In its annual review of state finances, the Taxpayers Foundation warns that largely uncontrollable growth in spending for core programs is outpacing the revenue growth that can be expected to be generated by the state's economy and tax base over the long term, leaving next to nothing for restoring budget cuts, funding new initiatives, or cutting taxes. The result "growth gap" will sharply limit the Commonwealth's fiscal flexibility for the foreseeable future-despite the widespread perception that improving revenues signal the end of the state's fiscal woes.
April 01, 2005
FY Pre-2008
State Budget '05 - '06: The Clash Between Expectations and Reality
In its annual review of state finances, the Taxpayers Foundation warns that largely uncontrollable growth in spending for core programs is outpacing the revenue growth that can be expected to be generated by the state's economy and tax base over the long term, leaving next to nothing for restoring budget cuts, funding new initiatives, or cutting taxes. The result "growth gap" will sharply limit the Commonwealth's fiscal flexibility for the foreseeable future-despite the widespread perception that improving revenues signal the end of the state's fiscal woes.
