The FY 2000 Massachusetts Budget: How Issues of Interest to MASSCAP Fared
The Low-income Water and Sewer Assistance Program
A MASSCAP-supported policy change related to the program -- opening it to homeowners in every city and town who receive fuel assistance as well as public water and sewer -- is part of the final FY 2000 budget. The FY 2000 budget does not, however, earmark any new money for the program; about $1.6 million is carried over from last year.... The sponsors of this new policy change were Senators Tolman and Panagiotakos.
Here is the new language:
SECTION 35. (s25a) The first sentence of section 24B of chapter 23B of the General Laws, as amended by section 41 of chapter 43 of the Acts of 1997, is hereby further amended by inserting after the word "government" the following words:- or homeowners who are eligible for one and two household fuel assistance program, so called
SECTION 36. (s25B) Said section 24B of said chapter 23B is hereby further amended by striking out clause (a), as amended by section 42 of said chapter 43, and inserting in place thereof the following clause:
(a) The department shall use the same grantee agencies, similar applications and similar verification procedures as are used in the Low Income Home Energy Assistance Program to the maximum extent possible. The department may also utilize a reasonable percentage of any funds appropriated, not exceeding 10 per cent of such funds, for administrative costs of the program.
Child Care Rates
The rate increases for Regions 1 (Western Mass) and 5 (South Shore) included in the budget passed by the legislature were not vetoed by the Governor. As a result, the rates in these regions are now at parity with regions 2 and 3 (Central and Northeastern Mass.), but remain less than those for Regions 4 and 6, which cover Boston to Route 128. $5.2 million was appropriated for this adjustment.
Here is a list summarizing the Child Care line items in the new budget:
Program FY 2000
- Income Eligible 154.5 million
- Rate Increase 5.2 million
- Community Partnership 109.6 million
- Head Start 6.8 million
- After-School Care 5.07 million
- School Age At-Risk 4.0 million
- Full Day Kindergarten 20.8 million
- Employ. Sers. Program 93.7 million
- Supportive Child Care 1.8 million
- Informal Child Care 15.8 million
- Resource and Referral 11.4 million
(All represent increases over last year)
Tax Provisions
Several tax provisions that MASSCAP either recommended in its report on poverty Running in Place or which it later backed were included in the final budget.
- Earned Income Tax Credit: a 15% increase starting January 1, 1999.
- Child Care Deduction for working families who pay for child care: $4,800 for one child, 49,600 for two or more children by January 2002.
- Dependent Care Deduction: Expanded to the elderly, $3,600 for one dependent, $7,200 for two more dependents by January 2002.
- Rental Deduction: Now 50% of rent up to $3,000 by January 2001.
- Property Tax Circuit Breaker: For elderly residents--more specific information later.
Housing Provisions
A state housing tax credit and more money for rental vouchers are in the budget.
The state Housing Tax Credit will offer $4 million in state tax credits each year over five years to companies that invest in affordable housing -- it will help create about 3,500 low and moderate income households over the next five years. Developers apply to DHCD for the credits which they sell to investors; the money from the sale must be used by the developer to offset the cost of the project and make it affordable.
Massachusetts Rental Voucher Program (MRVP): DHCD, as of December 1, can now reissue vouchers to eligible households rather than retaining vouchers that are returned.
Here is a chart of some Massachusetts Department of Housing and Community Development (DHCD) line items:
- MRVP 32.6 million
- SHARP 27.184 million
- CEED 1.9 million
- Housing Services 446,000
Human Services Workers' Salaries
A total of $28 million is included in increases for salaries of workers at EOHHS and EOEA private nonprofit providers; the legislature overrode the Governor's veto to include the funds.
This summary was issued by MASSCAP, November 1999
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