Month: July 2021

Massachusetts Legislature Passes FY22 Budget

BOSTON – Friday, July 9, 2021 – The Massachusetts State Legislature on Friday unanimously passed a $48.07 billion budget for Fiscal Year 2022 (FY22). This budget maintains fiscal responsibility, does not cut services, and makes targeted investments to address emerging needs, safeguard the health and wellness of the most vulnerable populations and ensure residents will benefit equitably as the state recovers from the impacts of the COVID-19 pandemic.

Taking into consideration strong tax revenue performance in Fiscal Year 2021 (FY 2021), the final FY22 conference report increases revenue assumptions by $4.2 billion over the December consensus revenue projection for a new tax revenue projection of $34.35 billion. The FY22 budget does not make a withdrawal and instead transfers funds into the Stabilization Fund, projecting an estimated balance of approximately $5.8 billion for this crucial ‘rainy day’ fund at the end of the fiscal year.

Notably, the Legislature provides substantial funds in the FY22 budget to invest in the Commonwealth’s long-term obligations. Prioritizing funding for education, the new Student Opportunity Act Investment fund was funded at $350 million to be utilized in the coming years for the implementation of the state’s landmark Student Opportunity Act (SOA). Additionally, a supplemental payment of $250 million was transferred to the Pension Liability Fund to reduce the Commonwealth’s pension liability.

As a cornerstone of the Commonwealth’s equitable recovery, the FY22 budget protects access to educational opportunity and charts a path forward for students, families, educators, and institutions. The budget maintains the Legislature’s commitment to implementing the Student Opportunity Act by FY 2027. The conference report proposal fully funds the first year of the SOA consistent with the $5.503 billion local aid agreement reached in March, amounting to an increase of $220 million over FY21.

Despite the uncertainty created by the pandemic, this increased level of investment represents a 1/6th implementation of SOA rates and ensures that school districts across the Commonwealth have adequate and equitable resources to provide high quality educational opportunities for all students. The FY22 budget also includes a $40 million reserve consistent with the March local aid agreement to provide additional aid to districts experiencing increases in student enrollment compared to October 2020.

The budget invests in higher education allocating $571 million for the University of Massachusetts system, $315 million for community colleges, and $291 million for state universities. The budget also includes $130 million in scholarship funding and funds the community colleges SUCCESS Fund at $10.5 million and the STEM Starter Academy at $4.75 million.

The budget also includes large investments in labor and economic development, such as the creation of a trust fund dedicated to job training for the offshore wind industry to be administered by the Massachusetts Clean Energy Center. This budget makes an initial deposit into this fund of $13 million to establish and grow technical training programs in our public higher education system and vocational-technical institutions. The fund will also prioritize grants and scholarships to adult learning providers, labor organizations, and public educational institutions to provide workers with greater access to these trainings.

Other education investments include:

  • $388.4 million for the Special Education Circuit Breaker, reimbursing school districts for the high cost of educating students with disabilities at the statutorily required 75% reimbursement rate
  • $154.6 million for reimbursing school districts at 75% for costs incurred when students leave to attend charter schools
  • $82.2 million for regional school transportation
  • $50 million for Adult Basic Education
  • $27.9 million for the Metropolitan Council for Educational Opportunity (METCO) program
  • $6 million for Social Emotional Learning Grants to help K-12 schools bolster social emotional learning supports for students, including $1M for a new pilot program to provide mental health screenings for K-12 students
  • $4 million for Rural School Aid

This budget supports working families by addressing the increasing costs of caregiving for low-income families by converting the existing tax deductions for young children, elderly or disabled dependents and business-related dependent care expenses into refundable tax credits. These tax credits will benefit low-income families who have little or no personal income tax liability and cannot claim the full value of the existing deductions. The conversion to a refundable tax credit would provide an additional $16 million to over 85,000 families each year. Coupled with the expanded Child Tax Credit and the Child and Dependent Care tax credits under the federal American Rescue Plan Act, these credits will help lift families out of poverty and support low-income working parents and caregivers across the Commonwealth.

The FY22 budget builds on the success of last year’s efforts to tackle ‘deep poverty’ with a 20 per cent increase to Transitional Aid to Families with Dependent Children (TAFDC) and Emergency Aid to the Elderly, Disabled and Children (EAEDC) benefits over December 2020 levels, ensuring families receive the economic supports they need to live, work and provide stability for their children. Further, the final budget repeals the asset limit for Transitional Aid to Families with Dependent Children. Traditionally, asset limits on assistance programs further expose those who are already financially vulnerable to greater economic hardship. While families are recovering from the impacts of COVID-19, it is vital to make assistance programs accessible and effective, and removing the asset limit allows families to save for education, job training, reliable transportation, home expenses, and other emergency needs.

Other children and family investments include:

  • $30.5 million for Emergency Food Assistance to ensure that citizens in need can navigate the historic levels of food insecurity caused by COVID-19
  • $7.5 million for grants to our Community Foundations to support communities disproportionately impacted by the pandemic
  • $5 million for the Secure Jobs Connect program, providing job placement resources and assistance for homeless individuals
  • $4.2 million for the Office of the Child Advocate, including $1M for the establishment and operation of a state center on child wellness and trauma
  • $2.5 million for Children Advocacy Centers

To help families get back to work, the FY22 conference report includes $820 million for the early education sector, including $20 million to increase rates for early education providers, $15 million for Massachusetts Head Start programs, $10 million for the Commonwealth Preschool Partnership Initiative to expand public preschool, and $9 million to cover the cost of fees for parents receiving subsidized early education in calendar year 2021.

The FY22 budget provides resources to help with housing stability, including $150 million for the Massachusetts Rental Voucher Program to expand access to affordable housing, $85 million for grants to local housing authorities, $22M for the Residential Assistance for Families in Transition Program and $8 million for Housing Consumer Education Centers to help administer nearly $1 billion in federal housing relief.

The budget makes the state’s film tax credit permanent and requires an increase in the percentage of production expenses or principal photography days in the Commonwealth from 50 per cent to 75 per cent. The film tax credit was set to expire in January 2023. The budget also includes a disability employment tax credit for employers that hire employees with a disability.

To ensure long-term fiscal responsibility, FY22 budget repeals three ineffective tax expenditures as recommended by the Tax Expenditure Review Commission (TERC), namely the exemption of income from the sale of certain patents, the medical device tax credit, and the harbor maintenance tax credit, effective January 1, 2022. The TERC found that these tax expenditures are either obsolete, fail to provide a meaningful incentive, or fail to justify their cost to the Commonwealth. The TERC was created as part of a Senate budget initiative in Fiscal Year 2019.

The Legislature’s FY22 budget confronts the frontline health care impacts of the pandemic to navigate the challenges posed by COVID-19. It also sustains support for the state’s safety net by funding MassHealth at a total of $18.98 billion, thereby providing over 2 million of the Commonwealth’s children, seniors, and low-income residents access to comprehensive health care coverage. It also invests $15 million to support local and regional boards of health as they continue to work on the front lines against the ongoing impacts of the COVID-19 pandemic.

Understanding that the pandemic has been a stressor on mental and behavioral health, the FY22 budget invests $175.6 million for substance use disorder and intervention services provided by the Bureau of Substance Addiction Services. It also invests $12.5 million to support a student telebehavioral health pilot, public awareness campaigns, loan forgiveness for mental health clinicians, and initiatives to mitigate emergency department boardings for individuals in need of behavioral health support, as well as $10 million for Programs of Assertive Community Treatment (PACT) grants to provide intensive, community-based behavioral health services for adolescents.

Other health care and public health investments include:

  • $98.4 million for children’s mental health services, including $3.9M for the Massachusetts Child Psychiatric Access Program (MCPAP) and MCPAP for Moms to address mental health needs of pregnant and postpartum women
  • $25 million for Family Resource Centers (FRCs) to grow and improve the mental health resources and programming available to families
  • $56.1 million for domestic violence prevention services
  • $40.8 million for early intervention services, to ensure supports are accessible and available to infants and young toddlers with developmental delays and disabilities, including funds to support health equity initiatives

To support economic development, the FY22 budget increases access to high quality and reliable broadband—which is crucial for businesses, students and families—by moving the duties of the Wireless and Broadband Development Division to the Department of Telecommunications, which is working to facilitate access to broadband, and has the institutional ability and knowledge to address broadband access issues. The budget also includes a $17 million transfer to the Workforce Competitiveness Trust fund, $15.4 million for Career Technical Institutes, and $9.5 million for one-stop career centers to support economic recovery.

Other investments in economic and workforce development include:

  • $15 million for the Community Empowerment and Reinvestment Grant Program
  • $6 million for Regional Economic Development Organizations to support economic growth in all regions of the state
  • $2.5 million for the Massachusetts Cybersecurity Innovation Fund, including $1.5 million for new regional security operation centers, which will partner with community colleges and state universities to provide cybersecurity workforce training to students and cybersecurity services to municipalities, non-profits, and small businesses

To protect residents of the Commonwealth, the FY22 budget codifies and expands the existing Governor’s task force on hate crimes to advise on issues relating to hate crimes, ways to prevent hate crimes and how best to support victims of hate crimes. The conference report makes the task force permanent and expands its membership to include members of the Legislature and an appointee from the Attorney General. The conference report also contains a provision that supports immigrants who are victims of criminal activity or human trafficking.

The budget also authorizes funds from the Massachusetts Cybersecurity Innovation Fund to be used for monitoring and detection of threat activity in order to investigate or mitigate cybersecurity incidents. In order to proactively combat threats and attacks, the budget provides funding for a public-private partnership with the goal of engaging educational institutions to jointly expand the training, employment and business development in cyber fields in Massachusetts through a combination of regionalized instruction and business outreach, state-wide shared resources, and real-life simulations for cyber training and business development.

Having been passed by the House and Senate, the legislation now goes to Governor Baker for his signature.

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Sen. Lesser and Rep. Cutler to Co-Chair Second Future Of Work Commission Meeting

Governor Deval Patrick to discuss his involvement in the Future of Tech Commission

On Tuesday at 11a.m., Representative Josh S. Cutler and Senator Eric P. Lesser will co-chair the second meeting of the 17-member Future of Work Commission. Former Governor of Massachusetts Deval Patrick will deliver introductory remarks. The meeting will focus on the present and future state of work here in Massachusetts, featuring presentations from IDG CEO Mohamad Ali, EOWLD Chief Economist Mahesh Ramachandran, and EOHED Secretary Michael Kennealy. The meeting will be virtual and a livestream will be available on Senator Lesser’s Facebook page.

            WHO: Representation Josh S. Cutler, Co-Chair

                        Senator Eric P. Lesser, Co-Chair

                        Future of Work Commission members

                        Governor Deval Patrick

                        Mohamad Ali, Chief Executive at the global research firm IDG

Mahesh Ramachandran, Chief Economist at the Executive Office of Labor and Workforce Development

Secretary Michael Kennealy, Secretary at the Executive Office of Housing and Economic Development

            WHAT: Second meeting of the Future of Work Commission

            WHEN: Tuesday, July 20th 2021 at 11AM

            WHERE: www.facebook.com/EricLesserMA

For questions, please contact Lilla Adams in Representative Josh S. Cutler’s office at (339) 309-8266.

Summary of Labor and Workforce Development line items in FY22 Budget

The budget passed by the Legislature represents a serious and committed effort to help the economy recover in the short term and ensure that our workforce has the skills, tools and training needed to succeed in the Commonwealth’s post-pandemic economy.

I would like to highlight some key labor and workforce development provisions in the final budget passed by both houses of the Massachusetts Legislature that may be helpful in communications with your districts. If there is a common thread in these budget line items, it is that we are investing in our people. We all know that what powers Massachusetts is our skilled workforce and we should all be proud that our budget reflects that commitment.

7002-0012: Job Program for At-Risk Youth (YouthWorks)
The final budget provides $24 Million to Youth Works. This program is administered by the Department of Career Services and provides subsidized job opportunities for low-income and at-risk youth aged 14-21 in over 31 cities across the Commonwealth. Despite the pandemic, Youthworks was able to provide paid opportunities for over 5,000 youth in the Commonwealth last year. Summer jobs teach teenagers the value of accountability and punctuality. These cornerstones of professionalism ensure the success of young adults on their way to college or into the workforce. With a youth unemployment rate that has more than doubled in the past decade, it is vital that we continue to invest in job opportunities for our at-risk teens. $4 million increase over FY2021 Budget.

7003-0803: MassHire Career Centers
The final budget provides $9.5 Million for MassHire career centers and ensures adequate resources to assist unemployed workers across the State. These centers serve every community in the Commonwealth. They work to prepare unemployed workers who are looking to re-enter the job market through counseling, training, and referrals for reskilling opportunities. MassHire’s career center system will be a central part of the recovery process for Massachusetts. The budget also provides over $2 Million in additional funding to the Department of Career Services for the purposes of maintaining and upgrading career center computer systems statewide.  This has become especially important as pandemic conditions have forced career centers to transition their operations online in order to provide virtual options. $4.5 million increase over FY2021 Budget.

1595-1075: Workforce Competitiveness Trust Fund:
The final budget provides $17 Million for the Workforce Competitiveness Trust Fund. This program funds occupational training opportunities for workers with limited or no connection to the labor force, focusing on industries where there is a high demand for new workers. Employers with job openings partner with vocational training providers in order to help people gain the necessary credentials for employment. Programs supported through the Trust Fund will be an important part of efforts to retrain workers who have lost jobs in industries that are signaling plans to make permanent staffing reductions. $7 million increase over FY2021 Budget.

7002-1091: Career Technical Institutes
The final budget provides $15.3 Million to support the continued growth of the Career Technical Institute Initiative, an innovative plan to expand access to vocational technical education for high school students and adults. With the additional funds, vocational programs will be able to open two additional shifts of classes. The first new shift will allow students enrolled in comprehensive high school programs to take vocational courses after their school day is over. The second additional shift will be focused on adult-learners seeking skills and certifications in a number of high demand industries. $11,379,600 increase over FY2021 Budget.

7003-0606: Massachusetts Manufacturing Extension Partnership
The final budget provides $2 Million for the Massachusetts Manufacturing Extension Partnership. The MassMEP is a collaborative center comprised of government, business, and academic partners that consults with small and medium sized manufacturers to support their operation. MassMEP provides services focused around helping manufacturing firms with operational matters, workforce strategies, and innovative growth opportunities. Level funded with FY2021 Budget.

7002-0040: Small Business Technical Assistance Grants
The final budget provides $7 Million for Small Business Technical Assistance Grants. These grants are administered by the Massachusetts Growth Capital Corporation to community organizations across the Commonwealth to fund technical assistance or training programs for small businesses. These funds continue the Legislature’s commitment to supporting the small businesses that keep our communities vibrant. $1.875 million increase over FY2021 Budget.

7003-0150: Former Prisoner Re-Entry Workforce Development
The final budget provides $2.5 Million for the Prisoner Re-Entry Workforce Development program. The Re-Entry Workforce Development program is an initiative administered through the Commonwealth Corporation, focused on improving workforce outcomes among individuals returning to the workforce after a period of incarceration. $1.5 million increase over FY2021 Budget.

I also would like to highlight three initiatives included in this budget that do not fall under the labor committee, but are integral to issues we are working on in the committee and will have workforce development benefits.  

Offshore Wind Initiative (Outside Sections 11 & 105)
The final budget creates a brand new Offshore Wind Energy Career Training Fund, seeded with $13 Million to fund initial grants. This fund will provide grants for technical training programs and professional certificate programs tailored towards careers in offshore wind energy. The fund will also provide grants to adult- and community-learner programs, labor groups, public institutions of higher education, and vocational technical schools to provide paid internships and career training in the offshore wind industry. As Massachusetts is poised to be a nationwide leader in offshore wind, the Commonwealth needs to build a workforce pipeline capable of building and maintaining this important industry.

Disability Hiring Tax Credit (Outside Sections 29 & 37)
The final budget creates a new one-time refundable tax credit of up to $5,000 for businesses for hiring a person with a disability, as well as an annual refundable credit of up to $2,000 for employing a person with a disability. This tax credit will create incentives for new hiring and help ensure individuals with disabilities are not left behind in the post-pandemic recovery.