Plunging state revenues likely to trigger more cuts
By Matt Viser, Globe Staff
State revenues are projected to decline this year an additional $749 million, likely triggering another round of funding cuts just months after Governor Deval Patrick slashed expenditures to close a $1.4 billion budget gap.
During a four-hour hearing today, the Department of Revenue estimated that the state would take in $648 million to $749 million less than lawmakers had anticipated just two months ago.
“We’ve got some big, big challenges ahead of us,” Patrick told reporters outside his office. “We have a plan for several different contingencies, and we’re looking at which of those plans to pursue come January.”
Among the options discussed at the revenue hearing were raising the state’s gasoline tax, tapping the $1.7 billion in the reserve account, and making deep cuts in spending. State officials are also hoping a federal stimulus package from the incoming Obama administration could help alleviate some of the problems.
Nearly all revenues collected by the state are declining while job losses are expected to grow. The biggest drop off is likely in capital gains taxes, and revenue estimates are still in flux because those figures are more fully reported in January.
“The figures today were very sobering,” said Leslie Kirwan, the governor’s top budget official. “We’re going to have to work with our colleagues in the Legislature to decide how to react.”
State Treasurer Timothy Cahill offered a dismal picture of lottery revenues, which have traditionally been a sure bet to fill state and local coffers. Overall lottery sales are down nearly 4 percent for the first five months of the current fiscal year, and the proceeds used by the state could come in $14 million to $30 million less than expected, Cahill said.
As state officials are seeing shortfalls for this year, they are also beginning to devise estimates for next year’s budget, which is expected to take an even bigger hit.
“Looking at the budget for the coming year, I think the only way to describe it is survival mode,” said Representative Theodore Speliotis, a Democrat from Danvers.



The first thing they think of is taxes ,I say spend the rainy day fund thats what its for . The last resort should be taxes also layoff some state workers not just 20 toll takers heading for their bloated retirements . Deval has not kept any of his campiagn promises ,Obam will be the same way,.
Rather than raise the gas tax, why not get rid of some of those people who do little or nothing & are state employees???
Nice job allowing the state pension fund to be invested with Bernie Made-Off with the money
SO TOLL HIKES AND A GAS TAX ?
LETS GET THE CASINO UP AND RUNNING !!
AT LEAST WE CAN HAVE SOME FUN PAYING TAXES
Time to trim the fat in the administrative sector of Government. We don't need a bunch of useless, lazy people in high-paid positions sucking money away from essential services. Nor do we need any more tax hikes. We all have to live with the salaries we have when prices go up and pays do not. The Government should be held to the same standard as the average working American. After all, they are taking the money we could be using to get through this and just throwing good after bad.
Cut spending! Sad that the state has to count on a) lottery and b) capital gains taxes to make ends meet. Oh, and Obama handouts, of course. Maybe if the legislature actually incented companies to MAKE things in Massachusetts, we'd not be in this mess.
No sypathy here. I voted yes on 1 and wanted to see real cuts made.
Rainy day fund?? Folks - look at the financial news - It is pouring out! And the gas tax increase should only be coupled with a complete removal of all tolls except the border. We will save gas, time, and state money.
Dear Readers:
If MA state is in financial trouble then why some state employees are getting promotions and Pay raises in different department of state and same happening in the different cities who are saying they are in financial crises also.
Why state employees are not willing to work more hours without more salary when most of the people in the private sector are doing that.
Why state are creating new positions in departments which were not filled before from last many years and in this crises, why they need them immediately.
It looks like State/ Cities are is not willing to cut their waste of $$ and resources but more interesting to raise tax and tool.
Mostly it is not shortage issues, it is mismanagement and waste of $$ issue and peosonal benefit for the top people in state.
This is my openion you may or may not agree with this.
How about forgoing the cost of living raises that the House & Senate are looking to give themselves?
I've watched my income decrease severely over the past year, and I don't know what to do. I bought a nice flat panel television over the weekend, and a new car last month, and I want a house. So I've been spending a lot of time with my hand out, asking people for money so I can keep my lifestyle.
down with the administration!
Why not a 10 - 15 - 20% cut in EVERY state department budget. The state should start learning that it can't do everything for everyone. Laying off a few people here and there isn't going to make up a billion dollar shortfall. Also, state residents need to stop the notion that the government will be there for all things, and they/we need to start doing our part. Everyone whines about high taxes...well government has to run somehow...so I would support a modes gas tax increase, but only after budgets were cut.
As a state worker, you need to know, as a taxpayer myself, I essentially pay a percentage of my own salary. I'd like to know which administrative staff are highly paid. I think you are mistaken, that is only reserved for the managers.put them on a furlough like they did 4 years ago. Hell, to help with the shortfall, my colleagues would be willing to take a furlough to assist. 5 unpaid days x the # of state employees, should equal a nice chunk of money. The other thing as a state worker, I, and others would agree to pay a percentage increase for our health insurance. I, agree that the rainy day fund should be used, but not the entire balance. bemoaning tax
I'm lucky to still have a job. My income hasn't changed. Yet my health insurance has gone up 30% this year. My property tax is going up. My unemployment insurance tax is going up. My heating bill is going up. My condo fees are going up to pay the common heat and electric. I see my retirement fund cut nearly in half. Subway fares are going up. Pike tolls are going up. Gas tax is going up.
I see my senator running off with 23,000 in bribes. I see my city councilor running of with $1000 in bribes. I see BRA employees making well over $100,000 per year getting free parking, discounting housing, and countess other perqs. I see the mayor giving $40 million to downtown developers. I see liquor board members earning 100G+ working three part time days a week. I see cops sitting in their cars doing crosswords drinking coffee when they're suppoesd to be managing traffic
Yet I'm expected to live within my means. Where's my bailout?
Cancel plans to build another $400 million dollar garage at Logan airport. Travel is down anyway. Duh. There, I just saved this state a half billion dollars. That was easy.
Immediatly change out all (overtime) troopers for citizen flaggers at most constructions sites. Weeeee, I just saved another $20 million.
Immediately end all pensions for state new hires and replace it with Social Security. Pay out existing and earned benifits, but implement caps and end dates for contributions to the unsustainable pension system. Wow, I just saved the state about 14 billion dollars/year... Wow, this is fun...
Stop payment on all fraudulent pension and retirement disability claims by former state employees. Increase oversight, fines and penalties to those criminals who are abusing the system. Wowie, I'm good at this.
Do not pay pension or retirement benefits to convicted criminals... hey, there are a lot of them collecting your taxpayer dollars... Savings of ????
Stop mandatory education spending of over $100,000 per special education student for already hurting public schools. Hey, I just reduced about 40% of towns school budgets. I should be elected president of the United States.
Sure, spend the rainy day fund this year because we will not need it in the future.
Why not also sell all the state property and lease them back - this should also give us a big chunk of money to spend today... forget the fact that we will be bankrupt in a few more years. If you think I',m kidding, remember they are talking about leasing the Turnpike for 75 years and allowing the company tohat leased it to raise the tolls more than the state would ever be able to...
I work in the private industry and I just took a 20% pay cut! why don't all government employees that make between $50,000 and $100,000 a year take a 20% pay cut and anyone that makes more than $100,000 a year take a 25% pay cut.....that would save some money.....government is supposed to be about helping the people anyways, not getting rich!
This is a great state and we are fortunate to live here. Go ahead raise my taxes, it's privelage to pay them! :-)
You've got about 16 days left to raise the gas tax. It'll solve everyone's problem. Leave everything else alone.
How much does the state spend on salary and benefits for a full time legislature and their staffs? I'd like to see them come in once a month, with the summers off; and let them get a small stipend of say $5000 a year for serving with no benefits. Get some college interns to work on their staff for a few bucks. In addition to millions of dollars in savings every year, it would also limit the amount of damage they can do in regards to running the state into the ground. Getting rid of the a full time legislature should be on the ballot next year. If other states can do it so can we. Our crooks only went on full time back in the 60's
Time to restructure the State Police Dept.
I've lived in many other states, and I have never witnessed a more bloated department, in terms of payroll and pensions. Many of them are making more money than private sector executives. The insanity has to stop.
why don't they just raise the tax to 90% of income and done with it! this is a like death by slow torture now.
Massachusetts did this to themselves. Rt 128 used to be the place to go for innovation and startup, but nobody can afford it! I moved out of the state YEARS ago knowing this would happen. This big shots that just built-out in Burlington are going to dry up soon and the Burlington/Waltham stretch will be tech equivalent to Detroit. Keep your hats on - cause the powers that be will just jack the taxes up again and make everybody pay. Take off the blinders guys, take some steps to foster innovation and start-up, instead of driving the money out.
So let me get this straight: In October 2008, after it was clear that the economy had sunk and all these companies were collapsing and Wall Street was in a free-fall, our lawmakers estimated that the Commonwealth would take in $750 million more than the Commonwealth now predicts it will actually take in this year. So now, two months later, these brilliant lawmakers realized that they were off a mere $750 million. And it is these same geniuses who are responsible for finding out the answers to this fine mess. Uh huh, got it.
Oh, happy day.
Oh, happy day!
It''s deja vu all over again. I remember the panic back when Dukakis was running for President and the "Miracle of Massachusetts" was headed into the toilet. Back then - 1988 we had the same number of residents - legal ones that is - and a state budget of somewhere between $9 and $12 billion. Now 20 years later the budget is $28,232,753,000. With the same number of legal residents.
A fair first step would be to stop paying any benefits to illegal immigrants of which there have to be at 500,000 and more like 1 million or more.
See we told you that if question one passed other taxes and fees would go up and you would pay more.
Oh, it failed and they are going to cut services and raise taxes anyways.
SUCKERS
Government Employee's Unions
Rainy Day. Definition: See years 1932 and 2008.
If this ain't a "rainy day"---WHAT is Deval waiting for?
the house and senate should not give themselves raises, and cost living,free parking, perks for mileage and food. these people have to get back to basic ,as the working class people of this state are being taken over a waterfall,while our reps., have there holidays and perks.....
Always remember, MASS. RESIDENTS GET EXACTLY WHAT THEY DESERVE.
Repeat it over and over again until you finally get it, you vote these same old clowns into office every single year (DiMasi is a lock just like Finneran was) then bemoan the carnage to the state budget ad nausiam
Gee and you just defeated Question #1 because it went too far, oh really? wait till this current crowd gets through us, Tolls or gas taxes? you get both just to make sure NOBODY gets left out.
We had one chance and you blew it now they think they can literally tax us into the ground!
And so we hear again the mating call of the Noble Private Sector Worker who screams out cut the fat, cut the waste, fire the do nothing public employees! But it wasn't the PUBLIC sector workers that got us in this mess my friends, no it was the Masters of the Universe, the Wall St. investment bankers and their MBA wannabe's who suckered all you neanderthal Republican Fox News watching knuckle draggers into believing that there was a free lunch; we only needed to lower interest rates to riduclously low levels and hope (pray) that property values would continue to increase at double digit rates year after year after year. Never was gonna happen, never DID happen actually. Laughs on us I guess. What a joke. And now even the old Mittster himself was on NBC yesterday calling for massive government intervention. So get used to it kids, we're all New Dealers now and you have no one to thank for it but Faux News and the LOWER MY TAXES AT ALL COSTS crowd. But if it makes you feel better to scream for all the hacks' heads then go right ahead. Be My Guest. (But not the teachers at MY school, and not the DPW guys who plow MY roads, and not the Highway Div. workers who are repairing MY bridge down the street, and not the people running the trains to get me to MY job). That's as relevant to America today as a McCain/Palin button.
I have no sympathy. You are reaping what you sowed.
We have created a system of government that has no checks on it's behavior, does exactly as it pleases ignoring the wishes of the electorate and still is reelected each year.
A pathetic group of impractical and greedy legislators would lack both the knowledge and spine to do what is right rather than what will keep them in office for as long as possible.
So many people feeding from the govement trough and few concerned about those that follow behind them.
Why not eliminate the DCR Park Rangers they are not law enforcement they are high paid security guards with expensive toys boats, trucks , atv’s , horses and how knows what other special gadgets that could be used by sworn officers in many other departments though out the state. . Cease Paying State Police Details on roads closed IE the South East Expressway – for the never ending Big Dig Repair Closures, plus allow them to run engines for hours on end . End per Diem for State Legislative Officials. These are some simple measures to start with.
I am a state employee and TIRED of hearing about how awful state employees are. I work for a safety net agency. I have significant education and experience but as a public servant, I make considerably less than my counter parts in the private sector. That was my choice and I don't begrudge the state my diminished financial outlook. However, I take offense to the supposition that I am lazy and greedy by virtue of the fact that I work for the state.
The reality is the following: my job requires dedication and education; I love my job and I am lucky to have it; I work hard and do it well, I often put in extra hours and, most importantly, I am not unique among my co-workers. Simply put, it is unfair to place the burden of a bad economy on the shoulders state workers based on stereotypes and assumptions.
I am a state employee - get rid of the stupid volunteer program Deval put in place and lay off all the dead wood I see in my office who do not contribute to any citizens getting any state services. Lot's of my co-workers work their butt off but others are protected by the Union and do nothing but waste time. As for pensions, the average state worker does not get that much. Do not forget we get no Social Security, or if we worked in the private sector before working for the state we get hit with a penalty and only get 40% of our SS benifit. Look at the list of folks getting large pensions; the folks on the Hill, State Police, Firemen, and then even though they are not offically "State" employees the MBTA folks. Those are the folks who need their pensions cut!
De Masi you fool you didn;t have to be a rocket scientist to see this coming.
Didn't you learn anything at Mass Bay Community College?
Raise the gas tax put get rid of the turnpike Authority all together.
As a state worker you folks have all lost it. Over the past 8 years I have gone 5 of those without getting a raise. Currently my last raise was August of 2007 and ther is not another one in sight for some time to come. I must say I am fine with all of that and I am happy to be working.
For those out here who do not think state workers contribute you are wrong. I pay 25% towards my Health, 13% towards my pension, and then the same taxes you all pay. All contributions which have gone up over the past few years.
For all of you private sector people out there complaining stop. I didn't here you 2-3 years ago when your salaries were bloated and we state wrokers were making 45,000 a year. Now all of a sudden your greediness has caught up to you and you want to complain about people barely making ends meat. If it is such a great job quit your high priced private job and try working for the state. I know you will change your tune.
They have to lay off and cut spending. No more taxes. The people are tapped out and can't pay no more. They could get rid of half the state administrative employees and anyone with an Asst. or Deputy title. They got to make due with what they get like we have to. I will not eat dog food so I can pay more taxes. Let our government start eating dog food too. The time has come. Now our leaders should get off their behinds and do their jobs. Lead by example.
I think it's important to understand that state employees DO work hard. They also live in Massachusetts, pay the same taxes, tolls and ride the same subway in the morning as all of you. If you cut 60,000 jobs anywhere, in the middle of a recession, that's adding 60,000 people to the unemployment line. Guess where that unemployment money comes from? YOUR PAY CHECK. You wanna make a difference? Shut up, get a pair of gloves, and pitch in a bit.
fuzzy 1- I agree- some special needs families abuse the system and schools need to educate in house to save costs but you cannot save the state budget on the backs of needy children. I have an autistic son and I can tell you I work my butt off to teach him what he cannot learn in a regular school day. I refuse summer school and dedicate time each day to helping him learn because he is my kid, my responsibility. That being said, I cannot do it alone. I need behavioral, speech, OT and Sped services for him. I know it costs the town more, but servicing students when they are young SAVES money in the long run. I appreciate your desire to cut costs but please think before you type. Special needs families have enough of a stigma attached to them without uninformed people fanning the fire,
So, revenues are going to go back to 2005 levels? Doesn't sound like a disaster to me. When the state was having record tax revenues in the past few years the governor and the legislature should have been saving money in the rainy day fund instead of spending down the rainy day fund. To be suggesting tax increases during a recession is irresponsible. Gas tax increase would be fine, but only if it is offset by getting rid of the turnpike authority and consolidating with MassHighway department.
1. Donate all state owned/operated public lands to a non-profit group such as the nature conservancy. They will improve the conditions of our public parks and conservation areas and will allow us to completely eliminate all state agencies that deal with these lands. The non-profit sector will do a much much much better job at maintaining and improving access to these areas.
2. Combine the MBTA, MTA, MassHighway, MassPort, and all state agencies dealing with transportation into one organization, run by a board of average citizens who are not paid in any way by the state.
3. Raise the gas tax to $1.00 a gallon. 50 cents will go to interstates and state highways and the other 50 cents towards local roads and infrastructure. Local communities will decide what improvements to make with their share of the money.
4. Eliminate all forms of welfare and public housing. Allow non-profit groups to advertise for free on a state website dedicated to connecting these groups with citizens who wish to donate money to their cause.
dont raise the gas tax to fix the mbta mess and the tolls hike mess. You use it you pay for it. The residents of western mass do not get a return on there gas tax money as nothing is spent out there.
Have three levels of salary's for all state workers. No one makes over 60,000 grand. I am sure alot of people would be grateful for job when the others leave.
No need for special education either put them in a regulatr class one aide per class at most. It costs the towns to much money to educate them and no help from the state. I believe in across the board cuts for all agency's so none is spared cuts.
Also get rid of the medicaid taxi ride for recipents. Let stop sending drug addicts to get there methodome at the free clinics taxi them around to do it. If they can find the drugs in the first place then they can get them there to the clinic with out the tax papyer paying for the ride both ways. This is especially true for those who live in an area served by the mbta.
And the state pension program that is a scam. Give all state employees the same health insurance plan no other options either. Make prisoners pay for the stay in the commonwealth jails hotels when they leave. You do the crime you pay for your stay. And friviluous lawsuits by prisoners and others.
I live a better life in China then back in my home state-what the heck is going on?
Hmm, lets see, Deval:
-Pension reform
-2000+ newly hired state employees
-Outdated Vacation, Sick, and Holiday benefits
-An average of 15 sick days taken per employee per year
-Hacks hiding in the courts, jails, and private agencies
Geez, you're right, Deval, there's no simple answer...better raise taxes....
This blogger might want to review your comment before posting it.
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