Date: Thu, 26 Jan 2006
From: "Arline Isaacson" AISAACSON@massteacher.org
Subject: Romney's FY '07 State Budget

Romney released his version of the FY '07 state budget yesterday (House 2). It contained few surprises:

1) Tax Cuts
Romney proposes cutting the state income tax rate from the current 5.3% to 5% in 2 years: to 5.15% in 2007 then to 5% in 2008. The cost of the tax cut to the state would be $132 m in the first year, $488m in the second year and eventually $610 m.

2) Higher Ed Funding (see attached spreadsheet)
UMass Increased $20.1m (4.6%) over FY '06
State Colleges Increased $10.2m (5.3%) over FY'06
Comm Colleges Increased $8.1m (3.8%) over FY'06

3) "75/25" GIC Health Insurance Premiums
Once again, Romney proposes increasing active state employee health insurance premiums to 25% ('75/25') from the current rates of 15 and 20%.

4) COLA
Romney's budget does not include a cost of living adjustment for state retirees' pensions.

5) Dental & Vision Benefits
Romney proposes increasing active state employees premium shares for dental / vision benefits from 15% to 25%. The House has not yet announced when it anticipates releasing and debating their version of the budget. We'll keep you informed.

6) Dual Enrollment
Romney added an outside section mandating the Board of Higher Ed in consultation with the board of ed and the president of UMass to establish a discretionary grant program for public and private colleges to partner with high schools to offer dual enrollment programs or pilot early-college or middle-college programs in math and science courses.

To receive grants, the programs must provide:
a) simultaneous high school credit and transferable college credit
b) courses taught by college faculty and include some experience on a college campus
c) programs that include early outreach to middle school students to promote preparation for college and
d) data requested by the BHE that includes an evaluation plan.