Massachusetts state budget

From Sunshine Review

Jump to:navigation, search

Contents

Portal:Show Me The Spending
ShowMeButton.jpeg
National Taxpayers Union
Action center


Massachusetts' state legislature passed the nearly $28 billion state budget for FY2011 on June 24, 2010, one week before the fiscal year began on July 1, 2010.[1] The House approved the budget bill 120-28 and it passed 33-7 in the Senate.[2] Gov. Deval Patrick signed the budget the same day, ensuring that it was in place the day before the start of the new fiscal year.[3]

Massachusetts will receive between $655 and $700 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.[4][5]

See also: The Massachusetts State Budget on State Budget Solutions

[edit] Fiscal Year 2011 State Budget

The state SenateWays and Means chairman Steven Panagiotakos raised high-end projections for the state's budget deficit for FY2011.[6] Lawmakers referenced a $600 million shortfall in Medicaid accounts that would not be remedied despite the most recent stimulus funding.[6] In addition, the revised estimates showed a $20 million gap in homeless shelter emergency assistance accounts and a $5 million shortfall for parks and beaches under the Department of Conservation and Recreation.[6] Lawmakers declined to estimate, however, the overall deficit for FY2011.[6] Lawmakers expect a second round of supplemental spending plans to be drafted by the midpoint of the fiscal year.[6]

The received $655 million from Congress as part of the state stimulus passed in August 2010.[5] The governor said he plans to introduce legislation to spend the federal money on a range of programs that were slashed in the $27.6 billion state budget for FY2011.[5]

The FY 2011 budget increases spending by one half of a percent more than the state's FY2010 budget.[3] The budget cuts state aid to cities and towns by four percent, cuts school spending by three percent[3], and includes cuts that take into account the possible loss of about $700 million in federal stimulus funds.[1] While the budget relies on nearly $200 million from the state’s rainy day fund, it introduces no new taxes or fees are included in the budget.[1] Lawmakers had previously said that they would not tap the rainy day fund, having done so in the prior years, but changed their minds in light of the uncertainty over federal funds.[7]

Officials anticipated that the cuts included in the spending plan would result in 1,000 state workers being laid off.[3]

The budget bars illegal immigrants from receiving state services, including federal funds.[7] That portion of the budget codifies existing state policies.[8]

Gov. Patrick vetoed $457 million in spending, much of it anticipated federal dollars that Congress has yet to approve and he reduced by $20 million for programs for developmentally disabled children and other cuts to health services.[3] The day after the budget became law, the legislature passed a $300 million debt-restructuring plan that makes the budget balanced.[9]


Since FY2009, funding for public higher education has been cut from $1.09 billion to $954.1 million. State and community colleges have been cut 14.4% each, while the University of Massachusetts system has been cut 15.1 percent.[10] Also since FY 2009, funding has been reduced by an estimated $113 million, close to 18%.[11]

[edit] Budget Background

Massachusetts' fiscal year runs from July 1 to June 30 of the following year. According to the Massachusetts Constitution, the Governor must propose a budget for the next fiscal year within 3 weeks after the Legislature convenes, which translates into the 4th Wednesday of January. This year, that date fell on Wednesday, January 28, 2009.[12]

Step 1 : Governor’s Budget

Step 2 : House Ways & Means Budget

Step 3 : House Budget

Step 4 : Senate Ways & Means Budget

Step 5 : Senate Budget

Step 6 : Conference Committee Budget

Step 7 : Vetoes

Step 8 : Overrides

Step 9 : Final Budget

[edit] Budget figures

Massachusetts FY2011 state budget summary and comparison[14]

Category FY08 Spend FY09 Spend FY10 Original FY10 Estimate FY 11 w/ Federal $ FY 11 w/o Federal $ Difference FY10 Est. & FY11 w/o Federal $
Health Care 9,646.9 10,300.7 10,333.1 10,838.8 11,211.8 11,013.4 174.6
Local Government Support5,748.0 5,821.3 5,504.3 5,488.0 5,351.0 5,322.2 -165.8
Other Education 1,633.5 1,647.4 1,604.9 1,587.1 1,495.1 1,455.6 -131.5
Human Services 4,936.1 4,953.6 4,812.1 4,794.6 4,818.8 4,720.7 -73.9
Public Safety 2,460.3 2,425.32,134.32,340.0 2,249.0 2,225.1 -114.9
Transportation 289.3 312.8 220.1 206.3 225.7 225.7 19.4
Economic Development 518.7 374.0 325.5 302.8 309.8 298.7 -4.1
Capital Support2,039.2 2,055.92,198.1 2,173.9 2,065.0 2,064.3 -109.5
Other/General Government631.4689.0 488.6 477.5 494.8 477.1 -0.3
Sub-Total30,537.3 31,247.7 30,446.6 31,034.1 31,357.4 30,939.2 -94.9
Budget Transfers 1,407.01,397.6 1,550.2 1,518.1 1,571.41,571.453.3
TOTAL31,944.332,645.331,996.832,552.232,928.832,510.6-41.6


The following table presents Massachusetts's spending history. The figures used are in millions of dollars:[15]

Fiscal Year Nominal Government Spending Real Government Spending Real Change from Prior Year
2008 31,694.416[15] 34,213.722[15] 0.1%
2007 29,913.923[15] 34,194.834[15] 7.5%
2006 26,592.198[15] 31,811.763[15] 0.6%
2005 24,846.982[15] 31,610.590[15] 0.8%
2004 23,331.771[15] 31,350.891[15] -2.2%
2003 23,011.620[15] 32,046.556[15] -4.7%
2002 23,289.777[15] 33,617.370[15] 0.7%
2001 22,655.934[15] 33,396.954[15] n/a

Historic General Appropriation Act (GAA) Budget Levels:[16]

FY 2010$27.0 billion
FY 2009$28.2 billion
FY 2008$26.8 billion
FY 2007$25.7 billion

[edit] 2009-2010 budget crisis

In January 2010, Gov. Deval Patrick revealed a $28.2 billion budget for FY 2011, a 3 percent increase over FY 2010. The budget includes budget cuts worth $800 million and relies on $600 million in federal aid. "This budget is about people, not just numbers or line items. And for that fundamental reason, proposes to invest in jobs, education, health care and services for the most needy," said Patrick. Proposed budget cuts include: $3.2 million cut for state parks, reductions of film and life science tax credits worth $80 million and a repeal of sales-tax exemption on soda, candy and smokeless tobacco worth $67 million.[17][18]

[edit] 2008-2009 budget crisis

See: Massachusetts state budget (2008-2009)

[edit] Accounting Principles

Mr. Joseph DeNucci has been the Auditor of the Commonwealth of Massachusetts since 1987. The Office of the Auditor of the Commonwealth publishes their audit reports online and is responsible for:[19]

The Institute for Truth in Accounting (IFTA) rates Massachusetts “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Massachusetts' CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[20] Massachusetts' CAFRs are published online by the Comptroller of the Commonwealth of Massachusetts Martin J. Benison has been Comptroller of the Commonwealth of Massachusetts since 1999.[21]

[edit] Budget transparency

Massachusetts currently has no statewide, official spending database online. However, the Massachusetts Budget and Policy Center, which "provides independent research and analysis of state budget and tax policies,"[22] tracks actual spending in real and nominal terms using a "Budget Browser," available here.

Legislators in favor of transparency, headed by Massachusetts State Senator Cynthia Creem, have introduced a budget amendment that would require the Secretary of Administration and Finance to create a spending transparency website.[23]

See also: Evaluation of Massachusetts state website

[edit] Economic Stimulus Transparency

Two Massachusetts projects were noted in Senator Coburn and Senator McCain's "Summertime Blues, 100 stimulus projects that give taxpayers the blues" report. The Federal Emergency Management Agency provided the Hyannis Harbor Tours boat company with a $43,214 terrorism prevention grant.[26]

[edit] Error in ARRP

On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[27][28]

The state of Massachusetts has 10 congressional districts, but the ARRP website shows there are six more to receive funding. Non-existing districts are alloted to receive $29,882,326 to create/sustain at total of 189.9 jobs.[29]

[edit] Public employee salary information

Main article: Maine state government salary

The Boston Herald has this list of state payroll information: Massachusetts 2009 State Employee Payroll

[edit] See Also

[edit] External links

[edit] Additional reading

[edit] References

  1. 1.0 1.1 1.2 The Boston Herald "Legislature approves $28B budget" June 25, 2010
  2. The Patriot Ledger "Legislature approves $27.6 billion budget" June 24, 2010
  3. 3.0 3.1 3.2 3.3 3.4 ABC News "Gov. Patrick Signs $27.6B 2011 Mass. State Budget" June 30, 2010
  4. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  5. 5.0 5.1 5.2 The Boston Globe "Obama signs $26b state aid bill after House OK" Aug. 11, 2010
  6. 6.0 6.1 6.2 6.3 6.4 The Boston Globe "Senate's chief budget writer increases deficit estimates" Sept. 1, 2010
  7. 7.0 7.1 The Boston Globe "Budget would cut services, local aid" June 24, 2010
  8. The New York Times "Massachusetts: Immigrant Crackdown Is Eased" June 24, 2010
  9. Bloomberg Businessweek "Mass. Senate approves $300M debt restructuring" July 1, 2010
  10. Worcester Business Journal "Report Outlines State Budget Cuts" July 30, 2010
  11. Massachusetts Budget and Policy Center "Fiscal Fallout: Cuts to Public Health"
  12. The Official Web site of the Commonwealth of Massachusets, retrieved October 26, 2009
  13. The Official Web site of the Commonwealth of Massachusets, retrieved October 26, 2009
  14. The Boston Globe "Mass. FY2011 state budget summary" June 25, 2010
  15. 15.00 15.01 15.02 15.03 15.04 15.05 15.06 15.07 15.08 15.09 15.10 15.11 15.12 15.13 15.14 15.15 15.16 Massachusetts Budget and Policy Center, Online Budget Database, results derived when searching for "Select All Items" between the years 2001 and 2008
  16. Massachusetts Office of Administration and Finance, "Historical Budget Summary," retrieved October 26, 2009
  17. WBUR,"Patrick Budget Relies Heavily On Uncertain Federal Funding," January 28, 2010
  18. Cigar Aficionado,"Massachusetts Governor Calls for Huge Cigar Tax," February 3, 2010
  19. Office of the Auditor of the Commonwealth, "Authority/Responsibility," retrieved October 26, 2009
  20. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  21. Comptroller of the Commonwealth of Massachusetts Web site, retrieved October 26, 2009
  22. Massachusetts Budget and Policy Center
  23. Daily News Tribune, "Bringing Transparency to the Budget," June 9, 2009
  24. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  25. Wall Street Journal,"Stimulus Spending by State," March 12,2009
  26. "Summertime Blues, 100 stimulus projects that give taxpayers the blues" August 2010
  27. $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
  28. Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
  29. Massachusetts, Watchdog.org, November 17, 2009
Sunshine Review
Collaboration tools
Toolbox