 Governor seeks $943 Million, Murray & DeLeo Respond with $520 Million Plan
The likelihood of Governor Deval Patrick, Speaker of the House Robert DeLeo and Senate President Therese Murray getting together to sing the Lennon/McCartney Classic, Come Together, in celebration of budget unity seems somewhat off into the distant future.
Yesterday hopes of an early consensus was greatly complicated by the announcement from DeLeo and Murray that each Chamber's leader would be recommending to their colleagues a much smaller revenue package described as "a $500 million proposal that would tax businesses, tobacco users and drivers to pay for more modest investments"; compared to the Governor's House One proposal which called nearly $1 Billion more in transportation spending and additional investments in education and other areas.
With respect to the FY 14 Budget, according to an analysis prepared by A&F Secretary Glen Shor, "the Legislature's plan generates approximately (only) $400 million (in FY 14); according to legislative staff, at least $240 million of that new revenue will be dedicated to transportation. That will leave no more than $160 million in new revenue to support education and general budget purposes."
The Governor's office has stated that the Commonwealth actually faces a $1.5 Billion gap between existing revenue and planned expenditures and thus recommends nearly $1 Billion in new taxes, plus a combination of reforms and one time revenue resources. For human service budget watchers, the dispute between Democratic legislative leaders and their fellow Democratic Governor feels like an awkward Thanksgiving family dinner fight between cousins who generally support a common vision and agenda. Secretary Shor's budget analysis of the Murray/DeLeo revenue plan suggests that their lower revenue package will greatly challenge the Legislature cause the Legislature to potentially reduce the Governor's House One budget by cutting over $783 million in non transportation spending. House One currently contains investments including: - Chapter 257 with $52 million for a partial payment, (this account actually needs twice this amount for full rates to be paid per the state's obligation during the fiscal year)
- Early Education investments, eliminating a waiting list for 30,000 kids ($131 million)
- $118 million to preserve current levels of subsidized health coverage through the Connector
- $40 million for Mass Health
- $33 million for restoration of adult dental coverage
- $5 million for mental health safety initiatives
Can these services be preserved with lower revenue generated by the Legislature's revenue package? The first answer to this question will likely be revealed on Wednesday, April 10, 2013 with the release of the House Ways and Means budget. In the meantime, budget watchers and Lennon/McCartney fans hope to hear strains of Come Together playing along the hallways of the third floor of the State House. Perhaps the budget answer may lay somewhere in the middle between the Governor's plan and the Legislature's first response. ADDP remains committed to supporting efforts to increase state revenue to fund needed state investments. |