House Ways and Means Chairman Charles Murphy unveiled a lean $27.4 billion budget for next year that includes steep spending cuts across state government, as well as look-to-the-future initiatives to bolster the state's rainy day account and assess the value of tax credits handed out to businesses of all kinds.
The budget proposal cuts local aid by $424 million, trims public safety spending by $107 million, eliminates $20 million for MWRA rate relief, and requires all state employees to shoulder 30 percent of the cost of their health insurance, saving $135 million. State employees currently pay either 15 percent or 20 percent of their health insurance cost, depending on their starting date in state employment.
"There are cuts in virtually all areas of state government," Murphy told reporters. "We tried to do as least harm as we could."
The proposal includes two initiatives that draw on research conducted by MassINC and
CommonWealth magazine. One would require the state to take half of any yearly growth in capital gains tax receipts and funnel it to the state's rainy day account. A MassINC report last year highlighted the volatility of capital gains tax revenues and suggested setting aside some of the money in good times to offset downturns in bad times.
Meet the Author
Editor, CommonWealth
About Bruce Mohl
Bruce Mohl is the editor of CommonWealth magazine. Bruce came to CommonWealth from the Boston Globe, where he spent nearly 30 years in a wide variety of positions covering business and politics. He covered the Massachusetts State House and served as the Globe’s State House bureau chief in the late 1980s. He also reported for the Globe’s Spotlight Team, winning a Loeb award in 1992 for coverage of conflicts of interest in the state’s pension system. He served as the Globe’s political editor in 1994 and went on to cover consumer issues for the newspaper. At CommonWealth, Bruce helped launch the magazine’s website and has written about a wide range of issues with a special focus on politics, tax policy, energy, and gambling. Bruce is a graduate of Ohio Wesleyan University and the Fletcher School of Law and Diplomacy at Tufts University. He lives in Dorchester.
About Bruce Mohl
Bruce Mohl is the editor of CommonWealth magazine. Bruce came to CommonWealth from the Boston Globe, where he spent nearly 30 years in a wide variety of positions covering business and politics. He covered the Massachusetts State House and served as the Globe’s State House bureau chief in the late 1980s. He also reported for the Globe’s Spotlight Team, winning a Loeb award in 1992 for coverage of conflicts of interest in the state’s pension system. He served as the Globe’s political editor in 1994 and went on to cover consumer issues for the newspaper. At CommonWealth, Bruce helped launch the magazine’s website and has written about a wide range of issues with a special focus on politics, tax policy, energy, and gambling. Bruce is a graduate of Ohio Wesleyan University and the Fletcher School of Law and Diplomacy at Tufts University. He lives in Dorchester.
The other initiative would require far more disclosure about who is receiving tax credits from the state and what kind of impact the tax credits are having in creating good-paying jobs. Gov. Deval Patrick included an identical measure in his budget plan, and his aides said it was based on reports and commentary in
CommonWealth magazine over the last year.
To help local communities facing a cut in state aid that averages 6.6 percent, Murphy said House Speaker Robert DeLeo plans to work on a "municipal relief package" next month. Murphy said his budget plan would also create a commission to study regionalization of services across all levels of local government.
