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Despite Debt Ceiling Deal, Mass. Still Preparing For The Worst

This article is more than 11 years old.

Massachusetts leaders say that although they're breathing a sigh of relief Monday because of a deal national Republicans and Democrats struck to raise the debt ceiling, they are also preparing for proposed spending cuts.

State Secretary of Administration and Finance Jay Gonzalez says state officials are still preparing for several possible scenarios.

"We are going to have to continue to plan just in case something falls through," Gonzalez said. "We've been planning for the last couple of weeks in the event that something goes wrong."

Gonzalez says the state receives more than $200 million a week in federal reimbursements, mostly for programs for low-income residents.

There is still plenty of uncertainty over the proposed deal and state officials aren't out of the water yet, according to state Treasurer Steve Grossman. As part of the deal, Congress will make a second round of cuts later this year.

"If they come back in the fall and they can't come up with a package that Congress can vote up or down, automatic triggers will be implemented," Grossman said. "There will be other cuts made in entitlements and defense spending."

This program aired on August 1, 2011. The audio for this program is not available.


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