MassBudget: Mid-Year Budget Cuts

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Mid-Year Budget Cuts Because tax receipts for FY 2013 have been lower than expected, the Governor today announced a series of mid-year spending cuts--along with plans to use money from existing reserves. Our new factsheet, Mid-Year Budget Cuts for FY 2013, describes these proposals and the broader fiscal context. Among the cuts announced today are the following: Lower reimbursements for districts with high-needs special education students (via $11.5 milllion in cuts to the SPED Circuit Breaker) $7.4 million in cuts to mental health programs, including some services for children and some for adults A 1% cut to Local Aid, which funds municipal services including police and fire protection, parks, and public works. (This cut would have to be approved by the legislature.) $200 million drawn from the state stabilization fund (the "rainy day" fund) There are two basic reasons that Massachusetts continues to find itself in a fiscal crisis. First, because of the lingering effects of the Great Recession. And second, because of tax cuts and other declines in tax receipts over the last fifteen years that cost the state over $3 billion in annual revenue. Read MID-YEAR BUDGET CUTS FOR FY 2013 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. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

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