Massachusetts May Be Blue, But it’s Back In The Red
by Matt Margolis, December 14th, 2007 at 01:32pm
The Romney-Healey administration came in with a budget deficit, and left with a surplus.
The Patrick-Murray adminstration came in with a surplus, and has already seen us back with a deficit.
State officials and fiscal analysts yesterday predicted relatively small increases of 2.4 percent to 4.1 percent in state tax collections next year, saying the rise will not be enough to close a projected budget gap for the 2009 fiscal year that could top $1 billion.
“What this says for the fiscal ‘09 budget is that the Commonwealth is in deep trouble,” said Michael Widmer, president of the Massachusetts Taxpayers Foundation, who is warning the shortfall could balloon to $1.5 billion because of spending increases that are built into the budget.
The slowing economy, stagnant corporate profits, and declining capital gains are sparking the state revenue dip, said several who testified at a State House hearing yesterday.
In addition, though poised to post its highest revenues ever, the state lottery will not be able to meet overly optimistic expectations built into the budget or continue to grow in the future, said State Treasurer Timothy Cahill. The lottery provides about $900 million to cities and towns, which have come to expect annual increases, said Cahill.
The officials and fiscal analysts appeared before a joint hearing of the Senate and House Committees on Ways and Means, who are working to come up with a revenue estimate that will guide Governor Deval Patrick and lawmakers as they put together next year’s budget. Patrick is expected to unveil his budget plan on Jan. 23.
Sadly, Deval might think this is a good reason to support his disastrous casino plan.
Entry Filed under: Economy
10 Comments
1. Mr. X | December 17th, 2007 at 11:06 am
Let’s see, where shall I begin? With there is no deficit or it is a planned deficit so no taxes can be cut or local aid can be restored? Probably the second one is better this time, since the Romney deficit, just like the Weld deficit was a figment of their consultants imagination…good stuff though, policy fraud works every time! But this time MASSHEALTH is the big problem which is a giveaway to MASSBUSINESS…current estimates are $400 million to a billion of taxpayer revenue going to pay for the non-payers which in turn goes to the HMO’s, hospitals etc. Such a terrible waste of taxpayer $$$..and a tip of the hat to HBS’ Michael Porter…the wizard behind it all!
2. V | December 17th, 2007 at 11:15 am
Mr. X,
No Wheaties this morning? I’m having a hard time making sense out of your post.
Tell me, without making things up, how is Masshealth a giveaway to Mass business? Please tell me, because I’d like to see some of that benefit if it is (I own a business Mr. X).
I’ve said it once, I’ve said it a million times, we don’t have a deficit problem. We have a SPENDING problem. Cut some wasteful useless hack union jobs, streamline government and make the lay-abouts go back to work!
Mr. X, WWCD?
3. Mr. X | December 17th, 2007 at 11:23 am
V! pay $295 a year to cover the state’s requirement for each employees health insurance…Hello Major V ? Can you hear me Major V?
4. V | December 17th, 2007 at 12:36 pm
Mr. X,
As usual, you make no sense.
5. Mr. X | December 17th, 2007 at 12:42 pm
Instead of a company paying $5k for a single person’s health insurance policy or $10k for a family, now they can pay $295/year and tell the employee to get their own…companies are doing it all the time now…this is the plan…no more company paid Health Insurance…Didn’t you know? TAO has been advocating it for years…
6. V | December 17th, 2007 at 1:29 pm
Sure Mr. X, we could do that. Or we could pass the cost on to the employees. Not owning a union shop, I have that choice (and I pay for it BTW, 100% employer funded). But ultimately, health care is something that employers can use to draw better qualified candidates for jobs. If I have good health care (Blue Cross Blue Shield here, no Havard Pilgrim for me), it is a draw.
Face it Mr. X, the employer can’t be counted on to continue to pay the cost of health care. Is this a loophole, sure, I’ll give you that. But people are going to have to face reality. As long as a crimalien can go to the emergency room for care, sign up for Masshealth, medicare, SSI, food stamps, college tuition…….we will keep paying the freight. And it was the “great society” and lefties like you we can all thank for that.
7. Mr. X | December 17th, 2007 at 1:47 pm
Oh, it’s the lefties letting our friends from south of the border in? Try King George and the R Congress and now the D’s. Business people are the real revolutionaries by definition…they more than any other entity change society..many times for the worse… politicians are their useful idiots and the media moguls are travelling companions…looking for a little homework on employer paid health ins? Business began offering it in the ’20’s to stop workers from joining the unions, which did offer it…now that they have killed the unions (thanks to V et al) they will end insurance. Nice Guys, eh?
8. V | December 17th, 2007 at 2:28 pm
What did the unions kill X-man? Lets start with the auto industry. Homework….sheesh. You must have been something before the internet Mr. X.
You hate business don’t you Mr. X? You want us to all go back to the collective, don’t you? Keep shinin’ that pinkie ring in the rarified air of Locke Ober…….
9. Mr. X | December 19th, 2007 at 10:22 am
No V, the unions didn’t kill GM…NAFTA did and the inhumane, barbarous trade policy of both the D’s and the R’s…the selling of America…what a shame,it was such a good country…sold to the lowest bidder. Is it such a terrible thing to provide union wages to our middle class heroes who are our workers and our fighters in time of war…they are the true Americans…not the pointed headed free traders across the river (M. Porter anyone?) and V’s friends at Locke-Ober’s!
10. V | December 19th, 2007 at 10:34 am
Mr. X, a man of the people (sarc).
NAFTA????? You’re dreaming Mr. X. Dreaming.
The auto biz was hurting long before NAFTA. Those pesky facts again. Can you even look things up on the internet Mr. X, or are you longing for the days of micro-film at your local library?
No, it isn’t a “terrible thing” to provide good wages to anyone (middle class included). What is a terrible thing is to mortgage our future on benefit packages that can’t possibly be paid for. Have you ever looked up what the burden is on union wages Mr. X?
Why can’t we just agree to disagree? I think that the unions kill America with their outrageous demands for ever higher wages and increasingly burdensome benefits (which can easily be backed up with references if you’d like); and you think these people are hero’s.
You may want to look up “hero”. I think it is one of the most over-used words in the english language.