| Gov. Charlie Baker signed a $41.7 billion budget on Thursday that the Republican touted as a “fiscally responsible” spending plan that both increased a tax credit for low-income families and invested $160 million into public education, but also held the line on taxes and will prepare the state for the next economic downtown.
The budget, which is finally in place more than three weeks after the start of the fiscal year, increases spending in fiscal 2019 by 3.2 percent, making investments in education, substance abuse treatment and economic development.
It also makes a $368 million deposit into the “rainy day” fund, which will boost state reserves to their highest level since 2007 at $2.15 billion.
“We must keep in mind and plan for the future to continue maintaining fiscal discipline,” Baker said.
Massachusetts is the last state in the country to put a final budget in place for fiscal 2019.
The late budget arrived on Baker’s desk after a tax windfall in fiscal 2018 that saw revenues grow by more than $2 billion from last year, leaving the state with a surplus and allowing legislators and the governor to pad this year’s budget with additional spending.
With a lighter touch than in the first three years of his administration, Baker vetoed only $48.9 million, slashing spending from 48 line-items, including 293 legislative earmarks and some MassHealth spending that the administration said had already been baked into approved rate increases.
The administration is also counting on agencies to leave unspent about $150 million by the end of this fiscal year, money that will revert back to the general fund. Together, the $200 million in vetoes and reversion account for the differences in total spending between the budget the governor signed and the $41.9 billion plan sent to him eight days ago.
The governor also signed 91 of the 110 outside policy sections in the budget and returned 19 sections with proposed amendments for the Legislature to consider.
The Legislature has five days left for formal sessions to consider all of Baker’s vetoes and budget amendments. While the governor can’t stop the House and Senate from overriding his spending cuts with two-thirds votes in each branch, the governor could still veto any of the policy sections that the Legislature returns after July 31 and the Legislature would be powerless to react.
The House plans a formal session for Friday, while the Senate won’t meet again in formal session until Monday.
