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This was a presentation to a coalition of policy advocates, social service providers, and academics, to give members an overview of the Baker Administration’s revised …
For more information, view the presentation slides here. *** The Envisioning Equity Series: Fall 2020 – MassBudget hosted a series of community …
Read the statement by Marie-Frances Rivera, president of the Massachusetts Budget and Policy Center (MassBudget), on Governor Baker’s revised Fiscal Year (FY) 2021 Recommendation.
The Massachusetts Budget and Policy Center decided not to prepare a revenue estimate number for this hearing, said its president, Marie-Frances Rivera, citing “all the uncertainty and variables.” In April, MassBudget said that if patterns from prior recessions hold and there is some limited growth, fiscal 2021 collections could land between $5 billion and $5.7 billion shy of the estimates budget writers agreed to in January.
“We think that there’s a budgetary crisis that’s happening and we all have to be just fully aware and eyes-open about that,” Rivera said Wednesday. “There’s danger because all of the public goods that we’re relying on to guide us through this public health economic crisis, whether it’s health care, whether it’s housing people, whether it’s educating our young people, a lot of these are in jeopardy and the needs are growing.”
According to the News Service, Massachusetts Budget and Policy Center, a state finance think tank, says its time for lawmakers to consider other ways to fill budget gaps, other than borrowing money.
They include tapping into the state’s $3.5 billion reserves and adopting “new policies to increase revenue.”
Translation: raising taxes.
States rely on borrowing to manage their finances in good times and bad. Yet borrowing is not a substitute for raising the revenue needed for an economic recovery. Policymakers should look to raising progressive new revenues paired with limited borrowing to avoid cuts to critical public spending.