Document Type

Research Report

Publication Date



Despite the injection of new taxes in the amount of $1 .2 billion in fiscal 1991, and recently announced cuts in the budget of approximately $464 million, the Commonwealth's fiscal condition - irrespective of the outcome of CLT's petition -is precarious. Although the political juices are flowing in Massachusetts, with an eye on November 6th, Massachusetts decision-makers have not faced up to the problems inherent in the long-term, structural spending patterns of the state's budget.

Our five-year budget projection indicates that if expenditure trends continue without dramatic restructuring - particularly in the "non-discretionary" accounts - the Commonwealth faces a steady rise in annual deficits that could exceed $700 million in fiscal 1993 and may escalate beyond $1.3 billion by 1995. Between now and 1995, total expenditures are estimated to increase by 32%, whereas revenues will grow by only 24%.



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