Details of Massachusetts’ FY16 Budget – Including Ch. 70 funds for Bedford and Unrestricted Aid

Updates Massachusetts’ Tax Structure to Support Residents without Raising Taxes or Fees; Reforms the MBTA

 Submitted by the office of Rep. Ken Gordon

Representative Kenneth Gordon (D-Bedford)  joined his colleagues in the Massachusetts Legislature to enact a $­­­­­­­­­38.145 billion state budget for Fiscal Year 2016 (FY16) which emphasizes economic growth, support for residents most in need, and reform of the state’s transportation system. The spending plan makes investments in local aid, education, and human services including an acute focus on behavioral health and substance abuse.

Bedford will receive $4,209,634 in chapter 70 aid for education and $1,058,221 in unrestricted general government aid, up 5.25% and 3.6% from FY 2015, respectively.

“I was proud to work with Senator Mike Barrett (D-Lexington) to provide additional funding for Bedford” said Representative Ken Gordon (D-Bedford). “The combination of the chapter 70 aid and the line item for the education of students from Hanscom air base provides some financial security for the Bedford public schools. I am pleased to see the state make such a strong investment in Bedford.”

“The bump in funding is a smart investment,” said State Senator Mike Barrett. “Tip of the hat to Rep. Gordon for all his work on the House side.”

Building on a responsible yet proactive approach to bolstering the state’s economy, this year’s budget increases the Earned Income Tax Credit (EITC) while maintaining a voter-mandated tax reduction and without implementing new taxes or fees. For low-to-moderate households, EITC will increase to 23 percent on January 1, 2016. Increasing this credit is an effective way to fight stagnant wages and lift working families out of poverty.

The FY16 budget targets the opioid crisis, strengthening behavioral health efforts enacted in last year’s budget and the landmark substance addiction law through several targeted investments. Many of the programs focus on co-occurring disorders and finding sustainable ways to aid in both prevention and recovery including:

• $3 million for new clinical stabilization beds to provide for treatment after detoxification;
•  A municipal Naloxone bulk purchasing program to authorize the Department of Public Health to buy and distribute this critical intervention to first responders;
• A task force to study the feasibility of a prescription drug disposal program;
• $2.5 million to expand patient access to Vivitrol, a non-narcotic drug that blocks the effect of opiates or alcohol for a period of 30 days;
•  $1.5 million to expand opioid prevention grants;
•  $3.1 million for a new line item for Recovery High Schools, including $1 million to establish two new programs;
•  More than $375 million for Adult Community Mental Health Services, $87 million for Child and Adolescent Mental Health Services, and an additional $4 million for the Department of Mental Health to annualize and expand community placements to free up beds in the DMH pipeline.

This budget enhances the Commonwealth’s partnerships with cities and towns through numerous funding streams including almost $980 million to Unrestricted General Government Aid (UGGA), a $34 million increase from FY15 and $4.5 billion for Chapter 70 (education funding). The spending plan fully funds Special Education Circuit Breaker in order to help districts meet the cost of educating students with disabilities, and provides $59 million to reimburse municipalities for Regional School Transportation costs.

In addition to educational investments through local aid, this year’s budget extends Massachusetts ongoing commitment to supporting and strengthening its educational systems to foster equality and provide residents with a competitive edge, including:

• $4 million to increase access to high-quality early education and care (EEC) for the Commonwealth’s youngest children through EEC program quality improvements, including support for workforce development and training opportunities for early educators;
•  $12 million to serve an additional 2,000+ children on the income-eligible EEC waitlist and support working families;
•  $95.6 million for the state’s Higher Education Scholarship to help eligible Massachusetts residents cover the cost of college;
•  $750,000 for the Community College Workforce Training Incentive Grant Program to expand vocationally-oriented course offerings and support the work of Community Colleges in developing tomorrow’s workforce.

This year’s budget emphasizes the importance of enhanced fiscal predictability and sustainable investments, a practice that has raised Massachusetts bond rating to AA+, the highest in the state’s history. For the first time since 2007, the budget does not withdraw any funds from the Commonwealth’s stabilization fund, leaving the balance in excess of $1 billion.

Additional economic development measures include:

• MassCAN: $1.7 million to establish widespread, progressive computer science curriculum in public school through a public-private matching program;
• Talent Pipeline: $1.5 million to encourage young innovators to get a head start on their futures by matching stipends for interns at innovation start-ups, and to provide mentoring opportunities for new entrepreneurs;
• STEM Starter Academy: $4.75 million to promote STEM careers at the Commonwealth’s community colleges.
• $2 million for the Massachusetts Manufacturing Extension Partnership to address the shortfall of skilled workers and aid small and mid-sized manufacturing companies though technical assistance and consultant support;
• $1.5 million for a Precision Manufacturing Program, designed to increase the skill set of middle-skilled workers;
• $600,000 for Regional Economic Development Grants;
• $2.2 million for the Workforce Competitiveness Trust Fund to train unemployed and low-wage workers for high-demand industries like health care, construction, and education;
• $1.2 million for a new Training Resources and Internship Networks (TRAIN) grant program, a partnership with community colleges to specifically target the long-term unemployed and provide them with training and internship opportunities and the chance to fill resume gaps.

Included in the budget is a provision that protects taxpayer dollars from being spent on the 2024 Olympics, which also includes tax incentives, for the Games if they come to Massachusetts.  The provision requires Boston 2024 to formally request funding from the Legislature for any specific project and make their case during a formal hearing.