Patrick Signs State Budget On Eve Of New Fiscal Year
Gov. Deval Patrick signed a $27.6 billion state budget today that includes more than $457 million in line-item cuts made the day before the 2011 fiscal year begins.
Patrick said the cuts were necessary because the U.S. Congress did not allocate money to reimburse states for health expenses.
The budget includes cuts to local aid, decreased aid to public colleges and universities and human service groups around the state. But, it is balanced and on time.
The FY11 budget is about 0.2 percent increase in spending compared to FY10, and includes taking another $100 million out of the state's rainy-day fund. At the end of the fiscal year the state's stabilization fund is set to stand at less than $600 million.
The budget is also being propped up by about $809 million in American Recovery and Reinvestment Act stimulus funding, most of which is set to run out after this year.
Patrick said that over the past few years he's closed a $12.5 billion budget gap, including a $3 billion budget gap for FY11. To do so, he's raised $4 billion in new revenues, has made $4.5 billion in cuts, and has cut about 2,600 jobs.
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