Massachusetts has a total state debt of approximately $102 billion when
including the total of outstanding official debt, pension and other
post-employment benefits / liabilities, Unemployment Trust Fund loans, and the
FY 2013 state budget gap. The Fiscal Year starts on July 1, and the debt
increased by $4.3 billion from FY 2102 to FY 2013....and it continues with no
end in sight. In FY 2013, just 5 months into the new budget year, Governor Deval
Patrick announced a $540 million shortfall. This clearly shows not only the lack
of budget planning, but the total irresponsibility in budgeting and use of
taxpayer money. Further, no surprise, Patrick and the Legislature seem to almost
always overestimate revenue (It is easy to "balance" that way) and there was
$235 million LESS income than expected. And this was less than half way through
the
new budget year! In still another step that shows gross incompetence in
budgeting, Patrick had to raid the "Rainy Day Fund" for another $200 million.
This is what happens when you have an out of control one party state. While
the people of Massachusetts are seemingly asleep, what is most alarming is that
the media and the Republican leadership in our state fail to inform people about
what is going on! Extremely heavy debt that continues to increase, out of
control spending, and irresponsible budgeting. Somebody should be sounding the
alarm.
And this leads to the FY 2014 budget. Although drowning in debt Patrick
proposed In January of 2013 a budget of $34.8 billion, a 6.9% increase over the
previous year! In announcing this outrageous budget he also wanted to raise
taxes by $1.9 billion. (Are you still sleeping?) So along comes our one party
state Legislature to the rescue, they were going to bring things into control.
What they did is battle Patrick over which tax increases to impose and then this
ended up in a "compromise". The final budget is $34.06 billion, ONLY an increase
of $1.5 billion and a 4.5% increase. (Phew, what a relief!) In achieving this a
few tricks were used. The "balancing" came about by a "one time" spending of 723
million that includes dipping AGAIN into the "Rainy Day Fund" to the tune of
$350 million. And, Oh yes, did you know that about 31.5% of our state budget
income comes from the federal government. (It is a good thing that Patrick is
friends with President Obama...that really helps!)
Here is what you can count on:
1) Massachusetts will be driven deeper into debt with no end in
sight.
2) It will be discovered early on that revenue / income will be less than
expected, and action will be necessary...Patrick to the rescue.
3) About mid way through the 2014 Fiscal Year Patrick will announce still
another budget shortfall. Another raid on the "Rainy Day Fund" will be
necessary, as well as other measures.
4) Perhaps not Fiscal Year 2014, but soon, a domino affect will occur where
there will be a total collapse of Massachusetts' financial condition. Since we
are largely dependent upon the federal government for 31.5% of our income, and
the fact that the federal government is close to $17 trillion in debt headed
rapidly to over $20 trillion...sooner or later this condition is going to end
abruptly. When it does, this will be an economic disaster for our state and have
an extreme detrimental impact on all Massachusetts citizens. Unfortunately,
then they will wake up.
Where is the media on this? Where is the Republican Party Leadership?
Where is the Massachusetts Taxpayer Foundation? All are absent in their
responsibility in bringing out the facts and truth to the people of
Massachusetts and exposing the current and impending financial crisis that
exists in our state.
