Page 8 THE EVERETT ADVOCATE – FRIDAY, JULY 16, 2021 LEGISLATURE | FROM PAGE 2 not make a withdrawal and instead transfers funds into the Stabilization Fund, projecting an estimated balance of approximately $5.8 billion for this crucial “rainy day” fund at the end of the fiscal year. Notably, the Legislature provides substantial funds in the FY22 budget to invest in the Commonwealth’s long-term obligations. Prioritizing funding for education, the new Student Opportunity Act Investment fund was funded at $350 million (M) to be utilized in the coming years for the implementation of the state’s landmark Student Opportunity Act (SOA). Additionally, a supplemental payment of $250M was transferred to the Pension Liability Fund to reduce the Commonwealth’s pension liability. “As we vote on the final FY2022 budget, we mark a capstone to a volatile 16-month odyssey we have seen since the pandemic first struck the Commonwealth, but thankfully this roller coaster is letting us exit off today at a peak and not a valley. We have come out of the last year and a half in a stronger fiscal situation than anyone could have ever imagined. For us to be in this favorable of a situation is a testament to the fortitude and resolve of the Legislature,” said State Representative Aaron Michlewitz, who is chair of the House Committee on Ways and Means. “The investments made in this budget will go a long way to improve the economic outlook for the Commonwealth in an efficient and equitable manner.” As a cornerstone of the Commonwealth’s equitable recovery, the FY22 budget protects access to educational opportunity and charts a path forward for students, families, educators and institutions. The budget maintains the Legislature’s commitment to implementing the SOA by FY 2027. The conference report proposal fully funds the first year of the SOA consistent with the $5.503 billion local aid agreement reached in March, amounting to an increase of $220M over FY21. Despite the uncertainty created by the pandemic, this increased level of investment represents a one-sixth implementation of SOA rates and ensures that school districts across the Commonwealth have adequate and equitable resources to provide high-quality educational opportunities for all students. The FY22 budget also includes a $40M reserve consistent with the March local aid agreement to provide additional aid to districts experiencing increases in student enrollment compared to October 2020. The budget invests in higher education, allocating $571M for the University of Massachusetts system, $315M for community colleges and $291M for state universities. The budget also includes $130M in scholarship funding and funds the community colleges SUCCESS Fund (Supporting Urgent Community College Equity through Student Services) at $10.5M and the STEM Starter Academy at $4.75M. The budget also includes large investments in labor and economic development, such as the creation of a trust fund dedicated to job training for the offshore wind industry to be administered by the Massachusetts Clean Energy Center. This budget makes an initial deposit into this fund of $13M to establish and grow technical training programs in the public higher education system and vocational-technical institutions. The fund will also prioritize grants and scholarships to adult learning providers, labor organizations and public educational institutions to provide workers with greater access to these trainings. Other education investments include: • $388.4M for the Special Education Circuit Breaker, reimbursing school districts for the high cost of educating students with disabilities at the statutorily required 75 percent reimbursement rate • $154.6M for reimbursing school districts at 75 percent for costs incurred when students leave to attend charter schools • $82.2M for regional school transportation • $50M for Adult Basic Education • $27.9M for the Metropolitan Council for Educational Opportunity program • $6M for Social Emotional Learning Grants to help K-12 schools bolster social emotional learning supports for students, including $1M for a new pilot program to provide mental health screenings for K-12 students • $4M for Rural School Aid This budget supports working families by addressing the increasing costs of caregiving for low-income families by converting the existing tax deductions for young children, elderly or disabled dependents and business-related dependent care expenses into refundable tax credits. These tax credits will benefit low-income families that have little or no personal income tax liability and cannot claim the full value of the existing deductions. The conversion to a refundable tax credit would provide an additional $16M to more than 85,000 families each year. Coupled with the expanded Child Tax Credit and the Child and Dependent Care tax credits under the federal American Rescue Plan Act, these credits will help lift families out of poverty and support low-income working parents and caregivers across the Commonwealth. The FY22 budget builds on the success of last year’s efforts to tackle “deep poverty” with a 20 percent increase to Transitional Aid to Families with Dependent Children (TAFDC) and Emergency Aid to the Elderly, Disabled and Children benefits over December 2020 levels, ensuring families receive the economic supports they need to live, work and provide stability for their children. Further, the final budget repeals the asset limit for TAFDC. Traditionally, asset limits on assistance programs further expose those who are already financially vulnerable to greater economic hardship. While families are recovering from the impacts of COVID-19, it is vital to make LEGISLATURE | SEE PAGE 10
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