Yesterday at the State House, the Senate Committee on Ways and Means released its proposal for spending in Fiscal Year 2013. Senator Michael R. Knapik (R – Westfield), the ranking Republican member of the committee, voted in favor of the document at the committee’s executive session, where Chairman Stephen M. Brewer (D-Barre) outlined highlights of the $32.275 billion proposal.
“Since 2008, state budgeting has proven to be a painful and difficult exercise,” Knapik commented. “Particularly, with health care costs swallowing a growing portion of our state’s resources and continued slow-growth in employment, this year’s budget presents a challenge, but I am encouraged by the Committee’s ability to put together a responsible spending plan,” he continued.
Knapik said he was pleased to increase budget items, especially education and local aid, but while times are improving, the state is not in the clear,
“I think the economy is struggling in its recovery,” Knapiks aid. “We took about $300 million worth of ‘rainy day’ fund money for the budget, while the House took over $400 million. We need to keep that rainy day fund strong.”
The Senate proposal calls for a 3.7 percent increase in spending and is built on an assumed 4.5 percent increase in revenue. More than half of all line items included in the Committee’s recommendation are either level-funded or reduced from spending levels in Fiscal Year 2012. The Committee’s budget closes a $1.4 billion budget gap with a combination of ongoing revenue initiatives, one-time resources and spending reductions, and without new taxes. Further demonstrating an ongoing commitment to fiscal responsibility, the committee proposal includes only a $290 million withdrawal from the state’s Rainy Day Fund, leaving the state on track to reach a projected balance of $1.19 billion in the stabilization fund at the end of FY13.
The Senate has prioritized protecting local aid to cities and towns in its budget proposal. The budget includes $4.17 billion for Chapter 70 Education Aid, a $180 million increase over Fiscal Year 2012 to ensure all school districts meet their foundation budget. Also, for the first time since 2008, the Senate proposes to fully fund the Special Education Circuit Breaker account at $242.2 million.
The circuit breaker is designed to assist school districts who experience high-cost placements and accommodations for students who require special education services. In FY 2012, the reimbursement of eligible special education costs was 12.5 percent. In FY 2013, the Senate proposes up to 75 percent reimbursement, delivering much-needed relief on special education expenses.
Knapik said Westfield would receive another $250,000 in circuit breaker funds.
Further, the Senate funds Unrestricted General Government Aid at $900 million, $66 million higher than in Fiscal Year 2012.
“Local governments have been particularly squeezed in recent years,” Knapik said. “I am pleased the Senate has prioritized the Special Education circuit breaker in its proposal, particularly in a year where the federal stimulus funding for education is expiring.”
“On the education side, we tried to go above the House budget,” he said.
Public safety accounts across the Commonwealth also see minor increases in the Committee’s proposal. District attorneys across the Commonwealth have each been slated for a 5 percent increase in their operating accounts. Locally, the Hampden County District Attorney will receive $8,404,444, while the Northwestern District Attorney will receive $5,232,902. The Trial Court is slated to receive $561.9 million. Additionally, the Senate provides $3 million for municipal police grants and $6 million for the popular Charles E. Shannon Anti-Gang grant program, which has benefited Holyoke and Chicopee in recent years. Lastly, $2 million is set aside for a new class at the Massachusetts State Police Academy.
The Senate, reacting to public and media outcry for accountability and efficiency in entitlement programs, has included $750,000 for a new State Police Public Benefit Fraud Unit, which Knapik dubbed the “fraud squad,” and included language restricting the use of cash assistance and codifying a crime for food stamp illegal trafficking.
“I am pleased the Committee has recognized the importance of efficiently overseeing public entitlements to ensure the benefit is being used on life essentials like food, health, and personal care,” Knapik offered. “While these programs are vitally important to some of our neediest citizens, the fiscal condition of our state requires that we pay close attention to prevent fraud, abuse, and waste
“The chairman of Ways and Means said we need to be much more accountable to our state programs,” said Knapik. “We also ned to make sure we have the outcomes that we want for our citizens.”
The Soldiers’ Home in Holyoke would receive $19,932,679 in FY 2013, a 1.7 percent increase over FY 2012. Further, the Senate fully funds retained revenue accounts at the Home to continue operation of 12 additional beds that were brought on-line last year in response to increased demand for services. The Soldiers’ Home will also retain proceeds from $290,320 collected for veterans’ license plates.
“Chairman Brewer and the Senate have been tremendous stewards and advocates for our veterans and the Soldiers’ Home,” Knapik offered. “I am pleased this commitment continues in this budget,” he added.
Higher education accounts are level-funded from Fiscal Year 2012 to Fiscal Year 2013. The University of Massachusetts is funded at $417,982,753, Westfield State University will receive $20,139,642 for operations, and Holyoke Community College would receive $16,074,594. These three institutions are vital economic engines for the Pioneer Valley and have experienced significant enrollment growth in recent years.
Knapik said funds were also marked for the least wealthy up to the target share of aid, which could bring an additional $500,000 into Westfield.
Members of the Senate will debate the budget and proposed amendments next week. After the debate, a conference committee will be appointed to reconcile the differences between the House and Senate versions of the budget before it is sent to the governor for approval.
Not included in the budget is funding for transportation to school for homeless students.
“That funding was included in the House budget and the West Springfield Senator Jim Welch is taking the lead on adding it as an amendment (to the Senate budget),” Knapik said.
The budget is available online at http://www.malegislature.gov/Budget/FY2013/Senate.
