The budget proposal released by the House Ways and Means Committee on Wednesday adds more funding for education than Gov. Charlie Baker had proposed and eliminates some proposed eligibility changes to state welfare programs.
BOSTON — The budget proposal released by the House Ways and Means Committee on Wednesday adds more funding for education than Gov. Charlie Baker had proposed and eliminates some proposed eligibility changes to state welfare programs.
The House's $39.48 billion budget bill for fiscal year 2017 would increase spending by $1.34 billion, or 3.5 percent, over fiscal 2016.
"This is a fiscally responsible proposal that at the same time prioritizes those services that are very important to the citizens of the commonwealth," said state Rep. Brian Dempsey, D-Haverhill, chairman of the House Ways and Means Committee.
"Overall, it's a relatively tight budget," said state Rep. Stephen Kulik, D-Worthington, vice chairman of the House Ways and Means Committee.
During the state budget process, the three branches of government each release separate budget proposals: first the governor, then the House, then the Senate. The legislative budgets are amended and voted on, then sent to a team of House-Senate negotiators to hammer out a final version.
The House version is slightly lower than the $39.56 billion budget proposed by Baker. But lawmakers are likely to add more spending through amendments. The biggest differences are on education and welfare.
The House is proposing spending $33.7 million more on local education aid, referred to as Chapter 70, than Baker proposed, for a total of $4.6 billion. Additional money will be spent on special education, charter school reimbursements and regional school transportation.
Education advocates complained that Baker's proposal, although it represents a $72 million increase from last year, is not enough to fund education needs.
Kulik said state representatives and advocates had said Baker's education funding "was inadequate to even keep up with inflation costs that face our local school districts and cities and towns."
"We viewed that as a priority to try to address that as best we could within the constraints of the revenue we had," Kulik said.
"Members of the House feel strongly about the need to continue to invest in education," Dempsey added. "It's one of the single most important issues we deal with every single day."
The House budget would give a 1 percent funding increase to the University of Massachusetts, as well as to other state universities and community colleges. The $508.3 million that UMass would get is similar to what Baker proposed.
Dempsey noted that the state's public higher education institutions, particularly UMass, have been getting increased state funding over the last several years.
On welfare, Baker proposed cutting $39.5 million from Transitional Aid to Families with Dependent Children, which is cash assistance for poor families. He would do that by counting Supplemental Security Income benefits — federal benefits paid to people who are elderly, blind or disabled — in determining eligibility for the state program. Around 6,900 families with a disabled parent would become ineligible for cash assistance, according to the Massachusetts Law Reform Institute. Another 1,600 would see their benefits reduced.
Baker wanted to redirect the savings to childcare, job training and transportation for poor families.
The House Ways and Means budget eliminated Baker's proposed eligibility changes.
"We respect the governor's efforts relative to redirecting those funds to workforce training, but we believe direct assistance is most important," Dempsey said.
The House also adds back $15 million, half of what Baker proposed cutting from the Health Safety Net, which reimburses hospitals for care provided to poor, uninsured or underinsured patients.
Like the governor's proposal, the House budget would not raise fees or taxes and would not take money from the state's rainy day fund, a reserve held in case of economic downturn.
The House proposal includes new investment in substance abuse treatment, including money for 46 new transitional support services beds, 45 substance abuse treatment beds at Taunton State Hospital and a pilot program for providing medication assisted therapy in emergency rooms.
It includes a new $250 million fee on health care providers that would be used to incentivize providers to move toward new models of care — specifically, Accountable Care Organizations. Baker proposed this, and the House added a provision keeping the fee in place for only five years.
Two areas where the House spends less than Baker are in payments for public defenders and emergency homeless shelters. Both of these are areas that the Legislature typically underfunds, then appropriates more money for in mid-year budget bills.
There are also some human services that will see cuts, such as $4.8 million for home care.
"Overall, this budget is much more like the governor's budget than it is different from the governor's budget," said Noah Berger, president of the liberal-leaning Massachusetts Budget and Policy Center. "On the positive side, it provides a little more funding for local schools.... On the bigger picture, though ... it doesn't really take on some of the big challenges, like making public higher education affordable again, expanding access to early education, fixing our roads and bridges and public transit system."
Eileen McAnneny, president of the fiscally conservative Massachusetts Taxpayers Foundation, called the House budget a "solid" proposal that is "fiscally sound," because it grows spending at a lower rate than revenue growth, reduces the use of one-time money and will deposit some money into the rainy day fund.
House Minority Leader Bradley Jones, R-North Reading, said the proposal "contains good news for cities and towns, as it builds on the local aid increases offered in Gov. Baker's budget, particularly in the area of education."
"The Republican Caucus looks forward to reviewing the budget in more detail over the next two days and having the opportunity to offer targeted amendments that will further protect the interests of the state's taxpayers and our cities and towns," Jones said.
State Rep. Jose Tosado, D-Springfield, called the proposal a "great budget" because of its emphasis on funding for local government and education and its increases in funding for mental health and substance abuse services and the Department of Children and Families.
The Massachusetts Judiciary is unhappy with the budget. In a joint statement, Supreme Judicial Court Chief Justice Ralph Gants, Trial Court Chief Justice Paula Carey and Trial Court Administrator Harry Spence said the courts would have to cut 300 employees and slow down efforts to modernize under the budget proposal. The courts asked for $654 million and received $640 million.
"The House Ways and Means Committee Budget recommendation does not adequately support the day-to-day operations of the criminal justice system," they wrote.
Interest groups that are dissatisfied with the budget will now lobby for funding to be increased on the House floor. Matt Wilson, executive director of the arts organization MASSCreative criticized lawmakers for proposing a cut from this year's $14 million Massachusetts Cultural Council budget to $10 million. Wilson is asking for an increase to $17 million "to ensure that arts institutions and local cultural councils across the commonwealth can provide the diverse array of cultural activities that make the downtowns of our cities more attractive to residents and visitors alike; promotes educational programming that helps students of all abilities to excel across all academic disciplines; and builds more vibrant, healthy and equitable communities."
The Massachusetts Legal Assistance Corporation will ask for a $10 million increase in funding, rather than the $1 million increase it received from the House. In a statement, the organization cited reports showing that many of those who are eligible for civil legal aid are turned away because of a lack of funding.
The House is scheduled to debate the budget two weeks from now.