Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2010

Governor's Budget Recommendation FY 2010

Letter to the Chairmen

Commonwealth Seal on Letterhead

THE COMMONWEALTH OF MASSACHUSETTS
EXECUTIVE OFFICE FOR
ADMINISTRATION AND FINANCE
STATE HOUSE, ROOM 373
BOSTON, MA 02133

  

DEVAL L. PATRICK
GOVERNOR
 
TIMOTHY P. MURRAY
LIEUTENANT GOVERNOR
 
LESLIE A. KIRWAN
SECRETARY

  

TEL:  (617) 727-2040
FAX: (617) 727-2779
www.mass.gov/eoaf

                                                                                                                April 21, 2009

The Honorable Steven C. Panagiotakos, Chair
Senate Committee on Ways and Means
State House, Room 212
Boston, MA 02133

The Honorable Charles Murphy, Chair
House Committee on Ways and Means
State House, Room 243
Boston, MA 02133

Dear Chairmen Panagiotakos and Murphy:

I am writing to propose an adjustment to the FY2010 H.1 budget recommendations, filed on January 28, 2009.

As you are aware, the American Recovery and Reinvestment Act, signed on February 17, 2009, allows for enhanced Federal Medical Assistance Percentage (FMAP) reimbursement on eligible Medicaid expenditures. Governor Patrick’s FY2010 H.1 budget recommendation as filed assumes $711 million in revenue related to enhanced FMAP reimbursement; however, after reviewing final versions of the ARRA, the Administration projects that the Commonwealth will receive approximately $1.117 billion in enhanced federal funds through the FMAP formula in FY2010.

As you know, federal funds received through the current FMAP reimbursement rate are deposited directly into the General Fund and therefore, funds provided through the enhanced FMAP reimbursement rate will also be deposited into the General Fund and are subject to appropriation.

I am submitting today for your consideration proposals by Governor Patrick to appropriate these additional funds on critical health and human services programs. This proposal reflects many of the difficult decisions that were made during the FY2010 H.1 budget development process, including restoring funding at the Departments of Mental Health, Children and Families, and Developmental Services, in order to help mitigate other reductions taken within these agencies. This proposal helps to ensure that safety net services, such as community supports for individuals with developmental disabilities and mental health concerns, services for residents with vision and hearing impairments, and employment services for Veterans will continue to be offered in the coming year. In addition, this proposal includes a reserve fund for caseload mitigation upon which the Commonwealth can draw when and if demand for countercyclical programs, including MassHealth and cash assistance offered through the Department of Transitional Assistance, increases. 

Attached to this letter please find two documents:

  • Attachment A: provides detail of line items that would increase as a result of this proposal. Note that Attachment A also includes three new reserve accounts.
  • Attachment B: proposes a redraft of Outside Section 40, which transfers funds to the Medical Assistance Trust Fund in fiscal year 2010.

We understand that your staffs are also struggling with many difficult decisions as we continue through an unprecedented fiscal downturn, and we look forward to working with you to ensure we can maintain the critical safety net.

                                                                                                                Respectfully Submitted,

 

                                                                                                                Leslie A. Kirwan
                                                                                                                Secretary

Enclosures:

Attachment A: Proposed Changes to FY2010 H.1 Accounts

Attachment B: Amendment to FY2010 Outside Section 40

top of page link top of page