The state is facing a $500 million deficit in fiscal 2008 and the recently passed House budget for fiscal 2009 is at least $1 billion out of balance, creating a situation in which more than half of the state's reserves could be depleted in the next year without even accounting for a recession.

Tax revenues will grow somewhat better than expected in fiscal 2008 but increase only marginally in 2009, according to a forecast released today by the Massachusetts Taxpayers Foundation.

"How long will the luck hold? For the past three fiscal years the Legislature has passed budgets which depended on reserves to achieve balance. In each case tax revenues came in better than forecast, largely because of capital gains, eliminating the need to actually deplete the reserves. This…

"The fiscal 2008 state budget debate turns to the Senate this week at a particularly delicate time for state finances. The final tally shows that the House added $204 million in spending during floor debate, a net increase of $171.6 million in state spending after adjusting for $32.35 million in…

Governor Patrick's fiscal 2008 state budget includes a proposed spending increase of 3.8 percent. Tables 1 and 2 summarize his recommendations by category and track spending from 2001 to 2008. After adjusting for inflation, proposed 2008 spending is less than 2001 for almost all categories except…

"The House Ways and Means fiscal 2008 budget, which will be debated by the full House beginning April 23, has a bottom line that is very similar to the Governor's budget proposal but rejects most of his specific initiatives. The House proposes to spend $29.16 billion in fiscal 2008, an increase of…