9C CUTS

UPDATE

9C Cuts to FY 10 Budget

Thursday, October 29, 2009. Gov. Deval Patrick announced a plan Thursday to cut $352 million in state spending four months into the fiscal year, relying on $35 million reaped through layoffs, $82 million in unspecified "departmental revenues," and $62 million in federal stimulus aid to close most of a $600 million budget shortfall. The package also pulls $60 million in surplus funds from the fiscal year that ended July 1, begins a phase-out of a police education incentives program, and offers a tax amnesty program estimated to generate $20 million. Patrick shielded education funds, state aid to cities and towns, MassHealth and Commonwealth Care. The administration said it protected programs for the mentally ill, homeless, and correctional facilities, but all suffered deep cuts. He is also seeking expanded 9C authority to make $75 million in cuts to non-executive branch agencies including the Legislature, Constitutional officers, the Judiciary, Sheriffs and District Attorneys. [SHNS]

For more information about the proposed cuts visit the FY2010 Budget Summary.

Thursday, October 15, 2009. The potential elimination of 2,000 jobs, unilateral budget cuts, consolidation of state agencies, collaboration on energy purchases, and a request for expanded budget powers comprise Gov. Deval Patrick's five-point approach to reducing spending by $600 million this fiscal year. In another savings plan, Patrick wants Executive Branch managers to take nine unpaid furlough days. Patrick told reporters the state had already eliminated 1,400 jobs during the fiscal crisis. The governor also mentioned the possibility of selling surplus state land, a strategy relied upon heavily by Gov. Mitt Romney but curtailed in recent years due to concerns about local impacts. [SHNS]

Wednesday, October 14, 2009. Advocates for mental health services on Wednesday called for lawmakers to expand the governor's budget-slicing ability outside the agencies under his control, saying they had already been disproportionately affected by budget cuts tied to plunging state tax revenues.

"This is a message to the governor and the Legislature that we will not take it anymore," said Tobias Fisher, the policy director, addressing several hundred advocates, individuals with developmental disabilities and their family members who had gathered by the Grand Staircase. "We've been cut, cut, cut."

Patrick aides say he has not requested authority from the Legislature to include exempt areas, such as local aid, the Legislature, and constitutional offices, in his spending cuts. Some human services activists feel it's appropriate to broaden the cuts in an effort to minimize the impact on vulnerable residents. [SHNS]

Monday, October 5, 2009. Lawmakers, Guv reluctant to discuss taxes. Gov. Deval Patrick and legislative leaders said they did not discuss new sources of revenue to deal with a mid-fiscal-year budget shortfall that reached $212 million in the first quarter that ended last week. Senate President Therese Murray asked about the prospect of tapping into the tax expenditure budget - a portfolio of exemptions from taxes that totals in the billions of dollars - Murray, after a several-second pause, shook her head and said "no." [SHNS]

Friday, October 2, 2009. Despite spending reductions and massive tax increases, state government continues to exceed taxpayers’ price range, new revenue data shows, as September receipts crashed $333 million below a year ago.

State tax collections fell $243 million below estimates last month, the Patrick administration said Friday, likely triggering spending reductions just three months into the fiscal year. Monthly revenues were down 15.9 percent from a year ago, and the first quarter of the fiscal year has produced $477 million less than last year’s, $212 million below what budget authors thought they would have on hand. [Full Article] 

Tuesday, September 8, 2009. State government leaders face the "perfect storm" of cost pressures tied to increasing strain on social safety net programs, predictions of weak revenue growth, and dwindling reserves and federal funds to balance future budgets, the state budget chief told local officials Tuesday afternoon.With unemployment still on the rise, federal stimulus funds flying out the door, and a once $2.3 billion state rainy day fund balance nose-diving towards $500 million, Administration and Finance Secretary Leslie Kirwan also cautioned local government leaders of potential mid-fiscal 2010 budget cuts.

Administration officials are monitoring tax collections this month and readying plans to reduce spending. [Full Article]

Wednesday, January 28, 2009. The Governor’s budget (“House 1”) recommends significant spending reductions across state government. His proposal includes deep local aid cuts that will particularly hurt lower-income communities, cuts to public higher education of over fifteen percent from this year’s original budget, and decreases in various human service and health care accounts. These cuts and others mean that this budget will lead to real reductions in our state’s ability to protect public safety, provide educational opportunities, and assist vulnerable populations.

BACKGROUND

What is a 9C Cut?

Section 9C of Chapter 29 of the General Laws requires the Governor to reduce spending whenever his administration determines that there will not be enough revenue to pay for the spending authorized in the budget.

Mass General Laws Chapter 29: Section 9C. Deficiency of Revenue 

Whenever, in the opinion of the commissioner of administration, available revenues as determined by him from time to time during any fiscal year under section 5B will be insufficient to meet all of the expenditures authorized to be made from any fund, whether by appropriation or distribution, he shall within 5 days notify in writing the governor and the house and senate committees on ways and means of the amount of such probable deficiency of revenue and the governor shall, within 15 days after such notification, reduce allotments under section 9B, and submit in writing a report stating the reason for and effect of such reductions, or submit to the general court specific proposals to raise Additional revenues by a total amount equal to such deficiency.

How Does 9C Work?

When does the Administration decide whether to make 9C cuts?

Technically the administration can announce 9C cuts at any time that they determine that revenue is likely to be insufficient to pay for all authorized spending.  But there are also specific times when the administration is required to update its revenue estimates.  The next such time is October 15th.  If that new estimate projects a significant decline in revenues below the level assumed when the budget was adopted, then the 9(C) process would likely begin.

What can be cut and what can’t be cut?

The Governor can only use 9C powers to cut funding in parts of the government that are under his control – the executive branch agencies that run and fund most of state government.  This power can not, however, be used to cut local aid, the courts, the legislature, or other constitutional offices.  The Governor filed legislation seeking expanded powers to spread cuts to these areas of Government as well, but that legislation has not been enacted.

Are there any options other than cuts?

Yes.  The Governor can also request that the legislature appropriate money from the stabilization fund or raise additional revenue.

When have 9C Cuts occurred?

The most recent rounds of 9C Cuts occurred in 2001, 2006, and 2008.

ADDITIONAL RESOURCES