Baker signs $40B Mass. budget without health fee, vetoes $320M

AP Photo/Charles Krupa

BOSTON (AP) — Republican Gov. Charlie Baker has vetoed $320 million in spending from the state budget and is asking lawmakers to take a fresh look at a package of cost-saving Medicaid reforms.

Baker on Monday signed the rest of the roughly $40 billion spending package. The state has been operating on an interim budget since July 1.

The governor didn’t sign off on a budget provision calling for a new temporary assessment on Massachusetts employers to help offset rising costs for MassHealth, the state’s Medicaid program. He’s giving the Legislature 60 days to act on a broader set of changes.

The budget process has been complicated by a shortfall in tax collections. The administration projects revenue to be about $750 million less than what was projected when the governor filed his initial budget recommendations in January.