BOSTON (AP) — An independent analysis pegs the state budget deficit at $1 billion in the current fiscal year — more than three times the previous estimate of state officials.
The analysis released Wednesday by the Massachusetts Taxpayers Foundation forecasts a $288 million shortfall in revenue and $525 million in spending obligations not included in the budget which runs through June 30. The organization also said the state faces at least $180 million in temporary Medicaid costs resulting from a breakdown of the state’s health insurance exchange.
Gov. Deval Patrick’s administration estimates the deficit is $329 million and disputes the foundation’s analysis.
Gov.-elect Charlie Baker is promising to make his own assessment of the shortfall after taking office on Jan. 8. He has ruled out new taxes or cuts in local aid.
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