Governor Signs FMAP Bill With $7.1 M in Home Care Funding

Patrick Signs Budget Bill,
Sticks To Revenue Estimate
By Michael Norton/Statehouse News Service
http://www.statehousenews.com
GateHouse News Service

Gov. Deval Patrick on Friday signed a $420 million spending bill that adds to the three-month-old $27.6 billion state budget and his administration opted to stick with its estimate of tax collections for the fiscal year, which are running $200 million ahead of budget benchmarks.

Services for the disabled, the state's massive MassHealth budget and the State Police and prison system received funding infusions under the $420 million budget bill that Patrick signed without fanfare, shortly before attending a governor's race candidate forum at Emerson College.

The bill, paid for through federal stimulus funds that won’t be available next fiscal year, deploys accounting methods aimed at putting nearly $200 million into a state rainy day fund that lawmakers and Patrick have drained more than $1.5 billion from during the recession.

Patrick returned with an amendment a section of the bill requiring insurers to reimburse ambulance companies directly for services, regardless of whether the companies are members of contracted networks.

"I am concerned about the impact of this section on health care costs because it lacks guidelines government reasonable charges for ambulance services," Patrick said in a letter to lawmakers.

The amendment would set limits on the costs non-network ambulance companies may charge insurers.

House and Senate leaders steered the bill through the Legislature during informal sessions, overcoming concerns about the bill voiced by Republicans, who ultimately agreed to allow the bill to pass.

A year ago today and only three months into fiscal 2010, Patrick lowered the state’s tax revenue estimate by $600 million, calling for emergency spending cuts over the final eight months of the fiscal year that he said could result in the elimination of 2,000 state jobs, unilateral budget cuts, consolidation of state agencies, collaboration on energy purchases, and broader reductions across government.

This year, with tax collections running $200 million above fiscal 2011 budget benchmarks, the Patrick administration is sticking to its tax collection estimate, officials confirmed Friday.

Administration officials are trying to manage heavy, caseload-driven exposures in this year’s budget, especially in health care.

"Estimated revenues continue to be sufficient to meet budgeted expenditures," Administration and Finance Secretary Jay Gonzalez said in a statement.

State finance law calls for the administration by Oct. 15 of each year to signal to legislative leaders any revisions in anticipated revenues for the year, unless there’s no significant change in estimates.

Fiscal 2009 was marked by a string of supplemental budgets that both added government spending and made changes aimed at bringing outlays in line with available revenues. Additional supplemental spending bills are likely this year.

Fiscal analysts and candidates for governor have estimated next year’s state budget gap at between $2 billion and $3 billion, although Senate President Therese Murray, during a debate this week, pegged it at $1.5 billion. Extra federal funds that were critical to efforts to plug huge budget holes this fiscal year and during fiscal 2010 are not expected to be available next fiscal year.