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For Immediate Release: July 3, 2008

HUMASON VOTES AGAINST STATE BUDGET;
WARNS IT’S BLOATED AND UNSUSTAINABLE

Three days past the start of the new fiscal year and with less than a month left in the legislative session the House and Senate passed a $28.2 billion Fiscal Year 2009 budget. 

“My Republican House and Senate colleagues joined me in voting against a bloated and unsustainable budget,” said Humason.  Surprisingly, the conference committee’s report is actually more than both the House and Senate’s individual budgets.  The budget saw a 5.3% increase over last year, with more than $290 million in new revenue coming from new corporate taxes that were only approved two days ago.

Humason and House and Senate Republicans worked feverishly to prevent the passing of new corporate taxes this week, convinced that the current state of the economy combined with newer, higher taxes is a recipe for disaster.

"I do my very best to remain consistent and protect the taxpayers’ hard earned dollars,” Humason said from his State House office.  “Massachusetts needs more politicians who will refuse to go along with wasteful spending proposals.  Until this happens, we likely will not have the financial resources to pay for the appropriate priorities of government like education, public safety, and transportation infrastructure.  I believe each time we spend taxpayer dollars on a wasteful or unnecessary program, it reduces our ability to deliver core services to those really in need."

House Minority Leader Bradley H. Jones, Jr. said, “Businesses are already leaving the Commonwealth because they can’t afford to be here.  You combine that with high energy costs, already high taxes, and now these new taxes and they’re going to run, not walk, right out of the state.”

Corporate taxes are just the start of the problem.  The Commonwealth is essentially spending money it doesn’t have counting on tax revenue, unlikely increases in Federal revenue, as well as the rainy day fund to make up the difference.  In fact, $310 million from the state’s reserve fund, or rainy day account, was used to balance this budget.

“Breaking into the piggy bank to pay the state’s bills is not only a bad idea, it’s going to get us in trouble with bond rating companies on Wall Street,” Humason said.  “That’s going to hurt the Bay State even more in the long run.  Treasurer Tim Cahill cautioned legislators to avoid increasing our budget or spending our reserves.  Unfortunately the Democrat leaders of the House and Senate ignored even him.”

“If sufficient revenues do not materialize in the new fiscal year to support all the new programs in the budget, a real possibility given the slowing economy,  then, by law, the Governor will be required to slash programs mid-year, using emergency 9C cuts, an exercise that is devastating to agencies and constituents alike,” Humason stated.

It’s not just the Legislature with an insatiable appetite for spending the hard earned money of the Commonwealth’s residents and businesses.  Recently, Governor Patrick unveiled “The Readiness Project,” his proposal to reform education.  However, he unveiled it with no price tag. 

Patrick said “we’re building a house.”  Of course, as most of us know, very few people can build a home without a budget.  Most people establish a budget and then work within their means.

“We in state government want to provide the needed services, but presenting new and costly programs during tough economic times is not the message we want to send to the people of Massachusetts,” Jones further said.  “Ultimately, not only is the Democratic controlled Legislature not working within their means, but it’s also using the rainy day account as its own slush fund.”

The Conference Committee report on the state budget was filed late last evening in the House Clerk's office. You may view the text at this link:

http://www.mass.gov/legis/bills/house/185/ht04pdf/ht04900.pdf

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Representative Don Humason and his legislative aide Sarah Latour may be reached at their Westfield District office, 64 Noble Street, Westfield, MA 01085, 568-1366.
                                                              
Their Boston address is State House Room 542, Boston, MA 02133, (617) 722-2803. 
Email address: Rep.DonaldHumason@Hou.state.ma.us

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