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Budget Chief: Mass. To Cut Spending By Up To $1.5B

The Massachusetts State House (snowriderguy/flickr)
The Massachusetts State House (snowriderguy/flickr)

Massachusetts will have to cut spending by up to $1.5 billion in the coming fiscal year to compensate for lagging tax collections and exploding costs in safety-net programs, the state's budget chief said Tuesday.

Administration and Finance Secretary Jay Gonzalez noted that the state has already collected $500 million more in taxes during its current fiscal year.

But in the budget year beginning July 1, it faces a triple whammy: tax collections below where they were before the recession, a loss of $1.5 billion in federal stimulus money, and increasing costs for the government insurance and other safety-net programs.

The state faces tax collections below where they were before the recession, a loss of $1.5 billion in federal stimulus money, and increasing costs for gov't. insurance and other safety-net programs.

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This program aired on December 14, 2010. The audio for this program is not available.

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