New spending bill takes aim at ‘vital’ program shortfalls

Massachusetts Gov. Maura Healey.

Massachusetts Gov. Maura Healey. AP

By Alison Kuznitz

State House News Service

Published: 03-18-2024 5:14 PM

BOSTON — With funding for “vital” human services and early education programs running low, Gov. Maura Healey filed a nearly $535 million supplemental budget Monday afternoon to address the shortfalls and to shore up funding for safety-net hospitals.

Federal reimbursements will cover the majority of the bill’s $534.7 million price tag, leaving about $88.5 million in state spending, Healey’s office said. Policy proposals in the bill aim to “repurpose” $19.4 million in unused federal COVID dollars, help the state buy electric vehicles, allow the Department of Conservation and Recreate to enter long-term leases of up to 30 years, and make some technical updates to Department of Transportation statutes.

“We are confident that the state can afford to make these investments in our health care workforce, food safety net and other important programs, and the administration has worked hard to minimize the impact to the state budget by maximizing other resources, including federal dollars,” Secretary of Administration and Finance Matthew Gorzkowicz said in a statement.

Healey’s proposal (HD 4985) includes $61 million for a Critical Health and Human Services and Workforce Reserve — at a net cost of $45.8 million — to cover budget deficiencies for direct care staff in nursing homes, group care settings, state hospitals, and the Holyoke and Chelsea Soldiers’ Homes. Another $175.5 million, covered entirely by federal reimbursements, would provide supplemental payments to safety-net hospitals.

Healey also wants to use $228 million in federal COVID money for community-based services to help boost people’s independence.

The governor recommended $29.7 million for early education and care subsidies; $5.1 million to keep up with demand for the Healthy Incentives Program that provides fresh food; $2.1 million for the Women, Infants and Children nutrition services program; $20 million in federal money for victim service programs; and $5.6 million in municipal reimbursements for tax abatements for veterans, widows, seniors and individuals who are blind.

“This budget bill represents necessary spending mid-way through the fiscal year to maintain critical services and programs and some of our most vulnerable residents,” Healey said. “It is both affordable and time sensitive given the need to provide assurances to our seniors, mothers with infants, and victims of crimes that the programs and services they rely on will be fully supported and staffed for the remainder of the year.”

The additional fiscal year 2024 spending bill comes after Healey has already cut $375 million from the fiscal 2024 budget amid slumping tax collections and downgraded the amount of tax revenue expected this budget year by $1 billion. Tax collections through February were $186 million or 0.8 percent less than actual collections during the same eight-month period of fiscal 2023 and $275 million or 1.2 percent less than the Healey administration’s already-dimmed expectations.

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