Budget Gap Hits $953M

Gov. Deval Patrick last week announced that Massachusetts’ fiscal 2009 deficit has grown to $953 million, while a nonprofit group’s calculations anticipate total tax revenue in fiscal 2010 being $3.1 billion less than fiscal 2008 collections.

Total year-to-date revenue is down $1.93 billion compared to the same period last year, including $953 million less in April on a 40.7% drop in income tax collections, the Revenue Department said.

Last month, the governor said the state would close the budget gap through federal recovery funds, spending cuts, and layoffs and furloughs.

“The economic downturn we have faced this year has had a significant impact on every area of state government and on the individuals, families and businesses it serves,” Patrick said. “Every one of our priorities has been affected through each round of cuts we have made to balance the budget. We will continue to make the necessary tough choices to keep our budget in balance and manage the commonwealth through this challenging period responsibly and effectively.”

The Massachusetts Taxpayers Foundation last week said it anticipates the state will collect $17.82 billion in total tax revenue in fiscal 2010, $3.1 billion less than what it collected in fiscal 2008.

Founded in 1932, the MTF is a nonpartisan group that evaluates fiscal, tax, and economic policies in the Bay State.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER