State Budget

This report finds that recent passage of the federal tax overhaul legislation will exacerbate the negative economic impact of Proposition 80, the proposed constitutional amendment scheduled to appear on Massachusetts’ November ballot that would add a 4 percent surtax on annual taxable income over $1 million.

Has Massachusetts made progress towards providing a better quality of life for its residents while maintaining financial stability over the past decade or so? In July 2014, Governor Deval Patrick signed into law the eighth and final budget of his administration with only a few vetoes and recommendations to the General Court. Five years after the financial crisis, this is an opportune moment to review and reflect upon the fiscal state of Massachusetts and what has changed since the beginning of this governorship more than seven years ago.

Pioneer has generally produced at the time of release of key budget documents a series of "The Good, the Bad and the Ugly" reports. The conference committee's fiscal year 2014 budget was circulated on the first of the month, just as the new fiscal year started.

This policy brief recommends $311 million in savings between now and the end of the fiscal year, through emergency and targeted cuts, returning the state workforce to 2004 levels, ending corporate welfare, and consolidating several state functions. By combining these with a $300 million withdrawal from the rainy day fund and a reasonable 4 percent cut in local aid ($200 million), the Governor could avoid further cuts to the safety net and core services.

This report seeks to identify savings to help close a looming $1 billion to $1.5 billion gap in the Commonwealth's FY09 budget. As a follow-up to a Pioneer press release outlining $600 million in immediate cuts, dated October 8, 2008, we have scoured the budget for savings and reforms, with an eye toward actions that can be undertaken immediately. This report identifies $700 million in budget savings.

The horrifying spectacle of the Minnesota bridge collapse has prompted a national reevaluation of the condition of our public infrastructure. In Massachusetts, two recent reports have found a multi-billion dollar backlog of deferred maintenance.

The central objective of the Government Effectiveness Index (GEI) is to assess how Massachusetts is doing in comparison to other states. It seeks to provide measures of effectiveness based on the efficient use of resources (inputs as a function of quantity or output) and on performance outcomes (quality of output). It does so in regard to eight “core” functions of state government (functions common to most states): K-12 education, higher education, highways, transit, state police, the judiciary, corrections, and financial administration.