The independent non-partisan Massachusetts Budget and Policy Center released the following Facts at a Glance memo today: “On November 10, Governor Romney announced that he would exercise his authority under state law (often referred to as “9C” authority because of the section of the Massachusetts General Laws from which it derives) and make $425 million in spending cuts to the FY 2007 budget. This Facts at a Glance explains the Governor’s 9C authority, discusses the size of the gap between projected spending and projected revenue for FY 2007, examines the factors that have increased or reduced the size of the gap since the original FY 2007 budget was enacted, and lists several options for addressing that gap.” Click here to download the full three-page report.
Here are their alternatives:
. Use Stabilization Fund monies either to close the entirety of the FY 2007 budget gap or to finance specific costs that are more appropriately attributable to prior years, such as the retroactive capital gains tax rebates that are being made for taxes paid several years ago or the costs of public employee salary adjustments for prior years. Some caution should be exercised in using Stabilization Fund monies to close the entirety of the budget gap, since, if tax revenue collections do not accelerate further, such an approach could simply put off difficult choices until FY 2008. For more on the current balance of the Stabilization Fund and transfers into it in FY 2006, see page 292 of the Office of the Comptroller’s Statutory Basis Financial Report, available at: http://www.mass.gov/…
. Identify specific spending, such as particular earmarks, which may not be affordable and essential. A list of the specific earmarks that the Governor eliminated as part of his 9C cuts is available at: http://www.mass.gov/….
. Identify existing tax loopholes and recently enacted tax expenditures that may not be affordable and essential. For more on existing corporate tax loopholes, please refer to the MBPC’s April 2005 publication, Changing Course, available at:
. Examine planned hiring in each agency and, where appropriate, delay or forego such hiring and reduce appropriations accordingly.
. Wait to see if there is an acceleration of revenue growth.
Has the legislature/leadership communicated anything of substance that would provide say, some leadership on this?
<
p>
The political posturing around the “9C cuts” seems to be overshadowing the actual substance.
<
p>
Thanks to MBPC and to Bob for posting the 5 pg doc, a long list indeed, that contains the many very deep cuts to essential social service and other important programs.
<
p>
Now what?
<
p>
Being on many progressive action alert e-lists I must say that I feel more than a bit frustrated about receiving multiple requests to “Take Action” “Act Now” “Help Restore the 9C Cuts!” To be honest, I am less entused than usual about jumping into action.
<
p>
Why won’t the legislature just override Romey’s action on the 9C cuts, or do what it takes to restore the funds/programs he cut and that they supposedly support? This is ridiculous. There is SO MUCH OTHER ongoing work to be done–plus we ALREADY FOUGHT for those funds/programs already. Or so I thought.
<
p>
Why can’t the legislators do their jobs??!!
<
p>
Am I missing something?
The legislature cannot override 9C cuts.
<
p>
The “cuts” are actually freezes of money that the Governor directs the secretary of Admin & Finance to implement. The Governor has not sent a vehicle to the Legislature to actually override.
<
p>
Any action taken by the Legislature at this point such as appropriating or transfering additional money can be vetoed again by the Governor OR he can use his 9C powers again.
<
p>
Any action will have to wait until January.
Some of the earmark cuts seem appropriate, especially in a technically unbalanced budget.
<
p>
$150k for a “winter moth study”? C’mon.
<
p>
Some of the other stuff seems OK, but I suspect it should not be paid for by the state. Someone put in for “protective vests”. I don’t know what town that was for, but why shouldn’t a city or town pay for that themselves? I’d need to see a good reason first.
<
p>
What’s $1m for a “homemaker wage add-on”?
<
p>
And I’d still like to see the justification for the $25m in “rate relief” for customers of the MWRA. Even the MWRA’s own literature gave pretty bogus rationale — “it costs a lot to live in Massachusetts and there is public outrage over the rate increases that would be required without this money”. Weak.
thanks for sharing the memo. it was good to read – i hadn’t understood 9c before.
<
p>
not such a big deal, but bob – why do you label the organization and “independent and non-partisan”?
<
p>
i suppose that could be true in a technical sense, but we’ve discussed this recently. perhaps “independent though left-leaning?” or “non-partisan but generally pro higher social spending at every level and seemingly financed in part by labor unions?” has kind of a ring, no?
I wouldn’t exactly say “we’ve discussed it.” If you think MBPC is partisan, can you cite some instances that establish this? Partisan, remember, in the context it is generally used on this site, means wilfully disregarding reality to deliberately favor one political party over another. Independent means not controlled by some specific other group.
Well if we use your definitions, okay.
<
p>
But that would mean you see James Dobson’s group as independent.
<
p>
And Cato Institute as non-partisan.
<
p>
Maybe you’re right and the standard I’m applying is “recommendations will vary depending on evidence”….that’s more what I think of. Or: “I can’t predict what they’ll say before I actually read what they say.” I think you guys at BMG (editors) actually fit that standard. At first I thought I could predict what you’d write, then I learned I couldn’t.
This whole hosts of cuts is primarily aimed at human services and those who work in that field. Something tells me that if Kerry Healey had been elected governor we would not have had these cuts (freezes). It just seems that this is the outgoing Governor’s way to put our Governor elect in a difficult predicament.
<
p>
If Governor elect Patrick simply undoes the cuts then he looks as the Healey Campign has tried to paint him, a big sender owing much to unions. If he does not restore the vast majority of these cuts, then he is not being true to the values he expressed during the campaign. In either case, he is facing this kind of an unnecessry challenge before he even takes office. So early into the fiscal year it seems ridiculous to be making freezes, especailly when state revenue last year ended up being far more than was predicted.