An administration official said there are no eligibility changes for the state’s public insurance, but that the ongoing redetermination effort has eliminated more people from MassHealth enrollment than expected.Īnother $55 million will be cut from the Department of Development Services. The 66 programs to face cuts include a $294 million reduction in MassHealth’s fee-for-service payments. “But we certainly understand, in circumstances like this, these things need to happen.” “Obviously tourism is helping the bottom line for the Commonwealth,” Sheridan said. She noted state hotel tax revenues rose about 9 percent in the first five months of the fiscal year compared with a year ago, underscoring the fiscal benefits to supporting the tourism sector. Martha Sheridan, chief executive of the Meet Boston tourism bureau, said she hopes that’s the only hit to that line item. The administration plans to slice $1.3 million from the state’s $9 million tourism budget. Some people affected by the cuts hope there aren’t longer-term repercussions. “Our consensus revenue number is essentially flat in terms of new growth,” Gorzkowicz said Monday, noting that while the economy is growing, it is growing slowly. The figure estimates there will be enough money from the so-called “millionaire’s tax” to support $1.3 billion in spending on education and transportation - a $300 million increase over last year’s budget.

The consensus figure provides a basis for expected tax revenue that both the administration and Legislature use to craft their upcoming budgets for fiscal year 2025. State officials also said Monday they have reached a consensus revenue forecast for next fiscal year, which falls $208 million below the revenue figure it based this year’s budget on. “Revenues aren’t meeting our expectations, but they are still growing.” Ultimately, Massachusetts is still in “a revenue growth environment,” albeit a slow one, he said. He also added the administration is making cuts instead of dipping into the state’s surplus funds, because that pot of money is “for extraordinary circumstances” in which revenues decline year over year. Gorzkowicz underscored that the cause for cuts is solely based on overpromised revenue projections, not spending on the emergency shelter system or changes made as part of a tax cut bill last year. The December revenue figures “really changed things for us,” Gorzkowicz said. Healey told the State House News Service last month - before the latest revenue figures came in - that she was not considering them. The spending cuts mark a reversal for the governor, who just weeks ago waved off the possibility of midyear cuts.

“This is about fiscal responsibility and making sure our budget remains in balance. “We don’t see this as a recessionary environment,” the state’s top budget official said. Matthew Gorzkowicz, the secretary of the Executive Office for Administration and Finance, said despite the dreary news, taxpayers should see the news as “a belt tightening.” December marked the sixth successive month that saw tax revenue fall below what state officials expected.

The cuts announced Monday were prompted by a shortfall of tax revenue, which is running $769 million, or about 4 percent, behind projections midway through the current fiscal year. Related : Healey to unveil $375 million in spending cuts as tax revenues lag projections

Household budgets percentages