About 5 months ago, the current administration stated that they thought the budget gap would be much less than the $675 million estimate from then candidate Charlie Baker. Now we are learning that the budget shortfall is closer to $750 million or about $125 per capita assuming there are approximately six million people living in Massachusetts. Considering the fact that revenues were projected to rise about 4.7% and they have, how can the Commonwealth let expenses rise 7% and call the budget balanced!
Due to Medicaid costs for Massachusetts came in $230 million more than budgeted. According to research funded by the Pew foundation and the Macarthur Foundation, Massachusetts spent $13.3 billion in 2012 and it has risen since then. For fiscal year 2015 the Massachusetts total budget approximates $36.4 billion. Of that amount total Health Care expenses are $15.4 billion so Medicaid expenditures of $13.3 billion for 2012 means that about 86% or more of State Health care expenses are consumed by Medicare expenses.
Furthermore, State employees’ health insurance costs are unfunded by another $130 million. So we are looking at a current situation where health care costs are about 1/3 of every dollar spent in Massachusetts. We need elected officials who have enough respect for the electorate to tell us the truth and not lie about expenses!
Sources:
http://www.mass.gov/bb/h1/fy15h1/exec_15/hdefault.htm
