Massachusetts Gov. Deval Patrick yesterday released his $27.9 billion fiscal 2010 budget proposal, which includes spending cuts, anticipated federal funds, rainy-day revenues, and new tax increases to help bring expenditures in line with revenue.

The state will enter fiscal 2010, which begins July 1, with a $3.5 billion deficit, which the governor proposes to close by implementing $1.6 billion of spending cuts - including a $220 million reduction in local aid - and $711 million of funds from an anticipated federal stimulus package that Congress is currently working on. In addition, Patrick's proposal, called an emergency recovery plan, uses $586 million of rainy-day funds and $587 million of revenue from tax increases.

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