"There were some accounts that we knew weren't fully funded when the budget was passed, which is pretty routine, but then some programs like MassHealth have exceeded the cost expectations," McAnneny said. "So it's kind of a trifecta of things that have come together." The foundation, she said, sides with Baker that cuts now, not later, are the way to proceed.
Eileen McAnneny, president of the business-backed Massachusetts Taxpayers Foundation, said this fiscal year has been particularly challenging. She cited a budget that did not fully account for known costs, such as funding for lawyers for indigent defendants; higher-than-expected costs for the Medicaid program; and lower-than-expected revenue growth.
The Massachusetts Taxpayers Foundation on Monday presented the Joint Ways and Means Committee with an estimate that state tax collections will grow by only 2.65 percent in fiscal 2018. Tax revenues will increase by about $687 million, to $26.64 billion, according to the foundation’s estimate.