The swearing in of Romney as the 70th governor of Massachusetts took place on January 2, 2003. He faced a Massachusetts state legislature with large Democratic majorities in both houses, and had picked his cabinet and advisors based more on managerial abilities than partisan affiliation. He declined a governor's salary of $135,000 during his term. Upon entering office in the middle of a fiscal year, he faced an immediate $650 million shortfall and a projected $3 billion deficit for the next year. Unexpected revenue of $1.0–1.3 billion from a previously enacted capital gains tax increase and $500 million in new federal grants decreased the deficit to $1.2–1.5 billion. Through a combination of spending cuts, increased fees, and removal of corporate tax loopholes, the state achieved surpluses of around $600–700 million during Romney's last two full fiscal years in office, although it began running deficits again after that.