Gov. Deval Patrick released a budget today that relies on hundreds of millions of dollars in revenue from sources not yet approved by the Legislature, including $124 million from projected casino licensing fees for local aid to cities and towns.
The nearly $28.2 billion spending plan also counts on $297 million in revenues from Patrick’s proposal to close so-called corporate tax loopholes.
Both the casino plan and the tax loophole closings have run into roadblocks in the Massachusetts House.
Yesterday, House Speaker Salvatore DiMasi warned Patrick against including projected licensing fees from three resort style casinos in his budget, saying Patrick shouldn’t "put any money in (the budget) that you hope you’re going to get."
DiMasi also sounded skeptical of the tax loophole closing plan.
"When a recession is coming the likelihood of putting (tax) burdens on our citizens and our businesses in Massachusetts doesn’t really bode well," DiMasi said.
Patrick vigorously defended the decision today, saying he has a responsibility to include both sources of revenue in his budget plan as a way to pressure the House and Senate into taking up the issues. Lawmakers have yet to schedule a hearing on the casino plan.
"We have put our ideas on the table. It takes three of us to do this tango and we look forward to dancing that tango with the Legislature in the months to come," he said.
Patrick also said the state needs to look for new sources of revenue rather than just cutting existing spending and dipping into the state’s rainy day fund.
"The job is not just to take the boxes and move them all around, to recount and redistribute what we think have in hand. Life is full of uncertainties," he said. "Our job is to make proposals - reasoned, sensible, justifiable proposals - to try to stimulate this economy."
Lawmakers now must decide whether to include the money in their budget plans - or find other revenues sources.
Patrick’s budget also highlights a looming problem for municipal leaders, who rely on the state lottery for local aid dollars. Lottery officials estimate the games will generate only about $811 million in the new fiscal year, far less than the $935 million promised to cities and towns.
Patrick’s plan makes up the $124 million shortfall with casino license funds, but critics say that’s risky. Even if lawmakers agree to the three-casino deal, they say there’s no guarantee the state would get the money before the end of the new fiscal year on June 30, 2009.
Patrick’s budget also would increase education spending by $368 million, including for programs to expand full-day kindergarten and pay for extended-day classes. State spending on public safety would rise by nearly $106 million, including money targeted at the troubled state Medical Examiner’s Office and funds for 100 new police officers.
