Preliminary Analysis:
Massachusetts Fiscal Year 2011 Budget

 

The Massachusetts FY 11 budget was signed by Governor Patrick on June 30, 2010. This budget goes into effect on July 1, 2010. Two key provisions in this budget that our staff should be aware of are the elimination of adult dental benefits under MassHealth and the elimination (and possible short-term reprieve- see accompanying story) of the Commonwealth Care “Bridge” program for legal immigrants subject to the 5-year bar on federal benefits.

The budget included two sets of spending levels: one if the state does not receive additional fiscal relief from the federal government, and another set of numbers allocating funding that could be received if Congress does provide additional state fiscal relief. This money would come from an extension of the enhanced Federal Medicaid Assistance Percentage (FMAP), a significant component of stimulus included in the federal Recovery Act. While the federal government normally picked up 50 percent of the Medicaid tab in all states, the stimulus law increased the government’s share to 62 percent. To show how this money would be allocated, the Legislature’s budget proposal included spending levels in a number of line items that had both a base level and a higher amount that could be spent if additional FMAP funding is received, though press reports indicate this is looking unlikely.

Health Care

MassHealth (Medicaid) & Health Reform

• Restorative adult dental benefits for MassHealth members are cut.
  This leaves only screening, preventive
  and emergency services available to this population.
  This cut will affect close to 700,000 adults, including approximately 130,000 elders. If the state does not receive FMAP funding, the entire dental benefit is at risk
  (Sentences in italics added 7/6/10.  From- Oral Health Advocacy Task Force e-mail, 7/2/10)
• Eliminates the Commonwealth Bridge program- would only continue this program (at a reduced funding level) if the federal government provides the extended enhanced FMAP funding. See accompanying story on possibility of a temporary extension for this program.
• Cuts to the day habilitation services for disabled adults, reductions in personal care attendant services, reductions in grants to certain community providers, and a reduction in funding for the Children’s Behavioral Health Initiative (also known as “Rosie D.” funding.) Also shortens the time frame for eligibility redeterminations among other cost-containing measures.

Mental Health

• Funds mental health services at $622.2 million, $11.8 million less than the FY 2010 total.
• Funding for mental health facilities ($137.5 million), a drop from the FY 2010 current budget ($167.1 million).

Public Health

• If the FMAP funding becomes available, some public health services could see a slight increase, but many services will still be cut compared to FY 2010 current levels.
• A 16 percent cut from early intervention compared to FY 2010 levels. If the extended FMAP were to become available, early intervention could receive up to $1.7 million more, which would still be 10 percent less than in FY 2010.

Human Services

Elder Services

• Elder home care receives $129.6 million in the Conference Committee budget, which is 5 percent below the FY 2010 budget of $136.4 million. If the extended FMAP funding were to become available, elder home care could receive as much as $10.8 million more, which would put the total at 3 percent above FY 2010 budget levels.
• Elder protective services - $15.3 million which is level with FY 2010 funding. Additional FMAP funding would bring protective services to the Senate’s proposed funding level, which would be a 10 percent increase over FY 2010 totals.

Transitional Services

• $15 million in funding for the Employment Services Program (ESP) $6 million, or 29 percent, below current FY 2010 budget levels. If additional FMAP funding becomes available, this appropriation could increase by up to $8.1 million.
• $315.2 million in funding for Transitional Aid to Families with Dependent Children (TAFDC) grant payments - $2.9 million, or 1 percent, above current FY 2010 budget levels. If additional FMAP funding becomes available, this appropriation could increase by up to $1 million.

Other Human Services

• $4.36 million in funding for home care services for the disabled under the Massachusetts Rehabilitation Commission or 14 percent, below current FY 2010 budget levels. If additional FMAP funding becomes available, this appropriation could increase by up to $406,000.
• $143.1 million in total funding for the Department of Youth Services - $5 million, or 3.4 percent, below current FY 2010 budget levels. If additional FMAP funding becomes available, this appropriation could increase by approximately $633,000.

Infrastructure, Housing & Economic Development

Housing & Community Development

• $115.4 million for Emergency Assistance (EA) for homeless families living at or below 115 percent of poverty. This is $36.3 million below the current budget after the Legislature adopted additional appropriations in FY 2010 to meet increased demand for EA since the economic downturn. Should FMAP funding be approved, EA would receive up to $116.9 million. The increased demand for shelters has exceeded the shelter space available to homeless families. As a result, the Department of Housing and Community Development (DHCD) has contracted with some hotels and motels to provide shelter to homeless families. In its budget, the House recommended creating a new $4 million housing stabilization account, in addition to EA funding that would focus on reducing the state’s reliance on shelters, specifically hotels and motels, by helping homeless families find permanent housing. Instead of including the House’s new line item, the Conference Budget includes an earmark from the Senate’s budget requiring that $3.5 million of EA funds be used to reduce the state’s reliance on shelters, including hotels and motels, for housing homeless families. The line-item language also stipulates that if the FMAP funding should be approved, an additional $500,000 would be spent on this effort.
• $33.2 million for the Massachusetts Rental Voucher Program (MRVP), which is $303,000 above the amount budgeted for FY 2010. In addition to the appropriation, Section 131 of the Conference Budget requires that MassHousing contribute $2.7 million to MRVP, which is $200,000 more than it contributed in FY 2010. Should FMAP be approved, funding for MRVP could increase by as much as $2.2 million up to $35.4 million.
• $260,000 for Residential Assistance to Families in Transition (RAFT), a program that provides one-time assistance to families at risk of becoming homeless or need short-term help to acquire permanent housing. Should FMAP be approved, funding for RAFT could be increased by as much as $740,000 up to $1 million.
• $62.5 million in subsidies for public housing authorities, the same level as the amount budgeted in FY 2010. Should the FMAP funding be approved, the budget recommends increasing funding for these subsidies by as much as $2 million, or up to $64.5 million. The Conference Budget also requires that if the FMAP funding is approved, the $2 million in additional appropriations should be used to renovate unoccupied family units so that the state has more housing available for homeless families served through EA (see above).

Education

Early Education and Care

• Child care funding for income-eligible families- $33.4 million, or 13 percent, below current FY 2010 budget levels. If additional FMAP funding becomes available, this appropriation could increase by up to $5 million.
• Child care funding for children with active cases at the Department of Children and Families (DCF)- $7.9 million, or 10 percent, above current FY 2010 budget levels. If additional FMAP funding becomes available, this appropriation could increase by up to $2.4 million.
• Child care funding for families served by or transitioning from Transitional Aid to Families with Dependent Children (TAFDC)- $11.1 million, or 10 percent, above current FY 2010 budget levels. This appropriation would not be affected by the availability of additional FMAP funds.

• Early Childhood Mental Health grants - $250,000, or 25 percent, reduction for this program. If additional FMAP funding becomes available, this appropriation could increase by up to $250,000.

-From “Preliminary Analysis: The Governor’s Actions on the Fiscal Year 2011 Budget”, Mass Budget and Policy Center. Posted 6/30/10 at http://www.massbudget.org/documentsearch/findDocument?doc_id=731, retrieved 7/1/10; “Budget would cut services, local aid; Lawmakers’ plan eases crackdown on illegal immigrants” by Noah Bierman, Globe Staff, The Boston Globe, June 24, 2010, http://www.boston.com/news/local/massachusetts/articles/2010/06/24/budget_would_cut_services_local_aid/, retrieved 6/24/10, and “Senate health bill test vote fails; But extension proposal for $608m alive”, by Michael Norton and Kyle Cheney, State House News Service, Boston.com, June 17, 2010 http://www.boston.com/news/local/massachusetts/articles/2010/06/17/senate_vote_stirs_anxiety_over_federal_health_care_funds/, retrieved 6/17/10.

 

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