for
the Amherst campus of the University of Massachusetts
January 11, 2002
|
State’s revenues continue slide by Daniel J. Fitzgibbons, Chronicle staff  lthough lawmakers slashed state spending by some $650 million last month, a reported drop in state revenues in December has some officials worried that more budget cuts may be needed this fiscal year.According to the figures released last week, state revenues dropped $96 million from December 2000. Corporate tax collections dropped $38 million or 22 percent, while sales and use taxes declined by $22 million or 8 percent. The latest numbers capped a disastrous first half of the fiscal year as collections dropped by $500 million from the same period a year ago. State Secretary for Administration and Finance Stephen R. Crosby said Acting Gov. Jane Swift will discuss the fiscal situation with economists before making any decisions about further spending cuts. Crosby, who is about to step down to become Swift's chief of staff, said last week that the governor could use her emergency powers to reduce state spending, a move he said would not be made until the economic outlook clarifies somewhat. Crosby also suggested that any additional cutbacks could be made in consultation with the Legislature. Legislative leaders expressed concern about the revenue figures, but stopped short of calling for additional spending reductions. "We need to really get on track and make some really difficult decisions, sooner than later," Sen. Mark Montigny (D-New Bedford), chairman of the Senate Ways and Means Committee, told the Boston Globe. The current fiscal climate is setting the stage for fiscal 2003 budget decisions. Later this month, Swift is scheduled to file her spending plan for next year and that budget is expected to call for at least $500 million in cuts. |
