The Massachusetts Fiscal Alliance sharply criticized the $61.4 billion budget plan released today by the Massachusetts House of Representatives, calling it a reckless proposal, an inadequate response to the state’s growing financial uncertainty, and completely inconsistent with the rhetoric Beacon Hill leadership has been using regarding the future of federal funding.
“House leaders say they’re bracing for a worst-case scenario with federal funding — yet they’ve put forward a budget that increases spending by more than 6% and leans on one-time revenue sources to make it work. If this is how they prepare for uncertainty, taxpayers should be very concerned,” stated Paul Diego Craney, Executive Director for the Massachusetts Fiscal Alliance.
Despite House leadership’s claims of caution, the proposal increases spending dramatically and fails to acknowledge the years of unsustainable budget growth that have made Massachusetts increasingly vulnerable to economic shocks.
“The state budget has grown by 50% in just the last seven years. They built up this bloated budget structure during a time of temporary surpluses and federal bailouts. They’re paying lip service to the fact that the spigot of federal money they’ve relied on for the past few years may soon be shut, but the facts of the budget indicate they have no idea how to respond other than to keep overspending,” noted Craney.
The House plan doubles down on this recklessness by expanding eligibility for subsidized healthcare under ConnectorCare — even while warning of looming Medicaid cuts from Washington.
“If they’re truly worried about losing federal Medicaid funding, why are they adding more people to a taxpayer-supported system? It’s the kind of glaring inconsistency that makes you wonder whether this is about fiscal planning or political posturing,” stated Craney.
The proposed budget relies on nearly $1.6 billion in one-time revenues, including a redirection of capital gains taxes that would normally go to the state's rainy day fund.
“They’re redirecting one-time funds from the state’s savings account to fund spending increases. This is not a budget built for stability. It’s a budget built to score points,” noted Craney.
“With the federal government finally beginning to show some restraint and rein in spending for the first time in a very long time, it’s time Beacon Hill did the same. Based on this budget, they’re still living in a fantasy. Taxpayers deserve a consistent, responsible, and sustainable approach to budgeting — not the reckless spending spree they’re trying to pass off as restrained planning,” closed Craney.