Massachusetts State Budget News

The Governor has filed his budget recommendations for the 2011 Fiscal Year (July 1, 2010 to June 30, 2011). For those who wish to review the entire budget it can be viewed and downloaded at http://www.mass.gov/bb/h1/fy11h1/index.html

MAMH will use this page to focus on the budget proposed for the Department of Mental Health (DMH), and to provide information on issues related to people with severe and persistent mental illnesses.

BUDGET PROCESS OVERVIEW

For those not familiar with the State Budget Process, here is a quick overview of the process:
The Governor’s proposed budget is generally filed on the last Wednesday in January for the fiscal year beginning July 1st of that year. In the case of a new governor filing his or her first budget proposal additional time is granted and the budget is filed in early to mid-February. The budget filed by the Governor in the first year of the two year legislative session is generally assigned the number HOUSE 1. The budget filed by the Governor in the second year of the 2 year legislative session is assigned the number HOUSE 2.

Once filed, the budget proposal is reviewed by the House Committee on Ways and Means. That Committee will report out its recommended budget generally sometime in April and it will be open for debate and amendments by the House. As a general rule the House passes its version of the budget towards the end of April and that version goes to the Senate where it is referred to the Senate Committee on Ways and Means.

Usually, the Senate Ways and Means Committee will report out its budget recommendation in May and it will be open for debate and amendments in the Senate.Once the Senate passes its version of the budget, and assuming it is different than that passed by the House, both budget documents will be reviewed by a Conference Committee consisting of three members of the House (appointed by the Speaker) and three members of the Senate (appointed by the Senate President.) The Conference Committee membership is generally the Chairs, Vice-Chairs and ranking minority party members of the House and Senate Committees on Ways and Means.

The Conference Committee is charged with the responsibility of resolving all differences between the House and Senate passed budgets. Since the goal is to have a budget in place by July 1^st, the Conference Committee tries to report out its budget proposal (Conference Committee Report) by mid to late June. The Conference Committee Report must be “accepted” by majority votes in both the House and Senate. While it can be and usually is debated, it cannot be amended by either the House or the Senate.

Once the Conference committee Report is accepted by both the House and Senate, it returns to the House for enactment and then to the Senate for enactment. Once enacted by both it goes to the Governor who has the authority to veto an item, to reduce and to propose amendments. The Governor is required to act within ten days.

With respect to any vetoes, the House and Senate have until the end of the legislative session to override a veto and it must be done by a 2/3^rd vote in both branches.

9C REDUCTIONS

 Under Massachusetts law, even after a budget has been enacted by the Legislature and signed into law, the Governor, upon the declaration of a financial emergency, can reduce appropriation items of certain agencies within the Executive Branch. This authority is granted to him by Section 9C of Chapter 29 of the General Laws and is often referred to by the media and advocates as “9C cuts.”

The Table below is designed to provide a quick overview of the budget the Governor proposed for DMH. The table will be updated as the budget process continues.

As the Table indicates, the Governor is proposing to consolidate two DMH line-items (Homeless 5046-2000 and Emergency Services 5047-0001) into the Adult services account (5046-000). As a general rule, the Legislature is reluctant to approve account consolidations because it views them as a weakening of its control over expenditures. The Administration argues that in times of diminishing revenues account consolidations provide greater flexibility for a department or agency to manage its way through budget shortfalls.

The table also reveals the most significant reduction is in the Inpatient line-item (5095-0015). This account funds the state hospitals, and the mental health centers. It should be noted that the account was expected to be reduced as a result of the closing of Westborough State Hospital. However, this proposed budget recommends additional reductions in the account.
Our best information is that if left unchanged the cuts proposed by House 2 will be implemented as follows:

• Further reduction of inpatient services through consolidation/facility closure. Westborough State Hospital will be closed by the end of April 2010 and the Quincy Mental Health Center is closed. It is anticipated that the reduction in units and beds will occur across the remaining facilities rather than from the closure of another facility.
• Closure of the partial hospitalization program at the Massachusetts Mental Health Center.
• Elimination of clinical support contracts for Homeless Services. (DMH provides clinical support services to Pine Street Inn, St. Francis House and others. This service would be eliminated.
• Elimination of the Corrigan Mental Health Center (Fall River) Clinic Services. DMH would continue its inpatient services at the Corrigan and Pocasset (Falmouth-Bourne-Pocasset) Mental Health Centers.

At the present time we do not have any information as to the number of individuals who could be impacted as a result of the above cuts. We will provide the information as soon as we receive it.
On the positive side, the proposed budget:

• Protects clubhouse program funding
• Preserves Community Based Flexible Support Services, which is a critical part of DMH’s Community First Initiative
• Funds the costs of the community placements, which resulted from the movement of “discharge ready” DMH clients from state hospitals and continuing, care facilities into the community.
  

As noted in the summary of the budget process, the House Committee on Ways and Means is now reviewing this budget proposal and its proposed budget may well be very different from that proposed in HOUSE 2.
MAMH will update this page as more information becomes available.