 60% of the costs of free care to indigent patients while the state pays only 9%. Yet the state pockets much of the federal government’s reimbursement of these bills for its own purposes, leaving hospitals exposed for full payment. 
The lack of adequate payments to our hospitals, squeezed by state, federal, HMO, and other private payers, is causing severe cutbacks in many hospital staffing and service, resulting in fewer staff, mandated overtime shifts, and less supportive environments, raising questions of patient safety and quality care. 

For the last two years, I have argued for increased Medicaid appropriations in our state budget and a decrease in the hospitals’ payments to the Uncompensated Care Pool. The House Budget satisfied this demand with an additional $55 million – still $200 short but with a promise to fully and comprehensively research this matter and to propose beneficial legislation later this year. 
Clean Elections: The final House Budget does not meet the requirements for financing the Clean Elections Law – a disappointment, which threatens the secure implementation of the Law. We won’t know the final outcome until the Senate completes its budget debate in mid-June and the Budget Conference Committee finalizes its report in July. 

Census: Some of the data from the 2000 Census, now being released, shows that we are growing older. In the last decade Scituate’s population increased by 6.4% from 16,786 to 17,863 and the median age increased from 37 to 41. In Marshfield, the population increased 12.5% from 21,621 to 24,324. Marshfield’s median age increased from 33 to 37. Scituate’s senior population (age 65+) is now 2,726 or 15% of the population. Marshfield’s senior population is 9.5% at 2,300.

Today’s Reflection: “The people who elect me are my boss. I work for them”. 
John Joseph Moakley 
 

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