Monday, December 14, 2009

MTF: State Fiscal Crisis – No End in Sight

The Massachusetts Taxpayers Foundation is the deliverer of some bad economic news and while the news may have come as a surprise to the Patrick Administration, it has been abundantly clear to many for a long time.

According to a new report from MTF, “Despite the Governor’s plan to address a $1 billion fiscal 2010 deficit, the state still faces a several hundred million dollar shortfall for 2010 and a gaping $3 billion structural deficit for 2011.”

The non-profit goes on to list two serious concerns with Governor Patrick’s handling of the fiscal situation. MTF says the administration “has not addressed the full dimensions of the 2010 deficit which it has estimated to be at least a billion dollars, with the possibility it will grow larger over the course of the year. Even with the Governor’s actions, the Foundation projects a $300 - $500 million shortfall in the 2010 budget.” The report also says “the administration’s plan relies much too heavily on one-time solutions that further deplete the rapidly disappearing state and federal reserves and create an even larger deficit in fiscal 2011.”

Governor Patrick and the tax and spend Democrats on Beacon Hill have made the fiscal situation worse by continuing to ignore the severity and magnitude of the economic crisis here in the Commonwealth. Despite the bleak outlook, Governor Patrick and the Legislature have yet to address the budget crisis on a large enough scale. Not only should we be reducing government spending, we also need to be implementing serious reforms in order to allow government to continue delivering essential services. A slew of creative, cost saving initiatives have been offered by Republicans in both the House and Senate, however the majority of Democrats have opted for raising taxes, a quick fix sold as the answer to all the state’s problems. Memo to the Democrats who supported these tax increases – the state is still in hot water!

Click here to see the full report from MTF.