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Analyzing the Senate Ways & Means Budget for FY 2016
Yesterday, the Senate Ways and
Means Committee (SWM) released its budget proposal for FY 2016, modestly
increasing education programs above levels in the Governor's and House budgets
(read our full Budget Monitor HERE). The SWM proposal follows the
Governor and the House in increasing funding to fight substance abuse and in
modestly increasing local aid. The budget also provides new funding to the
Department of Revenue that will strengthen its capacity to ensure that companies
pursuing complex tax evasion strategies pay their fair share.
Like proposals by the Governor
and the House, the SWM budget relies heavily on temporary strategies to balance
the budget:
The budget proposals by the
Governor, the House, and the Senate are all shaped by fiscal challenges that
date back to the late 1990s: after cutting the income tax by over $3 billion
dollars between 1998 and 2002 we have experienced deep cuts in areas like higher
education, local aid, and public health. Meanwhile, the highest income residents
in the Commonwealth pay a substantially smaller share of their income in state
and local taxes than do the other 99%. If the tax system were reformed so that
the highest income 1% of taxpayers paid roughly the same share of their income
in taxes as everyone else, that would raise about $2 billion that could be
invested in our people, our communities and our economy.
For our full analysis of the
Senate Ways & Means proposal, please click HERE.
| 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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