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

Governor's Budget Recommendation FY 2010

Supplemental Data to the FY08 - FY10 Financial Statements


House 1 Spending and Revenue

The Governor's fiscal year 2010 budget recommendation authorizes spending of $27,973 billion, a decrease of about 0.7% from the fiscal year 2009 General Appropriations Act.  When compared to fiscal year 2009 estimated spending which includes 9C reductions and after accounting for County Sheriffs being brought on budget, the House 1 recommendation is for a 0.5% increase over current year spending levels

Spending Items FY08 GAA (Actuals) FY09 FY10 House 1 House 1 vs. FY09 % Change
GAA 26,711 28,166 27,973 (193) 0.7%
Supplemental Appropriations Net of Surpluses 516 - - - -
9C Reductions - (851) - - -
Prior Appropriations Continued from FY08 - 156 - - -
Recognized Deficiencies - 292 - - -
County Corrections Adjustment - - (71) - -
Total Projected Spending 27,227 27,763 27,902 139 0.5%
Projected Revenue  
Consensus Tax Revenue Forecast 20,879 21,402 19,855 (1,547) -7.8%
Federal Reimbursements 6,429 7,071 6,811 (260) -3.8%
FMAP - - 711 711 100.0%
Departmental Revenue 2,491 2,477 2,785 308 11.1%
Consolidated Transfers 266 (513) (318) 195 -61.3%
Stabilization Fund Draw 315 401 489 88 18.0%
Subtotal 30,380 30,838 30,333 (593) 98.4%
Less MBTA (756) (767) (767) 0 0.0%
Less SBA (635) (702) (669) 33 -4.9%
Less Pensions (1,399) (1,314) (1,376) (62) 4.5%
Total Projected Revenue 27,590 28,055 27,521 (622) -2.2%


House 1 Spending: $27.973 Billion

Judiciary 3%, Debt Service 8%, Sheriffs 2%, Other Non-Executive 2%, Administration and Finance 1%, Group Insurance 4%, Energy and Environmental Affairs 1%, Health and Human Services 17%, MassHealth 31%, Transportation 1%, Housing and Economic Development 1%, Labor and Workforce Development 0%, Education 21%, Public Safety 4%, Local Aid 4%.  (Judiciary, Debt Service, and Sheriffs are Non-Executive.)

 

House 1 Spending Including Off Budget Transfers

The Governor’s fiscal year 2010 budget recommendation includes a number of operating transfers to and from the non-budgeted funds of the Commonwealth.  These include transfers to support spending in the health care related trust funds such as the Commonwealth Care Trust Fund and the Medical Assistance Trust Fund.  The state also makes annual transfers to the School Building Authority, MBTA, and pension system. The House 1 bottom line when taking into account these off budget transfers would be $32.221 billion.

  FY2009 FY2010 % Change
FY2009 Est. Spending 27,763    
House 1 FY 2010:   27,973 0.76%
Adjustments: County Corrections Reform   (71)  
Adjusted House 1 FY 2010:   27,902 0.50%
Spending Through Consolidated Transfers:  
Commonwealth Care Trust Fund 1,023 697  
Medical Assistance Trust Fund 509 379  
State Retiree Benefit Trust Fund 372 394  
Reimbursement for FY08 Lottery Shortfall 32 -  
Essential Community Provider Trust Fund 25 -  
E-Health Institute Trust Fund 15 -  
RMV Revenues to the Transportation Improvement Fund 9 17  
Mass Cultural Facilities Trust Fund 6 -  
Life Sciences Trust Fund - 20  
Subtotal of Consolidated Transfers: 1,991 1,507  
Spending Through Statutory Transfers:  
Pensions 1,314 1,376  
MBTA 767 767  
SBA 702 669  
Subtotal of Statutory Transfers: 2,783 2,812  
 
Grand Total of Spending: 32,537 32,221 -0.97%


House 1 Total Revenues: $27.521 Billion

The Governor’s fiscal year 2010 budget recommendation assumes the use of $711 million in enhanced federal Medicaid matching funds and $489 million in state Stabilization funds.

Taxes 61%, Tax Initiatives 1%, Federal Reimbursements 27%, Departmental Revenue 10%, Consolidated Transfers 1%


House 1 Tax Revenue

The Governor’s fiscal year 2010 budget recommendation is based upon the agreed upon fiscal year 2010 consensus revenue figure of $19.530 billion as well as an additional $325 million from tax initiatives such as the elimination of tax exemptions on alcohol, sweetened beverages and candy.

Income 57%, Sales 20%, Corporate/Business 12%, Other 9%, Tax Initiatives 2%


Consensus Revenues vs. Actual Revenues

The fiscal year 2009 General Appropriation Act was predicated on a tax forecast of $21.402 billion.  On October 15, 2008, the Governor revised that forecast downward to $20.302 billion and implemented a fiscal action plan to close a $1.4 billion budget gap. Since October, however, the Massachusetts economy has deteriorated more than projected and is expected to contract during the last three quarters of fiscal year 2009, as a result of the unfolding national recession. On January 15, 2009 the Secretary of Administration and Finance informed the Governor and the Legislature that the Commonwealth will face a further decline in revenues and anticipated spending exposures, resulting in a new gap of $1.1 billion. The October revenue figure was revised downward to $19.450 billion.

Dollars in Millions.

For FY04 thru FY08: Consensus Revenue Estimate, Amount in Excess of Consensus Revenue, Total.
FY04: 14,678.  1,275.  15,953.
FY05:  15,801.  1,287.  17,088.
FY06:  17,100.  1,387.  18,487.
FY07:  18,975.  761.  19,736.
FY08:  19,879.  1,000.  20,879.

FY09:  Consensus Revenue Estimate:  19,450.  October Revision:  1,100.  January Revision:  852.  Total:  21,402.

FY10:  Consensus Revenue Estimate:  19,530.


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