Gov's Spending Cuts, Taxes Draw Critics
Gov. Deval Patrick's fiscal 2013 budget proposal, coming after four years of tight budgets and in the face of a still-sluggish economy, is subject to competing analyses from groups critical of service cuts and those devoted to fighting tax increases.
MassBudget, a liberal-leaning policy group, says the $32 billion budget depends largely on cutting spending, even after $3 billion has already been cut over the past four years.
Meanwhile, the anti-tax National Federation of Independent Businesses praised the governor for saving $730 million but said the budget would increase taxes on small business consumers by $260 million.
One of the most significant areas where the budget would limit spending is health care. According to the MassBudget analysis, the budget assumes that cost-saving strategies will add up to $545 million in savings in the MassHealth program. That would partially offset a projected demand for $1 billion in new spending to maintain current services.
Michael Widmer, president of the Massachusetts Taxpayer Foundation, speaking in a video released by the State House News Service, said the budget represents significant cost-cutting. Widmer said the budget anticipates close to $1 billion in health care savings, which he called "unlikely to be realized." But he said even a smaller amount of savings would help to fund other needed services.
Widmer also said the budget treats local aid to cities and towns more generously than many other programs.
Among the new revenue proposed in the budget is $61.5 million from applying the state sales tax to candy and soda, $62.5 million from an increase in the cigarette tax, $22 million from extending the state bottle bill to bottled water and sports drinks and $46 million from new tax enforcement and shifts in taxation rules for various business entities, according to MassBudget.
The budget also calls for a net reduction of $300 million in the state's Stabilization Fund balance.
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