BOSTON – Monday, June 29, 2009 – Amid the worst global economic decline since the Great Depression, Governor Deval Patrick today signed into law a $27.046 billion budget for Fiscal Year 2010 that preserves the Patrick-Murray Administration’s commitment to education and health care, and makes targeted investments in workforce training, life sciences and other key areas that will strengthen the Commonwealth’s economic foundation as it emerges from the downturn.
In signing a balanced budget that will be in place for the start of the new fiscal year beginning July 1, the Governor vetoed $147 million in line-items he considered unaffordable in this economic climate, and directed some of those funds to other critical areas under funded. Additionally, the Governor vetoed $217 million for county corrections, a necessary technical change until the Administration’s county corrections reform legislation is signed into law.
The budget signed by the Governor today, coupled with the supplemental legislation he is filing, is 3 percent lower than budget he signed just one year ago.
«The budget offers an honest assessment of the tough economic circumstances we face without losing sight of the better days we know lie ahead of us,» said Governor Patrick. «By making thoughtful, careful decisions, we have protected services for the most vulnerable and made investments for the long-term in education and healthcare so that we’re ready when the upswing comes.»
Since October 2008, the Governor has worked with the Legislature to address a cumulative budget gap of $9 billion, including a $5.1 billion gap in FY10. When the Governor issued his House 1 proposal in January, the Administration and lawmakers agreed that the FY10 gap was estimated to be roughly $3.5 billion. When state tax revenues sharply and unexpectedly declined further in April, the Governor and
Legislative leaders worked together in an unprecedented fashion to quickly revise the consensus revenue estimate downwards by nearly $1.5 billion. To manage through Fiscal Year 2009, the Governor cut spending by billions of dollars and reduced the state workforce by more than 1,000 positions. Meanwhile, he worked with the Obama Administration to secure more than $8.7 billion in federal recovery funding for Massachusetts that will help bridge the gap until the economy rebounds.
Maintaining Key Investments
The Governor’s FY10 budget includes $4.037 billion for Chapter 70 education funding, an all-time high reflecting the fundamental importance of education to the health of the state’s economy and the future of Massachusetts children. Consistent with the Administration’s commitment earlier this year, all school districts are funded at foundation levels, with the help of $167 million in federal recovery funds.
The budget also preserves key services critical to the health and well-being of residents.
The budget maintains current eligibility for state-subsidized health insurance programs, including dental coverage in MassHealth and Commonwealth Care. The budget also provides $65.6 million for the Children’s Behavioral Health Initiative which serves children with severe emotional disturbances and other behavioral health problems. It also fully funds veterans’ annuity payments and benefits and maintains eligibility and benefits for the state’s main cash assistance programs for needy families and individuals.
Additionally, the Governor is filing supplemental legislation that includes $70 million to continue state-subsidized health insurance for 30,000 legal immigrants who do not qualify for federal reimbursement. The Administration will work
