Dec. 15, 2010
BOSTON -- Economists are predicting Massachusetts revenue will grow by as much as $700 million next year, a 5 percent gain over 2010.
At a Wednesday hearing on the state's revenue predictions, Jay Gonzalez, the governor’s budget chief, said that's is a sign that Massachusetts is moving in the right direction. “These tax collections are consistent with all the other economic indicators we’re seeing that Mass. is coming out of this recession faster and stronger than the rest of the country,” Gonzalez said.
But fiscal watchdogs said the growth in revenue won’t be enough to cover the estimated $2 billion dollar budget gap. One time fixes like the state’s rainy day fund– which is nearly depleted and federal stimulus dollars – which are almost exhausted.
Mike Widmer, of the Massachusetts Taxpayers Foundation, says that without these revenue sources to fall back on, the state will need to cut jobs and services for the fourth straight year.
Governor Patrick will release his recommended budget next month.
CUTS PREDICTED AS MASS. FACES $2B GAP