Last Update: Feb 9 @ 1:14 PM
government
Mass. budget hikes taxes, cuts services
Bay State lawmakers also vote to join Powerball lottery


BOSTON – The Massachusetts Legislature on Friday approved a $27.4 billion budget for the fiscal year starting July 1 that includes significant spending cuts and a hike in the state sales and meals tax to 6.25 percent, The Associated Press reported.

But the outlook for the tax-and-spending plan remained uncertain after Gov. Deval L. Patrick said he would veto the measure unless lawmakers first approved a major ethics reform bill, The AP said. Patrick has until early next week to act on the bill.

To close a $1.5 billion deficit, Bay State lawmakers voted to cut local aid by up to 15 percent and close up to 12 Registry of Motor Vehicles branch offices, The AP reported. But the budget did set aside $275 million to forestall highway toll increases and MBTA fare hikes.

On the revenue side, the state sales and meals tax would rise from 5 percent to 6.25 percent. The hotel tax would increase as well, and a new 5 percent levy would be placed on satellite television. The state’s rainy day fund would be tapped for another $199 million, leaving it at roughly $600 million, compared with $2 billion a year ago.

At $27.4 billion, the budget’s bottom line is 3 percent less than the one lawmakers passed a year ago.

The budget would also allow Massachusetts to join the multi-state Powerball lottery game for the first time, which could hurt ticket sales at convenience stores in Rhode Island border towns. Massachusetts is the only New England state that does not currently participate in Powerball.

The Boston Globe reported that although the big cuts had been expected, city and town officials, advocates and other stakeholders across the state were still dismayed.

Republican legislators also criticized Beacon Hill’s Democratic leadership for filing the 263-page budget document just hours before votes on it were taken, The Globe said.

In Rhode Island, the House is scheduled to vote Wednesday on a $7.8 billion budget approved by the House Finance Committee last week.

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