This week is shaping up to be the start of a lengthy discussion about revenue and spending on Beacon Hill. And if you ask me, it’s a discussion that’s long overdue.
It all comes down to one big question: how much money do we realistically expect our state to collect in the coming months, and how much of that money do we feel comfortable spending?
Lawmakers will hold a hearing on Wednesday to start trying to forecast revenue collections for next fiscal year, in preparation for crafting a responsible budget in spring. But at the same time, as this editorial in today’s Boston Herald points out, Beacon Hill leaders are still working behind closed doors to determine how much money the state is lacking in the current fiscal and what to do about the shortfall.
According to the Massachusetts Taxpayers Foundation, the state still faces a $300 million to $500 million shortfall in the Fiscal Year 2010 budget. The Patrick administration seems not to be fully prepared to address this shortfall by making further budget cuts. If anything, there seems to be a desire on Patrick’s part to fill the gap by spending money from our state’s Rainy Day Fund or from one-time federal payments. These monies might get us through our day-to-day problems, but these one-time fixes are unsustainable and they actually tend to get us into even deeper trouble down the road.
And according to the Massachusetts Taxpayers Foundation, that’s exactly where we are heading. The group predicts a budget chasm of $3 billion next fiscal year, and addressing that structural deficit will require even deeper budget cuts than we’ve already seen.
These discussions are both necessary and appropriate for us to be able to balance our budget this year and beyond, and to make responsible decisions about spending money. I hope that Beacon Hill leaders will follow the advice of experts they hear from this week and start making the tough decisions that are required of us to address revenue shortfalls. The most important thing our state can do to get us through this current fiscal crisis is to bring our spending to within the limits of available revenues, and to prioritize those cuts so that administrative expenses and frivolous programs are eliminated while essential services are preserved.
What do you think? I’d like to hear from you. Please post a comment below.
