Wednesday, February 4, 2015

MassBudget: Mid-year solutions and long-term challenges

MassBudget  Information.
 Massachusetts Budget and Policy Center  Democracy.

Mid-year solutions and long-term challenges  

Mid-year budget solutions announced today by the Baker Administration are a combination of temporary fixes and budget cuts. While these steps will help keep the budget balanced through the end of the year, our Commonwealth will continue to face hard choices in next year's budget and in the years ahead.

Temporary solutions include using capital gains tax revenue that was supposed to go into the state stabilization fund, implementing a tax amnesty that will reduce tax revenue in future years, and employing cash management strategies at MassHealth that will likely include shifting costs into next year.

The 9C cuts implemented by the administration include reducing funding for full-day kindergarten, for mental health services for children and adults, and for state parks (complete list available HERE).

"The solutions announced today help balance the budget this year. Seeing 40 year-old trains break down in this week's storms, we are reminded that our biggest challenges are long term," said Noah Berger, President of the Massachusetts Budget and Policy Center. "Without smart investments in our people and our communities we risk lasting harm to our economy and quality of life. In the long term, budget cuts could be balanced with tax reforms that ask our highest income taxpayers, who now pay less of their income in state and local taxes than most people, to pay their fair share." 

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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screen grab of Mass Budget webpage
screen grab of Mass Budget webpage

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