Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
The crisis we face is national <ul><li>Most states face significant revenue shortfalls due to declining economy – 49 state...
The crisis we face:  $3.4 billion dollar loss in revenue  over one year $17,989 $21, 403 (billions)
<ul><li>A budget deficit is when revenues and spending are not equal.  A dramatic loss in revenue has created a Massachuse...
<ul><li>Given the stark  choices  we need to ask ourselves what fundamentally we want government to do and how we pay for ...
BACKGROUND: How do we pay for state services? All Revenue Sources Tax Revenue Sources
BACKGROUND: What do we spend state dollars on? 73% of all spending goes to: Education Local Aid Health Care Human Service
<ul><li>If you cut salaries by laying off every state employee on the operating budget, you would still be short $1.1 bill...
Let’s Discuss <ul><li>What are the fundamental services you believe your government should provide?  Could you rank those ...
Upcoming SlideShare
Loading in …5
×

Fiscal Crisis

339 views

Published on

The fiscal crisis the Commonwealth faces is national

Published in: News & Politics, Business
  • Be the first to comment

  • Be the first to like this

Fiscal Crisis

  1. 1. The crisis we face is national <ul><li>Most states face significant revenue shortfalls due to declining economy – 49 states are currently in recession; 1 is at risk </li></ul><ul><li>Combined deficits of all states projected to be $230+ billion for fiscal years 2009-2011 </li></ul><ul><li>Many states experiencing widespread budget cuts, layoffs/furloughs, proposing new revenues, relying on federal stimulus and “Rainy Day” funds </li></ul>
  2. 2. The crisis we face: $3.4 billion dollar loss in revenue over one year $17,989 $21, 403 (billions)
  3. 3. <ul><li>A budget deficit is when revenues and spending are not equal. A dramatic loss in revenue has created a Massachusetts budget deficit. </li></ul><ul><li>Over the course of this year we’ve seen a $3.4 billion loss in tax revenue—in a $28.5 billion budget. </li></ul><ul><li>The fiscal year 2009 budget deficit was $3.9 billion resulting, in part, from snow removal costs and increased costs in safety net programs. </li></ul><ul><li>The fiscal year 2010 projected budget deficit was $3.5 billion in January and has now risen to $5.4 billion. </li></ul>The crisis we face: Total budget shortfalls
  4. 4. <ul><li>Given the stark choices we need to ask ourselves what fundamentally we want government to do and how we pay for it. </li></ul><ul><li>The Administration and the House have presented both lean budgets and revenue options for 2010; the Senate is likely to do so in the next several weeks. </li></ul><ul><li>It’s important that we engage you in the outcome and that you engage your neighbors in a conversation about the choices we face. </li></ul>The crisis we face: C hoices
  5. 5. BACKGROUND: How do we pay for state services? All Revenue Sources Tax Revenue Sources
  6. 6. BACKGROUND: What do we spend state dollars on? 73% of all spending goes to: Education Local Aid Health Care Human Service
  7. 7. <ul><li>If you cut salaries by laying off every state employee on the operating budget, you would still be short $1.1 billion. </li></ul><ul><li>If you eliminate every state human services agency—Mental Health, Public Health, Transitional Assistance, Developmental Disabilities, etc—you would still be short $700 million. </li></ul><ul><li>If you cut every dollar the state spends on pre-K and K-12 education you would still be short $600 million. </li></ul><ul><li>If you cut every dollar the state spends on public safety including Corrections, State Police, and other community supports, you would still be short $4.4 billion. </li></ul>How would you cut $5.4 billion?
  8. 8. Let’s Discuss <ul><li>What are the fundamental services you believe your government should provide? Could you rank those that you feel are most important? </li></ul><ul><li>Facing a multi billion dollar problem, what services would you cut? </li></ul><ul><li>How should we pay for public services? Do you support additional revenues and if so, which ones? </li></ul><ul><li>Amongst the people you know, do you feel there is support for additional revenue and if so, which ones? </li></ul>

×