The state Department of Revenue is projecting a budget shortfall for FY 21 tax revenues.
State Rep. Josh Cutler (D-6th Plymouth), who is on the House Ways and Means Committee, says a consensus revenue hearing was held this week.
“The numbers aren’t quite as bad as we first were hearing a few months ago,” said Cutler. “We’re looking at a shortfall in the range of $1.8 to as high as $5 billion – which is a lot of money, but it’s significantly less than the $6 to $8 billion numbers that we were hearing before. That’s some room for optimism. It’s obviously going to be a bit of a bumpy ride. Hopefully the federal government will come through with some additional aid and stimulus, the situation will stabilize here with COVID. I think we’re in better shape than we were a few months ago.”
A budget for this year has not been finalized, and currently the state is operating on a temporary $16.5 billion dollar budget.
Cutler expects one more temporary budget while they wait to see what would happen with federal aid.
State Senator Susan Moran, who represents the Plymouth/Barnstable district, says the current challenge is getting through flu season and making sure that at-risk family members stay healthy.
“Right now, the information is fluxing, just like the federal government. One minute they’re moving ahead on more aid, the next they’re not. We’re looking at trying to take the best information we have at the time and try to move forward with as best services as we can,” said Moran. “For a while, we have been able to fund a level budget. We do have some reserves and we’re just making sure that we’re fiscally sensible.”
It is expected Governor Charlie Baker’s administration will submit revised revenue estimates by October 15.
