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Toll Hike Scrapped; Gov. Approves Budget

Patrick Signs $27 Billion Budget

POSTED: 4:02 pm EDT June 29, 2009
UPDATED: 6:10 pm EDT June 29, 2009

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Gov. Deval Patrick has approved a new state budget that hikes the Massachusetts sales tax by 25 percent, largely preserves education spending, and makes deep cuts to other state services.

"This is, without question, an austere and, in some respects, painful budget. It contains many unavoidable spending cuts, and they, many of them, will have a painful impact. With this budget total government spending will be less in the coming fiscal year than in the current one, which reflects the stark economic realities of the time," Patrick said.

The increase in the sales tax allowed the Massachusetts Turnpike Authority earlier Monday to vote to avoid a planned toll hike scheduled to take effect July 1, relying instead on $100 million from the tax increase.

"Well, I think we still have got to turn to the question of a long-term financing solution for our transportation network. We haven't done that yet. We haven't finished that work yet. And whether that is a gas tax or something else, we are going to have to face those issues, I hope, sooner rather than later," Patrick said.

In signing the $27 billion budget, Patrick issued $147 million in line-item vetoes. He also vetoed $217 million for county corrections until the administration’s county corrections reform legislation is signed into law.

At the same time, he submitted a separate $269 million supplemental budget to fund other initiatives, including $70 million for health care for 30,000 legal immigrants.

The budget also maintains current eligibility for state-subsidized health insurance programs and funds dental coverage for MassHealth and Commonwealth Care.

Patrick also is giving communities the ability to locally levy a 2 percent increase in the hotel/motel room occupancy tax and a.75 percent increase in the meals tax.

The budget is 3 percent lower than budget he signed just one year ago.

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