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Massachusetts State Seal

For Immediate Release

HOUSE AND SENATE REACH BUDGET ACCORD

Aid to Cities and Towns, Education Funding Receive Unprecedented Increases

BOSTON—Members of the Massachusetts Senate and House of Representatives appointed to resolve differences between the branch’s blueprints for the $25.703 billion Fiscal Year 2007 general operating budget have reached an agreement. The bill provides $920 million in Lottery aid to cities and towns, which is an increase of $158 million or 21% over last fiscal year, and $3.5 billion in Chapter 70 (education) funding, which is a $216.5 million or 7% increase in state aid to local school districts. The accord, known as a Conference Committee Report, was signed by all Democratic and Republican committee members and will travel to the Governor’s desk for his consideration after being accepted in both the House and Senate.

“After a long, careful, deliberative process, the conference committee negotiating the fiscal year 2007 budget has completed its work and filed a conference report. This budget is a testament to the commitment the entire Legislature shares towards our cities and towns—and with it we reaffirm our commitment to help ease the burden on residents who have been hit with rising property tax rates. By increasing the amount of funds we channel towards local communities, we reduce the amount they are required to raise through fees and property taxes. This budget also funds the newly implemented comprehensive health insurance reform and makes investments in targeted programs and services,” said Representative Robert A. DeLeo (D-Winthrop) and Senator Therese Murray (D-Plymouth), who chair the House and Senate Committees on Ways and Means, respectively, and who were their branch's chief budget negotiators.

In addition to Chairman DeLeo and Chairwoman Murray, the conference committee appointed by House Speaker Salvatore F. DiMasi (D-Boston) and Senate President Robert E. Travaglini (D-Boston) also included House Ways and Means Vice-Chair Marie P. St. Fleur (DBoston); Senate Ways and Means Vice-Chair Steven C. Panagiotakos (D-Lowell); ranking Republican House Ways and Means member Viriato M. deMacedo (R-Plymouth); and ranking Republican Senate Ways and Means member Michael R. Knapik (R-Westfield).

Selected highlights of the budget agreement include:

Local Aid

  • Provided $920 million, a $158 million increase, in Lottery aid to cities and towns which is due to the Legislature’s decision to “uncap” Lottery Distribution, allowing the return of 100% of Lottery revenue to cities and towns for the first time since the last economic downturn. The additional $158 million in revenue can be used to help reduce local property tax burdens and fund basic local services such as public safety and public works;
  • Provided over $3.5 billion for Chapter 70 education funding, which is a $216.5 million or 7% increase over last year’s allocation. The conference report makes targeted increases to the foundation budget by increasing the English language learner and low-income per pupil allotments and by uncapping inflation. The budget also includes a new formula for determining state aid and calculates required local contributions by equally weighing each district's aggregate income and aggregate property value.
  • Provided $25 million for the Sewer Rate Relief fund to help control the water and sewer bills of ratepayers throughout the Commonwealth;
  • Provided $21 million for Community Policing grants to cites and towns;
  • Level funded the Additional Assistance line item;
  • Increased to $25.3 million Payment in Lieu of Taxes (“PILOT”) payments which represents a 57% increase; and,
  • Provided an increase of $10.5 million for regional school transportation reimbursements.

Education

  • Provided an increase of $35 million for the University of Massachusetts, (to be distributed to all five campuses) and a $36.7 million increase for state and community colleges to decrease the so-called “funding gap” and to account for collective bargaining agreements;
  • Established an Education Data Warehouse and Reporting System to allow for a centralized system for student, teacher and performance data;
  • Allocated $6.5 million for extended learning time grants to allow for the implementation of planning grants created in FY06;
  • Provided an increase of $2 million for the Metco program; and,
  • Provided a $1 million increase for Head Start program.

Health and Human Services

  • Provided $77.8 million to increase enrollment cap to 60,000 for MassHealth Essential members;
  • Provided $28 million for the purchase of service reserve to enhance the salaries of hardworking individuals who provide direct care services to the most needy citizens throughout the Commonwealth;
  • Included $63 million in funding for the Prescription Advantage program to provide financial assistance for premiums, co-pays, and gaps in coverage in Medicare Part D;
  • Provided $11 million in additional funds for adult mental health services;
  • Provided $5 million for a new Step-Down Recovery Pilot program to assist individuals in substance abuse treatment on the path to a more complete and permanent recovery;
  • Provided an additional $1 million to the Autism Division of the Department of Mental Retardation (DMR) established last year;
  • Provided $8.5 million to support expected growth in DMR’s 2007 “Turning 22” class;
  • Provided an additional $500,000 in addition to $3 million in MassHealth enrollment outreach grants ensuring eligible citizens receive healthcare benefits under the new health care reform legislation;
  • Provided $3.6 million for the Sexual Assault Nurse Examiner (SANE) program;
  • Provided an increase of $2.4 million to the substance abuse services program to help in the fight against drug abuse and addiction; and,
  • Provided $7.55 million for Councils on Aging grants.

Housing and Homelessness

  • Provided $27.5 million for the Massachusetts Rental Voucher Program (MRVP) to provide vouchers to eligible families and individuals;
  • Provided $5 million for the Rental Assistance for Families in Transition (RAFT) program, which helps families move towards affordable, permanent housing;
  • Provided $3 million, which is an additional $500,000, for the Alternative Voucher Housing program to provide additional vouchers to non-elderly persons with disabilities and/or handicaps;
  • Included an additional $200,000 for the Housing Services Program which provides support services and activities to prevent at-risk families from becoming homeless; and,
  • Provided an additional $500,000 for the Department of Mental Health (DMH) Rental Subsidy Program.

Public Safety

  • Provided over $21 million in community policing grants to cities and towns;
  • Created a new $1 million re-entry initiative program intended to reduce inmate recidivism rates at the Department of Corrections;
  • Provided $16.2 million to continue upgrades at the state police crime lab and provided $7.7 million for the Office of the Chief Medical Examiner in order to ensure that quality forensic services for the law enforcement agencies and district attorneys are readily available; and,
  • Provided $2.5 million for new fire safety equipment in cities and towns.

Environment

  • Provided additional funding of over $2 million to the Department of Environmental Protection;
  • Provided an increase of $300,000 for the beaches under the control of the Department of Conservation and Recreation to ensure they are properly maintained and well staffed; and,
  • Provided over $1 million for the new Office of Dam Safety.