By Andy Metzger, State House News Service / The Telegram
The Massachusetts Taxpayers Foundation on Thursday said fiscal 2017 state spending will rise 2.4 percent if Baker's requested spending for "known deficiencies" in the Legislature's budget is included in the calculation. The foundation said spending growth is "low compared to prior years, but necessary" since expectations of state revenues have been significantly revised.
Further, the Massachusetts Taxpayers Foundation notes that revenue growth since the Great Recession hasn’t matched the bounce-back after the much milder recession of 2001. A back-of-envelope comparison: From fiscal year 2004 to 2008, state revenue grew by an average of 6.9 percent a year; by contrast, from FY 2012 to 2016, the average annual rate of increase was 4.3 percent.