Briefing: State Budget
With the turn of the calendar to July, so began a new fiscal year in Massachusetts. And, on the eve of the new fiscal year, Gov. Deval Patrick signed a $27.6 billion budget. Included in it are cuts to cities and towns, support for various human services programs and additional reserves being taken out of the state’s rainy day fund. But, Patrick signed the budget balanced and on time.
What’s the budget process been like?
State officials had been wondering if the federal government will supply $687 million in federal Medicaid matching funds for states. That now appears unlikely, so Patrick made an additional $457.6 million in cuts before he signed the budget on June 30.
Which departments in the state get the most money?
The health and human services department gets the largest cut of the budget, accounting for $15.3 billion, followed by the Department of Education, which gets $5.75 billion. The administration and finance department received about $3.1 billion while the housing and economic development department got $324 million.
What cuts are included in the budget?
Among others, local aid to cities and towns was cut 4 percent and funding for public education was cut about 3.1 percent, including a $100 million cut for state colleges and universities.
How much federal stimulus is in the budget?
The budget relies on about $809 million in federal stimulus dollars from the American Recovery and Reinvestment Act, and it draws about $100 million from the state’s rainy day fund.
That state’s stabilization fund is set to stand at less than $600 million by the end of this fiscal year.
What has the reaction been?
Not surprisingly, candidates to replace Patrick criticized the budget after its passage.
Republican candidate Charlie Baker said the budget will lead to “tax hikes, fewer jobs and includes no meaningful reforms to save taxpayers money.”
Independent candidate Timothy Cahill, the state’s treasurer, said Patrick is using “potential revenue sources with no guarantee for payment and draining stimulus funding intended to last three years.”
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