Patrick admin: No new taxes 2013, cuts

BOSTON, Mass. (WWLP) - The Patrick administration is crunching numbers for the 2013 fiscal year budget and they’re not planning to raise taxes.

“My assumption in developing budget options for the governor is that we wouldn’t be doing broad-based tax increases to help balance the budget,” said state Administration and Finance Secretary Jay Gonzalez. 

So how is the state doing in terms of bringing in revenues?  On that point, Secretary Gonzalez has good news and bad news.  The good news is that tax revenues in Massachusetts are increasing. The bad news is that they’re not increasing enough, which means the administration is looking at spending cuts.

Secretary Gonzalez said tax revenues are modestly growing along with the economy, but the cost of state spending on programs like health care and homelessness are outpacing the revenues coming into the state.

“We do expect to have to propose some reductions and some programs and services,” said Gonzalez.   “We’re going to do that in a way that we have the last few years, and that the governor has insisted on, which is continuing to budget and make budget allocations based on values.”

House Republicans said the Legislature should focus on jobs when it returns from recess in January.  House Minority Leader Rep. Bradley Jones (R-North Reading) said he’s considering legislation that will give businesses a break from paying rising unemployment insurance premiums.

“While Massachusetts may be doing better than other places, it’s still relatively lousy, said Jones.  “So we need to be looking at what are things that we can do that might have some beneficial impact on the employment situation right now.   Is that regulatory relief? Is it tax relief?”

Governor Deval Patrick plans to meet with legislative leaders next month to generate an estimate on revenues for fiscal year 2013.  The estimate will serve as a base to determine how much spending will have to be cut. The governor must present a budget proposal by January 25 ^th.