MA could lose up to $1 bil. if fiscal cliff talks fail

SPRINGFIELD, Mass. (WWLP) - If the country ends up going over the fiscal cliff, Massachusetts could lose $300 million in tax revenue this fiscal year.

Secretary of Administration and Finance Jay Gonzalez addressed the Affiliated Chambers of Commerce of Greater Springfield about the subject Wednesday afternoon.

Economists predict that there will be compromises made in Washington, but if automatic cuts are made, the state would lose $300 million in tax revenue this year, up to $1 billion next year, as well as millions in federal funding.

“We think we could lose up to $200 million in federal funding for really important programs like special education and heating assistance for low income households, and child care subsidies for critical programs that people need,” Gonzalez said.

The state is already making $225 million in mid-year budget cuts and withdrawing $200 million from the state's Rainy Day Fund to close a $540 million budget gap.