In its annual analysis of state spending, the Taxpayers Foundation calls on state leaders to develop a fiscal blueprint for 2004 and 2005 to address the Commonwealth's massive and growing structural deficit. The report recommends that legislative leaders and the Romney administration work together over the next three months -- concurrent with the fiscal 2004 budget process and the consideration of structural reforms -- to produce a multiyear fiscal recovery plan. According to the Foundation, the state faces a budgetary shortfall of $2.4 billion in 2004, with reserves largely depleted. The predicted shortfall is occurring despite almost $1 billion of tax increases enacted last year, spending cuts approaching $2 billion over the last 18 months, and the expectation that the state economy will begin to recover in fiscal 2004. MTF concludes that given the sheer size of the structural deficit -- and the limited options remaining for closing the gap -- the state's fiscal problems cannot be adequately addressed in a single budget year.
State Budget '03: The Perfect Storm…Unleashed
In its annual analysis of state spending, the Taxpayers Foundation calls on state leaders to develop a fiscal blueprint for 2004 and 2005 to address the Commonwealth's massive and growing structural deficit. The report recommends that legislative leaders and the Romney administration work together over the next three months -- concurrent with the fiscal 2004 budget process and the consideration of structural reforms -- to produce a multiyear fiscal recovery plan. According to the Foundation, the state faces a budgetary shortfall of $2.4 billion in 2004, with reserves largely depleted. The predicted shortfall is occurring despite almost $1 billion of tax increases enacted last year, spending cuts approaching $2 billion over the last 18 months, and the expectation that the state economy will begin to recover in fiscal 2004. MTF concludes that given the sheer size of the structural deficit -- and the limited options remaining for closing the gap -- the state's fiscal problems cannot be adequately addressed in a single budget year.
