Governor Deval Patrick proposed yesterday to use an additional $461 million from the state's rainy day account, which would help close the latest in a series of budget gaps but would drain the reserve fund to its lowest level since 2003.
The plan would reduce reserves, which began the fiscal year with a $2.1 billion balance, to about $800 million. The cushion is disappearing even as economists are warning that this is only the first of several years that will see anemic revenues and strained budgets.
In another sign of the tough economic times facing state government, Patrick is also planning to use $412 million in federal stimulus money to make a scheduled local aid payment to cities and towns. Typically, such a payment would have been made from the state's general fund. In this case, the governor plans to deplete the federal stimulus funds, which were billed as a major rescue package pushed through by President Obama, more quickly than was expected.
"We have done our best to implement reforms, cut costs, and protect the core services of government that people rely on more than ever in times like these," Patrick said in a statement. "There are no easy or pleasant options."
You ain't looking hard enough, tool.
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How many times I gotta put 'em up?
The stimulus money is being drawn from $813 million that the federal government is giving to Massachusetts to restore state aid to school districts and higher education institutions. It was originally scheduled to be spent over three years, 2009, 2010, and 2011. With the latest maneuver, only $70 million will be left that was specifically earmarked for educational uses.
In addition to tapping federal stimulus and state reserves, Patrick secured a commitment from the Massachusetts Convention Center Authority to contribute $50 million from its reserves to help close the deficit....
And the rest of the article is spent outlining the solution -- you guessed it -- RAISING TAXES!!
