Because tax receipts for FY 2013 have been lower than expected, the Governor today announced a series of mid-year spending cuts--along with plans to use money from existing reserves.
The budget that was enacted in July started to restore some of the significant cuts to education, public health, human services and other core programs that had been made over the last four years. Today's actions repeal or reduce a number of those limited restorations.
Among the cuts announced today are the following:
- Lower reimbursements for districts with high-needs special education students (via $11.5 milllion in cuts to the SPED Circuit Breaker)
- A 46% cut to a new program that helps reimburse local school districts for transporting homeless students to and from school
- A 1 percent cut to Local Aid, which funds municipal services including police and fire protection, parks, and public works. (This cut would have to be approved by the legislature.)
- $7.4 million in cuts to Mental Health programs, including some services for children and some for adults
- Programs administered by the Department of Children and Families were cut by more than $7.0 million, including a $5.2 million cut to residential care
- The Employment Services Program was cut $790,00, reducing its funding level to 76% below its pre-recession level. The program provides education, occupational skills, and employment support services to low-income families with children
- $3.7 million in funding for Law & Public Safety programs
- About $128 million in total cuts and savings to MassHealth. Since Massachusetts receives a 50 percent federal reimbursement for most MassHealth spending, the net savings for the state amount to roughly half of this total. The administration also expects to tap the Commonwealth Care Trust Fund (CCTF), since FY 2013 costs for the Commonwealth Care program are expected to be lower than originally projected (companion legislation filed with the 9C cuts would allow the administration to reduce the transfer from the General Fund to the CCTF, but no amount is specified).
On the revenue side:
- $200 million from the state stabilization fund (the "rainy day" fund)
- An additional $109 million in reserves and federal revenue
There are two basic reasons that Massachusetts continues to find itself in a fiscal crisis. First, because of the lingering effects of the Great Recession, which has sapped state revenues even as it has increased the number of people relying on core safety net services. And second, because of tax cuts and other declines in tax receipts over the last fifteen years that cost the state over $3 billion in annual revenue. [For more detail, see Massbudget's FY13 Budget Preview.]
Mid-year budget cuts of this type are officially referred to as 9C cuts. They are designed to ensure that the overall budget of the Commonwealth remains balanced, and you can read more about how they work here.
The table below contains a full list of the proposed 9C cuts (though neither the reserve funds nor the proposals that require legislative approval are included):| Line-Item | Name | FY12 Spending | FY 13 Before Cuts | 9C Cut |
|---|---|---|---|---|
| 1100-1100 | Office of the Secretary of Administration and Finance | 2,741,666 | 2,846,156 | -50,000 |
| 1100-1560 | Massachusetts Development Finance Agency | N/A | 440,692 | -200,000 |
| 1100-1700 | Administration and Finance Information Technology Costs | 26,457,572 | 28,202,693 | -250,000 |
| 1106-0064 | Caseload and Economic Forecasting Office | 57,446 | 251,969 | -25,000 |
| 1599-0026 | Municipal Regionalization and Efficiencies Incentive Reserve | 8,392,356 | 14,547,644 | -6,000,000 |
| 1599-1301 | Program Evaluation Reserve | N/A | 500,000 | -500,000 |
| 1599-1705 | June 1 2011 Storm Reserve | N/A | 4,536,093 | -1,300,000 |
| 1599-4417 | E.J. Collins Jr. Center for Public Management | 496,518 | 400,000 | -100,000 |
| 1599-7104 | Dartmouth/Bristol Community College Reserve | 2,700,000 | 4,400,000 | -850,000 |
| 1102-3199 | Office of Facilities Management | N/A | 10,453,359 | -150,000 |
| 1108-5100 | Group Insurance Commission | 2,491,028 | 2,337,203 | -125,000 |
| 1201-0100 | Department of Revenue | 80,380,285 | 87,225,100 | -1,187,000 |
| 1201-0130 | Additional Auditors Retained Revenue | 23,882,229 | 27,940,257 | -1,488,000 |
| 1201-0160 | Child Support Enforcement Division | 33,871,544 | 35,380,491 | -250,000 |
| 1231-1000 | For the Rate Relief Component of the | 500,000 | 500,000 | -500,000 |
| 1232-0100 | Underground Storage Tank Reimbursements | 18,199,817 | 32,800,183 | -6,500,000 |
| 1310-1000 | Appellate Tax Board | 1,734,467 | 1,806,028 | -25,000 |
| 1750-0100 | Human Resources Division | 2,610,724 | 2,561,318 | -100,000 |
| 1775-0115 | Statewide Contract Fee | 2,975,933 | 3,500,000 | -55,000 |
| 1790-0100 | Information Technology Division | 2,995,265 | 3,195,378 | -50,000 |
| 2000-0100 | Executive Office of Energy and Environmental Affairs Admin | 7,237,606 | 5,856,081 | -130,269 |
| 2000-1700 | Energy and Environment Information Technology Costs | 9,806,865 | 10,145,502 | -142,112 |
| 2030-1000 | Environmental Law Enforcement | 8,681,029 | 8,982,241 | -5,934 |
| 2030-1001 | Environmental Law Enforcement Recruit Class | N/A | 750,000 | -174,112 |
| 2200-0100 | Department of Environmental Protection Administration | 24,569,679 | 25,966,270 | -341,586 |
| 2260-8870 | Hazardous Waste Cleanup Program | 11,903,512 | 13,629,640 | -170,000 |
| 2260-8875 | Cape Cod Wastewater Study | 150,000 | 350,000 | -350,000 |
| 2300-0100 | Department of Fish and Game Administration | 658,700 | 709,975 | -1,416 |
| 2300-0101 | Riverways Protection Restoration and Public Access Promotion | 416,856 | 442,824 | -26,054 |
| 2320-0100 | Fishing and Boating Access | 421,157 | 466,221 | -16,659 |
| 2330-0100 | Division of Marine Fisheries Administration | 4,349,345 | 4,812,837 | -130,000 |
| 2511-0100 | Department of Agricultural Resources Administration | 4,320,179 | 4,857,151 | -335,000 |
| 2800-0100 | Department of Conservation and Recreation Administration | 3,652,281 | 3,800,459 | -50,000 |
| 2810-0100 | State Parks and Recreation | 41,249,220 | 41,409,387 | -1,480,000 |
| 2820-2000 | Streetlighting | 3,000,000 | 3,060,000 | -5,000 |
| 4000-0500 | MassHealth Managed Care | 4,047,087,106 | 4,167,475,376 | -86,130,000 |
| 4000-0700 | MassHealth Fee-for-Service Payments | 1,847,705,917 | 1,968,522,476 | -26,800,000 |
| 4000-0640 | MassHealth Nursing Home Supplemental Rates | 317,784,772 | 318,700,000 | -15,100,000 |
| 9110-1455 | Prescription Advantage | 19,596,253 | 18,500,869 | -575,000 |
| 9110-9002 | Grants to Councils on Aging | 8,206,604 | 9,433,748 | -216,980 |
| 4510-0110 | Community Health Center Services | 962,863 | 1,067,287 | -41,667 |
| 4510-0716 | Academic Detailing Program | 93,000 | 500,000 | -500,000 |
| 4510-3008 | ALS Registry | N/A | 250,000 | -125,000 |
| 4512-0200 | Bureau of Substance Abuse Services | 74,760,442 | 77,164,595 | -135,417 |
| 4512-0225 | Compulsive Behavior Treatment Program Retained Revenue | 1,270,000 | 1,830,000 | -560,000 |
| 4513-1111 | Health Promotion and Disease Prevention | 3,374,099 | 3,343,000 | -50,000 |
| 4530-9000 | Teenage Pregnancy Prevention Services | 2,324,767 | 2,535,873 | -157,462 |
| 4590-0250 | School-Based Health Programs | 11,584,588 | 11,797,967 | -83,333 |
| 4590-0915 | Public Health Hospitals | 137,811,389 | 145,021,833 | -950,000 |
| 5011-0100 | Department of Mental Health Administration and Operations | 25,453,167 | 27,373,198 | -338,057 |
| 5042-5000 | Child and Adolescent Mental Health Services | 69,399,645 | 76,816,757 | -1,890,000 |
| 5046-0000 | Mental Health Services Including Adult Homeless and Emergency | 330,141,005 | 346,027,150 | -1,962,186 |
| 5047-0001 | Emergency Services and Mental Health Care | 34,596,130 | 35,242,254 | -500,000 |
| 5095-0015 | Inpatient Facilities and Community-Based Mental Health Service | 143,557,523 | 167,313,321 | -2,723,359 |
| 4200-0010 | Department of Youth Services Administration and Operations | 3,969,907 | 4,049,575 | -150,000 |
| 4200-0200 | Residential Services for Detained Population | 17,467,326 | 20,983,713 | -200,000 |
| 4200-0300 | Residential Services for Committed Population | 96,212,767 | 102,919,356 | -569,000 |
| 4400-1100 | Caseworkers Reserve | 58,270,260 | 62,797,173 | -1,943,161 |
| 4401-1000 | Employment Services Program | 6,393,841 | 7,899,506 | -790,471 |
| 4403-2119 | Teen Structured Settings Program | 6,519,237 | 8,031,401 | -638,194 |
| 4405-2000 | State Supplement to Supplemental Security Income | 227,624,077 | 233,128,438 | -2,009,789 |
| 4408-1000 | Emergency Aid to the Elderly Disabled and Children | 90,030,120 | 90,929,877 | -207,756 |
| 4800-0015 | Clinical Support Services and Operations | 65,476,185 | 67,626,557 | -375,000 |
| 4800-0040 | Family Support and Stabilization | 43,689,153 | 44,573,551 | -558,000 |
| 4800-0041 | Group Care Services | 189,001,365 | 198,335,991 | -5,207,000 |
| 4800-1100 | Social Workers for Case Management | 160,998,660 | 166,188,468 | -470,000 |
| 4800-1400 | Support Services for People at Risk of Domestic Violence | 20,658,558 | 21,455,430 | -433,000 |
| 4120-2000 | Vocational Rehabilitation for the Disabled | 9,991,391 | 10,011,824 | -135,999 |
| 4120-4000 | Independent Living Assistance for the Multi Disabled | 12,011,979 | 12,679,279 | -75,000 |
| 4125-0100 | Massachusetts Commission for the Deaf and Hard of Hearing | 5,110,082 | 5,447,856 | -52,500 |
| 5911-1003 | DDS Service Coordination and Administration | 60,818,166 | 63,087,273 | -300,000 |
| 5920-2000 | Community Residential Services for the Developmentally Disable | 755,685,701 | 790,043,431 | -5,486,805 |
| 5920-2010 | State Operated Residential Services | 164,488,263 | 184,922,682 | -834,159 |
| 5920-3010 | Autism Division | 4,016,901 | 4,635,252 | -22,167 |
| 5930-1000 | State Facilities for the Developmentally Disabled | 150,602,422 | 127,875,073 | -1,738,996 |
| 1410-0400 | Veterans' Benefits | 38,973,715 | 44,208,484 | -1,300,000 |
| 1595-6368 | Massachusetts Transportation Trust Fund | 180,126,756 | 166,591,136 | -4,878,000 |
| 7004-2027 | Community Investment Grant Program | N/A | 1,500,000 | -750,000 |
| 7007-0150 | Regional Economic Development Grants | 850,000 | 950,000 | -100,000 |
| 7007-0300 | Massachusetts Office of Business Development | 1,619,026 | 1,717,393 | -25,000 |
| 7007-0801 | Microlending | 200,000 | 200,000 | -100,000 |
| 7007-0952 | Commonwealth Zoological Corporation | 3,500,000 | 3,600,000 | -50,000 |
| 7007-1200 | FOR THE MASSACHUSETTS TECHNOLOGY | N/A | 2,000,000 | -1,000,000 |
| 7004-0099 | Department of Housing and Community Development Administration | 8,628,449 | 7,309,734 | -200,000 |
| 7004-0101 | Emergency Assistance - Family Shelters and Services | 135,262,352 | 80,042,354 | -50,000 |
| 7004-0102 | Homeless Individuals Assistance | 37,941,049 | 40,450,335 | -100,000 |
| 7004-3036 | Housing Services and Counseling | 1,495,982 | 1,495,996 | -50,000 |
| 7004-9005 | Subsidies to Public Housing Authorities | 62,486,239 | 64,500,000 | -50,000 |
| 7004-9317 | Individual Development Account Pilot Program | N/A | 50,000 | -50,000 |
| 7006-0000 | Office of Consumer Affairs and Business Regulation | 750,384 | 846,160 | -25,000 |
| 7006-0011 | Loan Originator Administration and Consumer Counseling Program | 2,468,469 | 2,650,000 | -60,000 |
| 7006-0020 | Division of Insurance | 10,185,293 | 12,351,044 | -150,000 |
| 7008-0900 | Massachusetts Office of Travel and Tourism | 2,038,748 | 7,217,109 | -448,000 |
| 7003-0200 | Department of Labor Standards | 1,912,335 | 2,045,243 | -40,000 |
| 7003-0900 | Department of Labor Relations | 1,753,813 | 2,005,872 | -30,000 |
| 7003-1206 | Mass Service Alliance | 1,350,000 | 1,625,000 | -287,500 |
| 7009-1700 | Education Information Technology Costs | 8,711,571 | 11,171,336 | -25,000 |
| 7009-7000 | Data Sharing | N/A | 505,000 | -505,000 |
| 3000-1000 | Department of Early Education and Care Administration | 11,498,371 | 12,322,954 | -210,000 |
| 3000-2050 | Children's Trust Fund Operations | 994,561 | 1,065,473 | -58,629 |
| 3000-5075 | Universal Pre-Kindergarten | 7,357,273 | 7,500,000 | -67,617 |
| 3000-7000 | Children's Trust Fund | 10,415,435 | 10,463,346 | -25,000 |
| 7010-0005 | Department of Elementary and Secondary Education | 12,767,008 | 13,694,988 | -75,000 |
| 7010-0033 | Literacy Programs | 3,125,038 | 3,147,940 | -25,000 |
| 7028-0031 | School-Age Children in Institutional Schools and Houses of Cor | 7,315,000 | 7,448,153 | -122,639 |
| 7035-0005 | Homeless Student Transportation | N/A | 11,300,000 | -5,250,000 |
| 7035-0006 | Transportation of Pupils - Regional School Districts | 43,521,000 | 45,521,000 | -1,000,000 |
| 7061-0011 | FOUNDATION RESERVE ONE TIME ASSISTANCE | N/A | 3,500,000 | -2,500,000 |
| 7061-0012 | Circuit Breaker - Reimbursement for Special Education Resident | 212,688,562 | 241,932,288 | -11,500,000 |
| 7061-9010 | Charter School Reimbursement | 64,461,675 | 71,454,914 | -1,000,000 |
| 7061-9200 | Education Technology Program | 860,691 | 887,543 | -25,000 |
| 7061-9400 | Student and School Assessment | 24,338,435 | 24,385,395 | -129,847 |
| 7061-9408 | Targeted Intervention in Underperforming Schools | 5,889,143 | 9,167,096 | -50,000 |
| 7066-0000 | Department of Higher Education | 1,619,952 | 3,068,445 | -575,000 |
| 7066-0005 | Compact for Education | 82,620 | 82,620 | -41,310 |
| 7066-0009 | New England Board of Higher Education | 367,500 | 367,500 | -183,000 |
| 7066-0020 | Nursing and Allied Health Education Workforce Development | 635,250 | 500,000 | -100,000 |
| 7066-0024 | Schools of Excellence | 1,300,000 | 1,400,000 | -100,000 |
| 7066-0025 | Performance Management Set Aside | 1,631,974 | 8,322,094 | -1,050,000 |
| 7066-0038 | Youth Venture | N/A | 100,000 | -100,000 |
| 7066-0050 | Rapid Response Grants | N/A | 2,250,000 | -1,750,000 |
| 7066-0111 | Higher Education Consultant | N/A | 100,000 | -50,000 |
| 7066-1221 | Community College Workforce Grant Advisory Committee | N/A | 200,000 | -100,000 |
| 7070-0066 | High Demand Scholarship Program | N/A | 3,250,000 | -1,198,293 |
| 8000-0600 | Executive Office of Public Safety | 2,015,088 | 2,212,797 | -75,000 |
| 8000-1700 | Public Safety Information Technology Costs | 18,924,834 | 20,396,656 | -362,500 |
| 8000-1800 | Mental Health Public Safety Training | N/A | 125,000 | -125,000 |
| 8100-0515 | New State Police Class | 1,990,070 | 596,000 | -25,000 |
| 8200-0200 | Municipal Police Training Committee | 2,439,032 | 2,520,378 | -45,000 |
| 8311-1000 | Department of Public Safety and Inspections | 4,491,280 | 4,610,086 | -50,000 |
| 8315-1023 | Pipefitting Inspections | N/A | 250,000 | -250,000 |
| 8900-0001 | Department of Correction Facility Operations | 518,130,711 | 541,217,210 | -2,200,000 |
| 8950-0001 | Parole Board | 16,368,184 | 17,807,436 | -275,000 |