Chairman Charles A. MurphyJune 24, 2010

Budget Conference Committee Briefing Fiscal Year 2011

Financial Overview

Consensus Revenue

FY10 GAA $27.20 BillionGovernor’s House 2 $28.20 BillionHouse Final $27.82 BillionSenate Final $27.94 Billion

Bottom Line Comparison

FY10 GAA $27.20 BillionGovernor’s House 2 $28.20 BillionHouse Final $27.82 BillionSenate Final $27.94 Billion

Conference Committee Report $27.94 Billion

Bottom Line Comparison

FY10 GAA $27.20 BillionGovernor’s House 2 $28.20 BillionHouse Final $27.82 BillionSenate Final $27.94 Billion

Conference Committee Report $ 27.94 Billion

Without FMAP - $27.62 Billion

Bottom Line Comparison

Contingency for FMAP Funds

Unknown Fate of FMAP funds resulted in a budget with contingencies:

Contingency Budget

Unknown Fate of FMAP funds resulted in a budget with contingencies:

∙ Section 2 line item amounts contains appropriations with $687m FMAP funds

Contingency Budget

Unknown Fate of FMAP funds resulted in a budget with contingencies:

∙ Section 2 line item amounts contains appropriations with $687m FMAP funds

∙ Pay attention to Fund Splits below line items!

∙ Without FMAP, only a portion will be appropriated

Contingency Budget

History Systems Board8000-0110 For the operation of the criminal history systems board, including

criminal justice information services, criminal offender record information services, firearms support services and victim services; provided, that funds may be expended for the purpose of enabling local housing authorities‘ access to criminal offender record information when qualifying applicants for state-assisted housing…………………….................................. $2,533,686

General Fund ......................................................................... 78.596% FMAP Budget Relief Fund .................................................... 21.404%

Contingency Budget

History Systems Board8000-0110 For the operation of the criminal history systems board, including

criminal justice information services, criminal offender record information services, firearms support services and victim services; provided, that funds may be expended for the purpose of enabling local housing authorities‘ access to criminal offender record information when qualifying applicants for state-assisted housing…………………….................................. $2,533,686

General Fund ......................................................................... 78.596% FMAP Budget Relief Fund .................................................... 21.404%

Primary Care Recruitment4510-0715 For the operation of a center for primary care recruitment and

placement to improve access to primary care services; provided, that funds may be expended for primary care workforce development and loan forgiveness grant program……………........................................ $157,000

FMAP Budget Relief Fund ....................................................... 100.000%

Contingency Budget

Certain Outsides only to take effect if FMAP funds are received - Noted inside section

language

Without the $687m, any programmatic earmarks became “may ” language

Contingency Budget

Low number throughout budget -$161m

Additional revenue -$150m Including $53m TANF Contingency Fund $25m Updated tobacco payment $19m from DOR Auditors $16m Child support enforcement

Stabilization Fund draw -$100m

Budget without $687m FMAP

MassHealth reductions -$99m Including $56m elimination of AWSS coverage $15m overall reductions

$6.8 day rehabilitation hours $6.7m elder home care accounts

Suspend Statutory Carry Forward -$95m

Additional line item reductions -$67m 40% of line items cut

Budget without $687m FMAP

∙Chapter 70 not reduced below 4%

∙ Unrestricted General Government Aid not reduced below 4%

∙ SPED Circuit Breaker level funded from Post 9C

∙ Regional Transportation level funded from FY10 GAA

∙ PILOT reduced by $2m from FY10 GAA

Local Aid Protected

Outside Sections

Capital Gains ReformAll tax receipts from capital gains over $1B deposited into Stabilization Fund

5% over $1B to State Retirees Benefits Trust Fund Tempers volatile revenue source, for more stable budgeting

Transparency + Budget

Budget TransparencyCreates comprehensive, one-stop,

online database to track the use of taxpayer monies

Provides transparent check on all state spending

Transparency + Budget

Adopted House Tax credit transparency proposal

No Public Funds from state agencies or quasi-agencies to registered lobbyists

Transparency + Budget

Creates fund to receive all sales tax revenue from sale of alcohol

Monies to be used to fund prevention and treatment of substance abuse

Appropriated $108m million for FY11Probation’s substance abuse testing servicesSubstance abuse step-down recovery servicesSecure Treatment for Opiate Addition Services

Substance Abuse Prevention and Treatment Fund

Caps maximum pension allowed

Requires pension boards to make actuarial adjustments according to actual liability

Defines interest rates of non-vested withdrawals at 3%

Increases minimum benefit available to widows of disabled retirees who left service early from $6k to $9k

Requires SJC to pay into pension system prospectively

Pension Reform

10-member Commission to Study of Judicial Branch hiring and budgeting

5-year Term for Commissioner of Probation

5% Budget transferability

Probation Reform

Immigration Verification needed to access state services in the following areas:

MassHealthHealth Safety Net and Commonwealth CareTransitional AssistanceUnemploymentMassGrant scholarship program

Verification of eligibility for public housing

Debarment of public contractors that violate federal immigration laws

Immigration Reform

Held in Conference Committee

Municipal Health Care