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NE’s 2013 Legislative Sessions: Massachusetts

John O. Harney — Mon, 23 Sep 2013 17:54:24 +0000

Passage of a budget for FY14 was complicated by action taken on a $1.9 billion transportation bill filed by Gov. Deval Patrick to fund transportation projects and increase funding for education. Lawmakers rejected Patrick’s $1.9 billion request for new taxes and sent back a bill with $500 million in new taxes including a 3-cent hike in the gas tax. Patrick subsequently vetoed the bill admonishing lawmakers that if the tolls in the western Massachusetts come down in 2017 when the bonds for the Mass Turnpike are paid off, there would be a loss of over $100 million in revenue. Lawmakers were not swayed and voted to override his veto by wide margins in the House and Senate.

In early July, following action on the transportation bill, lawmakers sent Patrick a $34 billion budget for FY14. The governor vetoed $240 million in transportation accounts and $177 million in local aid, claiming the budget would not be balanced. Local officials reacted with anger to massive reduction in local budgets for cities and towns and urged legislators to override the governor’s vetoes. Subsequently, legislators voted to override the governor’s vetoes restoring the budget to its original form.

The budget:

Increases funding for the University of Massachusetts to $478.9 million in exchange for a freeze on tuition and fees.
Increases unrestricted local aid by $21.2 million sending $902.2 million to cities and towns
Provides a $38 million increase for rates paid to Massachusetts hospitals who treat large numbers of Medicaid patients by boosting reimbursements from Medicaid and gambling revenues.
Requires photo IDs to be used on electronic benefit transfer (EBT) cards for those age 18 or older.
Approves $30,000 pay raises for judges over FY14 and FY15. This is the first pay raise approved since 2006.
Increases funding for elder care home services by $6.2 million, bringing total funding for FY14 to $182 million.

Session highlights ... so far ...

The Massachusetts Legislature is in session until Dec. 31, 2013. But already, state legislation has:

Funded an $800 million transportation finance bill which provides for a 3-cent increase in the gas tax, a $1-per-pack increase in the cigarette tax and a broad tax on computer services. The bill is purported to avoid fare hikes on the MBTA while providing additional funding for regional bus services and other transportation upgrades. Some lawmakers expressed concern that the tax on computer services would drive businesses out of the state.
Repealing the tax on computer services or the “tech tax” is likely. State officials have now delayed collection of the tax, which was passed as part of the transportation finance bill. In response to business concerns, legislative leaders and the governor now admit the tax was ill advised
Raised the age of jurisdiction for juvenile offenders to 18 years. This will allow 17-year-olds to be processed in juvenile court, rather than the adult courts. However 17-year-olds on trial for serious crimes, e.g. murder, would still be tried in adult courts.

Higher education

From FY2002 to FY2013, state appropriations for all sectors of the Massachusetts public higher education system declined by 25%. Consequently, institutions raised tuition and fees.

In the FY14 budget, approximately $100 million in additional funding was approved for the University of Massachusetts, the Massachusetts State Universities and the Community Colleges. More specifically,

Funding for the University of Massachusetts increased by $40 million bringing FY14 funding to $497 million. In exchange, tuition and fees will be frozen.
Funding for the State Universities increased by $29 million bringing funding for FY14 to $232.8 million.
Funding for the Community Colleges increased by $32.4 million.

The Massachusetts State Scholarship Program, which includes MASSGrant (need-based financial aid), will increase by $3 million or 3% over FY13.

K-12

Funding for Chapter 70 (education aid to cities and towns) increased by approximately 3% or $4.3s billion.

The budget provides $1 million for Innovation Schools. This would fund competitive grants for school districts who are planning or in the process of implementing innovative programs.

Early ed

The budget also provides approximately $500 million for early education and child care programs. Most of the funding is allocated to TANF-Related Child Care, the Department of Children and Families and Income Eligible Child Care.

Carolyn Morwick handles government and community relations at NEBHE and is former director of the Caucus of New England State Legislatures.

NE’s 2013 Legislative Sessions: New Hampshire

John O. Harney — Fri, 20 Sep 2013 20:12:13 +0000

Granite State lawmakers on June 26 approved a $10.7 billion two-year budget with bipartisan support. Members of the Senate, which is controlled by Republicans, unanimously supported the budget, while more than 300 of the 400-member Democrat-controlled House approved the spending package.

Bipartisan agreement on the two-year plan was bolstered by growth in March and April tax revenues, which generated approximately $200 million in new revenue.

First-term Democratic Gov. Maggie Hassan based her budget in part on approval of a casino, which would generate $80 million in license fees. However, legislators led by Democratic Speaker of the House, Teri Norelli, opted out of the casino bill. The House rejected the plan by a vote of 199-164.

As part of a budget compromise, Hassan and Democratic lawmakers agreed to establish a commission to study the expansion of Medicaid to include 49,000 poor adults. Under the Affordable Care Act, states may choose to expand Medicaid in their states. Hassan and Democratic lawmakers favored expanding Medicaid as part of the budget, but Republicans were opposed. The commission has until Oct. 15 to make a recommendation regarding Medicaid expansion.

The budget:

Restores funding and rebuilds Children in Need of Services program (CHINS), which addresses at-risk youth.

Approves funding of $38 million for construction of a new women’s prison in Concord to provide the same level of safety and programs offered as those offered at the men’s correctional facilities.

Provides funding for web-based initiatives and improved technology including a program called Business One-Stop, which would aggregate services online for business owners, and another program that would create a statewide database of all professional license-holders.

Provides funding for the New Hampshire Department of Education’s Career and Technical Centers and “Sub Centers, which serve high school students.

Doubles the funding for the state’s research & development tax credit and extends it permanently.

Session highlights

New Hampshire lawmakers:

Approved establishment of a state energy council to develop a 10-year energy strategy for the state taking into consideration, the state’s supply and demand for energy needs, access to natural gas, role in the regional electricity market, and role of efficiency and other issues related to the energy mix.

Approved “Pathway to Work” program intended to encourage unemployed workers to become entrepreneurs working with the state’s Small Business Development Center to access entrepreneurial training, business counseling and technical assistance.

Approved marijuana for medical use.

Higher education

For the first time in 25 years, the trustees of the University System of New Hampshire (USNH) voted to freeze tuition at the current level after legislators provided more state aid to the system. In the previous budget, lawmakers cut funding to the system by 50%, which resulted in tuition increases of 9% and 6%. For the new biennium, the USNH will receive $153 million. Hassan proposed at the outset of budget discussions freezing tuition pending an increase in state appropriations to the system. The budget also increases aid for scholarships at public and private colleges and universities.

Trustees for the Community College System of New Hampshire voted to freeze tuition in exchange for increased funding for the system in the FY14-15 budget. Funding for the community colleges increased to $40 million.

The budget also includes $8 million for USNH capital projects, with an additional $13 million designated for the community college system.

Carolyn Morwick handles government and community relations at NEBHE and is former director of the Caucus of New England State Legislatures.

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NE’s 2013 Legislative Sessions: Maine

NE’s 2013 Legislative Sessions: Rhode Island
NE’s 2013 Legislative Sessions: Connecticut
NE’s 2013 Legislative Sessions: Vermont

NE’s 2013 Legislative Sessions: Maine

John O. Harney — Fri, 20 Sep 2013 16:05:43 +0000

Maine lawmakers averted a government shutdown, overriding Gov. Paul LePage’s veto of the budget for FY14 and FY15. Both branches exceeded the required two-thirds vote, with the House voting 114–34 in support of the override, and the Senate voting 26-9 in support.

While Democrats won the budget battle in rejecting LePage’s budget plan, they lost a number of battles including a move to expand health care coverage to 70,000 Maine residents and to raise the minimum wage in Maine from $7.50 to $8.50 an hour.

The $6.3 billion budget:

raises sales tax for two years from 5% to 5.5%
raises meals, lodging tax for two years from 7% to 8%
preserves tax cut of $400 million passed in 2010
restores $125 million (approximately two thirds of cuts) to municipal revenue-sharing
increases funding for public education to 47%
provides funding for Head Start
restores cuts to program which help senior citizens pay for prescription medications
reduces the waitlist for MaineCare for those with severe disabilities
restores funding for merit and longevity pay for state workers

Session highlights

Maine lawmakers:

Approved a bill requiring the labeling of GMOs (genetically modified organisms) making Maine the second state to pass such legislation. LePage has indicated he will sign the bill in January 2014,when the Legislature reconvenes.

Created the Maine Skills Gap Program to meet immediate hiring needs of Maine employers. The goal is to encourage students and qualified experienced workers to take positions with Maine companies with significant unmet demand for skilled labor. An employee would be reimbursed a portion of debt while still working for the company.

Overrode LePage’s veto and approved an energy-efficiency bill, which will expand natural gas infrastructure and lower electricity costs for Maine businesses.

Overrode the governor’s veto and approved a measure that requires police and law- enforcement agencies to get a warrant to track a user's cellphone location in real-time or obtain historical location data.

Approved finance revenue bonds to pay the state’s hospitals for services provided to Medicaid recipients. Hospitals are owed $184 million in state Medicaid funds, which would trigger a $305 million federal match.

Special session

The Maine Legislature returned to work for a one-day special session on Aug. 29 and approved a $150 million bond package for infrastructure projects. The largest proposal was a $100 million transportation infrastructure bond. Three other bond proposals call for investment in science, technology, engineering and math facilities at the University of Maine, Maine Community Colleges and Maine Maritime Academy. A fourth bond proposal funds renovations and repairs for state armories. The bond proposals must be approved by Maine voters in November. Legislators also approved an emergency measure to address overcrowding and staff shortages at a state psychiatric facility. The plan must receive approval from the federal government.

Higher education

The University of Maine System was flat-funded for FY14. The system has a balanced budget, while maintaining tuition and fees at FY12 levels. State appropriations for the system have steadily declined as a percent of the state budget. The budget for FY14 is $6.2 million below FY08 levels.

Much of LD 90, legislation to address workforce needs, was incorporated into the budget (LD 1509) including:

$500,000 for the University of Maine System to help adults complete their degrees
$2.4 million to reduce a student backlog for 14 grant programs and allow the system to add more than 250 students.*

Trustees for the Maine Community Colleges approved a tuition increase of $60 over FY13. Full-time undergraduate students will pay $60 more in tuition, paying $2,640.

Maine Maritime Academy's tuition and fees for 2013-14 will be $11,950, up from $11,525 this year.

First-generation college students. The Legislature required the Board of Trustees of the University of Maine to submit to the Joint Committee on Education and Cultural Affairs, a report outlining efforts to increase enrollment and graduation rates of first-generation students as well as data regarding enrollment and graduation rates. Also, University of Maine Trustees will establish a working group to increase recruitment of first-generation college students.

Dual Enrollment. The Legislature created a dual-enrollment career and technical education collaborative partnership to provide a cohort-based learning pathway for career and technical education students to take postsecondary education courses and earn credits toward an associate degree.

Access. The Legislature created permanent commission on Expanding Early Postsecondary Access for High School Students.

The Legislature also provided $27,000 over a two-year period to the STEM Council to hire an executive director to advance science and math education, create career awareness campaigns, and spearhead internship opportunities for high school and college students in these fields.

K-12

The centerpiece of LePage’s education reform package was the implementation of a statewide grading system for public schools. According to LePage, the so-called A–F system will make schools more accountable. Rob Walker, president of the Maine Education Association, criticized the methodology as the grading system gives failing grades to schools with the highest percentage of students on free- and reduced-priced lunch programs, an indication of how socioeconomic factors affect a school’s grade.

Carolyn Morwick handles government and community relations at NEBHE and is former director of the Caucus of New England State Legislatures.

* Note: updated Sept. 23, 2013.