# House, Senate Agree On Final Budget Proposal



## kwflatbed (Dec 29, 2004)

_Plan Depends On New Tax Revenues_

*BOSTON -- *State lawmakers have approved a budget plan that depends heavily on new tax revenues and spending from the state's reserve fund.

The $28.2 billion budget was passed Thursday, two days after the start of the new fiscal year. Gov. Deval Patrick has 10 days to issue any line-item vetoes.

The spending plan relies on an estimated $285 million in new revenues from closing corporate tax "loopholes," and $174 million from a $1 per pack cigarette tax increase.
Patrick signed both of those measures this week.

The budget also calls for a $310 million withdrawal from the rainy day fund.

Michael Widmer of the Massachusetts Taxpayers Foundation has urged Patrick to freely wield his veto pen, estimating the budget is $1 billion out of balance.

Widmer says lawmakers underfunded major accounts, such as health care, and overestimated business tax revenues. He also says the plan fails to account for a $100 million film tax credit.

http://www.thebostonchannel.com/news/16782425/detail.html


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