Massachusetts Governor Mitt Romney has
asked the state Legislature to use $150 million of “rainy day”
reserve funds this month to ensure that the state has enough money
to pay bills, the Boston Globe reported.
Romney’s aides called use of reserves “precautionary,” the
Globe said, because even though the state has a balanced budget
for the fiscal year ending June 30 it still may need the reserves
to pay some expenses. Using the money would cut the reserves,
which stood at $2.3 billion two years ago, to $175 million.
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The state may need the $150 million to make scheduled
payments of $1.26 billion to cities and towns if tax collections
this month come in below projections, the newspaper said, citing
Nicole St. Peter, a Romney spokeswoman.
The Globe said it was unclear how lawmakers, who are
finishing work on the fiscal 2004 budget, would react to the
proposal. The state is already using $800 million in the rainy day
fund in the fiscal 2003 budget, the newspaper said.
Bloomberg News
