< Back to front page Text size – +

Homeless shelter cuts averted by revenue windfall

E-mail|Link|Comments () December 4, 2009 05:06 PM

By David Abel, Globe Staff

Money from a tax settlement agreed to this week by the state Department of Revenue and slightly higher-than-expected tax collections will allow the state to close a budget gap of $120 million without further cuts, Governor Deval Patrick announced today.

The additional revenue will allow the state to scrap plans to cut funding for the homeless, saving as many as 500 shelter beds and a raft of programs, advocates said.

“We had some unexpected good news this week, and it gives us some breathing room,” Patrick said in a statement. “At best we can do better by homeless individuals and families with the winter coming.”

The administration will use $82 million from the one-time tax settlement and an unexpected $37 million increase in revenue collections. State officials would not disclose the overall size of the tax settlement or name the company.

The governor today also announced plans to introduce a supplemental spending bill of $42 million for emergency homeless shelters, which administration officials said will be used to alleviate rising caseloads.

Advocates for the homeless said they are relieved that the money will be reinstated for their programs.

“I’m very happy about this, having spent the past month telling people that they were going to lose beds and other resources,” said Joe Finn, executive director of the Massachusetts Housing and Shelter Alliance, which represents 90 homeless programs. “Now we know we’re going to make it through this very difficult period.”

The cuts to homeless programs were part of $600 million in budget cuts that Patrick announced in October to balance the budget.

The Legislature last month sent Patrick a bill intended to solve about $484 million worth of the cuts.

“While the unexpected revenues will help avoid the immediate need to make additional cuts to the executive branch, we are continuing to seek expanded 9C authority to cut from non-executive branch agencies in order to effectively and fairly manage the budget over the remaining half of the fiscal year,” said Secretary Jay Gonzalez of the Executive Office of Administration and Finance in a statement.

“Having as many tools as possible during these challenging economic times will allow the governor to act promptly and responsibly – as he has to date – thereby securing the state’s positive credit rating," he said.