State revenue projections for 2008

A recent post from the State House News gives us an indication of where
things are headed for state aid in FY2008. It is very consistent with
downbeat information that I have been gathering around the statehouse.

The 3% growth estimate for state revenue in FY2008 is down from 8% actual in
FY2006. It was the expansion in 2006 that encouraged the legislature to
expand Chapter 70 considerably in FY2007 (which ends this June 30). FY 2007
revenue growth is now looking like it will come in about 4% — enough to
cover the Chapter 70 and other growth without drawing on reserves.

The signals from leadership are that Chapter 70 growth will be at best
modest in 2008. Pat Haddad, Chair of the Education Committee, told a
meeting of reps this week that she is sending the signal to assume level
Chapter 70 aid. The drop in lottery revenues is another concern. On the
other hand, the Governor told municipal officials to expect a “modest”
increase in local aid. We’ll know more when his budget arrives at the end
of February.

As to the allocation of Chapter 70 across communities, a key focus of my
work as state representative, everything is still very much in flux and not
much can be said about where formula changes will end up. But it appears
unlikely that the “downpayment aid” which substantially benefited our
communities last year will continue to progress on the 5-year ramp-up begun
last year.
/w.

 

Published by Will Brownsberger

Will Brownsberger is State Senator from the Second Suffolk and Middlesex District.

One reply on “State revenue projections for 2008”

  1. Note: It turned out a little better than this in FY2008. The funding was made available to support Chapter 70. I played a role in unearthing formula issues that worked against my communities.

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