Gov. Patrick signs FY11 state budget

Yesterday afternoon, Gov. Deval Patrick signed a $27.6 billion fiscal 2011 state budget act in time for the new fiscal year.

Budget negotiations were thrown into disarray earlier this month when the fate of nearly $700 million in expected federal Medicaid funds became unclear, removing a vital revenue source upon which the governor, House and Senate all built their budget plans.

Thirty states have counted on receiving a share of $24 billion in temporarily higher federal Medicaid reimbursement (FMAP) percentages that Congress and the president have all supported at various times. Congressional leaders, however, have been unable to secure the necessary votes to approve the funding in recent weeks, derailing budget planning in many states.

The Legislature opted to pass a budget that drew $100 million from the state rainy day fund, halted an additional $95 million transfer from the General Fund into the stabilization fund, and imposed sweeping cuts across state government. The budget bill, however, provided a contingency fund that would have supplemented the appropriations to dozens of line items if the federal funding materialized during the year.

With hopes dimming for passage of the federal funds, the governor has vetoed the contingent appropriations, removing $372 million from the budget. The governor also vetoed $85.5 million to cover the administration’s projection of lower revenues in other areas.

Local aid accounts
The governor and Legislature protected the Unrestricted General Government Aid and Chapter 70 education aid accounts from any cuts beyond the 4 percent announced by the Legislature earlier this spring. The governor originally filed a budget that would have level-funded these major accounts, and he had announced that he would not impose any additional cuts beyond those made by the Legislature. Thus, communities will receive their expected UGGA and Chapter 70 distribution amounts in the budget signed by the governor.

While the Legislature crafted a framework that would have added or restored funds to a number of budget accounts if the FMAP funding came through, the governor opted to eliminate that framework and recommends that separate supplemental budgets be considered should the federal funds arrive during the year.

Other than UGGA and Chapter 70, key municipal and school accounts are funded as follows:

• Regional school transportation reimbursements are level-funded at $40.5 million. (The governor vetoed an additional $3.5 million that was contingent on FMAP funding.)

• The Payment-in-Lieu-of-Taxes program is funded at $25.27 million, a decrease of $2 million compared to fiscal 2010. (The governor vetoed an additional $2 million that was contingent on FMAP funding.)

• The Special Education Circuit Breaker program is level-funded at $133.1 million. (The governor vetoed an additional $12.5 million that was contingent on FMAP funding.)

• Kindergarten Development Grants are funded at $22.95 million, a cut of $2.75 million below fiscal 2010. (The governor vetoed an additional $3 million that was contingent on FMAP funding.)

• The Shannon Anti-Gang Grant Program is level-funded at $4.5 million. (The governor vetoed an additional $2 million that was contingent on FMAP funding.)

• Charter School Reimbursements are funded at $71.5 million, a $3 million reduction below fiscal 2010 levels.

• The Police Career Incentive Pay Program is funded at $5 million, down from $10 million in fiscal 2010.

• Library aid accounts are funded at $15.6 million, a $3 million reduction below fiscal 2010 levels.

• Link to the governor’s fiscal 2011 state budget message, including Section 3 local aid amounts

Additional information and links regarding the state budget will be posted here as details become available.