Aid could be deficit victim
BY JIM HAND SUN CHRONICLE STAFF
Friday, October 9, 2009 2:16 AM EDT
The Statehouse in Boston.
Local legislators said Thursday it will be a struggle to protect local aid from further cuts as the state budget situation continues to deteriorate.
At a legislative hearing at the Statehouse, budget writers said the state appears to be headed for a $600 million deficit because revenues keep coming in lower than estimated.
Lawmakers said Gov. Deval Patrick will soon have to unilaterally cut the budget, but the House speaker said the Legislature may also have to reduce aid to cities and towns.
Speaker Robert DeLeo said the deficit could eventually reach $1 billion.
"When people say the light is at the end of the tunnel, I don't see it," said state Rep. Betty Poirier, R-North Attleboro.
State Sen. James Timilty, D-Walpole, said Massachusetts is poised for a strong economic rebound in coming years, but the next two years will be rough, with unemployment expected to remain high.
State Rep. Bill Bowles, D-Attleboro, said state officials held hearings last spring and got the best advice they could from economists on revenue projects, but all of the experts have been proven wrong.
Poirier said tax increases approved with the budget have not produced the expected increase in revenue.
Balancing the budget this year and next will be difficult, she said, because the Legislature has already drained one-time sources of money, such as the state stabilization fund.
A group called Massbudget issued a report Thursday predicting the state budget next year will be $2.24 billion out of balance because of dwindling income.
Bowles said the goal now is to balance the budget in a way that has as small an impact as possible on cities and towns.
Timilty said cutting local aid is a last resort.
He said the state should pick areas that can best handle budget cuts, rather than institute across the board reductions.
Timilty said he believes there are areas such as public defenders that should be cut, and other social services that are already hurting.
Services for autistic children and families with disabled children have been reduced, he said.
Bowles said this year's budget is more than $1 billion smaller than last year, despite the cost of services going up.
News of the pending deficit was not surprising.
Legislators said they knew trouble was on the horizon when September tax revenue came in $243 million less than anticipated.
View Comments » 12 comment(s)
« Hide Comments
1333 wrote on Oct 9, 2009 2:03 PM:
kevin h. wrote on Oct 9, 2009 1:06 PM:
lordiapologize wrote on Oct 9, 2009 11:16 AM:
IShouldBeMayor wrote on Oct 9, 2009 11:15 AM:
spookey wrote on Oct 9, 2009 10:46 AM:
AndrewJackson wrote on Oct 9, 2009 10:44 AM:
kevin h. wrote on Oct 9, 2009 10:22 AM:
As for taxes, don't forget Democrat Charlie (don't look at MY finances) Rangel is the CHAIRMAN of the ways and means commitee that writes tax law. Now HE is under investigation for hiding income and assets and failure to pay taxes.
Don't let the facts interfere with your TALE of woe. "
Auk wrote on Oct 9, 2009 9:32 AM:
attaboy wrote on Oct 9, 2009 8:57 AM:
IShouldBeMayor wrote on Oct 9, 2009 8:20 AM:
jette wrote on Oct 9, 2009 8:08 AM:
kevin h. wrote on Oct 9, 2009 7:51 AM:
Stop outsourcing and insourcing.
To stop outsourcing, put tariffs on incoming goods to balance the foreign to domestic per hour costs and bring companies back.
To stop insourcing, boot out the illegals, which will offer more jobs and raise the wage of local labor.
The Constitution states in the first line "...promote the general welfare..." This counrty needs to keep essential skillsets and industry in this country. Steel, aluminum, food, medicine, computers, automaking, shipbuilding, aircraft, military technology, etc. must have a domestic component. I'm a free market guy but only to the borders. We have to insure our self interests, or else all our wealth will go abroad or in the pockets of the few major stockholders. That path is really promoting "welfare"( relief), and crushing national debt. Just look at California. "