June 20, 2009 Painful cuts, tax hikes included in Mass. budget Play video

(NECN: Brad Puffer, Boston, Mass.) - From transportation to pension reform, legislatures have been moving quickly this week. Now the House and Senate have passed a 27.4 billion dollar budget that includes painful cuts while also hiking the sales and meals tax

Michael Widmer, MA Taxpayers Foundation: "The legislature and the Governor have a very difficult set of decisions. This budget reflects that. But I think it is a responsible budget given the hand they are dealt."

Those budget cuts includes a 15% reduction in aid to cities and towns, the elimination of 12 registry of motor vehicle branches. It slashes Quinn Bill funding by 80-percent, funding that awarded bonuses to police officers with college degrees. And state workers will pay now more for health insurance.

Sen Stephen Brewer, (D) Barre MA: "I think we have taken decisive action. It is very unpleasant. We know we can’t tax our way out of this problem, we know we can’t cut our way out of this problem, we know we can’t reform our way out of this, but a combination of those three endeavors hopefully we can cobble together a budget that will be sustainable."

Ma Sales tax would go from 5% to 6.25%, Satellite TV will now be taxed along with alcohol bought at package stores. And the state meals tax will all increase to 6.25%, with local towns able to raise even more. But the few Republicans in the House these taxes are too high and the bill is being passed to quickly

Rep Jeffrey Perry,

(D) Sandwich MA: "The process is broken. And each of you should be extremely concerned that you’re about to vote on a budget that I would suggest you haven’t read and you don’t understand and that you can’t explain to your constituents."

The Governor has threatened to veto the sales tax unless he also gets comprehensive ethics reform. It’s a threat that disappointed some lawmakers, who insists an ethics bill is on the way.

Rep Patricia Haddad, (D) Somerset MA: "It is equally important and it will get done next week."