Governor Mitt Romney today used his budget-balancing powers to withhold $425 million in spending in the current fiscal year. The reductions amount to 1.7 percent of the $25.7 billion state budget.
The Governor said the budget gap is not the result of a flagging economy or a drop in state revenues. In fact, the state economy is growing at twice the national rate, and state revenues are at an all-time high. Instead, he said, it reflects a dispute with the Legislature over the use of the rainy day fund.
Romney repeated his warning that the Legislature is heading down a “dangerous path” by dipping into the rainy day fund to pay for millions of new spending. Last month, Romney vetoed a transfer of $450 million from the rainy day fund, necessitating today’s action.
“State revenues are at an all-time high, jobs are being created by the thousands and the stock market is at historic levels. This is not the time to be dipping into the rainy day fund. The state is not in a fiscal crisis, but a crisis is looming if the Legislature continues to overspend,” Romney said….