Gov. Patrick proposes new emergency budget

In the midst of a deteriorating economy, Gov. Deval Patrick released his Emergency Recovery Plan Wednesday, which includes a proposed $27.97 billion budget for the 2010 fiscal year and a 2009 mid-fiscal year ‘fix’.

‘The national recession is inflicting serious pain across Massachusetts, from household budgets to the state’s balance sheets, and like many residents throughout the Commonwealth, we have to make do with less,’ Patrick said in a press release Wednesday.

New taxes and fees will raise $587 million for the state in the 2010 fiscal year. The $1.6 billion in cuts include a $220 million reduction in aid to cities and towns.

In October, Patrick cut $1.4 billion in the 2009 fiscal year budget, but he addresses an additional $1.1 billion gap in the emergency plan that has arisen in the 2009 budget since then.

The budget includes the ‘Valentine Day tax,’ Boston University senior lecturer Mark Williams said in an email. The budget will eliminate a current tax exemption on alcohol, candy and soda.’

‘Everything you might want to do on Valentine Day has had a tax increase,’ Williams said.

The state meal tax will also increase from five to six percent, and hotel taxes will go up from 5.75 to 6.75 percent.

The plan relies on $711 million in expected federal aid and takes $586 million from the state’s rainy day fund.

Patrick’s proposal addresses hard cuts at a difficult time, Williams said.

‘However, this plan is actually not about recovery but is all about survival until the financial storm blows over,’ he said.

Patrick said he anticipated and welcomed ‘vigorous debate’ on the plan, but ‘endless debate is not acceptable,’ according to a transcript of his speech announcing the proposal on mass.gov.

‘We need action – by the legislature, by municipal officials and by the citizens of Massachusetts – and we need that action urgently,’ Patrick said.