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Governor Maura Healey speaks about the 2025 budget proposal during a statehouse press conference on January 24, 2024. (Sam Dolan/SHNS)
BOSTON — Gov. Maura Healey’s budget team will continue to make more money related to the migrant family shelter crisis even after depleting a massive state reserve account full of coronavirus relief and state surplus funds, according to a new plan. It is expected that there will be a funding shortfall of $90 million.
In addition to his proposed fiscal year 2025 budget, which maintains $325 million in level funding for the state’s emergency shelter system, Healey will introduce a supplemental budget on Wednesday that would increase the number of overcapacity shelters and It poured hundreds of millions more into a vast statewide effort to cover schools. District costs, case management, health and community services.
The $325 million figure reflects the number of infected households at 4,100, far below the current number of cases, which the governor capped at 7,500 households in November. Last week, the waiting list for shelter access reached 542 households.
Healey’s supplemental budget would transfer the remainder of the State Transition Escrow Fund, which currently has an uncommitted balance of $863 million, to the Emergency Housing and Community Trust Fund. In a recent report to Congress touting the same shelter funding solution, Healey executives said the escrow fund had a balance of $700 million.
By withdrawing the escrow fund, which is made up of federal COVID-19 relief money and other surplus funds, the state will be able to “fund most of FY24 and FY25 without offsetting budget cuts to other programs.” The administration said in its budget that it would be able to address “contingency costs.” simple. Up to $150 million will also be spent on housing production and preservation.
Asked why the government was relying on one-off funding instead of increasing budget line items to meet continued shelter demand, Mr Healy said: “Because we have to be smart.” Ta.
“Things are evolving, and so are the returns. The EA shelter system has been in place for a while, so we’re making certain reforms to that system as well,” Healy said.
“You know, our job as long as we’ve been here is to make sure we’re doing things in a smart way, so that’s what we’re analyzing and working on right now.” The governor continued during Wednesday’s press conference. afternoon. “And you know, we’re ready to steer in the direction that’s needed and we’ll continue to communicate with Congress on this.”
Asked whether shelter reform could include limiting the length of stay for families, Healey said, “I don’t want to overstate the state of reform or the state of analysis, but this is something we have to address. It’s a must,” he said.
When asked if there was a fallback plan if Congress didn’t approve the funding plan, Secretary of State for Management and Finance Matt Gorzkowitz told reporters the proposal had been on the table for quite some time. He said discussions with Congress were ongoing.
Senate Ways and Means Chairman Michael Rodriguez gave a defensive response earlier this month when asked about Healey’s intentions to use transitional escrow funds.
“We protect our reserves, whether it’s interim escrow or state funds. You know, we worked hard,” Rodriguez said. “We are very responsible in building up these reserves, and we will be very thoughtful about how we use these reserves.”
The new balance in the interim escrow fund is an increase of nearly 25% compared to recent estimates, Goshkovich and a spokesperson for the Office of the Comptroller and Treasury official said, adding that the new balance in the interim escrow fund is an increase of nearly 25% compared to recent estimates, with revised calculations and more details from the Office of Comptroller William McNamara. It is said that this reflects a thorough audit. Government officials estimated the balance at about $700 million earlier this month, but it has increased as officials consolidate money earmarked for the American Rescue Plan Act and the general fund, officials said.
Mr Gorzkovic said these accounting details should be outlined in McNamara’s upcoming annual financial report.
Based on current information provided by Mr. Healey’s office, House Minority Leader Brad Jones has confirmed that he and members of his caucus are comfortable using the funds from the escrow fund based on Mr. Healey’s proposal. He said it was not. The flexible funding could be used in “unlimited ways” and Mr Jones said Mr Healey had not given any reassurance that the immigration funding would not continue to grow.
“It’s really unfortunate that we haven’t seen any recommendations at this point to amend the Right of Refuge Act or take steps as a state to make Massachusetts less attractive,” Jones said. “It’s getting really expensive. It’s already expensive and it’s already past the point where it overwhelms everything else.”
House Speaker Ron Mariano and House Ways and Means Chairman Aaron Micklewitz said they would review the Healey plan “with the necessary due diligence to ensure we continue to respond humanely to the crisis while keeping in mind the broader fiscal situation.” Stated.
“Since the beginning of the emergency shelter crisis, the House of Representatives has balanced the goal of ensuring no families spend the night on the streets in Massachusetts with the responsibility to allocate taxpayer funds in a fiscally prudent manner. We’ve worked hard to get that,” Mariano and Micklewicz said. said in a joint statement. “That’s why the House provided strong emergency relief funding, but specifically directed it to school districts, workforce programs, and overflow sites to protect people on waiting lists.”
Even with the increase in account balances, Healey’s plan would leave a $91 million funding gap for emergency shelters, according to the budget summary.
Gošković did not give specific examples, but said authorities were working on strategies to address the shortage. The secretary indicated to reporters that these strategies do not include relying on federal aid, but Healey reiterated that request to Congress separately Wednesday.
“We will continue to seek funding from the federal government,” Healy said. “As I’ve said from the beginning, this is not a problem created by the state. It’s a problem we have to deal with.”
Asked about her reaction to the governor’s shelter proposal, a spokeswoman for Senate President Karen Spilka instead issued a statement addressing how senators plan to review the budget.
A spokesperson for Rodriguez also did not directly address the shelter and escrow funding proposals Wednesday.
“Chairman Rodriguez believes that the Governor’s budget submission is the beginning of a dialogue, a process that will involve consultation with the Senate President and senators, and that he will carefully review the budget with the Senate Appropriations Team in the coming days. We’re looking forward to it,” said Rodriguez’s spokesman Sean Fitzgerald.
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