June 12, 2024


Massachusetts Gov. Maura Healey.
Massachusetts Gov. Maura Healey. Jonathan Wiggs /Globe Workers

BOSTON (AP) — Massachusetts Gov. Maura Healey introduced $375 million in price range cuts for the present fiscal 12 months Monday because the administration seeks to shut an anticipated $1 billion shortfall with month-to-month revenues coming in at a slower tempo than anticipated.

The largest lower can be to MassHealth, the state’s Medicaid program, but it surely gained’t impression anybody’s eligibility to use to the medical insurance system.

The remainder of the anticipated $1 billion shortfall can be lined by $625 million in what administration officers describe as alternatives to extend income with out the necessity for tax will increase.

The spending cuts outlined Monday might be made unilaterally by the governor and don’t want the approval of state lawmakers.

Healey’s prime price range official, Matthew Gorzkowicz, mentioned the administration opted to not dip into the state’s “wet day fund” — now over $8 billion — as a result of that cash is for extra excessive price range crises.

“We see this as type of a 12-18-month situation the place we have now to do some belt-tightening, however general we don’t see this as a recessionary atmosphere and consider the financial system will proceed to develop in 2025,” Gorzkowicz advised reporters.

He mentioned the cuts amounted to lower than 1% of the state price range and no layoffs have been used to shut the funding hole.

Gorzkowicz additionally mentioned that the state’s wrestle to seek out emergency shelter for migrants and different homeless households was not an element within the price range cuts.

“Not one of the price range reductions are the results of the current emergency shelter disaster,” he mentioned.

In a letter to lawmakers explaining the cuts, Healey mentioned the state can’t wait till the beginning of the brand new fiscal 12 months in July to handle the price range shortfall. December was the sixth month in a row wherein revenues fell beneath predictions, she mentioned.

“In crafting spending reductions, we have now completed our greatest to guard investments which might be vital to Massachusetts’s future,” together with defending native assist funding to cities and cities and faculty funding, the Democrat wrote.

Additionally Monday, Healey administration officers and Massachusetts Home and Senate leaders unveiled a brand new estimated state income determine for the 2025 fiscal 12 months of $40.2 billion — about $208 million lower than what was used to construct the present price range, officers mentioned.