Baker Submits New Budget Proposal

Franklincountynow.com Staff Report

(BOSTON) — Besides costing thousands of lives in Massachusetts and upending the economy and schools, the coronavirus pandemic has also wreaked havoc on the state’s budget process.

On Wednesday, Gov. Charlie Baker tried to restart the debate over the state’s annual spending plan by submitting a new budget proposal for the current fiscal year that is higher than the original plan he submitted back in January — just before COVID-19 gripped the state.

He said the budget would avoid deep cuts to core services and increase health spending. The budget Baker is proposing is for the 2021 fiscal year that began July 1.

Gov. Charlie Baker had initially released a $44.6 billion state budget proposal for the 2021 fiscal year before the pandemic hit.

The budget he released Wednesday would spend $45.5 billion — about a billion more than the January proposal — even though tax revenues are expected to drop by more than $3 billion compared to pre-pandemic projections.

Baker plans to make up the difference by relying in part on federal relief funds and drawing $1.35 billion from the state’s “rainy day” fund — leaving about $2.2 billion in the reserve fund.

“The rainy day fund is there to support services when it is raining and I think most people would agree it’s raining,” Baker said.

Baker said the state’s ability to build up the fund during the prior five years has given the state a fiscal cushion.

The budget proposal includes no new taxes and must be approved by state lawmakers before taking effect.

Much of the increase in the new budget, compared to the January proposal, was being driven by the extra health care costs imposed by the pandemic, administration officials said.

The budget proposal now heads to the Massachusetts House and Senate, which will have a chance to come up with their own budget proposal.

Baker said he hopes to get the budget back from lawmakers by Thanksgiving — when his administration will begin working to pull together the budget for the 2022 fiscal year that begins in July of next year.