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No new taxes under proposed House budget

The Massachusetts House Ways and Means Committee revealed its $32.29 billion budget proposal for the next fiscal year at the State House on Wednesday.

Committee Chairman Brian Dempsey said the budget proposal will not include the $160 million in new taxes in Massachusetts Gov. Deval Patrick’s proposition in January.

Instead, the Commonwealth will rely on the $522 million in one-time revenue solutions to partially fill the structural budget gap, according to the budget briefing distributed at the press conference.

“By not adopting these proposals, we have reaffirmed our commitment to responsible budgeting by keeping the operating budget within our current means,” Dempsey said,  “and do not shift the burden of balancing the budget onto the shoulder of Massachusetts taxpayers.”

The committee’s proposed budget is $14 million less than Massachusetts Gov. Deval Patrick’s proposal, according to the budget briefing.

The proposal requires no new taxes, fee increases and elimination of tax exemptions, but leaves a $790 million structural budget gap.

The committee proposed drawing $400 million from the stabilization fund to close part of this gap, a move Dempsey said will still leave more than $1 billion in the stabilization account.

“We will still be one of four states in the country that have stabilization in excess of $1 billion,” Dempsey said.

The proposal also called for a $164 million increase in local aid for elementary and secondary education, bringing a total of $4.15 billion in funds. About $1 million was set aside for more “line items for [Advanced Placement] courses.”

The committee struck down Patrick’s proposal to consolidate funding for the state’s 15 community colleges into one line item. The state would continue to allocate a set amount of resources to each community college under its line item.

“As we look at the FY13 Ways and Means Committee proposal, a major difference between this budget and the governor’s recommendation is our commitment to local communities,” Dempsey said.

The tentative budget suggests a significant reform for homeless families and a $10 million investment in the Massachusetts Rental Voucher Program, Dempsey said.

“This investment will create 923 vouchers specifically for families living in hotels and motels to get those families in permanent housing and onto a path of self-sufficiency,” he said.

The proposal also expands upon the law that prohibits the use of Electronic Benefit Transfer cards on alcohol, lottery tickets and tobacco to include a ban on other nonessential goods, Dempsey said.

The committee did not adopt the reorganization of probation and correction departments, an area Patrick stressed in his State of the Commonwealth speech in January.

The tentative budget transfers about $700 to $800 million to the MBTA, which occurs each year, Dempsey said. The only additional provision includes an effort to take advantage of potential federal reimbursement for The Ride.

“As the Massachusetts national and global economy continue to recover from the recession, it is clear that while the commonwealth is recovering strongly, we are not yet back to pre-recession revenue levels,” Dempsey said.

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