Massachusetts State Budget Trends

Ten years ago, Massachusetts enjoyed substantial annual budget surpluses. Fiscal Year 2010 (FY 2010) budget faces a historical large deficit. What happened over the last decades that took us from fiscal strength to a severe fiscal crisis?

• In Fiscal Policies from 1998 to 2008 the Mass Budget and Policy Center analyzes the short term and long term causes of the current state of our budget. The report provides a comprehensive analysis on how the fiscal policies of the last 10 years have contributed the current financial climate.
    
  
• In Two Decades of State Budget Trends Cameron Huff for MassInc outlines 20 years of Massachusetts budget history – at its core, a series of choices that reflect the state’s collective values and priorities. There have been clear winners and losers. Most notably, health care has emerged as the state’s top funding priority, with a long-term commitment to expand access to the poor, disabled, and uninsured. A vigorous reform movement within K-12 education resulted in dramatic increases in spending since 1993. On the other hand, state support for public higher education and local aid was significantly cut back.

  This history begs further discussion on the function and role of government. There are two obvious approaches to achieving structural balance: cut spending or raise taxes. Both have their perils. Which will work at this fiscal and economic moment? Is there a combination of the two? Do our volatile sources of revenue growth demand new strategies for injecting more stability into the system? How can reform and increased transparency contribute to stability and potentially, to cost savings? _______________________________________________________

Additional Resources 

Massachusetts Budget and Policy Center provides independent research and analysis of state budget and tax policies, as well as economic issues, that affect low- and moderate-income people in Massachusetts.

If you would like to learn more about the report Fiscal Policies from 1998 to 2008 please contact the Mass Budget and Policy Center at:

Massachusetts Budget and Policy Center
15 Court Square
Suite 700
Boston, MA 02108
Phone: 617.426.1228

Massachusetts Institute for a New Commonwealth [MassINC] is an independent, nonpartisan research and educational institute. MassINC brings together diverse perspectives – including those held by conservatives and liberals, business and labor, advocates and policy makers – to focus on the challenge of achieving the American Dream in Massachusetts. To pursue our goals, we use independent research, a wide range of public events, and a unique approach to journalism.

If you would like to learn more about the report Two Decades of State Budget Trends please contact MassInc at:

MassINC
Publisher of CommonWealth magazine
18 Tremont Street, Suite 1120
Boston, MA 02108
Phone: 617.742.6800