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MA Makes Biggest Budget Cuts In 20 Yrs

From CNN’s Money.Com:

Massachusetts budget cuts: Biggest in 20 years

By Tami Luhby, senior writer
January 26, 2011

NEW YORK (CNNMoney) — Massachusetts is bracing for the biggest budget cuts in 20 years…even as its tax revenues are on the rise.

Gov. Deval Patrick Wednesday unveiled a fiscal 2012 spending plan that would slash $570 million, or 1.8%, from last year’s budget, hitting social services, health care and aid to municipalities in particular.

Naturally. The poor and minorities are always hit hardest.

Among the cuts:

* Closing two prisons
* Reducing state aid by $65 million
* Shedding as many as 900 jobs, adding to the 5,900 eliminated since late 2008.
* Eliminating employment services for those on transitional assistance
* Cutting benefits for those enrolled in MassHealth, the state’s Medicaid program
* Slashing $23 million in spending on emergency homeless shelters

Where is the outrage? Imagine if this were a state run by a Republican of no color?

But the news isn’t all bad. The budget calls for providing record levels of funding for K-12 education and maintaining its commitment to lower the corporate tax rate to 8.25%, from 8.75%.

Does the "record levels of funding" for education include three free meals a day, all the year round?

Also, the spending plan does not include any tax or fee hikes, but it does take $200 million from the state’s rainy day funds. And it assumes tax revenues will rise by $740 million, thanks to the strengthening state economy.

What’s hurting the Bay State the most is the disappearance of federal stimulus funds. State officials relied on $1.5 billion in Recovery Act money for fiscal 2011, which ends June 30. In total the state has received $4 billion since the act was passed in February 2009

And yet we’re constantly assured that we aren’t bailing out the states. In fact, we have been bailing them out for more than a year.

"We’ve turned the corner, but the hole caused by the recession is so deep, it will take some time to get out of it," said Jay Gonzalez, the state’s secretary of administration and finance

You see, there were no problems before the recession. Massachusetts wasn’t overspending. They weren’t giving away too much to the public sector unions. They hadn’t made a mistake with their local version of Obama-care.

It is all the fault of the faceless recession.

This article was posted by Steve on Thursday, January 27th, 2011. Comments are currently closed.

4 Responses to “MA Makes Biggest Budget Cuts In 20 Yrs”

  1. untrainable says:

    Wow. So it’s a given that you’re going to be at least $1.5B short this year without those precious federal “stimulus” funds… the solution is to cut $570M from the budget (only unimportant spending like money for prisons and such), to steal $200M from the “rainy day” fund (so now what happens when it rains?), and to bank on tax revenues increasing enough to make up the difference (amazing coincidence those numbers working out like that eh?) because the economy is so great.(Time to buy more Kool-Aid stock) That’s an amazing plan. So what happens next year when we discover that the rainy day fund is now empty, you have to close down more prisons, tax revenues aren’t up by as much as you were counting on and there’s STILL no $1.5B more in stimulus money coming in from Obama’s stash. AND THEN IT RAINS! The headline should be… “MA kicks the budget deficit down the road another year and still manages to spend more money on education”.

  2. oldpuppydixie says:

    “Tax revenues will RISE thanks to the strengthening state economy???” Uh huh. It never ceases to amaze me that leftists always figure the taxpayers they gouge, rob, regulate and perpetually work to destroy will somehow be around to bail them out when times get tough!!!!

  3. Rusty Shackleford says:

    Massachusetts has historically been one of the most poorly managed states in the nation. It has finally caught up with them and they are now having to eat their own cooking.

  4. Right of the People says:

    They don’t call it Taxachusetts for nothing. They only look good next to Kalifornia and New Yawk.

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