Recent actions by the United States House of Representatives may result in new cuts in all state accounts, including local aid.
In Massachusetts, the Governor, the House and the Senate have all been expecting a medicaid item that means $700 million to our state to be approved. It has been viewed by all as safe.
Most analysts still view it as safe — it has apparently been supported by both sides of Congress as parts of other bills. However, the issue may take several weeks to resolve either way and adds unexpected uncertainty to the final negotiations about the FY2011 budget.
Senate budget leader Panagiotakis was quoted in the State House News yesterday as saying:
“If you’re going to cut $700 million more, the cuts are going to come from everywhere,” the Lowell Democrat said. Asked if the reductions would include assistance to cities and towns, he replied, “Everywhere.”