In The News: Revenue

"Reforms are critical, but no reforms anyone has put forward or could put forward could close the existing gap of $2 billion, never mind $2 billion plus tax cuts of $1.5 billion,'' says Widmer.

"Right now we are in an unprecedented fiscal position. As a matter of fact, Michael Widmer (director) of the Massachusetts Taxpayers Foundation reported that state revenues for fiscal year 2010, will be $18 billion, a drop-off of $3.8 billion from 2008. Year to date ... this is the biggest two-year decline since World War II ..."

Michael Widmer, president of the business-backed Massachusetts Taxpayers Foundation, has been a vocal critic of choosing what he calls short-term fixes over long-term plans. "You take advantage of the opportunity in a fiscal crisis to make changes that will help over the long term," he said.

Widmer said the state could face further fiscal 2010 gaps of up to $500 million, even after a round of October budget remedies, largely cuts, totaling $484 million, along with a structural deficit next year that even with anticipated tax collection gains could hit $3 billion.

"I do feel that we have reached, or are close to reaching, the bottom,'' said Michael J. Widmer, president of the Massachusetts Taxpayers Foundation. "It's been a long slide, to say the least.''

"We're facing a very difficult fiscal 2011 that will probably require cuts to the magnitude of 2010," said Michael Widmer, president of the business-backed Massachusetts Taxpayers Foundation.

State tax collections will remain flat this fiscal year but grow at a 3.7 percent clip in fiscal 2011, according to Massachusetts Taxpayers Foundation estimates. "We see the beginning of an economic recovery but it will be slow and employment growth in fiscal 2011 will be minimal," foundation president Michael Widmer told the News Service Tuesday afternoon.

BOSTON - State tax collections will remain flat this fiscal year but grow at a 3.7 percent clip in the fiscal year that begins next July, according to Massachusetts Taxpayers Foundation estimates. "We see the beginning of an economic recovery but it will be slow and employment growth in fiscal 2011 will be minimal," foundation president Michael Widmer said.

Michael Widmer of the Massachusetts Taxpayers Foundation, who is also scheduled to testify, said the state is facing a shortfall for the current fiscal year in the hundreds of millions and a gaping $3 billion hole for the fiscal year that begins July 1.

The fiscal 2010 budget shortfall has the potential to rise to $1 billion if significant changes are not made, according to the Massachusetts Taxpayers Foundation.