Date: Thu, 14 Apr 2005
From: "Arline Isaacson" MTA
Subject: House Ways & Means State Budget (H4000)

The House Ways & Means Committee released its version of the FY'06 state budget yesterday. It contained little good news for public higher education. Below are highlights of their budget (H 4000).

Funding Levels
The budget includes only modest increases in funding for higher ed campuses. UMass is increased by approximately $5 m, the state colleges by about $4.4 m and the community colleges $5.5 m.

Health Insurance for State Employees
The budget leaves in place the current premium costs for state employees. As you recall, when the premium costs were increased 2 years ago from 15% to 20% (for those earning more than $35K) and 25% (for new hires), the legislature wrote into their budgets that those increases would sunset this year. This budget however does NOT include the promised sunset provision.

Tuition Rates / Immigrants
For all public higher ed institutions (except UMass Medical) immigrants would be eligible for in-state tuition rates and fees IF they attended high school in Massachusetts for 3 or more years and graduated from a state high school. To be eligible, the student must file (or plan to file) an application for citizenship (or permanent resident status).

Tuition Retention / UMass
The budget extends by 2 years, the pilot program allowing UMass Amherst to retain out-of-state tuition.

COLA
The budget grants retirees from the state a 3% cost of living adjustment in their pensions. (As always, this COLA is based only on the first $12K of their pensions).

Closing Corporate Tax Loopholes
H4000 does NOT include any of the provisions in Romney's bill (H21) which would close a number of corporate tax loopholes and generate over $170m in state revenues.

NEXT STEPS
All amendments must be filed in the House by tomorrow. The budget debate will not begin until the last week in April.

MTA will be working on several higher ed amendments. Please encourage your members to place calls to their legislators in support of these amendments:

1) Health Insurance Premiums
MTA and a coalition of labor unions have been aggressively lobbying legislators on this issue over the last several weeks. We are asking legislators to stick with their promise to sunset these costs back to 15% for all state employees. If we do not win the 'sunset' this year, state employees will never return to the 15% rate in subsequent years.

Please urge your members to call on this top priority amendment and ask legislators to "Support Rep. Marty Walsh's '85/15' amendment to sunset the premium increases and return state workers to 15% premiums - as promised in the last 2 budgets".

2) Contract Funding / Chapter 150E
Rep. Quinn is filing an amendment to change the collective bargaining law (Chap 150E) so the Governor can no longer refuse to file higher ed contracts which have been duly negotiated and agreed to by both labor and management. As you know, MCCC and other higher ed unions have had their contracts rejected by the legislature because the Governor never formally filed them as bills.

This amendment would allow the contracts to go directly from the employer/employees into the legislature for funding. Calls from your members in support of this amendment would help to educate legislators about the unfairness of the current system.

3) Increased Funding for Higher Ed
MTA is currently working with all 3 segments of higher ed on amendments to increase funding for UMass as well as the state and community colleges. We will have more information on this later.

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