By Paul Tuthill
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Springfield, MA – The economy in Massachusetts may be showing clear signs of improving, but the state's top budget writers see another year of cuts in state programs and services. WAMC's Pioneer Valley Bureau Chief Paul Tuthill reports.
Based on the best estimates of economists and fiscal watchdogs, officials predict Massachusetts will bring in 21 point 9 billion dollars in revenue for the 2013 fiscal year. That would be a 4 and a-half percent increase over the current fiscal year.
But, that additional 900 million dollars will be all gobbled up, and then some, by higher expenses for such things as healthcare for the poor and disabled, debt payments, pensions , and collective bargaining agreements, according to the state Secretary of Administration and Finance, Jay Gonzalez.
Gonzalez said the Patrick administration is working on ways to keep the various budget busters in check, but even so, the rest of state government will see an overall reduction in spending.
The chairmen of both the House and Senate Ways and Means Committees have agreed on 21 point 9 billion dollar revenue estimate, which will be used to write separate versions of the new state budget for the fiscal year that starts July 1st.
Governor Deval Patrick is scheduled to release his proposed budget on January 25th.
Patrick confirmed last week he will seek some small tax and fee increases in the next state budget, but will not propose any broad based tax increases.
The legislature in the past has rejected Patrick's calls to expand the bottle deposit fee to include water, teas and sports drinks, and to lift the tax exemptions on candy and soda.. The last broadbased tax increase was a 25 percent hike in the state's sales tax in 2009
Michael Widmer, the president of the Massachusetts Taxpayers Foundation predicts state budget writers will find a way to boost local aid.
After the state closed out the fiscal 2011 books there was a 460 million dollar surplus, so Governor Patrick filed a supplemental budget last fall which included a one-time 65 million dollar local aid payment to cities and towns. That restored all of the local aid that was cut from fiscal 2012 budget.