November 26, 2003

ROMNEY SIGNS ECONOMIC STIMULUS, SUPPLEMENTAL BUDGET BILLS

Vetoes $80 million to reign in excess state spending

Governor Mitt Romney today signed into law the economic stimulus package and the supplemental spending bill. At the same time, Romney issued more than $80 million in vetoes, noting that the Commonwealth is facing a budget deficit of up to $2 billion in the coming fiscal year and must reign in excessive spending.

"The economic stimulus bill that I am signing today contains a number of smart investments that will create jobs and help put the Massachusetts economy on the road to long-term economic growth and recovery," Romney said.

He added, "However, in austere fiscal times, we cannot spend more than we have. Therefore, I have reduced spending to a level that is immediately necessary."

Highlights of the economic stimulus package include:

• Making the Investment Tax Credit permanent;
• Providing a tax rebate for manufacturing jobs created in the biotechnology, life sciences and medical device fields to entice companies to stay in Massachusetts as they move from the laboratory to the factory floor;
• Establishing the Technology Transfer Center at the University of Massachusetts to facilitate the transfer of technology from the state’s research institutions to industry;
• Putting in place a one-day sales tax holiday on August 14th for back-to-school shopping; and
• Legalizing Sunday liquor sales to create a fair and level playing field for all establishments in Massachusetts.

Romney reduced spending in the economic stimulus plan by half, from $100 million to just over $50 million, which is a level consistent with

Romney also took action on the supplemental spending bill. He signed $34.1 million for costs related to higher education collective bargaining agreements, but indicated that he sees this only as a partial payment for these state employees who have not received a pay adjustment for the past three years - not as a permanent obligation going forward.

Other highlights include:

• Posting the photos of our most dangerous sex offenders on the Internet and requiring sex offenders to register with the Sex Offender Registry Board 48 hours prior to being released from prison;
• $3.65 million for the State Police Crime Lab to implement the expanded DNA database requirements;
• $3.7 million for the Department of Social Services to prevent layoffs of clinical staff and attorneys;
• $3.1 million so the Department of Youth Services can avoid prematurely releasing juvenile offenders;
• $3.2 million for the Department of Mental Retardation’s residential and day programs; and
• $1.5 million to restore funding for Family Health Services at the Department of Public Health, including rape crisis centers.

Romney vetoed $30.2 million in spending from the $111 million supplemental spending bill. He said, "Holding the line on state spending is critical if we are to avoid tax increases that would damage the long-term economic vitality of the Commonwealth."