« Council Showdown over Center Court | Main | Shake up has UMass staff on the run »

May 1, 2007

Panagiotakos Puts on the Budget Brakes

Last week the House of Representatives filed a bloated state budget that included an additional $170 million in new spending. House leaders, including Speaker Sal DiMasi, said the increases were based on a string of positive revenue reports for February and March. So instead of trying to save some money, the reps went on a feeding frenzy, packing in more earmarks and lard into a state budget that is a record $26.7 billion. Of course, DiMasi didn't say anything about the two-month decline in state Lottery receipts which afffect local aid payments to cities and towns.
Now comes the lastest news, that state revenues for April were off $115 million from anticipated projections. Panagiotakos said the decline is enough to put the brakes on the new spending. "We've committed to increased spending for education and we'll likely keep our promises. But the other spending has go to be addressed. I don't see how we can meet those spending levels with declining revenue projections," said the Senate's Ways and Means Committee chairman.
The Lowell Democrat has been working 14-hour days in his new role as budget chief. A fiscal conservative, Panagiotakos does not want to see history repeat itself where the Legislature spends more than it takes in. He does not want to tap cash reserves - the state's rainy day fund - to make up for spending shortfalls. The House's proposed budget already uses $155 million from the rainy day fund to supplement the increases spending.
Massachusetts can't afford to make unwise spending decisions. It's up to the Senate to rein in the House's largesse and Panagiotakos is taking the lead to head off the spending stampede.

Posted by JimC at May 1, 2007 4:10 PM

Comments

Posted by: MOONLIGHT at May 3, 2007 11:02 AM