Mid-Year Budget Cuts for FY 2013

December 4, 2012

Because tax receipts for FY 2013 have been lower than expected, the Governor today announced a series of mid-year spending cuts--along with plans to use money from existing reserves.

The budget that was enacted in July started to restore some of the significant cuts to education, public health, human services and other core programs that had been made over the last four years. Today's actions repeal or reduce a number of those limited restorations.

Among the cuts announced today are the following:

  • Lower reimbursements for districts with high-needs special education students (via $11.5 milllion in cuts to the SPED Circuit Breaker)
  • A 46% cut to a new program that helps reimburse local school districts for transporting homeless students to and from school
  • A 1 percent cut to Local Aid, which funds municipal services including police and fire protection, parks, and public works. (This cut would have to be approved by the legislature.)
  • $7.4 million in cuts to Mental Health programs, including some services for children and some for adults
  • Programs administered by the Department of Children and Families were cut by more than $7.0 million, including a $5.2 million cut to residential care
  • The Employment Services Program was cut $790,00, reducing its funding level to 76% below its pre-recession level. The program provides education, occupational skills, and employment support services to low-income families with children
  • $3.7 million in funding for Law & Public Safety programs
  • About $128 million in total cuts and savings to MassHealth. Since Massachusetts receives a 50 percent federal reimbursement for most MassHealth spending, the net savings for the state amount to roughly half of this total. The administration also expects to tap the Commonwealth Care Trust Fund (CCTF), since FY 2013 costs for the Commonwealth Care program are expected to be lower than originally projected (companion legislation filed with the 9C cuts would allow the administration to reduce the transfer from the General Fund to the CCTF, but no amount is specified).

On the revenue side:

  • $200 million from the state stabilization fund (the "rainy day" fund)
  • An additional $109 million in reserves and federal revenue

There are two basic reasons that Massachusetts continues to find itself in a fiscal crisis. First, because of the lingering effects of the Great Recession, which has sapped state revenues even as it has increased the number of people relying on core safety net services. And second, because of tax cuts and other declines in tax receipts over the last fifteen years that cost the state over $3 billion in annual revenue. [For more detail, see Massbudget's FY13 Budget Preview.]

Mid-year budget cuts of this type are officially referred to as 9C cuts. They are designed to ensure that the overall budget of the Commonwealth remains balanced, and you can read more about how they work here.

The table below contains a full list of the proposed 9C cuts (though neither the reserve funds nor the proposals that require legislative approval are included):
Line-Item Name FY12 Spending FY 13 Before Cuts 9C Cut
1100-1100 Office of the Secretary of Administration and Finance 2,741,666 2,846,156 -50,000
1100-1560 Massachusetts Development Finance Agency N/A 440,692 -200,000
1100-1700 Administration and Finance Information Technology Costs 26,457,572 28,202,693 -250,000
1106-0064 Caseload and Economic Forecasting Office 57,446 251,969 -25,000
1599-0026 Municipal Regionalization and Efficiencies Incentive Reserve 8,392,356 14,547,644 -6,000,000
1599-1301 Program Evaluation Reserve N/A 500,000 -500,000
1599-1705 June 1 2011 Storm Reserve N/A 4,536,093 -1,300,000
1599-4417 E.J. Collins Jr. Center for Public Management 496,518 400,000 -100,000
1599-7104 Dartmouth/Bristol Community College Reserve 2,700,000 4,400,000 -850,000
1102-3199 Office of Facilities Management N/A 10,453,359 -150,000
1108-5100 Group Insurance Commission 2,491,028 2,337,203 -125,000
1201-0100 Department of Revenue 80,380,285 87,225,100 -1,187,000
1201-0130 Additional Auditors Retained Revenue 23,882,229 27,940,257 -1,488,000
1201-0160 Child Support Enforcement Division 33,871,544 35,380,491 -250,000
1231-1000 For the Rate Relief Component of the 500,000 500,000 -500,000
1232-0100 Underground Storage Tank Reimbursements 18,199,817 32,800,183 -6,500,000
1310-1000 Appellate Tax Board 1,734,467 1,806,028 -25,000
1750-0100 Human Resources Division 2,610,724 2,561,318 -100,000
1775-0115 Statewide Contract Fee 2,975,933 3,500,000 -55,000
1790-0100 Information Technology Division 2,995,265 3,195,378 -50,000
2000-0100 Executive Office of Energy and Environmental Affairs Admin 7,237,606 5,856,081 -130,269
2000-1700 Energy and Environment Information Technology Costs 9,806,865 10,145,502 -142,112
2030-1000 Environmental Law Enforcement 8,681,029 8,982,241 -5,934
2030-1001 Environmental Law Enforcement Recruit Class N/A 750,000 -174,112
2200-0100 Department of Environmental Protection Administration 24,569,679 25,966,270 -341,586
2260-8870 Hazardous Waste Cleanup Program 11,903,512 13,629,640 -170,000
2260-8875 Cape Cod Wastewater Study 150,000 350,000 -350,000
2300-0100 Department of Fish and Game Administration 658,700 709,975 -1,416
2300-0101 Riverways Protection Restoration and Public Access Promotion 416,856 442,824 -26,054
2320-0100 Fishing and Boating Access 421,157 466,221 -16,659
2330-0100 Division of Marine Fisheries Administration 4,349,345 4,812,837 -130,000
2511-0100 Department of Agricultural Resources Administration 4,320,179 4,857,151 -335,000
2800-0100 Department of Conservation and Recreation Administration 3,652,281 3,800,459 -50,000
2810-0100 State Parks and Recreation 41,249,220 41,409,387 -1,480,000
2820-2000 Streetlighting 3,000,000 3,060,000 -5,000
4000-0500 MassHealth Managed Care 4,047,087,106 4,167,475,376 -86,130,000
4000-0700 MassHealth Fee-for-Service Payments 1,847,705,917 1,968,522,476 -26,800,000
4000-0640 MassHealth Nursing Home Supplemental Rates 317,784,772 318,700,000 -15,100,000
9110-1455 Prescription Advantage 19,596,253 18,500,869 -575,000
9110-9002 Grants to Councils on Aging 8,206,604 9,433,748 -216,980
4510-0110 Community Health Center Services 962,863 1,067,287 -41,667
4510-0716 Academic Detailing Program 93,000 500,000 -500,000
4510-3008 ALS Registry N/A 250,000 -125,000
4512-0200 Bureau of Substance Abuse Services 74,760,442 77,164,595 -135,417
4512-0225 Compulsive Behavior Treatment Program Retained Revenue 1,270,000 1,830,000 -560,000
4513-1111 Health Promotion and Disease Prevention 3,374,099 3,343,000 -50,000
4530-9000 Teenage Pregnancy Prevention Services 2,324,767 2,535,873 -157,462
4590-0250 School-Based Health Programs 11,584,588 11,797,967 -83,333
4590-0915 Public Health Hospitals 137,811,389 145,021,833 -950,000
5011-0100 Department of Mental Health Administration and Operations 25,453,167 27,373,198 -338,057
5042-5000 Child and Adolescent Mental Health Services 69,399,645 76,816,757 -1,890,000
5046-0000 Mental Health Services Including Adult Homeless and Emergency 330,141,005 346,027,150 -1,962,186
5047-0001 Emergency Services and Mental Health Care 34,596,130 35,242,254 -500,000
5095-0015 Inpatient Facilities and Community-Based Mental Health Service 143,557,523 167,313,321 -2,723,359
4200-0010 Department of Youth Services Administration and Operations 3,969,907 4,049,575 -150,000
4200-0200 Residential Services for Detained Population 17,467,326 20,983,713 -200,000
4200-0300 Residential Services for Committed Population 96,212,767 102,919,356 -569,000
4400-1100 Caseworkers Reserve 58,270,260 62,797,173 -1,943,161
4401-1000 Employment Services Program 6,393,841 7,899,506 -790,471
4403-2119 Teen Structured Settings Program 6,519,237 8,031,401 -638,194
4405-2000 State Supplement to Supplemental Security Income 227,624,077 233,128,438 -2,009,789
4408-1000 Emergency Aid to the Elderly Disabled and Children 90,030,120 90,929,877 -207,756
4800-0015 Clinical Support Services and Operations 65,476,185 67,626,557 -375,000
4800-0040 Family Support and Stabilization 43,689,153 44,573,551 -558,000
4800-0041 Group Care Services 189,001,365 198,335,991 -5,207,000
4800-1100 Social Workers for Case Management 160,998,660 166,188,468 -470,000
4800-1400 Support Services for People at Risk of Domestic Violence 20,658,558 21,455,430 -433,000
4120-2000 Vocational Rehabilitation for the Disabled 9,991,391 10,011,824 -135,999
4120-4000 Independent Living Assistance for the Multi Disabled 12,011,979 12,679,279 -75,000
4125-0100 Massachusetts Commission for the Deaf and Hard of Hearing 5,110,082 5,447,856 -52,500
5911-1003 DDS Service Coordination and Administration 60,818,166 63,087,273 -300,000
5920-2000 Community Residential Services for the Developmentally Disable 755,685,701 790,043,431 -5,486,805
5920-2010 State Operated Residential Services 164,488,263 184,922,682 -834,159
5920-3010 Autism Division 4,016,901 4,635,252 -22,167
5930-1000 State Facilities for the Developmentally Disabled 150,602,422 127,875,073 -1,738,996
1410-0400 Veterans' Benefits 38,973,715 44,208,484 -1,300,000
1595-6368 Massachusetts Transportation Trust Fund 180,126,756 166,591,136 -4,878,000
7004-2027 Community Investment Grant Program N/A 1,500,000 -750,000
7007-0150 Regional Economic Development Grants 850,000 950,000 -100,000
7007-0300 Massachusetts Office of Business Development 1,619,026 1,717,393 -25,000
7007-0801 Microlending 200,000 200,000 -100,000
7007-0952 Commonwealth Zoological Corporation 3,500,000 3,600,000 -50,000
7007-1200 FOR THE MASSACHUSETTS TECHNOLOGY N/A 2,000,000 -1,000,000
7004-0099 Department of Housing and Community Development Administration 8,628,449 7,309,734 -200,000
7004-0101 Emergency Assistance - Family Shelters and Services 135,262,352 80,042,354 -50,000
7004-0102 Homeless Individuals Assistance 37,941,049 40,450,335 -100,000
7004-3036 Housing Services and Counseling 1,495,982 1,495,996 -50,000
7004-9005 Subsidies to Public Housing Authorities 62,486,239 64,500,000 -50,000
7004-9317 Individual Development Account Pilot Program N/A 50,000 -50,000
7006-0000 Office of Consumer Affairs and Business Regulation 750,384 846,160 -25,000
7006-0011 Loan Originator Administration and Consumer Counseling Program 2,468,469 2,650,000 -60,000
7006-0020 Division of Insurance 10,185,293 12,351,044 -150,000
7008-0900 Massachusetts Office of Travel and Tourism 2,038,748 7,217,109 -448,000
7003-0200 Department of Labor Standards 1,912,335 2,045,243 -40,000
7003-0900 Department of Labor Relations 1,753,813 2,005,872 -30,000
7003-1206 Mass Service Alliance 1,350,000 1,625,000 -287,500
7009-1700 Education Information Technology Costs 8,711,571 11,171,336 -25,000
7009-7000 Data Sharing N/A 505,000 -505,000
3000-1000 Department of Early Education and Care Administration 11,498,371 12,322,954 -210,000
3000-2050 Children's Trust Fund Operations 994,561 1,065,473 -58,629
3000-5075 Universal Pre-Kindergarten 7,357,273 7,500,000 -67,617
3000-7000 Children's Trust Fund 10,415,435 10,463,346 -25,000
7010-0005 Department of Elementary and Secondary Education 12,767,008 13,694,988 -75,000
7010-0033 Literacy Programs 3,125,038 3,147,940 -25,000
7028-0031 School-Age Children in Institutional Schools and Houses of Cor 7,315,000 7,448,153 -122,639
7035-0005 Homeless Student Transportation N/A 11,300,000 -5,250,000
7035-0006 Transportation of Pupils - Regional School Districts 43,521,000 45,521,000 -1,000,000
7061-0011 FOUNDATION RESERVE ONE TIME ASSISTANCE N/A 3,500,000 -2,500,000
7061-0012 Circuit Breaker - Reimbursement for Special Education Resident 212,688,562 241,932,288 -11,500,000
7061-9010 Charter School Reimbursement 64,461,675 71,454,914 -1,000,000
7061-9200 Education Technology Program 860,691 887,543 -25,000
7061-9400 Student and School Assessment 24,338,435 24,385,395 -129,847
7061-9408 Targeted Intervention in Underperforming Schools 5,889,143 9,167,096 -50,000
7066-0000 Department of Higher Education 1,619,952 3,068,445 -575,000
7066-0005 Compact for Education 82,620 82,620 -41,310
7066-0009 New England Board of Higher Education 367,500 367,500 -183,000
7066-0020 Nursing and Allied Health Education Workforce Development 635,250 500,000 -100,000
7066-0024 Schools of Excellence 1,300,000 1,400,000 -100,000
7066-0025 Performance Management Set Aside 1,631,974 8,322,094 -1,050,000
7066-0038 Youth Venture N/A 100,000 -100,000
7066-0050 Rapid Response Grants N/A 2,250,000 -1,750,000
7066-0111 Higher Education Consultant N/A 100,000 -50,000
7066-1221 Community College Workforce Grant Advisory Committee N/A 200,000 -100,000
7070-0066 High Demand Scholarship Program N/A 3,250,000 -1,198,293
8000-0600 Executive Office of Public Safety 2,015,088 2,212,797 -75,000
8000-1700 Public Safety Information Technology Costs 18,924,834 20,396,656 -362,500
8000-1800 Mental Health Public Safety Training N/A 125,000 -125,000
8100-0515 New State Police Class 1,990,070 596,000 -25,000
8200-0200 Municipal Police Training Committee 2,439,032 2,520,378 -45,000
8311-1000 Department of Public Safety and Inspections 4,491,280 4,610,086 -50,000
8315-1023 Pipefitting Inspections N/A 250,000 -250,000
8900-0001 Department of Correction Facility Operations 518,130,711 541,217,210 -2,200,000
8950-0001 Parole Board 16,368,184 17,807,436 -275,000