Mass. emergency budget cuts: Where’s the money coming from?

BOSTON — Massachusetts Governor Maura Healey and her budget team hit the reset button Monday, announcing emergency budget cuts following six straight months of lower-than-projected revenues.

25 Investigative Reporter Kerry Kavanaugh first broke this story Sunday night.

The state is facing a nearly $1 billion revenue shortfall. As of December 2023, the revenues were $769 million less than the year-to-date benchmark. The Governor is now targeting cuts from the budget that will total around $375 million using 9C cuts, a tool that gives Gov. Healey unilateral control to address a budgetary shortfall.

So where’s the money coming from?

The biggest line item is Mass. Health, which is down almost $300 million. Also, other community-based programs will be trimmed. Healey’s administration says local aid to cities and towns will not be affected.

How did we get here?

Tax revenues have been below forecasted levels for six months. The administration says they’ve been growing much slower than expected.

The state will also tap into almost $625 million of non-tax revenue, that is interest the state is earning on investments.

Administration and Finance Secretary Matthew Gorzkowicz made clear the state’s budget problems are not the result of housing thousands of migrants who have come to the Bay State in recent months.

“We have identified resources available to deal with the emergency shelter system and we continue to use those resources to make sure that those costs are covered but to be clear what we’re dealing with in the budget is separate,” said Gorzkowicz.

These cuts are done by the Governor and don’t require any legislative action.

Agencies are already being notified about they’re being affected.

This is a developing story. Check back for updates as more information becomes available.

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