"Mass. short by as much as $1.5b; Patrick set to announce deep cuts today" by Matt Viser, Globe Staff | October 15, 2008
Governor Deval Patrick today is expected to announce that state revenues will decline this year by as much as $1.5 billion, giving greater urgency to the state budget cuts and layoffs he is expected to announce in a televised news conference this afternoon.
The governor is planning to announce the cuts at 5 p.m., giving him a local news broadcast platform so he can speak directly to Massachusetts residents and explain to them how the national and foreign economic chaos has hit home.
"People will feel this in their services," Patrick said yesterday in remarks to reporters. "This is not about, you know, cutting so-called fat. This is going to cut muscle, because the scale of the issue requires that. We're going to feel it in services, we're going to see a smaller work force."
Of course, "flushing . . . millions of dollars away supporting a highly profitable industry" when it comes to $300 million in taxpayer dollars for Hollywood is o.k., even as the price of a school lunch rises; paying $13 million for a computer software system that could have cost less than $3 million is all right because the winner was a close friend of the House speaker, even as my poorer-than-dirt district "has been struggling to close a $2 million budget gap."; the lottery shelling out "millions of dollars" for sports tickets for "lottery officials, their family members, and friends" is fine, even as schools are closing; making interest payments to banks to the tune of "a staggering $22 billion" for the Big Pit, as we call it around here, is required, even as bridges are neglected across the state; and again, paying off banks like UBS, who can "demand repayment of an additional $2 million a month beginning in January" while also receiving a "$179 million payment," while the state pension fund loses $1 billion dollars -- which still didn't stop the executive director from carving himself a nice "$64,000 bonus on top of his $322,000 annual salary."
Oh, and did I not mention the $1 BILLION dollar giveaway to the pharmaceutical corporations, even though "it's never been easy to turn a profit in biotech?" Flush that money away, too, taxpayer. Of course, the war looters were next in line for a handout. And should the state be appropriating money for a "multimillion-dollar reconstruction" of golf courses?
Nor is it RECKLESS to BORROW the STATE INTO OBLIVION so they can PAY INTEREST to BANKS while SITTING ON $2 BILLION DOLLARS!
Need one final insult, Mass. taxpayers?
See: Massachusetts Gives More Money to Hollywood
Yup, but they are going to CUT JOBS and SERVICES while telling us we need to keep the income tax!!
Don't you just get SICK of the BULLSHIT?!!!!
The growing size of the revenue shortfall, pegged just two weeks ago at $400 million, is in large part a result of plummeting amounts collected in taxes on capital gains. Losses in the stock and real estate markets mean that there have been fewer such taxes to collect. Other revenues, including sales and income taxes, are also expected to decline as consumer spending dries up and the unemployment rate rises.
The state disclosed the larger budget gap, which it said would be $800 million to $1.5 billion, in a disclosure document filed jointly for bond investors by state Treasurer Timothy P. Cahill and Secretary of Administration and Finance Leslie A. Kirwan. The document was filed on Friday, but was not previously released.
On top of the revenue shortfalls, the state also is facing an imbalance on spending items. The state reported to investors in August that there were about $600 million in unbudgeted items. This involves things such as probable increases in energy costs or healthcare, or additional social services that will be needed during a sour economy.
The unbudgeted expenses category is an annual gamble for budget writers. In recent years, it has not been a problem because revenues exceeded predictions; now, in an economy mired in negative territory, unbudgeted expenses came up a loser. Kyle Sullivan, an administration spokesman, said last night that the $600 million estimate had been lowered, but would not provide a new figure before today's announcement.
Fiscal observers are adding the $600 million and the $1.5 billion together and saying Patrick's problems are just beginning. "This is at least a $2 billion problem, and it could be worse," said Michael J. Widmer, president of the Massachusetts Taxpayers Foundation. "It reflects the calamitous events of the last three weeks."
And there is that man again!
Widmer said everything from longer lines at the Registry of Motor Vehicles to longer waits for environmental permits could result from budget cuts. They also could trigger increases in various state fees, as well as tuition hikes at public colleges and universities. The Globe reported last week that higher education administrators are scrambling to reduce spending after receiving word from state officials that their subsidies will be cut by an estimated 5.6 percent.
While you get back less, residents and taxpayers.
Budget observers also expect the governor to tap the state's $1.8 billion reserve account, but it was unclear last night to what extent. The current state budget relies on about $400 million from the rainy day fund; Patrick would need approval from the Legislature to spend more.
Here we are up to our eyeballs in debt, and they have slush funds sitting around!
Patrick indicated yesterday he is not planning to cut money given to cities and towns - yet. "We're doing our level best not to go at either local aid or Chapter 70 [education] funding," Patrick said. "So far, I think we'll be able to do that, or at least not touch it in significant ways." --more--"
How about cutting off Hollywood?
What an ABSOLUTE MESS this state is in, huh?
