The Commonwealth of Massachusetts' FY2020 Budget Process for ACEC/MA Members

July 31, 2019: Today, Governor Charlie Baker signed the $43.3B Fiscal Year 2020 budget. The Governor accepted the Legislature's changes to a drug pricing control measure he proposed in January along with $5.2B in Chapter 70 aid to local schools, nearly $70 million more than he recommended in the budget proposal he filed in January 2019 along with a series of school funding reforms. Baker returned six amendments to legislators, two of which he said needed urgent action by lawmakers set to break after Wednesday for their traditional August recess. One would affect an upcoming wind power procurement, and the other specificies that the meals tax will still apply during the sales tax holiday weekend set for August 17-18.

On July 22, 2019, the House unanimously adopted a $43.1 billion fiscal 2020 budget. Lawmakers said it offers the largest annual increase ever in K-12 education spending support through the state's Chapter 70 account, a $269 million increase. By a 158-0 vote, the House accepted the bill (H 4000), which includes drug pricing control reforms similar to language in the House's version of the budget and does not include Senate proposals to freeze UMass tuition and fees or implement new taxes on opioid manufacturers and vaping products. The bill will raise the state's rainy day fund balance to about $3.3B. The Senate is expected to approve the budget later Monday. 

Link to House version of the FY2020 Budget

Link to Senate version of the FY2020 budget, 

Now that both the House and the Senate have debated and passed versions of a budget for FY2020, House and Senate leadership have appointed three key lawmakers from each chamber to a conference committee where they will iron out the differences between the two different spending plans. The final House bill, which added about $71M to the spending plan that was first rolled out by the House Ways and Means Committee, includes significant investments in elementary and secondary education and eschews any major tax increases. The fiscal year starts on July 1, 2019.

On May 30, one week after the Senate passed its $42.8 billion budget fiscal 2020 budget, the House formally moved to begin negotiations between the branches over how to reconcile differences in their spending bills (H 3801 and S 2235). Rep. Aaron Michlewitz, Rep. Denise Garlick and Rep. Todd Smola -- the chair, vice chair and ranking minority member, respectively, of the House Ways and Means Committee -- were named as House conference committee members. The Senate conferees, also named on May 30, are Senator Michael Rodrigues, Senator Cindy Friedman, and Senator Viriato deMacedo. The conference committee will try to get a consensus budget to Governor Charlie Baker by July 1, 2019, the start of fiscal year 2020.. 

The Massachusetts Senate passed a roughly $42.8B budget for FY2020 on May 23, 2019 at about 10:30 PM. The next step in the process is for House and Senate leaders to appoint a conference committee to work out the differences between the House and Senate versions prior to July 1, 2019, the beginning of FY2020..

The Senate version of the budget was amended over 3 days of debate in the Senate Chamber. The Senate added $74.4M to the FY2020 budget that the Senate Ways and Means Committee proposed earlier in May. 

The Senate supported an increase for a state grant program that helps religious and nonprofit facilities at risk of terrorism and violent threat improve their security, bolstered funding for regional school transportation reimbursements, added funding for civics education, and authorized an increase in some Registry of Deeds fees to boost funding available through the Community Preservation Act.

Last month, the House last month authorized $42.7B in spending for FY2020, including significant new investments in elementary and secondary education, while avoiding any major tax increases.

As of May 10, 2019, senators filed 1142 amendments to the Senate Ways and Means budget proposal for FY2020. Debate begins on May 21, 2019.

On May 7, the Senate Committee on Ways and Means, now chaired by Senator Michael Rodrigues, released its proposed Fiscal Year 2020 budget, Proposed amendments are due by Friday, May 10, with formal debate beginning Tuesday, May 21.

The budget addresses areas that Senate President Karen Spilka has stated are her priorities, which include education, healthcare, transportation, climate change, and housing.

In total, the proposed budget is $42.7 billion and largely mirrors the one that the House finalized. In total, under the Senate’s proposed budget, spending would increase by 3.1% over FY 19’s. Unlike the House’s version of the budget, the Senate has chosen to include several of the new sources of revenue that Governor Baker laid out in his proposal.

Specifically, the Senate has included the 15% tax on opioid manufacturers for sales dispensed in Massachusetts and a 75% tax on wholesale prices of e-cigarettes and related products. While the Senate proposal does not include the $35 million in not-yet-legal sports betting revenue that Governor Baker projected, Chairman Rodrigues will be allowing debate on the subject. In the House Speaker DeLeo adopted a set of rules banning any sports-gambling amendments during this year's budget process. Further, Rodrigues has stated that any other revenue amendments that senators want to pursue will be open to discussion.

The Senate is also going one step further on education spending by proposing $5.176 billion in Chapter 70 education aid to municipalities, a $268 million increase over the current budget and more than $50 million higher than what the House approved last month. The budget also calls for a $25 million increase in special education funding and a $10 million increase in charter school reimbursements.

House finishes Budget Debate on April 26, 2019

House budget is posted Here

House Budget Week

After four days of debate, the House finished their version of the FY2020 budget and propose to authorize more than $42.7 bill in spending. This is the first House Ways and Means budget released under the committee’s new Chairman, Representative Aaron Michlewitz (D-Boston).

House members added nearly $71 million to the spending plan that was first rolled out two weeks ago by the House Ways and Means Committee. The bill includes significant new investments in elementary and secondary education while avoiding significant tax increases. House members also made changes to original proposal from Gov. Charlie Baker that allowed MassHealth  to negotiate cheaper drug prices with pharmaceutical manufacturers. The bill also includes $5.96 million in spending to tackle public health issues like the opioid crisis and domestic violence.

Additionally, the House adopted an amendment that would ensure there will be competition for the next state procurement of offshore wind energy by changing a 2016 law that requires every wind procurement to be cheaper than the last. This means that the procurement process would take into account more factors than cost in comparing one offshore wind procurement to the next.

The House considered over 1,300 amendments that were filed by members of the House. The Senate will begin their budget process in late May, and then negotiations between the branches will begin.

The House of Representatives' Ways and Means Committee released its budget proposal for Fiscal Year 2020 on April 10, 2019. The release of the spending plan, from the House Ways and Means Committee now chaired by Rep. Aaron Michlewitz, will be followed by the filing of several hundred amendments that are due by Friday, April 12 at 5 PM.  House budget debate is expected to begin the week of April 22. Some advocates expect that there may be a higher number of amendments that directly consider new revenue than usual, however Speaker Robert DeLeo has indicated that tax policy could be taken up by the House in standalone legislation later in the calendar year, decreasing the chances that new revenue will be part of the House’s FY2020 proposal.

In addition to factoring in the looming questions of adopting a new education funding formula, improving the state’s transportation infrastructure, and taking up new health care legislation, the Speaker has indicated in public comments that the House will prioritize investments in children “from early childhood through adolescence in clinical, educational and community settings.”

Some Items of Interest to ACEC/MA Members: 

Energy and Environment

From the Berkshires to Cape Cod, Massachusetts has a diverse landscape of open spaces and natural resources that improve quality of life and support our economy. The Executive Office of Energy and Environmental Affairs preserves and protects our land, water, and air for future generations to come with a commitment to clean energy and climate change mitigation in communities across the state. The Office also provides opportunities for outdoor recreation at our parks and beaches while supporting a sustainable food system. The House Committee on Ways and Means budget invests in these invaluable services to ensure the wellbeing of the Commonwealth’s residents today and in the future.

· Provides $100.2M for the Department of Conservation and Recreation

· Provides $61M for the Department of Environmental Protection

· Provides $31.7M for the Department of Fish and Game

Transportation

The Massachusetts Department of Transportation (MassDOT) works to provide a safe and reliable transportation network across the Commonwealth. Maintaining infrastructure from roads to rails, MassDOT supports a growing economy and improves the quality of life for residents, while investing in innovative solutions to meet the transportation needs of both today and tomorrow. The House Committee on Ways and Means budget supports the complex demands of our dynamic transportation network. The Committee’s recommendation enables the Department, the MBTA and the Regional Transit Authorities to meet the increasing demand for public transportation and actively maintain core services.

· Provides $344M for MassDOT

· Provides $127M for the MBTA

· Provides $86M for the Regional Transit Authorities

Water line items:

• 0810-0016 For the office of the attorney general which may expend for the development and prosecution of claims for enforcement by the commonwealth of the federal Clean Water Act, 33 U.S.C. section 1251 et seq., and the federal Clean Air Act, 42 U.S.C. section 7401 et seq., including but not limited to the investigation of such claims, the costs of personnel and litigation, the engagement of experts, the administration of studies or related activities and the enforcement of settlements, not more than $250,000 from retained revenues collected from costs of litigation, including reasonable attorney and expert witness fees, as awarded to the attorney general by the court or as agreed upon by the parties in settlement of any claims brought pursuant to the federal Clean Water Act, 33 U.S.C. section 1251 et seq., and the federal Clean Air Act, 42 U.S.C. section 7401 et seq.; provided, that penalties payable to the commonwealth under state law that are recovered by the commonwealth in the course of prosecuting claims for enforcement of federal law shall be deposited into the General Fund; and provided further, that for the purpose of accommodating timing discrepancies between the receipt of retained revenues and related expenditures, the office may incur expenses and the comptroller may certify for payment amounts not to exceed the lower of this authorization or the most recent revenue estimate as reported in the state accounting system............................................. $250,000
• 1599-0093 For contract assistance to the Massachusetts Clean Water Trust including, but not limited to, the debt service obligations of the trust, principal forgiveness, interest rate reduction and other subsidies or financial assistance pursuant to sections 6 and 18 of chapter 29C of the General Laws .................................................................................................... $63,383,680
• 2250-2000 For the commonwealth’s implementation of the Safe Drinking Water Act of 1974 under section 18A of chapter 21A of the General Laws; provided, that the department may expend funds for the study and remediation of lead in public school drinking water .................................................................... $2,240,953
• 2800-0101 For the watershed management program to operate and maintain reservoirs, watershed lands and related infrastructure of the department House Ways and Means Committee 49 of conservation and recreation and the office of water resources in the department; provided, that the amount of the payment shall be charged to the General Fund and shall not be included in the amount of the annual determination of fiscal year charges to the Massachusetts Water Resources Authority assessed to the authority under the General Laws; provided further, that the department shall continue to make payments under chapter 616 of the acts of 1957, as amended by section 89 of chapter 801 of the acts of 1963; and provided further, that the department shall continue to make payments under chapter 307 of the acts of 1987 for the use of certain land............................................................... $1,523,447

Transit and Roadways

• 2800-0401 For a program to provide stormwater management for all properties and roadways under the care, custody and control of the department of conservation and recreation................................................................................... $454,549
• 2810-0100 For the operation of the division of state parks and recreation; provided, that funds appropriated in this item shall be used: (a) to operate all of the division’s parks, parkways, boulevards, roadways, bridges and related appurtenances under the care, custody and control of the division, flood control activities of the division, reservations, campgrounds, beaches and pools; (b) to oversee skating rinks; and (c) to protect and manage the division’s lands and natural resources, including the forest and parks conservation services and the bureau of forestry development; provided further, that the same properties shall be open in fiscal year 2020 as were open in fiscal year 2019; provided further, that no funds from this item shall be made available for payment to true seasonal employees; provided further, that the crossing guards located at department of conservation and recreation intersections shall continue to perform the duties where state police previously performed such duties; provided further, that the division may issue grants to public and nonpublic entities from this item; provided further, that the rinks under the control of the department shall remain open and staffed for the full rink season; provided further, that the department of conservation and recreation shall submit a report to the house and senate committees on ways and means not later than February 3, 2020, on the utilization of funds towards addressing understaffed parks, extending camping seasons, hiring additional park support operations crew members and hiring additional engineers to plan and build capital improvement projects; provided further, that additional funds shall be expended to address the needs of state parks in all regions of the commonwealth; and provided further, that the department shall report to the house and senate committees on ways and means not later than February 3, 2020 detailing: (a) the status of hiring for additional staffing; (b) the staffing levels for the previous 10 fiscal years; and (c) the average staffing level at each park............................. $44,736,288
• 2810-0100 For the operation of the division of state parks and recreation; provided, that funds appropriated in this item shall be used: (a) to operate all of the division’s parks, parkways, boulevards, roadways, bridges and related appurtenances under the care, custody and control of the division, flood control activities of the division, reservations, campgrounds, beaches and pools; (b) to oversee skating rinks; and (c) to protect and manage the division’s lands and natural resources, including the forest and parks conservation services and the bureau of forestry development; provided further, that the same properties shall be open in fiscal year 2020 as were open in fiscal year 2019; provided further, that no funds from this item shall be made available for payment to true seasonal employees; provided further, that the crossing guards located at department of conservation and recreation intersections shall continue to perform the duties where state police previously performed such duties; provided further, that the division may issue grants to public and nonpublic entities from this item; provided further, that the rinks under the control of the department shall remain open and staffed for the full rink season; provided further, that the department of conservation and recreation shall submit a report to the house and senate committees on ways and means not later than February 3, 2020, on the utilization of funds towards addressing understaffed parks, extending camping seasons, hiring additional park support operations crew members and hiring additional engineers to plan and build capital improvement projects; provided further, that additional funds shall be expended to address the needs of state parks in all regions of the commonwealth; and provided further, that the department shall report to the house and senate committees on ways and means not later than February 3, 2020 detailing: (a) the status of hiring for additional staffing; (b) the staffing levels for the previous 10 fiscal years; and (c) the average staffing level at each park............................. $44,736,288
• 8100-0002 For the costs associated with State Police personnel assigned to MassDOT roadways, the District Attorney Offices, the Attorney General, Massachusetts Gaming Commission and other state agencies; provided, that for the purpose of accommodating timing discrepancies between the receipt of retained revenues and related expenditures, the department may incur expenses and the comptroller may certify for payment amounts not to exceed the lower of this authorization or the most recent revenue estimate thereof as reported in the state accounting system ............. $50,948,912

The Baker-Polito Administration budget proposal for Fiscal Year 2020 (FY20), is known as “House 1.”

Main Budget Website for House 1
The Governor's Budget Message

Here are several items of interest to ACEC/MA Members:

• Clean Water Trust Fund- FY2020 Budget Recommendation- $63,384
• House 1 has increase investments in Chapter 70 aid for education, $20 million to help districts eliminate lead from school drinking water (as seen below in outside section 58)
• Outside Section 18- RGGI- This section amends the statute governing MA's participation in the Regional Greenhouse Gas Initiative ("RGGI") program to expand the purposes for which RGGI revenues can be spent, to include "greenhouse gas mitigation and climate change adaptation."
• Outside Section 19- Gaming Revenue 1- This section alters the current statutory framework for Category 1 gaming revenue in order to dedicate 15% of Category 1 gaming revenue to the Commonwealth Transportation Fund as opposed to the Transportation Infrastructure and Development Fund that currently exists in the gaming statute.
• Outside Section 20- RGGI II- This section eliminates an existing restriction regarding the allocation of RGGI Trust Fund revenues to maximize their use on programs to further greenhouse gas mitigation and climate change adaptation.
• Outside Section 58- Deleading in Schools- This section enables the funds transferred to the Water Pollution Abatement Revolving Fund as a result of the Sales Tax Modernization initiative to be used for school deleading.
• Outside Section 79 - RTA Memorandum of Understanding. This  section conditions the transfer to each regional transit authority on a system of performance metrics to be developed by MassDOT and also directs $4M to RTAs that have executed an MOU with MassDOT.