SPRINGFIELD, Mass. (WWLP)– The Massachusetts’ state budget deficit may be far greater than previously expected.
New research from Massachusetts Taxpayers Foundation and suggests the state’s budget deficit is roughly $1 billion for this current fiscal year, which is about three times what state officials are estimating.
Gov. Deval Patrick’s administration estimates the deficit is nearly $329 million and disputes the foundation’s analysis.
The new research suggests there is a nearly $288 million dollar shortfall in revenue combined with $525 million in spending obligations not included in the budget. They also found a $180 million shortfall from temporary Medicaid costs.
Governor- elect Charlie Baker will take office January 8th. The current fiscal year budget runs through June 30th, 2015.
Baker says he plans to make his own assessment of the deficit once in office, but says he has ruled out new taxes or cuts in local aid.