Reports

Budget Monitor: The Senate Ways and Means FY 2010 Budget

As the Senate prepares for its budget debate next week, a central question will be whether to approve a budget that relies primarily on spending cuts to close the state's $5 billion budget gap, or whether to adopt a budget plan that includes tax increases as well as spending cuts. The budget proposal from the Senate Committee on Ways and Means (SWM) includes close to $3 billion in spending cuts, reliance on about $1.5 billion in temporary federal stimulus aid, close to $400 million drawn from reserves, and more than $200 million in new fees. As the budget is developed, it is important to consider the long-term effects on the state economy and the residents of the Commonwealth of cuts in funding for education, for health care, for public safety or for other services. But, in addition to long-term concerns, there is a more immediate question. What would be less damaging to the economy in the short term: spending cuts or tax increases? This Budget Monitor provides answers that some leading economists have given to that question.

May 15, 2009 | PDF | Budget Monitor