Baker: Budget gap estimate rises about $200M more to $950M
BOSTON (AP) - The Massachusetts state budget gap for the new fiscal year is wider than originally thought.
Republican Gov. Charlie Baker told reporters the gap could be as big as $950 million. That’s $200 million more than an initial estimate of $750 million for the fiscal year that begins July 1.
Baker said he’s now estimating a gap of $650 million to $950 million partly because of the unknown impact from Britain’s historic vote to leave the European Union - also known by the shorthand “Brexit” - which may affect revenue projections.
“We’re making some assumptions for next year that are based on sort of best guesses at this point in time with the notion that Brexit fall into the category of sort of an unknown,” Baker said.
State officials have also blamed the drop in expected tax dollars in part on a dip in capital gains revenue.
Baker said the administration has worked with the House and Senate to reduce the state’s reliance on the often volatile capital gains revenue to pay for the state’s ongoing expenses.
Baker also said that while the budget gap poses a headache for House and Senate negotiators trying to hammer out a final version of the approximately $40 billion state budget, it is easier to solve the problem now than halfway through the fiscal year, when any fix would require much deeper cuts.
“But it’s a big number,” Baker said, referring to the nearly $1 billion projected shortfall.
Also Monday, Baker signed a temporary $5.3 billion budget intended to keep state government running through the end of July while lawmakers work to come up with a final spending plan.
Despite the setbacks, Baker says he’s still hoping the budget will be ready on time.
Democratic House Speaker Robert DeLeo sounded a more cautious note.
DeLeo said that while the six-member conference committee charged with coming up with a compromise budget is making good progress, it’s still questionable whether they will be able to draft a final spending plan by the end of the week.
Once lawmakers agree to a compromise version of the budget, it must be given final approval in both legislative chambers before being sent to Baker for his signature.
So the Commonwealth's FY 17 budget is out of balance by 1 BILLION dollars!
ReplyDeleteAnyone see a problem here?
A problem that will impact every community in Massachusetts?
I think the global economy is ready for a "Reset". It won't be pretty and it WILL impact Massachusetts and TEMPLETON.
You know, the Town of Templeton. The one without a bond rating?
The Central Banksters are running out of tricks to keep the illusion going that Everything is Awesome !
Will the town workers be the target of layoffs?
ReplyDeleteWill our budget be way out of line when the state reviews what they said they would give cities and towns. Should we be surprised that our budget is unable to absorb the massive cut needed to close the gap the state needs to. We spend it all every year and have nothing saved for a rainy day never mind a down poor flood.
With the Markel resignation will the budget get a revision it needs or will we have another end of year scramble for money and budget cuts.
Anyway you look at it things are not fine in Templeton when the state says they are short a billion.
Want to bet the school system won't help this time either.
If Mr. Casavants background is in Business management like he had in Gardner schools system we should hear how they can help out.
So we know it's coming and we should be looking at how the largest part of our town budget can take the largest part of the hit of the cuts that will hit us.
Question is will he?
David,
ReplyDeleteWhat do you mean? Things are awesome in Templeton. We have an expanded police station, a new $50 million dollar school, New excavator, and wind power, wood chip boiler. Who cares how we pay for it, right? It's the American way........
Unknown financials back to 2013, consistent increases and overrides to taxes and our town administrator resigns prior to the completed audits. I smell something and its not dinner...........
Our town government is driving us right off the cliff and many in this town will go willingly smiling to there end...................sheeple!
One way to begin addressing this problem - the anticipated cuts to local aid- is to review the FY 17 budget(s) line item by line item. The review of the budget line item by line item should have been done at the annual town meeting. After submitting a substitute motion in writing to that effect - that the budget would be reviewed line item by line item- and being reassured that the the review of the budget would happen, it didn't.
ReplyDeleteThe reason for the term budget(s) is there seems to be more than one version of the FY 17 budget floating around.
There will be a joint meeting of the selectmen and the advisory committee on July 19th in the Kiva once an agenda has been finalized and/or approved and/or located.
There is no way for the legislature nor the governor to come up with 1 BILLION dollars to cover the projected revenue shortfall without making cuts.
For a town like Templeton - a town without a bond rating, a town without an administrator, with an search for a fire chief as well as multiple expensive capital projects - for a town like that these anticipated cuts will be devastating.
But don't worry, because EVERYTHING IS AWESOME !
The one fix all would be a MMWEC raid.
ReplyDeleteReturn all the hidden funds our Municipal light department has tucked away.
Open the treasure vaults and return the overcharges we have been blind of.
When the state returns our funds we can be assured they won't take it away when they are desperate like soon they will be. Take back the MBTA money they promised for one.
Stand up and demand a pilot payment to allow a fair shake for the town that provides the infrastructure for them to operate and function.
Why we haven't done this is a shame.
Wake back up Templeton!