Massachusetts has an $8 billion rainy day fund. House Ways and Means Chair Aaron Michlewitz has asked credit rating agencies how dipping into that fund during the federal shutdown could affect the Baystate's credit rating. House Speaker Ron Mariano expressed caution about using rainy day funding amid uncertainty over federal reimbursements. S
tate House News Service reporter Ella Adams explains how lawmakers are weighing; protecting the state’s creditworthiness with addressing the urgent needs of low-income residents who are currently without fuel assistance, and later this week, lacking WIC Nutrition program funding.
Ella Adams, SHNS: Yeah, I think that is the question. Last week, I asked the two budget writers whether they're working on a current spending bill to close out fiscal year 2025. I asked them whether that could be a vehicle for some sort of SNAP funding, or any sort of federal aid to fill those gaps. They said everything is on the table, which isn't necessarily something new that they've said, but it could show that they're at least thinking about maybe being creative when it comes to figuring out how to plug those federal gaps.
I think it's also worth noting that while all of that is happening, Governor Maura Healey has been maintaining a pretty firm line on the fact that the state really cannot back-fill any sort of federal funding gaps as a result of the shutdown.
[To read Fitch Rating's answer to Michlewitz, click here]
Carrie Healy, NEPM: With Massachusetts tax collections beating projections last month, state lawmakers are weighing the state's financial picture. So how could this ripple down to western Mass by helping local budgets or leaving regional needs still at risk?
So, the state brought in about $162 million above its October benchmark for tax collections. And tax collections are crucial to the state budget, just like federal revenues and reimbursements are as well, which are in a state of uncertainty as most fiscal expectations in terms of whether those ripple down regionally. Lawmakers are often concerned about regional needs. I think it's safe to say right now, no one is really sure what's going to happen. They're very concerned about federal pressures and preparedness for program cuts in the near and far future.
Meanwhile, Gov. Maura Healey is exploring ways to cut thousands of state jobs and has had preliminary buyout talks with public sector unions. Ella, what do we know about how these cuts might affect state employees and services in western Mass?
The governor has already prolonged an existing hiring freeze across the executive branch. So, we've seen her already at least try to figure out how to limit spending in that area. Healey’s office said last week that basically, she's weighing options to figure out how to protect taxpayer dollars. She hasn’t given any more explicit details than that.
With regard to the concept of buyouts, that looks like a similar attempt that would cut down on the number of full-time state workers, that it could cut costs in the midst of fiscal uncertainty. But that hasn't really developed further than unions talking a bit about how the administration has contacted them about the potential for those.
Let's shift gears a little bit and talk about funding as it relates to education. Earlier this year, Massachusetts Education Secretary Patrick Tutwiler acknowledged that districts statewide are struggling with rising costs and persistent inflation. This week, the Legislature's Joint Committee on Education is set to hear several bills that are focused on school governance, assessments and accountability. One proposal from Rep. John Barrett, D-North Adams calls for changes to how the state reimburses regional school transportation costs…raising the question; Is regional equity in education funding out of balance?
And that is a question that has been asked and will continue to be asked! That conversation about regional equity education has certainly been running around Beacon Hill for quite a while.
One of the biggest pieces is about the formula: it’s called Chapter 70. It determines how state and municipalities split education costs. People are talking about how maybe that formula needs to be rethought. But in terms of the anticipated trajectory of Barrett's bill, I think that's something that we'll have to wait and see about.
And briefly, what does Barrett's bill propose?
Rep. Barrett's bill proposes a 100% reimbursement of school transportation costs for certain municipalities, specifically those not classified as gateway cities, and not part of a regional school district that's already receiving reimbursement, and that has at least 10% of the population living at or below the federal poverty line.
