For Immediate Release

HOUSE PASSES SUPPLEMENTAL BUDGET

Bill Provides Funding for Clean Energy, Economic Development, Health Care

BOSTON—The Massachusetts House of Representatives today passed a $278.7 million supplemental budget that closes the books on Fiscal Year 2007 and provides approximately $100 million for key economic development initiatives to stimulate emerging industries such as clean energy development and support growth industries such as life sciences and arts and culture.

The bill also provides funding to support affordable and “smart growth” housing development. Reducing the high cost of housing is vital to making the Commonwealth more attractive to potential new businesses looking to locate within the Bay State.

“With this budget, we close the books on fiscal year 2007 on a positive note and make prudent investments that will lead to future economic growth,” said Representative John Fresolo. “I am particularly pleased to announce $50 million set aside key House priorities, $43 million for alternative and renewable energy and $7 million for our cultural facilities – both important economic engines in the Commonwealth.”

“We are definitely ending the fiscal year on a high note with this supplemental budget. Not only have we paid all our bills and funded worker contracts, but we have made smart, targeted investments that will stimulate the economy and drive the next wave of economic expansion in Massachusetts,” stated House Ways and Means chairman Robert A. DeLeo (D-Winthrop).

Some key provisions of the supplemental bill include:

• $116.5 million for previously negotiated and ratified collective bargaining agreements;
• $13 million for the Higher Education Endowment Incentive that will allow state schools to leverage private donations;
• $20 million for public defenders;
• $8.7 million for reimbursements for Underground Storage Tank clean up;
• $7.8 million to fully fund the “Rosie D” settlement within the Department of Mental Retardation;
• $5million for Local Housing Authorities.

The bill also completes an initiative first announced as part of the current state budget which dictates how any surplus might e spent. The year did end with a surplus, estimated to equal approximately $200 million, and according to the supplemental budget, it will be divided as follows:

• $50 million to be deposited into the Commonwealth’s Rainy Day Fund which already has a balance of $2.2 billion.
• $43 million to establish a new Massachusetts Alternative and Clean Energy Fund;
• $14 million to the Massachusetts Life Sciences Investment Fund;
• $15 million to the Affordable Housing Trust Fund;
• $10 million to the Smart Growth Housing Trust Fund; and,
• $7 million to the Cultural Facilities Fund.