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GOVERNOR-ELECT DEVAL L. PATRICK |
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December 27, 2006...Governor-elect Deval
Patrick today released the following statement regarding his decision to
restore $383 million in budget cuts recently made by Governor Romney:
Governor-elect Patrick to restore $383 Million in "9C" budget cuts Cites Negative Impact on Residents and Programs, Revised Revenue Growth December 27, 2006 - Governor-elect Deval Patrick today announced that he will restore $383 million in cuts made recently by Governor Romney, including significant cuts to public higher education, social service programs, public safety, and early education and care. “After a comprehensive review of the current budget and recent revenue performance, I have decided to restore the ‘9C cuts’ in their entirety when I take office next month,” Governor-elect Patrick said. “Overwhelmingly, these broad-based cuts, especially coming mid-year, have a serious negative impact on thousands of Massachusetts residents who have planned for the relief and relied upon the services these programs provide.” The 9C cuts have a serious impact on residents and services, including pre-school and kindergarten programs, human service providers, domestic violence hotlines, and elder outreach. The mid-year cuts were implemented after the enactment of the budget and have strained government agencies and non-profit entities that provide services to Massachusetts residents. Historically, governors have used 9C cuts as a tool of last resort, reserved only for times of great fiscal crisis. Some of Governor Romney’s cuts involve entities outside of the Governor’s direct 9C jurisdiction. Those cuts include the MWRA rate reduction, the Rose Kennedy Greenway project, and the 2002 collective bargaining agreement with officials at the University of Massachusetts. “Slightly higher-than-expected revenue in November and December is sufficient to sustain my decision to restore those November 9C reductions not already restored by Governor Romney,” Governor-elect Patrick added. Secretary of Administration and Finance-designate Leslie Kirwan emphasized that the administration will use a “variety of administrative levers to control spending and achieve savings over the second half of the year.” These may include looking for additional reversions, tight allotment control, limits on transfers among accounts, and possibly hiring controls. “As we near the end of this fiscal year, if revenues and reversions prove inadequate to fund the items restored, I will recommend, as a last resort, that the Legislature transfer funds from the stabilization fund to cover any deficiency. Should that occur, I do not believe the Legislature will be required to transfer as much as anticipated when the budget was enacted,” Governor-elect Patrick said. Tax revenues for the year are currently up $306 million to $326 million over the original estimate for FY 2007, when the Legislature and the Governor approved a budget that relied on a $550 million withdrawal from the Stabilization Fund. If growth continues on pace, revenues may be sufficient to cover the cost of the original FY 07 budget without drawing down on reserves. If not, Governor-elect Patrick will ask the Legislature to draw from the Stabilization Fund for the balance. That withdrawal, however, is expected to be dramatically less than the $550 million the budget was originally balanced on. “I do not take this action lightly,” Governor-elect Patrick said.” While we support the initiatives agreed to for the current fiscal year, it is critically important for Massachusetts residents to understand that next year’s budget will be tight and will require that we make tough choices. I look forward to working with the Legislature to develop solutions that serve us well in both the short and the long term.” |
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