Boston Government Jobs Cut
Posted on October 16, 2008
According to an article by Bloomberg, as many as 1,000 government jobs could be cut across the state. Governor Deval Patrick plans to lower spending by about $1 billion this year through job eliminations and other savings, including cutting annual contributions to the state pension by $100 million. The governor also has proposed taking $200 million from the state’s $1.8 billion rainy-day fund.
“There are no easy choices here,” Patrick said in the article. “Many worthy ideas and good people will be affected.”
The Center on Budget and Policy Priorities recently reported that at least 21 states and the District of Columbia face a combined $8.9 billion budget shortfall as income and sales taxes decline amid rising unemployment.
Massachusetts currently has more than 40,000 government employees, and government jobs in Boston were expected to increase. However, Boston residents should soon expect longer waits at the motor vehicle registration offices, fewer community police patrols and less state park maintenance as agencies cut staff and stop hiring to fill open positions.
Massachusetts’ $1.4 billion shortfall appeared in the $28.1 billion budget after the state lowered the revenue estimate for the fiscal year by $1.1 billion and increased spending projections on some programs by $300 million. The biggest decrease is expected in income tax collections, including capital gains, which were lowered $515 million to $12.2 billion.
Massachusetts collected $223 million less than expected in tax receipts in the first three months of this fiscal year. All categories of state tax revenue are now expected to fall this fiscal year as the economy continues to slow nationwide.