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Surplus Budget Bill Heads to Governor

State House News Service - October 12, 2007

BOSTON - A budget billed by House leaders as needed to close the books on fiscal 2007, which ended June 30, contains an array of surplus spending items, including nearly $454,000 to enable Gov. Deval Patrick to expand the state's Washington D.C. office and a provision to facilitate pay raises for the governor and other constitutional officers.

After an 11th-hour amendment by Senate Ways and Means chairman Steven Panagiotakos, D-Lowell, both branches passed the bill Thursday and sent it to the governor's desk. Rep. Robert DeLeo, D-Revere, said one avenue "that we have not sought out enough" is the state's relations in Washington on major issues like transportation and welfare.

The 66-section budget also includes $20 million for the Committee for Public Counsel Services, $116 million to fund collective bargaining agreements with public employees, and $200,000 for a special commission to help the governor prepare his long-term education strategy.

The budget also includes $6.9 million in Hayes Report funding to address suicides in the state's correctional system; funds for pay raises to district attorneys who have not received raised since 1999, and a provision to tie constitutional officer pay to the system that automatically adjusts legislative pay.

The budget would create a board controlled by gubernatorial appointees to "study the adequacy of compensation of officials" and submit recommendations by Dec. 5. DeLeo said the budget puts $50 million into the rainy day fund, $43 million into a Massachusetts Alternative and Clean Energy Investment Trust Fund, $15 million into the Massachusetts Life Sciences Investment Fund, $15 million for the Emerging Technology Fund, $10 million for the Affordable Housing Trust Fund, $10 million for the Smart Growth Housing Trust Fund and $7 million for the Cultural Facilities Fund.

The budget also gives municipalities more time to decide whether to opt into the state's health insurance program. DeLeo said some of Patrick's education initiatives offered through his mini-budget require further legislative review.

The mini-budget instructs the comptroller not to transfer .5 percent of total tax revenues for the stabilization fund and House Minority Leader Bradley Jones, R-North Reading, expressed concern that the mini-budget would widen the state's structural budget gap and set aside less for the rainy day fund than previous Legislatures had anticipated.

DeLeo said the stabilization fund has $2.2 billion and said Massachusetts is in the "higher echelon" compared to stabilization funds in other states. Jones also disputed the contention of Democratic legislative leaders that the mini-budget only replenishes accounts that have run dry.

"This is simply a means of soaking up surplus funds," said Jones.
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