Moody’s: Late budget a sign of ‘governance weakness’

As the state again begins a new fiscal year without a permanent budget, credit rating agency Moody’s said Massachusetts’ late budgets, along with six other states in similar situations, are a sign of “governance weakness.”

“Late budgets are common in Massachusetts,” according to Moody’s, which released its threepage report Wednesday. The state’s fiscal year began July 1.

A year ago, Massachusetts was the last state without a permanent spending plan by the time one finally reached the desk of Gov. Charlie Baker and was signed by him on July 26.

“This year, the commonwealth joined a number of other states in debate over education funding. Legislators are having difficulty reaching consensus on whether to freeze tuition and fees at state colleges and universities, among other issues,” according to Moody’s.

The House and Senate budget bills contain many similarities but take different approaches in key areas, including school aid, prescription drug price controls, a tuition and fee freeze at the University of Massachusetts, aid to the struggling nursing home industry, and new taxes on vaping products and opioid manufacturers.

“Massachusetts, however, has a well-established practice of enacting a temporary budget, giving the commonwealth an additional month to enact a final budget,” the report states, in reference to the $5 billion interim budget Lt. Gov. Karyn Polito signed last week to keep state government open.

Last week, Baker declined to criticize the Democratic-controlled Legislature for a late state budget.

“I don’t have a problem with the budget being a week or two late,” Baker told reporters after meeting with legislative leaders last week. “I care a lot more about the quality of work product and the completeness of that work product and giving people the ability to do the stuff that they need to do depending on where we are to finish the process.”

Lawmakers broke Wednesday for the July Fourth holiday weekend, but legislative leaders say negotiators are making progress.

House officials said the four Democrats and two Republicans on the budget conference committee — led by Sen. Michael Rodrigues and Rep. Aaron Michlewitz — planned to continue talks through the Fourth of July holiday and this weekend, with an eye toward reaching a final compromise next week.