Interesting information:
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The Governor's 9C Cuts and
Context
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Yesterday
Governor Patrick announced a series of actions to bring the current year budget
into balance. The need for mid-year budget solutions highlights two realities
that have shaped Massachusetts budget debates for years: our national economy is
still recovering from the worst recession since the Great Depression and we
continue to have substantially reduced revenues because the state adopted over
$3 billion of income tax cuts during an economic bubble in the late 1990s
(described HERE). Those tax cuts led to deep cuts
in funding for local aid, education, public health, and other investments that
can strengthen our economy, expand opportunity and improve the quality of life
in our communities. In addition to forcing painful cuts, the loss of $3 billion
in revenue has caused ongoing fiscal instability.
These
long-term challenges are now compounded by a few short-term ones: a coming
automatic reduction in the personal income tax rate, non-tax revenue collections
that are below projections, and additional economic development spending
commitments that were made with the expectation that there would be more revenue
available than is currently projected. The administration estimates that
combined these have created a $329 million gap for the rest of FY 2015. To close
this gap, the Governor yesterday announced $198 million in cuts to executive
branch agencies as authorized by Chapter 9C of the General Laws (explained in What are 9C Cuts?). The Governor also
proposed additional solutions in areas beyond executive branch agencies --
including to local aid -- that can only be implemented with legislative
approval.
The
$198 million in 9C cuts to programs within the executive branch include:
Additional
proposed cuts to non-executive branch agencies, which the Governor cannot
implement on his own, include:
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The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. |
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