SENATOR DON HUMASON
BOSTON — Even as they grapple with a shortfall in the state’s current $36 billion budget, lawmakers and state officials are set to begin preliminary work on a spending plan for the next fiscal year.
The first order of business is reaching agreement on how much tax revenue the state can expect to collect in the 12-month period beginning July 1. That, in turn, helps determine how much money can be spent.
Such projections can be tricky. Revenue has fallen short of benchmarks in the current year, contributing to what Republican Gov. Charlie Baker says is a $765 million budget deficit.
Baker administration officials are expected to attend Thursday’s revenue hearing, along with House Ways and Means Committee chairman Brian Dempsey and newly-appointed Senate Ways and Means chairwoman Karen Spilka.
The revenue hearing is the legislature’s first under Gov. Charlie Baker and comes at a good time, as the Commonwealth is currently facing a $765 million budget deficit.
Also attending will be Sen. Don Humason, Jr. of the 2nd Hampden-Hampshire District, who said organizations such as the Massachusetts Taxpayers Association have been invited to attend, as well, and to give their budget projections.
REPRESENTATIVE JOHN VELIS
“We set the amount of revenue we expect to take in the fiscal year 2016. We have to do that while coming up with ways to tackle the current deficit in the current fiscal year, which we’re halfway through,” said Humason.
The Westfield Republican also cited a radio interview Baker gave yesterday morning during which he said the state may need to take a chunk out of it’s rainy day fund to help offset the budget.
“Spending cuts and rainy day fund withdrawals will help us,” said Humason, adding that the Commonwealth has about $1.2 billion stashed in the rainy day fund. “It’s certainly not the highest it has been in Massachusetts, but it’s one of the highest in the country.”
Rep. John Velis of the 4th Hampden District said yesterday that he intends to be present at the hearing and that he supports much of the efforts being proposed by Baker.
“Gov. Baker has said there will be no new taxes and no new fees and I applaud him for both of those, because right now, in an economy that’s still recovering, we can’t afford new taxes or fees. They’re killing people,” he said. “He’s also said that there will be no cuts to local aid and the Governor is following through with what he said on the campaign trail.”
Velis said that an increase in local aid will help reduce property taxes, a theme that he ran on during his own campaign this fall and that was also championed by his challenger, At-large City Councilor Dan Allie.
“I applaud the Governor for saying he’s only going to take from the rainy day fund in emergencies,” he said. “One of the ways we raise money for the rainy day fund is, after we get $500 million, anything after that goes into the rainy day fund.”
Velis said that the Commonwealth is exceeding what it expected to bring in for tax revenues for this fiscal year.
“If the state is collecting all these revenues and still has a budget deficit, you need to look at where you’re spending your money,” he said. “All of us elected leaders need to do some serious introspection about some of the wasteful spending, fraud, waste and abuse, of government.”
