His Excellency Deval L. Patrick, Governor
State House, Room 360
Boston, Massachusetts 02133
Dear Governor Patrick:
Under Section 9C of Chapter 29 of the Massachusetts General Laws, I have determined that available revenues for Fiscal Year 2009 are insufficient to meet authorized expenditures. The amount of this probable shortfall may be in excess of $1.1 billion.
Approximately $952 million of this projected shortfall is a result of a continued decline in state tax revenues that is related to the national and international financial condition, which continues to affect the Commonwealth's economy and tax revenues. In developing this recommendation I have continued to consult with many of the economists and other public finance policy experts that helped to inform my initial recommendation to you this past October prior to the initial revision to the fiscal year 2009 consensus revenue figure. The balance of the remaining shortfall is related to non-tax revenue and other anticipated spending exposures for counter cyclical programs that are negatively impacted by the current economy, as well as snow and ice removal costs, all of which are currently being monitored by my office.
Upon your direction, I will make reductions under Section 9C of Chapter 29 and take such other steps as necessary to eliminate this projected deficiency.
Leslie A. Kirwan
The Honorable Robert A. DeLeo, Chair, House Committee on Ways and Means
The Honorable Steven C. Panagiotakos, Chair, Senate Committee on Ways and Means