Patrick Signs 2010 Budget; Vetoes $147M in Spending

Staff reports
iBerkshires
06:22PM / Monday, June 29, 2009

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BOSTON — With days left in the fiscal year, Gov. Deval Patrick on Monday signed into law a $27 billion budget for the coming year — lighter than the Legislature's version by $147 million in line item vetoes.

The budget signed by the governor, coupled with the supplemental legislation he is filing, is 3 percent lower than budget he signed just one year ago. It also adds on about a $1 billion in tax increases, according the Boston Globe.

"The budget offers an honest assessment of the tough economic circumstances we face without losing sight of the better days we know lie ahead of us," said Patrick. "By making thoughtful, careful decisions, we have protected services for the most vulnerable and made investments for the long-term in education and health care so that we're ready when the upswing comes."

A legislative conference committee presented a $27.4 billion spending plan to the governor on June 19 that lawmakers said took into account the precipitous decline in state revenues over the past year. Patrick said the budget is balanced despite the worst global economic decline since the Great Depression.

Over the past week, the Patrick took a red pen to the fiscal 2010 budget, cutting $147 million in line items and an additional $217 million for county corrections, what was said in a statement to be a necessary "technical change" until the administration's county corrections reform legislation consolidating the departments is signed into law.

According to the statement from the governor's office, the trimmed-down budget continues the Patrick-Murray administration's commitment to education and health care, and makes targeted investments in work-force training, life sciences and other key areas that will strengthen the state's economic foundation as it emerges from the downturn.
 
The budget includes a $377 million reduction in local aid to cities and towns approved by the conference committee as well as the local levy options of 2 percent on the rooms tax and a.75 percent increase in the meals tax.

It also includes an increase in the sales tax from 5 percent to 6.25 percent and new taxes on alcohol and satellite dishes.

Among the cuts from the conference committee budget are $26.5 million for elder case management and personal needs allowances for eligible seniors in nursing homes; $3.5 million from youth and children's services; $30 million from Health and Human Services, mostly from MassHealth programs and $1.5 million from local tourist councils (already cut $3 million from this year).

It contains a $4 billion for Chapter 70 education funding, an all-time high. All school districts are being funded at foundation levels, with the help of $167 million in federal recovery funds. The budget maintains current eligibility for state-subsidized health insurance programs,  provides $65.6 million for the Children's Behavioral Health Initiative and fully funds veterans' annuity payments and benefits.
 
Patrick also is filing supplemental legislation that includes $70 million to continue state-subsidized health insurance for 30,000 legal immigrants who do not qualify for federal reimbursement. The governor is proposing an additional $10 million in guaranteed funding for life sciences research, on top of $10 million provided in the conference committee budget that is contingent upon the availability of a fical 2009 surplus.

Additionally, Patrick proposes restoring $400,000 to maintain an office in Washington, D.C., to maximize the state's ability to secure federal funding.
 
The full budget and the governor's vetos can be viewed at here.