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Hedlund's statement on state budget
By Administrator   
Sunday, August 02, 2009 03:16 PM
 Sen. Robert L. Hedlund believes yesterday’s vote by the Legislature to increase spending by $79 million places the state on a path that could lead to more local aid cuts down the road.

He said the vote was particularly reckless considering that the Senate President had earlier in the day revealed during a speech that the state is already looking at a $35 million budget deficit just four weeks into the new fiscal year.

“We are clearly spending money we don’t have, and I’m concerned that it’s our cities and towns that will pay for this short-sightedness later,” Sen. Hedlund said. “The Chairman of the Ways and Means Committee admitted during debate yesterday that even if the economy turned around immediately, we wouldn’t see increased revenues for many months. And nobody that I’ve talked to or heard from is predicting any sort of dramatic economic recovery in the next couple of months.

“I am seriously concerned that our continued inability to act responsibly is going to result in the need for additional budget cuts, including local aid, later on this year.  We are repeating the mistakes we made last year by passing a budget we know we can’t afford, and that is going to require mid-year cuts.”

Sen. Hedlund said the Legislature apparently didn’t learn from last year’s mistakes, and are continuing to pass budgets that contain spending it knows the state can’t afford. Last year’s budget was projected to be more than $1.5 billion out-of-whack, even prior to the historic economic collapse. Gov. Deval Patrick eventually was forced to make three separate rounds of mid-year budget cuts

This year’s state budget is already propped up by $1 billion in one-time stimulus funds, $1 billion in new taxes, and hundreds of millions from the state’s rainy day fund, and an overly optimistic revenue forecast, Sen. Hedlund pointed out. By restoring $79 million in spending, the Legislature has thrown the budget further out of tilt.

“If this spending is truly a priority or ours, it should have been paid for through cuts or savings elsewhere in the budget, not by sending the state further into debt,” Sen. Hedlund said.  

Democrats in the Senate used a parliamentary procedure during debate to block a vote on a sales tax holiday proposed by Sen. Hedlund and the Republican Senate Caucus.

The state’s sales tax will increase by 25% as of Saturday, Aug. 1. Sen. Hedlund’s proposal would have delayed the hike for 48 hours, and instead given consumers and retailers a sales tax-free shopping weekend.

“As the tax hangman approaches the gallows, consumers are still hoping for a last-minute reprieve,” Sen. Hedlund said. “Although Gov. Patrick won’t be commuting this sentence any time soon, we were hoping to provide taxpayers and businesses with a 48-hour stay of execution so they could make any important last-minute purchases they may need. It’s unfortunate that my colleagues could find $70 million in money we don’t have to inflate spending, but couldn’t find $12 million to pay for a tax reprieve for our state’s taxpayers.”
 

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