Gov. Deval Patrick is proposing a series of cuts, taxes and deep draws from the state’s dwindling rainy day fund to help Massachusetts deal with plummeting revenues.
To close a new $1 billion gap in the current fiscal year, Patrick is making $191 million in emergency cuts.
He’s also proposing the state draw another $327 million from the rainy day fund in addition to the $200 million draw in October, bringing the savings fund down to $1.3 billion.
And Patrick is anticipating $533 million in Medicaid matching funds from a pending federal economic stimulus bill to close the rest of the hole.
For the 2010 fiscal year, Patrick wants higher meals and hotel taxes, higher Registry fees and the elimination of the sales tax exemption for alcohol. He also wants to take even more money from the rainy-day fund.
This program aired on January 28, 2009. The audio for this program is not available.