Gov. Charlie Baker on June 26 signed a $5.25 billion interim budget for fiscal 2021 that will allow the state to pay its bills beginning on July 1 in the absence of a final appropriations bill.

The interim state budget law will fund municipal and school aid payments based on fiscal 2020 Cherry Sheet estimates for the month of July, unless a final state budget is approved. The Division of Local Services issued a bulletin that outlines local aid rules under the interim budget (Bul-2020-09, linked below).

The interim budget law includes language to carry forward unspent fiscal 2020 state capital balances that are set to expire at the end of fiscal year.

Normally, the House and Senate would have completed action on their respective versions of a spending plan by now and would be working out differences in hopes of getting a final bill to the governor by the start of the new fiscal year on July 1. The state budget will be substantially delayed this year, however, because of continuing revenue uncertainty due the coronavirus recession and the wait for possible federal action to help state and local governments weather the storm, as happened during the last recession