Mass debt
State pleads for aid
Tom Scanlan
Issue date: 10/30/08 Section: Campus News
Massachusetts State Treasurer Timothy P. Cahill conceded to the Boston Globe this week that the state needed help paying off the $750 million dollar debt that has accumulated in recent years.
He plead that it was only fair since, all the big-wigs on Wall Street and in the Banking System are finding relief. Cahill told the Boston Globe that the state has enough available funds to cover its expenses for the coming weeks, but offered little assurance about what will come next.
Massachusetts' need is not as urgent as the state of California's, Cahill told the media last week. Earlier in October California officials warned that the state would run out of money by the end of the month [October] if the short-term credit markets do not free up and if it could not secure loans from the federal government or other sources.
"We have been preparing all week for contingencies around [what will happen] if we don't get access to the credit markets," explained Cahill.
Cahill told the Boston Globe that ff the credit markets remain tight, the Fed should offer the state the same low-rate loans or assistance the central bank has been giving the nation's banking system during the credit crisis.
"That's all we would ask them to do: Treat us like the investment banks," said Cahill earlier this month in his Boston Globe interview.
While most states put their revenue growth figures at a minimum of one percent, Governor Patrick has set the Massachusetts budget growth up by 5.2 percent, roughly 1.5 billion dollars.
The budget crisis is also hindering Gov. Patrick's education plans. Before the market meltdown, he had proposed a 10 year plan that would create free schooling from pre-K all the way through community college.
In his article in the Worcester Telegram, Mass. State Senator Richard R. Tisei said, "The commonwealth's financial woes can be traced directly to the $28.22 billion budget passed in July, a budget every single House and Senate Republican voted against because it was clearly unsustainable."
Unfortunately, now everyone in the Commonwealth has to suffer the consequences of the failing national economy, explained the Sen. Tisei.
This coming election could potentially lead to complete overhaul of the state's funding systems.
The notorious "Question One," will give voters the opportunity to eliminate state income tax. Income tax revenues total more than $11 billion dollars and account for nearly 40 percent of the state's operating budget.
Many Massachusetts residents are enticed by the proposition of eliminating state income tax; in the wake of a shaken economy relief from anywhere is appealing.
Officials warn however, that slashing the state's resources by such a drastic measure would cause further deterioration of the already strained budget and eliminate many of the public services that residents of the Bay State have come to rely upon.
He plead that it was only fair since, all the big-wigs on Wall Street and in the Banking System are finding relief. Cahill told the Boston Globe that the state has enough available funds to cover its expenses for the coming weeks, but offered little assurance about what will come next.
Massachusetts' need is not as urgent as the state of California's, Cahill told the media last week. Earlier in October California officials warned that the state would run out of money by the end of the month [October] if the short-term credit markets do not free up and if it could not secure loans from the federal government or other sources.
"We have been preparing all week for contingencies around [what will happen] if we don't get access to the credit markets," explained Cahill.
Cahill told the Boston Globe that ff the credit markets remain tight, the Fed should offer the state the same low-rate loans or assistance the central bank has been giving the nation's banking system during the credit crisis.
"That's all we would ask them to do: Treat us like the investment banks," said Cahill earlier this month in his Boston Globe interview.
While most states put their revenue growth figures at a minimum of one percent, Governor Patrick has set the Massachusetts budget growth up by 5.2 percent, roughly 1.5 billion dollars.
The budget crisis is also hindering Gov. Patrick's education plans. Before the market meltdown, he had proposed a 10 year plan that would create free schooling from pre-K all the way through community college.
In his article in the Worcester Telegram, Mass. State Senator Richard R. Tisei said, "The commonwealth's financial woes can be traced directly to the $28.22 billion budget passed in July, a budget every single House and Senate Republican voted against because it was clearly unsustainable."
Unfortunately, now everyone in the Commonwealth has to suffer the consequences of the failing national economy, explained the Sen. Tisei.
This coming election could potentially lead to complete overhaul of the state's funding systems.
The notorious "Question One," will give voters the opportunity to eliminate state income tax. Income tax revenues total more than $11 billion dollars and account for nearly 40 percent of the state's operating budget.
Many Massachusetts residents are enticed by the proposition of eliminating state income tax; in the wake of a shaken economy relief from anywhere is appealing.
Officials warn however, that slashing the state's resources by such a drastic measure would cause further deterioration of the already strained budget and eliminate many of the public services that residents of the Bay State have come to rely upon.
Viewing Comments 1 - 1 of 1
Tom
posted 10/31/08 @ 3:24 PM EST
The fact that residents have come to rely on government programs is where the problem starts.
We need self reliance and individual liberty. Government creates dependency and then that dependency is used as a reason to increase the size of government even more. (Continued…)
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