guest blog

The Governor's budget for Fiscal Year 2011, which starts on July 1, 2010, along with some severe cuts, is proposing some modest new revenue streams that will help us address our structural deficit.

The Governor's budget proposal (House 2) continues budget cuts from the prior two years and recommends further cuts in several areas. It also generates revenue by reducing three business tax breaks and by extending sales taxes to cover soda, candy, cigars and smokeless tobacco. In addition it relies on continued significant federal assistance and on other temporary revenues including a modest withdrawal from the state stabilization fund.

A Preliminary Analysis from the Massachusetts Budget and Policy Center describes some of the major cuts and other initiatives used to balance the budget

As one of the long time community activists organizing to strengthen our neighborhoods and our communities through the Coalition of Social Justice and the Coalition against Poverty in the various South Coast cities and towns, I can tell you first hand how low and moderate income people have been carrying more than their fair share of the pain imposed by past budget cuts.

As members of ONE Massachusetts, we've been learning a lot about the various tax credits offered to corporations, especially the Film Tax Credit. We've studied reports from DOR and Mass INC, and are not convinced that we get a good return on the dollars we invest by paying 25% of the enormous salaries, the likes of Tom Cruise.

The Governor has taken an important step by imposing a temporary cap on the film credit although it still allows $50 million dollars in credits for FY11 and FY12. We'll be supporting this proposal, and may even be suggesting more!!!