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State Budget Highlights - Fiscal Year 2011
I am pleased to report that the state budget is balanced on time and the Commonwealth has maintained our high bond ratings despite another year of predicted sluggish state revenues. The budget process was made somewhat more challenging due to uncertainty around $700m in state assistance originally expected from the federal government. With the funds still not approved by the US Senate, the legislature and Governor moved ahead and cut an additional $700m from original revenue projections.
The final budget includes no new taxes or fees and relies on $1.5b in difficult cuts to services (~5% of total budget) as well as use of one-time revenues to make up the budget gap.
In the budget process we did our best to protect funding that most directly impacts municipalities. Cuts to local aid local aid, education, special education and transportation were limited to a 4%.
The budget also:
Requires state offices to remain open on Bunker Hill Day and Evacuation Day
- Gives state agencies explicit authority to consolidate techology functions to improve service and save money
- Requires state financial information to be provided online
- Waives college tuition for children of service men and women killed in action since 1989
- Prohibits state entities from hiring lobbyists
- Caps pension earnings for future employees
- Requires corporations that pay for political advertising to be identified in the ad
- Contains language making it easier to diagnose and treat Lyme disease
The Massachusetts Budget and Policy Center provides a very detailed accounting of the budget here. A copy of the final state budget is here. |
