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Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
Mass Budget Briefing 4/1/09
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Mass Budget Briefing 4/1/09

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  • 1. State Fiscal Conditions & Our Future Massachusetts Budget and Policy Center 15 Court Square, Suite 700, Boston, MA 20108 617.426.1228 www.massbudget.org August 2, 2004
  • 2. % of Personal Income 5.000% 7.575% 10.150% 12.725% 15.300% August 2, 2004 NY AK ME LA DC HI VT NM Total State and Local Taxes, FY 2006 NJ RI WI WV CA NE OH IN ND MN CT UT AR KS U.S. KY DE PA IL NC MD MS WA IA ID MT MI GA MA AZ OR NV FL VA OK SC MO CO TX AL TN MA Taxes Lower Than U.S. Average SD NH
  • 3. FY 2009: Initial Budget Gap August 2, 2004
  • 4. FY 2009: Initial Budget Gap 40,000,000,000 30,000,000,000 20,000,000,000 10,000,000,000 0 Spending Revenue August 2, 2004
  • 5. FY 2009: Initial Budget Gap 40,000,000,000 30,000,000,000 20,000,000,000 10,000,000,000 0 Spending Revenue August 2, 2004
  • 6. FY 2009: Initial Budget Gap 40,000,000,000 30,000,000,000 20,000,000,000 10,000,000,000 0 Spending Revenue August 2, 2004
  • 7. FY 2009: Initial Budget Gap 40,000,000,000 40,000,000,000 30,000,000,000 30,000,000,000 20,000,000,000 20,000,000,000 10,000,000,000 10,000,000,000 0 0 Spending Revenue Spending Revenue August 2, 2004
  • 8. FY 2009: Initial Budget Gap 40,000,000,000 40,000,000,000 30,000,000,000 30,000,000,000 20,000,000,000 20,000,000,000 10,000,000,000 10,000,000,000 0 0 Spending Revenue Spending Revenue August 2, 2004
  • 9. FY 2009: Initial Budget Gap 40,000,000,000 40,000,000,000 30,000,000,000 30,000,000,000 20,000,000,000 20,000,000,000 10,000,000,000 10,000,000,000 0 0 Spending Revenue Spending Revenue August 2, 2004
  • 10. The Governor’s 9C Cuts 34,000,000,000 952,000,000 25,500,000,000 17,000,000,000 8,500,000,000 0 Spending Revenue August 2, 2004
  • 11. The Governor’s 9C Cuts 34,000,000,000 34,000,000,000 952,000,000 25,500,000,000 25,500,000,000 17,000,000,000 17,000,000,000 8,500,000,000 8,500,000,000 0 0 Spending Revenue Spending Revenue August 2, 2004
  • 12. The Governor’s 9C Cuts 34,000,000,000 34,000,000,000 25,500,000,000 25,500,000,000 17,000,000,000 17,000,000,000 8,500,000,000 8,500,000,000 0 0 Spending Revenue Spending Revenue August 2, 2004
  • 13. The Governor’s 9C Cuts 34,000,000,000 34,000,000,000 25,500,000,000 25,500,000,000 17,000,000,000 17,000,000,000 8,500,000,000 8,500,000,000 0 0 Spending Revenue Spending Revenue August 2, 2004
  • 14. The Governor’s 9C Cuts 34,000,000,000 34,000,000,000 952,000,000 25,500,000,000 25,500,000,000 17,000,000,000 17,000,000,000 8,500,000,000 8,500,000,000 0 0 Spending Revenue Spending Revenue August 2, 2004
  • 15. FY2010 Preliminary Budget Gap August 2, 2004
  • 16. FY2010 Preliminary Budget Gap $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $0 Spending Revenue August 2, 2004
  • 17. FY2010 Preliminary Budget Gap $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $0 Spending Revenue August 2, 2004
  • 18. FY2010 Preliminary Budget Gap $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $0 Spending Revenue August 2, 2004
  • 19. August 2, 2004
  • 20. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 21. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 22. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 23. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 24. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 25. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 26. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 27. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 28. 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 29. Spending Has Mostly Stayed Constant 8.60% % Total Personal Income 6.45% 4.30% 2.15% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 30. State’s Own Spending Has Declined 7.00000000000000102% 6.90% 6.80% 7.00% 6.80% 6.60% 6.80% 6.60% 6.70% 6.40% 6.40% 6.60% % Total Personal Income 5.25000000000000077% 3.50000000000000051% 1.75000000000000026% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 31. 6.300% % Total Personal Income 4.725% 3.150% 1.575% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 32. 6.300% % Total Personal Income 4.725% 3.150% 1.575% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 33. 6.300% % Total Personal Income 4.725% 3.150% 1.575% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 34. 6.300% % Total Personal Income 4.725% 3.150% 1.575% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 35. 6.300% % Total Personal Income 4.725% 3.150% 1.575% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 36. State Tax Revenues Have Declined 6.300% % Total Personal Income 4.725% 3.150% 1.575% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 August 2, 2004
  • 37. Chapter 70 Education Aid 5,000 15% decrease from FY02 4,125 Millions of $ (FY10) 3,250 2,375 1,500 FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Adjusted Using the Inflation Factor Identified in Chapter 70 August 2, 2004
  • 38. Chapter 70 Education Aid 5,000 11% decrease from FY02 4,125 Millions of $ (FY10) 3,250 2,375 1,500 FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Includes ARRA funding Adjusted Using the Inflation Factor Identified in Chapter 70 August 2, 2004
  • 39. During the Fiscal Crisis We Cut State Education Aid More Than Most States August 2, 2004
  • 40. Higher Education 1,400 32% decrease 1,250 Millions of $ (FY10) 1,100 950 800 FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09 August 2, 2004
  • 41. Higher Education 1,400 20.5% decrease 1,250 Millions of $ (FY10) 1,100 950 800 FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Includes ARRA funding. August 2, 2004
  • 42. Local Aid 1,600 29% decrease 1,200 Millions of $ (FY10) 800 400 0 FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09 August 2, 2004
  • 43. Public Health 700 20% decrease 600 Millions of $ (FY10) 500 400 300 200 100 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 August 2, 2004
  • 44. Public Health 700 19% decrease 600 Millions of $ (FY10) 500 400 300 200 100 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Includes ARRA funding. August 2, 2004
  • 45. Environment 350 29% decrease 300 Millions of $ (FY10) 250 200 150 100 50 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 August 2, 2004
  • 46. Filling the FY2010 Budget Gap August 2, 2004
  • 47. Filling the FY2010 Budget Gap Cuts and Savings 1.63 August 2, 2004
  • 48. Filling the FY2010 Budget Gap Cuts and Savings 1.63 Revenues 0.59 August 2, 2004
  • 49. Filling the FY2010 Budget Gap Cuts and Savings 1.63 Stabilization Fund 0.59 Revenues 0.59 August 2, 2004
  • 50. Filling the FY2010 Budget Gap Federal Recovery Aid 0.71 Cuts and Savings 1.63 Stabilization Fund 0.59 Revenues 0.59 August 2, 2004
  • 51. A Tax System Should Be… August 2, 2004
  • 52. A Tax System Should Be… Adequate August 2, 2004
  • 53. A Tax System Should Be… Adequate Stable August 2, 2004
  • 54. A Tax System Should Be… Adequate Stable August 2, 2004
  • 55. A Tax System Should Be… Adequate Stable Simple/Eficient August 2, 2004
  • 56. A Tax System Should Be… Adequate Stable Simple/Eficient August 2, 2004
  • 57. A Tax System Should Be… Adequate Stable Simple/Eficient Fair August 2, 2004
  • 58. MA State Local Taxes are Regressive 15.00% 11.25% % of Personal Income 7.50% 3.75% 0% Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $526,000 or more Top Eect of Federal Deduction TOTAL TAXES Top 20% Source: ITEP, 2006 data August 2, 2004
  • 59. Sales Taxes are Typically Regressive $140,000 Average annual income $107,250 Average annual expenditures $74,500 $41,750 $9,000 Lowest 20% Third 20% Highest 20% Source: Bureau of Labor Statistics, 2004 data August 2, 2004
  • 60. Who Pays the Sales Tax in MA? 4.0% % of Personal Income 3.1% 2.2% 1.3% 0.4% Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $203,000 - $526,000 Next 4% Top 20% Source: ITEP, 2006 data August 2, 2004
  • 61. MA Income Tax is Progressive 4.500% % of Personal Income 3.425% 2.350% 1.275% 0.200% Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $526,000 or more Top Top 20% Source: ITEP, 2006 data August 2, 2004
  • 62. Who benefits from an Income Tax Cut? Tax Rate Cut From 5.95% to 5.3% $12,000.0 $10,226 $9,002.5 Average Tax Cut $6,005.0 $3,007.5 $1,776 $751 $377 $214 $76 $0 $10.0 Less than $19,800 Lowest 20% $63,800 - $105,200 Fourth 20% $218,000 - $562,500 Next 4% Top 20% Source: ITEP, April 2008 August 2, 2004
  • 63. Who benefits from a Dividends Interest Tax Cut? Tax Rate Cut from 12.0% to 5.3% $12,000 $10,057 $9,000 Average Tax Cut $6,000 $3,000 $959 $242 $109 $55 $27 $2 $0 Less than $19,800 Lowest 20% $63,800 - $105,200 Fourth 20% $218,000 - $562,500 Next 4% Top 20% Source: ITEP, April 2008 August 2, 2004

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