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FY ‘06 State Budget,   January 31, 2005

by Robert P. Dean, Elder Services Executive Director

 On January 26, the Governor released his proposed budget for the next fiscal year which runs from June 30, 2005 through July 1, 2006.  This is the first step in a budget process which will hopefully be concluded on or before July 1, 2005, which is the date on which the new budget is scheduled to go into effect.  The Governor's overall proposed budget is for $23.22 billion, which is a 2.4% increase from this year's budget, and calls for a reduction in the personal state income tax from 5.3% to 5%.
   
The next step is for the budget to go to the Legislature. First, the House will review the Governor's budget and make their recommendations, which will then go to the Senate.  The Senate will then make their recommendations, at which point the House and Senate meet jointly through committee to work out any discrepancies or disagreements between the House version and the Senate version.  Once this is done, the budget will go back to the Governor, for his signature or veto of various line items as he so chooses. 
   
We will continue to advocate for appropriate levels of funding at each stage of this process.

 The Good News:   
   
The Governor's budget makes the Prescription Advantage Plan into a "wrap around" plan to fill in some of the gaps in the federal Medicare Part D Plan scheduled to go into effect in January 2006.  The key language is "The prescription advantage program will provide supplemental assistance for premiums, deductibles, payments, and co-payments required by the Part D plan or Medicare Advantage plan."  There had been concern that the Governor would eliminate the Prescription Plan altogether.  (Remember that this is the same Governor who in his first budget two years ago, proposed zero dollars for Prescription Advantage).  The overall Prescription Advantage Plan budget (9110-1455) is reduced by $20 M from $110 to $90 M. Projected spending for P.A. in FY 2005 is $100 M. The budget rationale says:  "Reduced funding associated with savings from Medicare Part D implementation"
   
The statewide Protective Services Programs would receive a 7.4% increase or an additional $850,734.00

 The Not So Good News: 

The Home Care line items in total rise by only 1.4%. The care management line item (9110-1633) rises by 6.9%, but the home care services appropriation (9110-1630) slightly drops. The budget explains that 1630 money was transferred to 1633. So the Governor has anticipated the need to shift funding, but the program's bottom line hardly changes.

Funding for ECOP is basically leveled, as is funding for Supportive Housing (9110-1604), and Congregate  (9110-1660) is level.

Elder Lunch (9110-1900), which is the statewide nutrition budget has a proposed statewide increase of $13,000.

The COAs (9110-9002) are also basically level funded at $6.5 M.

There is a concern that there will be statewide waiting lists for ECOP and Homecare if the level of funding in these programs is not increased to meet the need for these services.    

Below is a chart with some Key Line Item Requests.  The chart compares the funding for the current fiscal year (FY ‘05) with the Governor's proposed budget for the next fiscal year (FY ‘06) which begins July 1, 2005, and what we through Mass Home Care are requesting for next year's budget.   

We will continue to advocate for appropriate levels of funding.  I will keep you informed of additional developments.

 Chart of Key Line Item Comparisons