Mass. Governor, Lawmakers Make More Budget Cuts

As state tax revenues continue to slide, Gov. Deval Patrick is beginning steps to cut as much as $550 million more from the budget that goes through June.

The governor says he'll work with the legislature to close most of the new gap: $400 million. In addition, he'll tap $128 million in federal recovery funds, impose another $16 million in cuts and save $12 million through work furloughs and the elimination of another 750 state jobs.

Patrick says state government will be more efficient by the time the economy bottoms out.

"We're also going to end up at a place where the general public appreciates differently, maybe more clearly, what they and their tax dollars invest in and what services are affected when that revenue goes down as sharply as it has," Patrick says.

Much more dramatic cuts — of another $2 billion — are expected Wednesday when the House releases its version of next year's budget.