In a speech before hundreds of municipal leaders, Lieutenant Governor Timothy P. Murray offered upbeat but cautious highlights of the administration’s proposed budget for the coming fiscal year, which will be unveiled in its entirety Wednesday. The key point for cities and towns was a plan to hold local aid at $833 million.
Murray also announced that state aid to local schools would be increased by $145 million, or 3.6 percent. Money to fix local roads would be augmented by an additional $45 million, giving cities and towns resources to repair streets battered by last winter’s unrelenting snow.
The administration’s spending plan for the forthcoming budget year also includes $260 million worth of proposed tax and fee increases, from boosting the cigarette tax by 50 cents a pack to eliminating a tax deduction for losing lottery tickets.
The budget is based on a modest rise in tax revenues, which are expected to increase by 4.5 percent in the fiscal year that begins in July.
“That’s good news and part of an encouraging trend,’’ Murray said in a speech at the annual meeting of the Massachusetts Municipal Association. “But it doesn’t mean we’re out of the woods yet.’’
Rising costs from inflation, healthcare, and other expenses continue to outpace the growth of tax revenues. To make up the difference, the administration will propose some cuts, said Jay Gonzalez, Governor Deval Patrick’s secretary of administration and finance, who would not name specifics yesterday.
Some of the $260 million in tax increases, such as a sugar and soda tax, have been proposed before and failed to pass. Republicans, who control just a few seats in the Democratic-dominated Legislature, quickly objected to the revenue hikes.
“One thing is clear,’’ House minority leader Bradley H. Jones Jr. said in a statement. “The Patrick administration has a sweet tooth for tax increases.’’
Yesterday’s speech by Murray marked the start of a months-long budget process. Numbers, proposals, and tax revenues will change, perhaps significantly, before a final budget is adopted for the next fiscal year.
