BOSTON, Mass. (WWLP) – With just four months left in the fiscal year, state lawmakers want to restore spending in areas cut by the governor. But that could come to a halt after disappointing tax returns last month.
The state is $134 million below expectations for tax collections, money that pays for critical services like healthcare and education. This comes at a difficult time for the state as MassHealth costs continue to soar.
Governor Charlie Baker slashed $98 million in spending back in December to balance the budget, stripping funds from government programs like health care for the poor. State budget writers are struggling to project revenues as they draft next fiscal year’s budget.
Budget writers are keeping their fingers crossed that tax revenues will bounce back. The months of March through June have, historically, accounted for nearly 40 percent of total annual revenues.