Overview
Section 9C of Chapter 29 of the Massachusetts General Laws requires that when projected revenue is less than projected spending, the Governor must act to ensure that the budget is brought into balance.
The state's constitution requires a balanced budget. When the Legislature passes the budget at the beginning of the fiscal year, it must demonstrate that it anticipates there will be money to pay for the level of spending it authorized. The administration may announce 9C cuts at any time that it determines that there isn't enough money to pay for all authorized spending.
Section 9C also gives the Governor authority to request that the Legislature raise additional revenue or transfer additional funds from the "Rainy Day" Fund.
When is the decision made
Every October 15th, the Administration is required to formally update its revenue estimates. Within 5 days of learning revenues will be less than expenditures, the Secretary of Administration and Finance must notify the Governor and the house and the senate committees on ways and means of any shortfall under section 5B. If the October 15th revenue projections are below the revenue level that was estimated when the budget was adopted at the beginning of the fiscal year, then the 9C process is generally implemented.
What can the governor cut?
The Governor can only use 9C powers to cut funding in parts of the government that are under her control—in other words, her 9C authority extends only to executive branch agencies. The Governor cannot use 9C authority to cut local aid, the courts, the Legislature, or other constitutional offices. The Governor can file legislation recommending cuts to those other areas of the budget. The legislature can then pass a law with those cuts, or with other cuts, new revenue, or the use of reserves.