Massachusetts Republican Gov. Charlie Baker, top left, Democratic legislative leaders Senate President Stanley Rosenberg, center, and House Speaker Robert DeLeo, right, face reporters during a news conference January 12 outside the governor’s office at the Statehouse in Boston. (AP Photo/Steven Senne)
BOSTON (AP) — Massachusetts Gov. Charlie Baker praised House and Senate lawmakers for approving his proposal to close a projected $768 million state budget shortfall for the current fiscal year.
The Senate passed the measure on a voice vote yesterday a day after the House overwhelming backed the proposal, which closely mirrors the plan offered by Baker. In one change, the House and Senate eliminated a Baker provision that lawmakers said would have given the administration more power to restructure benefits for some Medicaid recipients.
The plan includes a $40 million cut in state transportation spending, of which $14 million would come from the Massachusetts Bay Transportation Authority. Officials said the cut isn’t expected to effect service for the hard-hit transit agency.
Baker had already moved to trim $145 million in executive branch spending, cuts that did not require legislative approval.
The governor and legislative leaders had ruled out new taxes or local aid cuts to cities and towns to bridge the budget gap.
“I’m thankful for the hard work of the Senate and House and am encouraged we will be able to move forward on next year’s budget and the issues that matter to the people of Massachusetts,” Baker said in a written statement.
The bill would also create a tax amnesty program for Massachusetts businesses with overdue tax debts and use $131 million in anticipated capital gains tax revenue to reduce the deficit. Those funds would otherwise have been deposited into the state’s rainy day fund.
The swift passage of the bill is the Republican governor’s first victory with the Democrat-controlled Legislature after he was sworn into office last month. But Baker doesn’t have time to savor the moment. He has until March 4 to submit his proposed state budget for the fiscal year that begins July 1.
The spending plan will serve as a blueprint for the House and Senate, which must write and approve their own versions of the 2016 fiscal year budget before crafting a single bill and sending it to Baker for his signature.
“Today, after working in close collaboration with Senator Rosenberg, Speaker DeLeo, Senate and House Leaders and the General Court, we were able to put the Fiscal Year 2015 budget deficit behind us in an overwhelmingly bipartisan manner that protected funding for our local communities without additional burdens to taxpayers,” said Baker.
“I’m proud of the work my former colleagues have done with our administration on correcting this year’s budget deficit,” said Lt. Governor Karyn Polito. “Together, we were able to solve a substantial budget gap, without impacting aid for our cities and towns, the Department of Children and Families and homelessness programs in Massachusetts.”
