Governor Patrick proposes to deplete FY10 and FY11 Fed stimulus money expected to be used for education to pay for FY09 state local aid payment. Oh, yes, and further cut reserves to lowest level since 2003. Let's see how the General Court reacts.
With only $70M left, there's no way North Andover will get the anticipated $1.2M from the Federal Stimulus. I hope the schools haven't already spent that money.
FY09 is still not complete...
QUOTE:
Governor Deval Patrick proposed yesterday to use an additional $461 million from the state's rainy day account, which would help close the latest in a series of budget gaps but would drain the reserve fund to its lowest level since 2003.
The plan would reduce reserves, which began the fiscal year with a $2.1 billion balance, to about $800 million. The cushion is disappearing even as economists are warning that this is only the first of several years that will see anemic revenues and strained budgets.
In another sign of the tough economic times facing state government, Patrick is also planning to use $412 million in federal stimulus money to make a scheduled local aid payment to cities and towns. ... the governor plans to deplete the federal stimulus funds, which were billed as a major rescue package pushed through by President Obama, more quickly than was expected.
...
The stimulus money is being drawn from $813 million that the federal government is giving to Massachusetts to restore state aid to school districts and higher education institutions. It was originally scheduled to be spent over three years, 2009, 2010, and 2011. With the latest maneuver, only $70 million will be left that was specifically earmarked for educational uses. --- "Patrick plans to tap rainy day fund $461m in savings, plus stimulus funds, would fill budget gap", Matt Viser, Boston.com, May 8, 2009 http://www.boston.com/news/local/massachusetts/articles/2009/05/08/patrick_plans_to_tap_rainy_day_fund/
