More aid, no tax cut in Senate's $25.4b plan

May 18, 2006|Steve LeBlanc, Associated Press

Senate leaders unveiled their budget plan for the new fiscal year yesterday, proposing extra spending on schools, local aid, and healthcare but rebuffing Governor Mitt Romney's call for a cut in the state income tax rate.

The $25.4 billion spending plan boosts education aid to cities and towns by more than $210 million and funds the state's new commitments under the landmark healthcare law approved this year, according to Senate Ways and Means Chairwoman Therese Murray. The budget is a 6.3 percent increase in spending over the current fiscal year, but is about $30 million lower than the House plan approved last month, said the Plymouth Democrat.

Senators also want to spend more than $1 million for the state Office of Dam Safety to help speed inspection and regulation of the state's 3,000 dams, which are under renewed focus with recent heavy rain and flooding.

Senate Democrats had faulted Romney for asking for only about half as much for the dam safety office. They said the recent flooding shows the need for better oversight of the state's dams.

House Speaker Salvatore F. DiMasi said House members are also interested in ensuring that the state's dams are secure.

Murray defended the decision to ignore Romney's proposal to cut the state income tax rate from 5.3 percent to 5 percent. ''We felt we would rather invest the money in education and higher education and health," she said.

The Senate plan would increase spending on higher education by more than $57 million, including $31 million for state and community colleges and more than $26 million for the University of Massachusetts. The plan would also pay for a 60-bed substance abuse program and increase assistant district attorney salaries.

The budget plan is set to head to the Senate floor for debate next week. Once the Senate approves the budget, both the Senate and House versions will be sent to a six-member conference committee that will hammer out a final compromise to send to Romney's desk. The fiscal year ends June 30.

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