Difference between revisions of "Massachusetts state budget"

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(Fiscal year 2012 state budget)
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{{budget infobox|
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{{budget infobox2|
state = Massachusetts |
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| state = Massachusetts  
image = Flag of Massachusetts.png|
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| image = Flag of Massachusetts.png|
budgetcal = Annual |
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| budgetcal =
fiscalyear = 2013 |
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| fiscalyear =
datelaw= July 8, 2012 |
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| credit=
lasteraltered = |
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| percentchangedr =   
revenue =  |
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| expenses =  
percentchangedr =  |
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| all funds expenses =
expenses = $30.9 billion|
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| spending change =
all funds expenses = $32.2 billion|
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| change =
percentchanged = |
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| governor =
}}
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| % federal =
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| state debt =
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| per cap debt =
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}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Massachusetts]], including:
 +
* A summary of the budget drafting process
 +
* Trends in expenditures and revenues
 +
* Current and past fiscal year budget developments
 +
* Financial transparency measures
  
{{tnr}}Governor [[Deval Patrick|Deval Patrick]] signed the '''[[Massachusetts]] state budget''' into law on July 8, 2012, ten days after lawmakers sent it to him on June 28, 2012.<ref name=bg>[http://www.boston.com/news/politics/articles/2012/07/09/gov_deval_patrick_signs_325_billion_budget_moves_to_close_taunton_state_hospital/ The Boston Globe "Patrick signs $32.5b state budget bill" July 8, 2012]</ref> Accounting for both general fund and non-general fund monies, the FY2013 "all funds" budget totaled $32.2 billion.<ref>[https://malegislature.gov/budget/currentbudget FY2013 Final Budget]</ref> FY2013 began on July 1, 2012, and with no budget signed into law, legislators passed a temporary spending measure to keep the state government operational.<ref name=study>[http://articles.boston.com/2012-07-03/news/32525852_1_state-budget-spending-plan-million-in-local-aid Boston.com "Mass. Gov. Patrick, aides study state budget plan" July 3, 2012]</ref>
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Between fiscal year 2009 and fiscal year 2013, Massachusetts's total expenditures XXincreased/decreasedXX by approximately $XXX billion, from $XXX billion in 2009 to $XXX billion in 2013. This represents an XXX percent increase, Xoutpacing/below/equivalent toX the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).<ref>[http://www.bls.gov/cpi/cpid1402.pdf ''Bureau of Labor Statistics'', "CPI Detailed Report Data for February 2014," accessed April 9, 2014]</ref><ref>[http://inflationdata.com/Inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx ''InflationData.com'', "Cumulative Inflation Calculator," February 28, 2014]</ref>
  
The state operates on an annual budget cycle and is currently in FY2014.<ref>[http://www.ncsl.org/issues-research/budget/state-experiences-with-annual-and-biennial-budgeti.aspx National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011]</ref> The state's fiscal year begins July 1.
+
==Budget process==
 +
{{Massachusetts budget process}}
  
As of 2012, Massachusetts had a total state debt of approximately $102,258,050,000, when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans and the state budget gap.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillion State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref> The 2012 total state debt was higher than the prior year's total of $97,940,986,000.<Ref>[http://www.statebudgetsolutions.org/publications/detail/report-reveals-aggregate-state-debt-exceeds-4-trillion-2 State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011]</ref>
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==Expenditures==
 +
===Definitions===
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{{Budget types background}}
 +
===2013 expenditures===
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[[File:Massachusetts total expenditures 2013.png|right|thumb|500px|Breakdown of expenditures in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
  
As of 2012, Massachusetts's total state debt per capita was $15,522.96.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-debt-more-than-37000-per-private-worker-13000-per-capita State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012]</ref>
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="7" align="center" style="background-color:#008000; color: white;" | Total state expenditures, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | General fund
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Other funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Bonds
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita expenditures
 +
|-
 +
|'''Massachusetts''' || '''$25,509''' || '''$15,548''' || '''$17,135''' || '''$2,106''' || '''$60,298''' || '''$9,009.35'''
 +
|-
 +
|[[Connecticut state budget|Connecticut]] || $19,030 || $2,555 || $3,618 || $2,935 || $28,138 || $7,824.63
 +
|-
 +
|[[Maine state budget|Maine]] || $3,042 || $2,564 || $2,176 || $16 || $7,798 || $5,870.65
 +
|-
 +
|[[New Hampshire state budget|New Hampshire]] || $1,262 || $1,601 || $2,080 || $81 || $5,024 || $3,796.11
 +
|-
 +
|[[Rhode Island state budget|Rhode Island]] || $3,268 || $2,659 || $2,122 || $84 || $8,133 || $7,734.58
 +
|-
 +
|align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==Proposed fiscal year 2014 state budget==
+
===Expenditures by function===
 +
[[File:Massachusetts expenditures by type 2012.png|right|thumb|500px|Breakdown of expenditures by function in FY 2012.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
State expenditures in Massachusetts can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
  
On January 25, 2013, Governor Patrick unveiled his $34.8 billion proposed FY2014 state budget.<ref name=globe>[http://bostonglobe.com/metro/2013/01/23/governor-deval-patrick-proposes-billion-state-budget-includes-new-tax-hikes-candy-soda-and-cigarettes/E6DIsLBY2wD6Yhzj9bJUEO/story.html The Boston Globe "Patrick proposes $34.8b budget" Jan. 25, 2013]</ref>
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures by function, FY 2012 (as percents)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|'''Massachusetts''' || '''10.7%''' || '''9.3%''' || '''2.5%''' || '''20.7%''' || '''2.1%''' || '''6.2%''' || '''48.6%'''
 +
|-
 +
|[[Connecticut state budget|Connecticut]] || 13.9% || 10.3% || 1.4% || 21.4% || 2.5% || 10.0% || 40.6%
 +
|-
 +
|[[Maine state budget|Maine]] || 13.1% || 3.4% || 2.6% || 28.8% || 1.7% || 8.6% || 41.8%
 +
|-
 +
|[[New Hampshire state budget|New Hampshire]] || 23.5% || 2.7% || 1.9% || 23.9% || 2.1% || 10.1% || 35.9%
 +
|-
 +
|[[Rhode Island state budget|Rhode Island]] || 14.2% || 13.2% || 1.4% || 25.0% || 2.4% || 6.5% || 37.4%
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
The proposal represented a 6.9% increase over FY13.<ref>[http://www.mass.gov/governor/pressoffice/pressreleases/2013/0123-fy14-budget.html Press Release by Gov. Patrick "Patrick-Murray Administration files Fiscal Year 2014 Budget" Jan. 23, 2013]</ref> The proposal made no significant cuts and instead increased spending across state government.<ref name=globe/> To fund the spending, the governor proposed to raise taxes by $1.9 billion and to withdraw $400 million from the state’s reserve fund. Funding increases included:
+
===Expenditure trends===
* $553 million for education, from early childhood programs through college, with elementary and secondary schools seeing at last $25 more per student;<ref name=globe/>
+
From 2008 to 2012, elementary and secondary education spending fell by 3.20 percent. Similarly, higher education and corrections expenditures fell by 0.60 and 0.70 percent respectively. During the same period, Medicaid spending rose by two percent. The table below details changes in expenditures from 2008 to 2012.<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref><ref name=expenditures2012>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report%20%28Fiscal%202010-2012%29.pdf ''National Association of State Budget Officers'', "State Expenditures Report, 2010-2012," accessed February 24, 2014]</ref><ref name=expenditures2009>[http://www.nasbo.org/sites/default/files/2009-State-Expenditure-Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009," accessed February 24, 2014]</ref><ref name=expenditures2008>[http://www.nasbo.org/sites/default/files/FY08%20State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2008," accessed February 24, 2014]</ref> Figures are rendered as percents, indicating the share of the total budget spent per category.
* $269 million more for transportation;<ref name=globe/> and
+
* $31 million in local aid for basic services.<ref name=globe/>
+
  
The governor wanted to increase the income tax and cut the sales tax.<ref>[http://www.courant.com/news/breaking/hc-region-budgets-governors-20130128,0,2772233.story The Hartford Courant "States Taking Different Approaches On Taxes, With Malloy Offering Few Clues" Jan. 28, 2013]</ref> The governor's tax changes would:
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{| class="wikitable" style="text-align:center; width:65%;"
* Increase the income tax from 5.25% to 6.25%;<ref name=globe/>
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures from 2008 to 2012 (as percents)
* Cut the sales tax from 6.25% to 4.5%;<ref name=globe/>
+
|-
* Double the personal income tax exemption;<ref name=globe/>
+
! valign="bottom" style="background-color:#444; color: white;" | Year
* Eliminate 44 income tax deductions — for T passes, college scholarships and dependents under 12, among other items;<ref name=globe/>
+
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
* Tie the gas tax to inflation, ensuring gradual ­increases;<ref name=globe/> and
+
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
* Get rid of three corporate tax breaks.<ref name=globe/>
+
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|2012 || 10.7% || 9.3% || 2.5% || 20.7% || 2.1% || 6.2% || 48.6%
 +
|-
 +
|2011 || 11.6% || 9.9% || 2.4% || 19.2% || 2.3% || 6.2% || 48.3%
 +
|-
 +
|2010 || 12.9% || 7.9% || 2.5% || 18.8% || 2.5% || 6.9% || 48.6%
 +
|-
 +
|2009 || 13.0% || 9.3% || 3.1% || 17.7% || 2.6% || 5.4% || 49.0%
 +
|-
 +
|2008 || 13.9% || 9.7% || 3.1% || 18.7% || 2.8% || 5.6% || 46.2%
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''-3.20%''' || align="center" style="background-color:black; color:white"|'''-0.40%'''|| align="center" style="background-color:black; color:white"| '''-0.60%''' || align="center" style="background-color:black; color:white"|'''2.00%''' ||align="center" style="background-color:black; color:white"| '''-0.70%''' || align="center" style="background-color:black; color:white"|'''0.60% ''' || align="center" style="background-color:black; color:white"|'''2.40% '''
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==Budget transparency==
+
==Revenues==
::''See also: [[Evaluation of Massachusetts state website]] ''
+
===2013 revenues===
 +
[[File:Massachusetts GF revenues 2013.png|right|400px|thumb|Breakdown of general fund revenue sources in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
The Massachusetts Budget and Policy Center, which "provides independent research and analysis of state budget and tax policies," tracks actual spending in real and nominal terms using a "Budget Browser."<ref>[http://browser.massbudget.org/ ''Massachusetts Budget Browser'']</ref><ref>[http://www.massbudget.org/ ''Massachusetts Budget and Policy Center'']</ref>
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|'''Massachusetts''' || '''$5,164''' || '''$12,831''' || '''$1,822''' || '''$0''' || '''$7,352''' || '''$27,169''' || '''$4,059.42'''
 +
|-
 +
|[[Connecticut state budget|Connecticut]] || $3,857 || $8,719 || $742 || $612 || $5,437 || $19,366 || $5,385.31
 +
|-
 +
|[[Maine state budget|Maine]] || $1,034 || $1,495 || $171 || $0 || $351 || $3,051 || $2,296.92
 +
|-
 +
|[[New Hampshire state budget|New Hampshire]] || $0 || $0 || $552 || $3 || $1,728 || $2,283 || $1,725.03
 +
|-
 +
|[[Rhode Island state budget|Rhode Island]] || $873 || $1,075 || $137 || $1 || $1,238 || $3,324 || $3,161.17
 +
|-
 +
| align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.<ref name=2013census>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk ''United States Census Bureau'', "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
The state maintains the Massachusetts Transparency website.
+
===Revenue trends===
 +
The table below details the change in revenue sources in the general fund from 2009 to 2013.<ref name=expenditures2013/><ref name=expenditures2011/> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.  
  
{|style="width:100%" class=wikitable
+
{| class="wikitable" style="text-align:center; width:65%;"
|+ '''Criteria for evaluating spending databases'''
+
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, Massachusetts ($ in millions)<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref>
!State database!![[Criteria for evaluating databases|Searchability]]!![[Criteria for evaluating databases|Grants]]!![[Criteria for evaluating databases|Contracts]]!![[Criteria for evaluating databases|Line item expenditures]]!![[Criteria for evaluating databases|Dept./agency budgets]]!![[Criteria for evaluating databases|Public employee salary]]
+
 
|-
 
|-
|align=center|[http://www.mass.gov/transparency/ Massachusetts Transparency]||{{Yes (Sunshine Review)}}||{{no (Sunshine Review)}}||{{yes}}||{{no (Sunshine Review)}}||{{Yes (Sunshine Review)}}||{{Yes (Sunshine Review)}}
+
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|2013 || $5,164 || $12,831 || $1,822 || $0 || $7,352 || $27,169 || $4,059.42
 +
|-
 +
|2012 || $5,059 || $11,911 || $1,771 || $0 || $7,304 || $26,046 || $3,919.46
 +
|-
 +
|2011 || $4,905 || $11,576 || $1,951 || $0 || $6,765 || $25,197 || $3,814.10
 +
|-
 +
|2010 || $4,612 || $10,110 || $1,600 || $0 || $2,222 || $18,544 || $2,825.42
 +
|-
 +
|2009 || $3,869 || $10,584 || $1,549 || $0 || $2,259 || $18,259 || $2,769.21
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''33.47%''' || align="center" style="background-color:black; color:white"|'''21.23%'''|| align="center" style="background-color:black; color:white"| '''17.62%''' || align="center" style="background-color:black; color:white"|'''0.00%''' ||align="center" style="background-color:black; color:white"| '''225.45%''' || align="center" style="background-color:black; color:white"|'''48.80%''' || align="center" style="background-color:black; color:white"|'''46.59%'''
 +
|-
 +
|align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 
|}
 
|}
* Vendor contracts are listed in the checkbook.<ref>[http://opencheckbook.itd.state.ma.us/analytics/saw.dll?Dashboard&PortalPath=%2Fshared%2FTransparency%2F_portal%2FHome&Page=page%201 Checkbook]</ref>
 
* Employee salaries are listed.<ref>[http://opencheckbook.itd.state.ma.us/analytics/saw.dll?Dashboard&PortalPath=%2Fshared%2FTransparency%2F_portal%2FPayroll%20%26%20Pensions&page=Payroll Payroll]</ref>
 
* All line item expenditures are not listed in the checkbook.
 
  
===Multi-measure budget transparency profile===
+
==State budgets by year==
 +
{{See budget bill|Link=[https://malegislature.gov/Budget/CurrentBudget Chapter 38, Acts of 2013]}}
 +
===Fiscal year 2014===
 +
{{Budget bill box
 +
|State = Massachusetts
 +
|Year = 2014
 +
|Link =https://malegislature.gov/Budget/CurrentBudget Chapter 38, Acts of 2013
 +
|Introduced = January 24, 2013
 +
|Days =
 +
|State House = April 24, 2013
 +
|Vote lower house = 127-29
 +
|State Senate = May 23, 2013
 +
|Vote upper house = 36-3
 +
|Conference = July 1, 2013
 +
|Conference upper house vote =36-3
 +
|Conference lower house vote =124-29
 +
|Governor = [[Deval Patrick]]
 +
|Signed = July 12, 2013
 +
|Vetoed = July 12, 2013 (items vetoed; items passed over veto on July 30, 2013)
 +
}}
  
The Institute of Government and Public Affairs at the University of Illinois has created a multi-measure transparency profile for Massachusetts, which measures state transparency as of September 2011 using indicators from a range of organizations, including Sunshine Review.  These indicators measure both website transparency and other recognized facets of governmental transparency. In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/system/files/Massachusetts_Profile_IGPA_093011.pdf ''Institute of Government and Public Affairs at the University of Illinois - Multi-measure Transparency Profile for Massachusetts'']</ref>
+
On July 12, 2013, [[Massachusetts Governor|Governor]] [[Deval Patrick]] signed the fiscal year 2014 budget into law. The budget as enacted boasted significant funding increases for education and related programs, including an additional $130 million for Chapter 70 school aid and an additional $15 million for early education programs. The budget also included $97 million for public universities and colleges, which, according to Patrick, would result in "no tuition and fee increases in the coming year." In order to balance the budget, Patrick authorized a 350 million withdrawal from the state's Stabilization Fund.<ref name=wamc>[http://wamc.org/post/mass-governor-signs-fy-2014-budget-vetoes-transportation-funding ''WAMC - Northeast Public Radio'', "Mass. Governor Signs FY2014 Budget, Vetoes Transportation Funding," July 12, 2013]</ref>
  
In addition to the individual state profile, IGPA offers a 50-state comparison.<ref>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''IGPA 50-state Transparency Comparison'']</ref>
+
Patrick vetoed approximately $240 million in transportation funding and $177 million in aid to local governments. Patrick argued that he could not support these items until the [[Massachusetts General Court|state legislature]] completed work on a separate transportation finance bill.<ref name=wamc/>
===U.S. PIRG "Following the Money" report===
+
 
{{Following the Money 2014 Report by State|State=Massachusetts|Grade=A-|Score=90.5|Level=leading}}
+
===Fiscal year 2013===
 +
::''See also: [[Massachusetts state budget (2012-2013)]]
 +
 
 +
===Fiscal year 2012===
 +
::''See also: [[Massachusetts state budget (2011-2012)]]
 +
 
 +
===Fiscal year 2011===
 +
::''See also: [[Massachusetts state budget (2010-2011)]]
 +
 
 +
===Fiscal year 2010===
 +
::''See also: [[Massachusetts state budget (2009-2010)]]
 +
 
 +
==Historical spending==
 +
State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).<ref name=expenditures2013/><ref name=expenditures2012/>
 +
{{State budget historical spending
 +
|State=Massachusetts
 +
|totalbudgets= 3
 +
|2011-2012genfund=24011
 +
|2011-2012otherfund=16935
 +
|2011-2012fedfund=16157
 +
|2011-2012bonds=2168
 +
|2011-2012budgettotal=59271
 +
|2010-2011genfund=21997
 +
|2010-2011otherfund=18570
 +
|2010-2011fedfund=13088
 +
|2010-2011bonds=1919
 +
|2010-2011budgettotal=55574
 +
|2009-2010genfund=21874
 +
|2009-2010otherfund=15088
 +
|2009-2010fedfund=12481
 +
|2009-2010bonds=1835
 +
|2009-2010budgettotal=51278
 +
}}
 +
 
 +
==State debt==
 +
According to a January 2014 report by the nonprofit organization State Budget Solutions, Massachusetts had a state debt of over $129 billion. Its state debt per capita was $19,493. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded [[public pensions]].<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report ''State Budget Solutions'', "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014]</ref><ref>[http://washingtonexaminer.com/exography-unfunded-public-employee-pensions-are-driving-state-debts-skyward/article/2542548 ''Washington Examiner'', "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014]</ref>
 +
{{State debt box
 +
|State = Massachusetts
 +
|totaldebt=$129,550,263 ,000
 +
|totaldebtrank=10
 +
|percapdebt=$19,493
 +
|percapdebtrank=12
 +
|expenditures = $40,946,000,000
 +
|expendituresrank =36
 +
}}
 +
 
 +
===Public pensions===
 +
::''See also: [[Massachusetts public pensions]] and [[Massachusetts public employee salaries]]''
 +
 
 +
A 2012 report from the Pew Center on the States noted that the commonwealth's [[Public pensions in Massachusetts|pension system]] was funded at 71 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."<ref name=masspew>[http://www.pewstates.org/research/state-fact-sheets/widening-gap-update-massachusetts-85899399333 ''Pew Center on the States'' "Widening Gap Update: Massachusetts," June 18, 2012]</ref>
 +
 
 +
The funding ratio for the state's pension system decreased from 77.00 percent in fiscal year 2007 to 66.72 percent in fiscal year 2012, a 10.28 percent drop. Likewise, unfunded liabilities increased from over $11.7 billion in fiscal year 2007 to more than $21 billion in fiscal year 2012.<ref name=stateCAFR>[http://www.mass.gov/osc/docs/reports-audits/cafr/cafr-2012.pdf ''Commonwealth of Massachusetts'' "Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012," accessed November 13, 2013]</ref>
  
==Budget background==
+
===Credit ratings===
Massachusetts's fiscal year runs from July 1 to June 30 of the following year. According to the Massachusetts Constitution, the governor must propose a budget for the next fiscal year within three weeks after the legislature convenes, which translates into the fourth Wednesday of January.<ref>[http://www.mass.gov/?pageID=mg2homepage&L=1&L0=Home&sid=massgov2 ''The Official Web site of the Commonwealth of Massachusetts'', retrieved October 26, 2009]</ref>
+
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.<ref name=credit>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 ''Stateline: The Daily News Service of The Pew Charitable Trusts'', "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012]</ref>
  
Step 1 : Governor’s Budget<BR>
+
The table below lists the Standard and Poor's credit ranking for Massachusetts from 2001 to 2012 (grades from surrounding states are provided for additional context).<ref name=credit/>
* The budget begins as a bill that the Governor submits in January (or February if at the start of a new term) to the House of Representatives.
+
Step 2 : House Ways & Means Budget<BR>
+
* The House Ways and Means Committee reviews this budget and then develops its own recommendation.
+
Step 3 : House Budget<BR>
+
* Once debated, amended and voted on by the full House, it becomes the House budget bill.
+
Step 4 : Senate Ways & Means Budget<BR>
+
* At this point, the House passes its bill to the Senate. The Senate Ways & Means Committee reviews that bill and develops its own recommendation.
+
Step 5 : Senate Budget<BR>
+
* Once debated, amended and voted on, it becomes the Senate's budget bill.
+
Step 6 : Conference Committee Budget<BR>
+
* House and Senate leadership then assign members to a joint "conference committee" to negotiate the differences between the House and Senate bills. Once that work is completed, the conference committee returns its bill to the House for a vote. If the House makes any changes to the bill, it must return the bill to the conference committee to be renegotiated. Once approved by the House, the budget passes to the Senate, which then votes its approval.
+
Step 7 : Vetoes<BR>
+
* From there, the Senate passes the bill to the Governor who has ten days to review and approve it, or make vetoes or reductions. The Governor may approve or veto the entire budget, or may veto or reduce certain line items or sections, but may not add anything.
+
Step 8 : Overrides<BR>
+
* The House and Senate may vote to override the Governor's vetoes. Overrides require a two-thirds majority in each chamber.
+
Step 9 : Final Budget<BR>
+
* The final budget is also known as the General Appropriations Act. The final budget consists of the Conference Committee version, minus any vetoes, plus any overrides.<ref>[http://www.mass.gov/?pageID=mg2homepage&L=1&L0=Home&sid=massgov2 ''The Official Web site of the Commonwealth of Massachusetts'', retrieved October 26, 2009]</ref>
+
  
===Budget figures===
+
{| class="wikitable" style="text-align:center; width:55%;"
The following table presents Massachusetts's spending history.  The figures used are in millions of dollars:<ref name="MBPC">[http://browser.massbudget.org/SelectCriteriaTime.aspx ''Massachusetts Budget and Policy Center, Online Budget Database'', results derived when searching for "Select All Items" between the years 2001 and 2008]</ref>
+
! colspan="6" align="center" style="background-color:#008000; color: white;" | S&P credit ratings from 2001 to 2012
{| class="wikitable"
+
 
|-
 
|-
! Fiscal year
+
! valign="bottom" style="background-color:#444; color: white;" |
! Nominal government spending
+
! valign="bottom" style="background-color:#444; color: white;" | '''Massachusetts'''
! Real government spending
+
! valign="bottom" style="background-color:#444; color: white;" | Connecticut
! Real change from prior year
+
! valign="bottom" style="background-color:#444; color: white;" | Maine
 +
! valign="bottom" style="background-color:#444; color: white;" | New Hampshire
 +
! valign="bottom" style="background-color:#444; color: white;" | Rhode Island
 
|-
 
|-
|text align="center"|2008
+
| 2012 || AA+ || AA || AA || AA || AA
|text align="center"|31,694.416<ref name="MBPC"/>
+
|text align="center"|34,213.722<ref name="MBPC"/>
+
|text align="center"|0.1%
+
 
|-
 
|-
|text align="center"|2007
+
| 2011 || AA || AA || AA || AA || AA
|text align="center"|29,913.923<ref name="MBPC"/>
+
|text align="center"|34,194.834<ref name="MBPC"/>
+
|text align="center"|7.5%
+
 
|-
 
|-
|text align="center"|2006
+
| 2010 || AA || AA || AA || AA || AA
|text align="center"|26,592.198<ref name="MBPC"/>
+
|text align="center"|31,811.763<ref name="MBPC"/>
+
|text align="center"|0.6%
+
 
|-
 
|-
|text align="center"|2005
+
| 2009 || AA || AA || AA || AA || AA
|text align="center"|24,846.982<ref name="MBPC"/>
+
|text align="center"|31,610.590<ref name="MBPC"/>
+
|text align="center"|0.8%
+
 
|-
 
|-
|text align="center"|2004
+
| 2008 || AA || AA || AA || AA || AA
|text align="center"|23,331.771<ref name="MBPC"/>
+
|text align="center"|31,350.891<ref name="MBPC"/>
+
|text align="center"|-2.2%
+
 
|-
 
|-
|text align="center"|2003
+
| 2007 || AA || AA || AA || AA || AA
|text align="center"|23,011.620<ref name="MBPC"/>
+
|text align="center"|32,046.556<ref name="MBPC"/>
+
|text align="center"|-4.7%
+
 
|-
 
|-
|text align="center"|2002
+
| 2006 || AA || AA || AA- || AA || AA
|text align="center"|23,289.777<ref name="MBPC"/>
+
|text align="center"|33,617.370<ref name="MBPC"/>
+
|text align="center"|0.7%
+
 
|-
 
|-
|text align="center"|2001
+
| 2005 || AA || AA || AA- || AA || AA
|text align="center"|22,655.934<ref name="MBPC"/>
+
|text align="center"|33,396.954<ref name="MBPC"/>
+
|text align="center"|n/a
+
 
|-
 
|-
 +
| 2004 || AA- || AA || AA || AA || AA-
 +
|-
 +
| 2003 || AA- || AA || AA+ || AA || AA-
 +
|-
 +
| 2002 || AA- || AA || AA+ || AA+ || AA-
 +
|-
 +
| 2001 || AA- || AA || AA+ || AA+ || AA-
 +
|-
 +
|}
  
 +
==Federal aid to state budget==
 +
::''See also: [[Federal aid to budgets in the 50 states]]''
 +
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.<ref name=federalaid>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=COG_2012_FIN009&prodType=table ''United States Census Bureau'', "State Government Finances: 2012," accessed February 24, 2014]</ref>
 +
 +
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, [[Mississippi state budget#Federal aid to state budget|Mississippi]] received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, [[Alaska state budget#Federal aid to state budget|Alaska]] received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.<ref name=federalaid/>
 +
 +
{| class="wikitable" style="text-align:center; width:50%;"
 +
! colspan="4" align="center" style="background-color:#008000; color: white;" | Federal aid to state budgets in 2012
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal aid as % of general revenue
 +
! valign="bottom" style="background-color:#444; color: white;" | Total federal aid
 +
! valign="bottom" style="background-color:#444; color: white;" | National rank
 +
|-
 +
| '''Massachusetts''' || '''28.81%''' || '''$12,920,153,000''' || '''36'''
 +
|-
 +
| [[Connecticut state budget|Connecticut]] || 23.61% || $5,781,844,000 || 46
 +
|-
 +
| [[Maine state budget|Maine]] || 36.50% || $2,883,526,000 || 10
 +
|-
 +
| [[New Hampshire state budget|New Hampshire]] || 29.00% || $1,693,289,000 || 34
 +
|-
 +
| [[Rhode Island state budget|Rhode Island]] || 33.96% || $2,310,656,000 || 23
 +
|-
 
|}
 
|}
 +
 +
===Stimulus===
 +
As of 2013, Massachusetts has received over $7 billion in federal funding.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery.gov'', "Stimulus Spending by State," accessed February 21, 2014]</ref>
  
Historic General Appropriation Act (GAA) Budget Levels:<ref>[http://www.mass.gov/bb/gaa/fy2010/app_10/ga_10/hhdefault.htm ''Massachusetts Office of Administration and Finance'', "Historical Budget Summary," accessed October 26, 2009]</ref><BR>
+
==Budget transparency==
{| {{table}}
+
{| class="wikitable" style="float:right; margin:1em 1em 1em 1em; text-align:center; width:15%;"
|FY 2010||$27.0 billion
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | Transparency evaluation
 
|-
 
|-
| FY 2009||$28.2 billion
+
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | Informed Massachusetts
 
|-
 
|-
| FY 2008||$26.8 billion
+
|[[Criteria for evaluating databases|Searchability]] || {{Yes (Sunshine Review)}}
 
|-
 
|-
| FY 2007||$25.7 billion
+
|[[Criteria for evaluating databases|Grants]] || {{No (Sunshine Review)}}
 
|-
 
|-
|  
+
|[[Criteria for evaluating databases|Contracts]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Line item expenditures]] || {{No (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Dept./agency budgets]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Public employee salaries]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|colspan="2"|<small>Last evaluated in 2012.</small>
 
|}
 
|}
 +
::''See also: [[Evaluation of Massachusetts state website]] and [[Constitutional provisions regarding reading of bills]]''
 +
 +
 +
The state maintains an official transparency website called ''Informed Massachusetts''. The table to the right is helpful in evaluating the level of transparency provided by the site.
 +
 +
The Massachusetts Budget and Policy Center, which "provides independent research and analysis of state budget and tax policies," tracks actual spending in real and nominal terms using a "Budget Browser."<ref>[http://browser.massbudget.org/ ''MassBudget'', "Budget Browser," accessed April 23, 2014]</ref>
 +
 +
===Multi-measure budget transparency profile===
 +
The Institute of Government and Public Affairs at the University of Massachusetts created a multi-measure transparency profile for Massachusetts, which measured state transparency as of September 2011 using indicators from a range of organizations.  These indicators measured both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ ''Institute of Government and Public Affairs at University of Massachusetts'', "Home page," accessed February 21, 2014]</ref><ref name=allstates>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''Institute of Government and Public Affairs at University of Massachusetts'', "Budget Transparency Profiles - All 50 States," September 2011]</ref>
 +
 +
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Massachusetts tied for 20th in the nation with 12 other states, earning five out of eight possible points.<ref name=allstates/>
 +
 +
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="2" align="center" style="background-color:#008000; color: white;" | Massachusetts - IGPA score for budget process, contents and disclosure
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Budget transparency indicator
 +
! valign="bottom" style="background-color:#444; color: white;" | Yes or no?
 +
|-
 +
| Performance measures || {{Yes}}
 +
|-
 +
| "Generally Accepted Accounting Principles" budget || {{no (Sunshine Review)}}
 +
|-
 +
| Multi-year forecasting || {{Yes}}
 +
|-
 +
| Annual cycle || {{Yes (Sunshine Review)}}
 +
|-
 +
| Binding revenue forecast || {{Yes}}
 +
|-
 +
| Legislative revenue forecast || {{Yes}}
 +
|-
 +
| Non-partisan staff || {{No (Sunshine Review)}}
 +
|-
 +
| Constitution or statutory tax/spend limitations || {{No (Sunshine Review)}}
 +
|-
 +
| '''TOTAL''' || '''5'''
 +
|-
 +
|}
 +
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref name=allstates/>
 +
 +
===U.S. PIRG "Following the Money" report===
 +
{{Following the Money 2014 Report by State|State=Massachusetts|Grade=A-|Score=90.5|Level=leading}}
  
 
==Accounting principles==
 
==Accounting principles==
 
::''See also: [[Massachusetts government accounting principles]]''
 
::''See also: [[Massachusetts government accounting principles]]''
Joseph DeNucci has been the Auditor of the Commonwealth of Massachusetts since 1987. The Office of the Auditor of the Commonwealth publishes its audit reports online and is responsible for:<ref>[http://www.mass.gov/sao/authority.htm ''Office of the Auditor of the Commonwealth'', "Authority/Responsibility," accessed October 26, 2009]</ref>
+
The Office of the Auditor of the Commonwealth publishes its audit reports online and is responsible for:<ref>[http://www.mass.gov/sao/authority.htm ''Office of the Auditor of the Commonwealth'', "Authority/Responsibility," accessed October 26, 2009]</ref>
 
* Determining whether the Commonwealth's resources are properly safeguarded;
 
* Determining whether the Commonwealth's resources are properly safeguarded;
 
* Determining whether such resources are properly and prudently used;
 
* Determining whether such resources are properly and prudently used;
Line 161: Line 399:
 
* Ensuring that all audit results are fully disclosed to the public and the auditees.   
 
* Ensuring that all audit results are fully disclosed to the public and the auditees.   
  
The Institute for Truth in Accounting (IFTA) rates Massachusetts “timely” in filing the state’s [[Comprehensive Annual Financial Report]] (CAFR) – the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Massachusetts' CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Massachusetts's CAFRs are published online by the Comptroller of the Commonwealth of Massachusetts.
+
==Contact information==
 
+
Massachusetts Executive Office for Administration and Finance<br>
==Stimulus==
+
State House, Room 373<br>
As of 2013, Massachusetts has received over $7 billion in federal funding.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
+
Boston, Massachusetts 02133<br>
 
+
Telephone: 617-727-2040
==Public employees==
+
::''See also: [[Massachusetts public employee salaries]]''
+
::''See also: [[Massachusetts public pensions]]''
+
 
+
According to 2011 U.S. Census data, the state of Massachusetts employed a total of 114,104 people.<ref name=census>[http://www2.census.gov/govs/apes/11stma.txt Massachusetts Public Employment U.S. Census Data]</ref> Of those employees, 81,246 were full-time employees receiving net pay of $415,142,357 per month and 32,858 were part-time employees paid $46,329,996 per month.<ref name=census/>  More than 46% of those employees, or 52,489 employees, were in education or higher education.<ref name=census/>
+
  
 
==See also==
 
==See also==
 
* [[Massachusetts government sector lobbying]]
 
* [[Massachusetts government sector lobbying]]
 
* [[Massachusetts public pensions]]
 
* [[Massachusetts public pensions]]
 +
* [[Governor of Massachusetts]]
 +
* [[Massachusetts State Senate]]
 +
* [[Massachusetts House of Representatives]]
  
 
==External links==
 
==External links==
 
* [http://www.statebudgetsolutions.org/state/detail/massachusetts State Budget Solutions, Massachusetts]
 
* [http://www.statebudgetsolutions.org/state/detail/massachusetts State Budget Solutions, Massachusetts]
 
* [http://browser.massbudget.org/ Budget Browser from the Massachusetts Budget and Policy Center]
 
* [http://browser.massbudget.org/ Budget Browser from the Massachusetts Budget and Policy Center]
* Model transparency legislation from the [[American Legislative Exchange Council]] is available [http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf at this link.]
+
* Model transparency legislation from the [[American Legislative Exchange Council]] is available [http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf here]
 
* [http://www.pioneerinstitute.org/ Pioneer Institute for Public Policy Research]
 
* [http://www.pioneerinstitute.org/ Pioneer Institute for Public Policy Research]
 
* [http://www.cltg.org/ Citizens for Limited Taxation]
 
* [http://www.cltg.org/ Citizens for Limited Taxation]
 
* [http://www.mass.gov/?pageID=eoafhomepage&L=1&L0=Home&sid=Eeoaf Massachusetts Executive Office for Administration and Finance]
 
* [http://www.mass.gov/?pageID=eoafhomepage&L=1&L0=Home&sid=Eeoaf Massachusetts Executive Office for Administration and Finance]
 
* [http://www.mass.gov/bb/gaa/fy2009/app_09/ga_09/hdefault.htm Fiscal Year 2009 Budget Summary]
 
* [http://www.mass.gov/bb/gaa/fy2009/app_09/ga_09/hdefault.htm Fiscal Year 2009 Budget Summary]
* [http://www.usgovernmentspending.com/Massachusetts_state_spending.html Massachusetts state and local spending]
 
 
* [http://www.mass.gov/legis/ Massachusetts General Court]
 
* [http://www.mass.gov/legis/ Massachusetts General Court]
 
* [http://www.mass.gov/?pageID=mg2homepage&L=1&L0=Home&sid=massgov2 Official Website of the Commonwealth of Massachusetts]
 
* [http://www.mass.gov/?pageID=mg2homepage&L=1&L0=Home&sid=massgov2 Official Website of the Commonwealth of Massachusetts]
 
* [http://www.mass.gov/bb/h1/fy2009h1/brec2_09/dpt09/hctr.htm Office of the Comptroller]
 
* [http://www.mass.gov/bb/h1/fy2009h1/brec2_09/dpt09/hctr.htm Office of the Comptroller]
  
==Additional reading==
+
===Additional reading===
* [http://www.mass.gov/?pageID=gov3terminal&L=3&L0=Home&L1=Media+Center&L2=Speeches&sid=Agov3&b=terminalcontent&f=text_2010-01-21_sotc&csid=Agov3 ''Gov. Deval L. Patrick'',"2010 State of the Commonwealth Address," January 21, 2010]
+
*[http://uspirg.org/reports/usp/following-money-2014 ''U.S. PIRG'', "Report: Transparent & Accountable Budgets," April 8, 2014]
* [http://www.mass.gov/bb/h1/fy2009h1/ Governor's budget, Fiscal Year 2009]
+
*[http://www.nytimes.com/2014/02/03/us/battles-loom-in-many-states-over-what-to-do-with-budget-surpluses.html?hp&_r=0 ''The New York Times'', "Battles loom in many states over what to do with budget surpluses," February 3, 2014]
* [http://www.mass.gov/bb/h1/fy2009h1/track_09/htrack_09.htm Detailed Budget, FY 2009]
+
*[http://www.mass.gov/?pageID=gov3terminal&L=3&L0=Home&L1=Media+Center&L2=Speeches&sid=Agov3&b=terminalcontent&f=text_2010-01-21_sotc&csid=Agov3 ''Gov. Deval L. Patrick'', "2010 State of the Commonwealth Address," January 21, 2010]
  
 
==References==
 
==References==
Line 201: Line 436:
  
 
[[category:Massachusetts]]
 
[[category:Massachusetts]]
[[category:Budget information by state]]
+
[[Category:Budget information by state]]

Revision as of 09:41, 23 April 2014

Massachusetts state budget

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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Massachusetts, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Massachusetts's total expenditures XXincreased/decreasedXX by approximately $XXX billion, from $XXX billion in 2009 to $XXX billion in 2013. This represents an XXX percent increase, Xoutpacing/below/equivalent toX the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[1][2]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[3][4]

  1. Budget instruction guidelines are sent to state agencies in July of the year preceding the start of the new fiscal year.
  2. State agencies submit their budget requests in September.
  3. Agency hearings are held in August and September.
  4. The governor submits his or her proposed budget to the state legislature on the fourth Wednesday in January.
  5. The legislature typically adopts a budget in June. A simple majority is required to pass a budget. The fiscal year begins July 1.

In Massachusetts, the governor may exercise line item veto, item veto of appropriations, or item veto of selected words authority.[4]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[4]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[5]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
  • Federal funds: "Funds received directly from the federal government."
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[5] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[5]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Massachusetts $25,509 $15,548 $17,135 $2,106 $60,298 $9,009.35
Connecticut $19,030 $2,555 $3,618 $2,935 $28,138 $7,824.63
Maine $3,042 $2,564 $2,176 $16 $7,798 $5,870.65
New Hampshire $1,262 $1,601 $2,080 $81 $5,024 $3,796.11
Rhode Island $3,268 $2,659 $2,122 $84 $8,133 $7,734.58
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[6][7]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Massachusetts can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[5]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Massachusetts 10.7% 9.3% 2.5% 20.7% 2.1% 6.2% 48.6%
Connecticut 13.9% 10.3% 1.4% 21.4% 2.5% 10.0% 40.6%
Maine 13.1% 3.4% 2.6% 28.8% 1.7% 8.6% 41.8%
New Hampshire 23.5% 2.7% 1.9% 23.9% 2.1% 10.1% 35.9%
Rhode Island 14.2% 13.2% 1.4% 25.0% 2.4% 6.5% 37.4%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, elementary and secondary education spending fell by 3.20 percent. Similarly, higher education and corrections expenditures fell by 0.60 and 0.70 percent respectively. During the same period, Medicaid spending rose by two percent. The table below details changes in expenditures from 2008 to 2012.[5][8][9][10][11] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 10.7% 9.3% 2.5% 20.7% 2.1% 6.2% 48.6%
2011 11.6% 9.9% 2.4% 19.2% 2.3% 6.2% 48.3%
2010 12.9% 7.9% 2.5% 18.8% 2.5% 6.9% 48.6%
2009 13.0% 9.3% 3.1% 17.7% 2.6% 5.4% 49.0%
2008 13.9% 9.7% 3.1% 18.7% 2.8% 5.6% 46.2%
Change in % -3.20% -0.40% -0.60% 2.00% -0.70% 0.60% 2.40%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[5] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[5]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Massachusetts $5,164 $12,831 $1,822 $0 $7,352 $27,169 $4,059.42
Connecticut $3,857 $8,719 $742 $612 $5,437 $19,366 $5,385.31
Maine $1,034 $1,495 $171 $0 $351 $3,051 $2,296.92
New Hampshire $0 $0 $552 $3 $1,728 $2,283 $1,725.03
Rhode Island $873 $1,075 $137 $1 $1,238 $3,324 $3,161.17
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[6]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[5][8] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Massachusetts ($ in millions)[5][8]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $5,164 $12,831 $1,822 $0 $7,352 $27,169 $4,059.42
2012 $5,059 $11,911 $1,771 $0 $7,304 $26,046 $3,919.46
2011 $4,905 $11,576 $1,951 $0 $6,765 $25,197 $3,814.10
2010 $4,612 $10,110 $1,600 $0 $2,222 $18,544 $2,825.42
2009 $3,869 $10,584 $1,549 $0 $2,259 $18,259 $2,769.21
Change in % 33.47% 21.23% 17.62% 0.00% 225.45% 48.80% 46.59%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[6][7]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: Chapter 38, Acts of 2013

Fiscal year 2014

Massachusetts state budget -- 2014
Massachusetts State Legislature
Text:Chapter 38, Acts of 2013
Legislative History
Introduced:January 24, 2013
State House:April 24, 2013
Vote (lower house):127-29
State Senate:May 23, 2013
Vote (upper house):36-3
Conference:July 1, 2013
Conference Vote (upper house):36-3
Conference Vote (lower house):124-29
Governor:Deval Patrick
Signed:July 12, 2013
Vetoed:July 12, 2013 (items vetoed; items passed over veto on July 30, 2013)

On July 12, 2013, Governor Deval Patrick signed the fiscal year 2014 budget into law. The budget as enacted boasted significant funding increases for education and related programs, including an additional $130 million for Chapter 70 school aid and an additional $15 million for early education programs. The budget also included $97 million for public universities and colleges, which, according to Patrick, would result in "no tuition and fee increases in the coming year." In order to balance the budget, Patrick authorized a 350 million withdrawal from the state's Stabilization Fund.[12]

Patrick vetoed approximately $240 million in transportation funding and $177 million in aid to local governments. Patrick argued that he could not support these items until the state legislature completed work on a separate transportation finance bill.[12]

Fiscal year 2013

See also: Massachusetts state budget (2012-2013)

Fiscal year 2012

See also: Massachusetts state budget (2011-2012)

Fiscal year 2011

See also: Massachusetts state budget (2010-2011)

Fiscal year 2010

See also: Massachusetts state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[5][9]

Historical state budget spending in Massachusetts ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $24,011 40.5% $16,935 28.6% $16,157 27.3% $2,168 3.7% $59,271
2010-2011 $21,997 39.6% $18,570 33.4% $13,088 23.6% $1,919 3.5% $55,574
2009-2010 $21,874 42.7% $15,088 29.4% $12,481 24.3% $1,835 3.6% $51,278
Averages: $22,627.33 41% $16,864.33 30% $13,908.67 25% $1,974 4% $55,374.33
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Massachusetts had a state debt of over $129 billion. Its state debt per capita was $19,493. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[13][14]

Total state debt in Massachusetts[15]
Type Totals U.S. rank
Total state debt $129,550,263 ,000 10
Per capita debt $19,493 12
State and other fund expenditures $40,946,000,000 36

Public pensions

See also: Massachusetts public pensions and Massachusetts public employee salaries

A 2012 report from the Pew Center on the States noted that the commonwealth's pension system was funded at 71 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[16]

The funding ratio for the state's pension system decreased from 77.00 percent in fiscal year 2007 to 66.72 percent in fiscal year 2012, a 10.28 percent drop. Likewise, unfunded liabilities increased from over $11.7 billion in fiscal year 2007 to more than $21 billion in fiscal year 2012.[17]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[18]

The table below lists the Standard and Poor's credit ranking for Massachusetts from 2001 to 2012 (grades from surrounding states are provided for additional context).[18]

S&P credit ratings from 2001 to 2012
Massachusetts Connecticut Maine New Hampshire Rhode Island
2012 AA+ AA AA AA AA
2011 AA AA AA AA AA
2010 AA AA AA AA AA
2009 AA AA AA AA AA
2008 AA AA AA AA AA
2007 AA AA AA AA AA
2006 AA AA AA- AA AA
2005 AA AA AA- AA AA
2004 AA- AA AA AA AA-
2003 AA- AA AA+ AA AA-
2002 AA- AA AA+ AA+ AA-
2001 AA- AA AA+ AA+ AA-

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[19]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[19]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Massachusetts 28.81% $12,920,153,000 36
Connecticut 23.61% $5,781,844,000 46
Maine 36.50% $2,883,526,000 10
New Hampshire 29.00% $1,693,289,000 34
Rhode Island 33.96% $2,310,656,000 23

Stimulus

As of 2013, Massachusetts has received over $7 billion in federal funding.[20]

Budget transparency

Transparency evaluation
Informed Massachusetts
Searchability Y
600px-Yes check.png
Grants N
600px-Red x.png
Contracts Y
600px-Yes check.png
Line item expenditures N
600px-Red x.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries Y
600px-Yes check.png
Last evaluated in 2012.
See also: Evaluation of Massachusetts state website and Constitutional provisions regarding reading of bills


The state maintains an official transparency website called Informed Massachusetts. The table to the right is helpful in evaluating the level of transparency provided by the site.

The Massachusetts Budget and Policy Center, which "provides independent research and analysis of state budget and tax policies," tracks actual spending in real and nominal terms using a "Budget Browser."[21]

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Massachusetts created a multi-measure transparency profile for Massachusetts, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[22][23]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Massachusetts tied for 20th in the nation with 12 other states, earning five out of eight possible points.[23]

Massachusetts - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle Y
600px-Yes check.png
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Non-partisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations N
600px-Red x.png
TOTAL 5

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[23]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[24] According to the report, Massachusetts received a grade of A- and a numerical score of 90.5, indicating that Massachusetts was "leading" in terms of transparency regarding state spending.[24]

Accounting principles

See also: Massachusetts government accounting principles

The Office of the Auditor of the Commonwealth publishes its audit reports online and is responsible for:[25]

  • Determining whether the Commonwealth's resources are properly safeguarded;
  • Determining whether such resources are properly and prudently used;
  • Evaluating internal controls to help insure integrity in financial management systems;
  • Determines whether computer systems and technology environment meet control objectives regarding security, integrity, and availability;
  • Evaluating management's economy and efficiency in it use of resources;
  • Determining and evaluating a program's results, benefits, or accomplishments; and
  • Ensuring that all audit results are fully disclosed to the public and the auditees.

Contact information

Massachusetts Executive Office for Administration and Finance
State House, Room 373
Boston, Massachusetts 02133
Telephone: 617-727-2040

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  4. 4.0 4.1 4.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  5. 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  6. 6.0 6.1 6.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  7. 7.0 7.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  8. 8.0 8.1 8.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  9. 9.0 9.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  10. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  11. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  12. 12.0 12.1 WAMC - Northeast Public Radio, "Mass. Governor Signs FY2014 Budget, Vetoes Transportation Funding," July 12, 2013
  13. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  14. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  15. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Pew Center on the States "Widening Gap Update: Massachusetts," June 18, 2012
  17. Commonwealth of Massachusetts "Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012," accessed November 13, 2013
  18. 18.0 18.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  19. 19.0 19.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  20. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  21. MassBudget, "Budget Browser," accessed April 23, 2014
  22. Institute of Government and Public Affairs at University of Massachusetts, "Home page," accessed February 21, 2014
  23. 23.0 23.1 23.2 Institute of Government and Public Affairs at University of Massachusetts, "Budget Transparency Profiles - All 50 States," September 2011
  24. 24.0 24.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  25. Office of the Auditor of the Commonwealth, "Authority/Responsibility," accessed October 26, 2009