Massachusetts Gov. Deval Patrick on Friday signed a $34 billion budget for fiscal 2014, after vetoing $417 million of spending, including $240 million in a separate transportation bill that still awaits action in the legislature.

Patrick sent the transportation bill, which includes roughly $500 million in new taxes necessary to balance the budget, back to lawmakers last week, seeking provisions to cover lost revenue if state officials remove tolls from the western end of the Massachusetts Turnpike.

House and Senate leaders are at a standoff with Patrick. Lawmakers are scheduled to meet the week of July 15 to consider an override of Patrick's vetoes.

Patrick also cut $177 million in local aid, saying he would automatically restore the full $417 million if the legislature accepts his amendment to the transportation finance bill.

The budget includes a $350 million withdrawal from the stabilization, or rainy-day fund, leaving the fund with a $1.25 billion balance. Massachusetts still ranks among the few states with such balances exceeding $1 billion.

Moody's Investors Service rates the state's general obligation bonds Aa1, while Fitch Ratings and Standard & Poor's assign AA-plus ratings.

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