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09-17-2004

Page history last edited by PBworks 17 years, 5 months ago

September 17, 2004

ROMNEY SIGNS $439 MILLION SUPPLEMENTAL BUDGET BILL

More money for local aid, world-class parks and transportation projects

 

Dipping into a surplus made possible by an improving economy, a rebound in state tax receipts and strong fiscal management, Governor Mitt Romney today signed into law a $439 million supplemental budget to close out Fiscal Year 2004.

 

The spending plan, which largely mirrors what Romney proposed in June, boosts aid to cities and towns, invests in the state’s parks and recreation system and targets funds for important transportation improvement projects.

 

“After taking office nearly two years ago facing a $3 billion budget deficit, we had to make some difficult decisions to restore fiscal balance in Massachusetts without raising taxes,” said Romney.

 

He added, “While we still have more work to do, we are on the right track. As a result, we can now add spending in those key areas that we all agree are priorities.”

 

According to final figures, the Fiscal Year 2004 surplus was $724 million. After supplemental spending, $135 million of the surplus is being deposited into the state’s stabilization fund and $150 million is being spent on school building assistance. The Commonwealth’s reserves now total $1.2 billion.

 

Highlights of spending items Romney approved include:

 

 

$75 million in additional local aid for cities and towns;

$42 million to invest in our parks and recreation system, including $8 million for Dilboy Stadium in Somerville, $5 million for improvements at Wollaston Beach in Quincy, $5 million for Horseneck Beach in Westport, $6 million at Revere Beach and $2 million at Salisbury Beach;

$21.6 million to implement a new funding formula that is fair to districts and charter public schools;

$16.8 million for a previously-approved $7.50 hourly rate increase for bar advocates;

$12.3 million for road and bridge improvements;

$12 million to restore a matching program for the state’s colleges and universities to encourage alumni fundraising;

$11.9 million for substance abuse treatment, which will avoid the potential loss of federal funds; and

$2.5 million in one-time grants to dentists and community health centers to increase access for children under MassHealth, the state’s Medicaid program.

The Governor vetoed $76 million to bring the mini-budget bill’s bottom line more in line with his original recommendation. The largest veto was $32 million to pay for retroactive pay raises for state employees at public colleges and universities.

 

Romney noted the labor contracts are funded on a going forward basis, but said: “Taxpayers who are trying to make ends meet, and who have been denied the tax cut they voted for in 2000, should not be asked to pay for retroactive salary increases for state employees.”

 

Among other vetoes were:

 

 

$15 million in additional Medicaid spending, which is unnecessary given current caseload projections;

$5 million in first-time homebuyer assistance for teachers, which is duplicative of a program that already exists at MassHousing for municipal employees, including teachers; and

$2 million in fire safety grants because the Legislature approved and the Governor signed $10 million for this purpose just last month.

In addition, Romney proposed an amendment that would provide Medicaid coverage to special status immigrants. Federal reimbursement for this coverage was eliminated by President Clinton in 1996. When these immigrants come to the United States, their sponsors must agree to take personal financial responsibility for them. Under Romney’s amendment, health care coverage will be provided for immigrants whose sponsors are financially unable to fulfill their obligation of support.

 

Romney noted the Legislature declined to fund several key Administration priorities.

 

The Governor asked for, but the Legislature did not fund $19 million to cut in half the waiting list for English as Second Language and other adult basic education programs, $19.5 million for a nanotechnology center at the University of Massachusetts at Lowell, $10 million for harbor dredging in New Bedford and $13.5 million to construct a facility in Westborough for girls in the care of the Department of Youth Services.

 

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