off piste
October 21st, 2007, 05:10 PM
http://www.bostonherald.com/news/regional/politics/view.bg?articleid=1039074
Gov. Deval Patrick (http://news.bostonherald.com/search/?keyword=Deval+Patrick&searchSite=pubdate)’s top budget aide said yesterday that the state is facing a “serious deficit” in the next budget year and that tax increases may be needed to close a shortfall expected to hit at least $500 million.
Administration and Finance Secretary Leslie Kirwan, who will file a new state budget in January, indicated that the state’s financial condition remains dire and that deep cost cuts or new taxes will be needed to balance the books in fiscal year 2009.
“We continue to face a serious deficit and we have proposed a series of both cost containment measures and revenue proposals such as our Municipal Partnership Act, and closing corporate tax loopholes,” Kirwan wrote in a statement to the Herald.
“We are focused on savings and efficiencies first, but we also must look at new revenues,” she added.
Top lawmakers and financial analysts agreed that next year’s budget looks extremely difficult, and one longtime budget expert said he anticipates a revenue shortfall of up to $600 million and possibly much higher. The size of the shortfall could rival the $1 billion gap Patrick faced last year.
“It’s going to be a very tight budget with virtually no room for expansions,” said Michael Widmer, president of the Massachusetts Taxpayers Foundation. “The state will be fortunate to be able to fund the present level of programs.”
The anticipated budget crunch means Patrick will again face a struggle to implement key campaign promises to increase local aid, put more cops on the street and lower property tax bills, which continue to skyrocket in communities statewide.
Multiple attempts by Patrick to generate new revenues failed to gain traction in the Legislature last year. The primary obstacle has been the House, where lawmakers have blocked $600 million in proposed corporate tax changes, the introduction of local meals taxes and the elimination of a telecommunications tax exemption that would generate about $80 million annually for cities and towns.
The House’s top budget writer, state Rep. Robert DeLeo, said yesterday that finances look tight for the next fiscal year, but he does not foresee a willingness among lawmakers to raise taxes.
“Right now, I don’t see with the members any appetite for new taxes,” DeLeo (D-Winthrop) said yesterday. “Before we talk about additional revenue streams, we have to talk about making necessary cuts.”
But with health care costs - and the state’s new health reform law - continuing to claim a huge percentage of the budget, the room for discretionary spending cuts may not be enough to close the anticipated gap next year.
Senate Ways and Means Chairman Steve Panagiotakos (D-Lowell) said he agrees the state is facing a shortfall of $600 million and perhaps more. “At this early point in our deliberations, that’s a good estimate,” he said. “There is potential for that estimate unfortunately to grow.”
“We’re going to have to be as careful as possible going forward,” he added. “The national trends do not look good for substantial investment.”
Gov. Deval Patrick (http://news.bostonherald.com/search/?keyword=Deval+Patrick&searchSite=pubdate)’s top budget aide said yesterday that the state is facing a “serious deficit” in the next budget year and that tax increases may be needed to close a shortfall expected to hit at least $500 million.
Administration and Finance Secretary Leslie Kirwan, who will file a new state budget in January, indicated that the state’s financial condition remains dire and that deep cost cuts or new taxes will be needed to balance the books in fiscal year 2009.
“We continue to face a serious deficit and we have proposed a series of both cost containment measures and revenue proposals such as our Municipal Partnership Act, and closing corporate tax loopholes,” Kirwan wrote in a statement to the Herald.
“We are focused on savings and efficiencies first, but we also must look at new revenues,” she added.
Top lawmakers and financial analysts agreed that next year’s budget looks extremely difficult, and one longtime budget expert said he anticipates a revenue shortfall of up to $600 million and possibly much higher. The size of the shortfall could rival the $1 billion gap Patrick faced last year.
“It’s going to be a very tight budget with virtually no room for expansions,” said Michael Widmer, president of the Massachusetts Taxpayers Foundation. “The state will be fortunate to be able to fund the present level of programs.”
The anticipated budget crunch means Patrick will again face a struggle to implement key campaign promises to increase local aid, put more cops on the street and lower property tax bills, which continue to skyrocket in communities statewide.
Multiple attempts by Patrick to generate new revenues failed to gain traction in the Legislature last year. The primary obstacle has been the House, where lawmakers have blocked $600 million in proposed corporate tax changes, the introduction of local meals taxes and the elimination of a telecommunications tax exemption that would generate about $80 million annually for cities and towns.
The House’s top budget writer, state Rep. Robert DeLeo, said yesterday that finances look tight for the next fiscal year, but he does not foresee a willingness among lawmakers to raise taxes.
“Right now, I don’t see with the members any appetite for new taxes,” DeLeo (D-Winthrop) said yesterday. “Before we talk about additional revenue streams, we have to talk about making necessary cuts.”
But with health care costs - and the state’s new health reform law - continuing to claim a huge percentage of the budget, the room for discretionary spending cuts may not be enough to close the anticipated gap next year.
Senate Ways and Means Chairman Steve Panagiotakos (D-Lowell) said he agrees the state is facing a shortfall of $600 million and perhaps more. “At this early point in our deliberations, that’s a good estimate,” he said. “There is potential for that estimate unfortunately to grow.”
“We’re going to have to be as careful as possible going forward,” he added. “The national trends do not look good for substantial investment.”