Deval shows his cards for 2011 budget game
Deval has submitted a budget 28.2 billion dollars for 2011, which includes increase taxes on candy, soft drinks and tobacco. He will trim tax incentives to the film industry and eliminate hundreds of jobs. Based on an expected revenue increase of 3.2%, Deval has increased the budget by 3%. His budget relies on one time federal money, revenues keeping pace with projections and legislative approval. The one time federal money is 1.9 billion. The Feds would have to approve another round of stimulus money for Deval's budget plan to work. He would also take another 175 million from the reserve account.
Taxing candy would generate 52 million in revenue, taxing smokeless tobacco would generate another 15 million, (a 2 dollar cigar jumps up to $4.46), 20 million would be raised by a .5 cent deposit on bottled water as well as coffee based and sports drinks.
The 800 million in spending cuts, include, 5 million from the Quinn Bill, 3 million from State Parks and 9 million in job training.
Deval and the dysfunctional State House partners and all his rivals will line up to take shots at him over this and I still contend, local aid will suffer at some point during these negotiations. DeLeo will fight Deval at every possible point as he said today on TV, he's not sure local aid will not be cut. We have until July to see how many of his proposal will fly and if the economy doesn't pick up as he thought, this budget may just be a waste of time and paper it was written on and the duck and cover crowd will hang Deval out to dry, along with the challengers.
posted by Jim Pillsbury @ 11:59 AM
5 Comments
5 Comments:
Patrick’s budget has been wrong the last 2 years, why should we assume anything different this year?
Quinn funding cuts. Does that mean they are eliminating the program, or that they are just cutting how much money goes to the program? Not sure what the tab is for that bill, but I think it is money better spent feeding hungry kids and keeping people from having to live on the street. If the cops think they need more education, let them pay for that themselves. Funny how it is not quite so important or necessary when it is something you have to pay for.
Counting on federal money? What did he do with the federal stimulus money we already got?
With the unemployment rate so high in this state the revenues I would think will continue to go down and how are the figuring that in to the budget for next year? I don’t know about anyone else but I am not sure how I am going to pay the income tax on my unemployment for 2009, which means the state is not going to get what the are expecting from me, at least not in a nice check on April 15th. I bet there are others in the same position as me so is the state figuring that in to the revenue estimates?
How many more things are they going to put a tax on? Candy, soda, cigarettes, cigars, alcohol, gas, sales tax, meal tax, hotel tax, they are running out of things they can tack a fee on in order to generate money. What are they going to do when that happens? Maybe then they will but the budget instead of increasing what they make us pay to cover their spending habits.
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