April 25, 2011
As I write this, the House is preparing to debate our budget proposal
for fiscal year 2012. While it is not yet finalized, I wanted to let
you know more about the path we are following in order to ensure a
balanced budget.
In January, House, Senate and Administration leaders agreed on a
consensus revenue estimate of $20.525 billion for FY'12. This is a
modest increase over the previous 2 years, but is still well below our
pre-recession levels. To make matters even more difficult, this is
our first year without the increased federal resources previously used
to minimize the impact of the budget deficits. With the House
committed to not raising taxes or fees, this budget is based on a
total operating budget of just over $30 billion and addresses an
approximately $1.5 billion gap between the projected revenues and
operating expenses for the next fiscal year.
Throughout the late winter and early spring, Representative Brian
Dempsey, Chairman of the House Committee on Ways and Means, met with
legislators, advocacy groups, business executives and economists to
gain insight into the current needs of the Commonwealth and the health
of the economy. The budget he presented earlier this month works to
protect education and local aid to cities and towns and goes a long
way to fund programs for the young, elderly and most needy. But there
were significant cuts across the board, and unfortunately that will
impact many. But this budget did not only rely on cuts, it also
introduced several areas of reform, increasing efficiencies and
producing savings.
