"Patrick ponders big cuts as state revenue tumbles" by Casey Ross, Globe Staff | September 20, 2008
Governor Deval Patrick's administration is considering widespread emergency cuts in the state budget after tax collections plummeted by $200 million in the first two weeks of September, fueling fears of a deeper financial crisis as the nation's economic outlook worsens.
Didn't I say something about state governments and municipalities somewhere?
The precipitous drop puts the state's revenue far below what state officials had budgeted for this point in the fiscal year that began July 1, according to a Department of Revenue report. Moreover, officials expect the budget situation to worsen as the turmoil in the nation's financial markets weakens the economy, resulting in lower tax revenues for the state.
So what will they do? Raise 'em again!!!
"The current economy and its impact on the state are going to complicate what's already been a challenging budget problem," said Leslie Kirwan, Patrick's secretary of administration and finance, who has grappled with consecutive $1 billion budget deficits.
I can hear the rigging of Question 1 as I type!
The state anticipated it would collect about $1.1 billion in the first two weeks of September. Instead, it generated only $889 million, an 18.4 percent drop from the same period last year. Overall, budget officials hoped to end the month $80 million ahead of September 2007 collections, a threshold that now seems unreachable given the shaky economy.
I wish I could run my budget that way because I project I will make a $1 million dollars next week. What do you mean I came up short?
The Revenue Department report attributed the drop to weak collections from payroll taxes, which were down $73 million, and anemic revenues from corporate business taxes.
Do those fuckers every pay for anything, or do they just stick their hands out for taxpayer giveaways?
Those collections dropped $84 million from a year ago. The state also generates revenues from sales taxes, income taxes, capital gains taxes from investments, and other sources.
And yet, they are BROKE!
This state has been BORROWING UP a STORM as it is!!!!!
Kirwan said the numbers in the Department of Revenue report caused the administration this week to ask managers to comb their books to ensure that salary accounts are being kept level and that merit raises have been suspended.
The report indicated that collections could rebound in the latter weeks of September because the majority of revenue is processed at the end of the month. But Kirwan said she expects that emergency budget cuts will be necessary and that Patrick would implement them throughout the executive branch in October. She added that it is impossible to know the size and focus of the cuts until the budget picture becomes clearer.
If revenues continue to decline, she said, the governor would seek expanded powers to spread the cuts across state government, to accounts that pay for everything from the judiciary to services in cities and towns.
I'm so angry and disgusted that I really have nothing to type or say.
The fact is, I'm sitting here reading this with you and stewing, readers. I am so fucking angry at the lying looters of government and business that I AM READY for a REVOLUTION!!! I'm just waiting for the call!!!!
Michael Widmer, president of the Massachusetts Taxpayers Foundation, said the state must make immediate spending reductions. "The September numbers are very sobering," he said.
How about getting that $1 billion back from the biotech pharmaceuticals for starters?
He noted the numbers in the revenue report do not reflect capital gains taxes, which are expected to decline given the turbulence in the stock market. "The big hit is yet to strike," he said.
There is THAT MAN AGAIN!! The Boston Globe's resident pro-tax, pro-business spokesman!!!
Type "Michael Widmer" into my blog search and see what comes up, readers!
And as if on cue: Michael J. Widmer Find another way to send a message
Told ya this would be used by pro-tax looters.
Top lawmakers declined comment on the budget outlook last night. However, Senate President Therese Murray, a Plymouth Democrat, has called for an unusual meeting on Monday to examine the state's finances.
As goes the NATION, so goes Massachusetts, 'eh?
Compounding this year's problem is how much the federal government will reimburse the state for healthcare programs. The state had planned to receive $3.5 billion for this fiscal year, but negotiations have dragged on past the June 30 deadline. If federal aid falls short, that could force more budget cuts.
I'd put that down as a certainty at this point; the feds ain't gonna give a fuck about our little health program here.
They got WARS to FUND and BANKS to BAILOUT!!!!
The state also faces rising costs associated with its universal healthcare law, which has led to higher-than-expected enrollment in state-funded insurance programs. Patrick proposed a plan to raise an additional $130 million from employers and insurers to help fund the new law.
No surprise there.
State officials are also grappling with the impact of the stock market turmoil on the state's pension fund, which is down nearly 8 percent so far this year.
That is after taking a billion dollar loss last year!!
And to get you really ripping, see: The Massachusetts Piggy-Bank
Is that what the income tax is going to go for?
That's far better than US stocks, which are down about 14 percent so far, but the fund typically has higher returns because of its diversified investment strategy.
And we are still getting ripped off by state looters!!!!