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Gov. Patrick Unveils $30.5B Mass. Budget Plan

BOSTON (AP) - Massachusetts Gov. Deval Patrick has unveiled his state budget for the 2012 fiscal year, one that would further dip into the state's so-called rainy day fund to help close a projected $1.5 billion spending gap.

The budget proposal unveiled by the governor on Wednesday totals $30.5 billion. It also calls for various program cuts and would reduce the state work force by as many as 900 jobs.

The state is still trying to recover from the effects of the recession and faces the end of key federal stimulus funds. There are no stimulus funds used in his budget, Patrick said.

WBZ-TV's Karen Anderson reports.

Patrick's spending plan for the fiscal year starting July 1 calls for withdrawing $200 million from the rainy day fund, leaving $569 million in cash reserves.

The governor already has told cities and towns to brace for a $65 million cut in unrestricted aid.

WBZ NewsRadio 1030's Lana Jones reports.

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"In all of these ways this budget deals with the current challenges we face without passing the buck to future
generations," Patrick said.

He said there are no tax hikes in his budget proposal. He said he is again pushing an expanded version of the state's bottle bill and is proposing a new fee -- 2.50 to $2.75 on auto insurance policies that he said would help fund a permanent State Police cadet class.

Other reductions in Patrick's budget include a $23 million cut to emergency homeless shelters, a $16 million cut to the Department of Mental Health hospital and a $45 million reduction in spending by ending the practice of hiring private attorneys to represent the state's most indigent criminal defendants. Patrick would instead hire $1,000 salaried lawyers.

Patrick said his budget plan also would continue to provide tax credits to the film industry, a benefit that backers say has helped create jobs and showcase the Bay State on the silver screen. Patrick last year tried to cap the tax credit at $50 million. House Speaker Robert DeLeo said the film tax credits are key to the state's economic recovery.

"As we strive to put folks across Massachusetts back to work, the film tax credit continues to stimulate local business and job growth throughout Massachusetts," DeLeo said in a statement. Critics of Patrick's budget, including the American Heart Association and the American Cancer society, said it will end up forfeiting $6 million in federal matching funds for programs that support the prevention and early detection of disease.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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