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Governor signs supplemental budget bill

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November 24, 2009

Gov. Deval Patrick today signed a supplemental budget bill that omitted some of the provisions he had sought to help close the state’s fiscal 2010 budget gap, including nearly $16 million in funding for local programs.

“Given the seriousness of our current fiscal challenges, I am disappointed that you have taken no action on many of the measures I included in the original legislation,” the governor wrote in a veto letter sent to the Legislature. “Those measures, totaling approximately $125 million, were part of a comprehensive solution to close a $600 million budget gap we are facing right now. We need your attention to these remaining issues now.”

During debate on the bill, House Ways and Means Committee Chair Charles Murphy told House members that the bill included $484 million to help close the budget shortfall.

The bill that the Legislature approved and sent to the governor on Nov. 19 did not include a $10.8 million cut to the Cherry Sheet Payment-in-Lieu-of-Taxes (PILOT) program or a $5 million cut to the Police Incentive Pay Program (Quinn Bill), both of which were proposed in the supplemental budget recommendation filed by the governor on Oct. 15. The governor does have the authority to cut these accounts unilaterally using his powers under Section 9C of Chapter 29, but he has not yet announced his plans.

The governor has already used his 9C authority to cut a variety of municipal and school aid accounts, including aid to libraries and student transportation reimbursements to regional school districts.

The governor had also asked the Legislature to grant him expanded 9C authority in order to make cuts in the main municipal and education aid accounts and other accounts outside of Section 9C later in the year, if needed. The Legislature did not grant the governor expanded authority, although it has done so in past years, including last year, when tax collections dropped throughout the year.

The supplemental budget bill transfers $11 million from the Smart Growth Housing Trust Fund to the state’s General Fund to help balance the state budget. The Trust Fund provides payments to cities and towns that opt into Chapter 40R, the Smart Growth Zoning Law.

Earlier this year, $7 million was transferred from the Smart Growth Trust to the state’s General Fund. With this latest transfer, only $4 million remains in the fund.

While the MMA is concerned about this transfer, the Legislature did not drain the entire trust, as had been proposed by the governor. When the Legislature returns in January, the MMA will pursue legislation to expedite the disposition of state surplus land to provide much-needed revenue to replenish the Smart Growth Trust.

Download governor’s veto letter (80K PDF)