Monday, June 30, 2014

Massachusetts Budget Out of Control




Massachusetts is is now $130 billion in debt. Also, 29% of the state's revenue is dependent upon the federal government, and the federal government is $17.6 trillion in debt. For Fiscal Year 2014 Governor Deval Patrick submitted a budget, during a depressed economy, for $34.8 billion, a 7% increase that included a $1.9 billion tax hike and a $400 million withdrawal from the state's (mysterious) reserve fund. Under Patrick, between FY's 2009-2013 expenditures increased $11.7 billion, a 23.6% increase while the cumulative rate of inflation during this same period increased only 9.1%. This clearly shows the pattern outspending both income and inflation as our massive state debt increases.


The Massachusetts FY 2015 Budget (beginning July 1) passed by "lawmakers" is $36.5 billion, a $1.7 billion, or 4.9% increase. The current rate of inflation, 12 months ending May 2014 is 2.1%, so our state budget increase is 2.3 times the rate of inflation.


The State House News Service has reported that the FY 2015 Budget exceeds the estimated 4.9 % revenue growth and also counts on casino licensing fees of $73 million and slot parlor revenues that may or may not happen, essentially betting on the come. This seems to be a practice all too common under the Patrick administration and our one party legislature. Claimed revenues that are in the budget are not solid and this invariably leads to dipping into the mysterious "reserve" or "rainy day" funds. When you are $130 billion in debt it has already "rained".


What is desperately needed in Massachusetts is fiscal responsibility by our elected representatives. Currently there appears to be NO responsibility. It is only a matter of time before the entire Massachusetts economy will come crashing down. Then all the citizens of the state, irrespective of party, will be severely and negatively affected. I urge people to look at the facts and not at just the political rhetoric. It all comes down to basic arithmetic, and it will affect everybody.


In 2012 a State Integrity Investigation graded the Massachusetts budget process. They gave Mass an "F" for Public Access of Information; an "F" for the State Budget Process; and a "D+" for Legislative Accountability. The citizens of Massachusetts deserve better than that. They also deserve a media / press that doesn't just report what they are told, but does true journalism in asking the tough questions and digging out the facts....a true practice of the First Amendment.


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