Massachusetts governor signs budget, health curbs next

(Reuters) - Massachusetts Governor Deval Patrick on Monday said he signed a $30.6 billion budget, which cuts spending by $750 million, marking the biggest year-on-year reduction in 20 years.

The Democratic governor relied on an interim budget to ensure that the state government would not have to shut down when it looked likely that the July 1 deadline would be missed.

The new accord withdraws $185 million from the state's rainy day fund, a step that credit agencies often frown upon.

But Patrick noted in a statement that the fund will have at least $585 million when the new fiscal year ends, "ranking the commonwealth among the top ten states with the largest fund balances in the nation."

Read more: http://www.reuters.com/article/2011/07/11/us-massachusetts-budget-idUSTRE76A60Z20110711