Corporate Profile 47Billion Information Technology
Mass Budget Briefing 4/1/09
1. State Fiscal Conditions & Our
Future
Massachusetts Budget and Policy Center
15 Court Square, Suite 700, Boston, MA 20108
617.426.1228
www.massbudget.org
August 2, 2004
2. % of Personal Income
5.000%
7.575%
10.150%
12.725%
15.300%
August 2, 2004
NY
AK
ME
LA
DC
HI
VT
NM
Total State and Local Taxes, FY 2006
NJ
RI
WI
WV
CA
NE
OH
IN
ND
MN
CT
UT
AR
KS
U.S.
KY
DE
PA
IL
NC
MD
MS
WA
IA
ID
MT
MI
GA
MA
AZ
OR
NV
FL
VA
OK
SC
MO
CO
TX
AL
TN
MA Taxes Lower Than U.S. Average
SD
NH
20. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
21. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
22. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
23. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
24. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
25. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
26. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
27. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
28. 8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
29. Spending Has Mostly Stayed
Constant
8.60%
% Total Personal Income
6.45%
4.30%
2.15%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
30. State’s Own Spending Has Declined
7.00000000000000102%
6.90% 6.80% 7.00%
6.80% 6.60% 6.80% 6.60% 6.70%
6.40% 6.40% 6.60%
% Total Personal Income
5.25000000000000077%
3.50000000000000051%
1.75000000000000026%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
31. 6.300%
% Total Personal Income
4.725%
3.150%
1.575%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
32. 6.300%
% Total Personal Income
4.725%
3.150%
1.575%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
33. 6.300%
% Total Personal Income
4.725%
3.150%
1.575%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
34. 6.300%
% Total Personal Income
4.725%
3.150%
1.575%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
35. 6.300%
% Total Personal Income
4.725%
3.150%
1.575%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
36. State Tax Revenues Have Declined
6.300%
% Total Personal Income
4.725%
3.150%
1.575%
0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
August 2, 2004
37. Chapter 70 Education Aid
5,000
15% decrease from
FY02
4,125
Millions of $ (FY10)
3,250
2,375
1,500
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Adjusted Using the Inflation Factor Identified in Chapter 70
August 2, 2004
38. Chapter 70 Education Aid
5,000
11% decrease from
FY02
4,125
Millions of $ (FY10)
3,250
2,375
1,500
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Includes ARRA funding
Adjusted Using the Inflation Factor Identified in Chapter 70
August 2, 2004
39. During the Fiscal Crisis We Cut State
Education Aid More Than Most States
August 2, 2004
40. Higher Education
1,400
32%
decrease
1,250
Millions of $ (FY10)
1,100
950
800
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
August 2, 2004
41. Higher Education
1,400 20.5%
decrease
1,250
Millions of $ (FY10)
1,100
950
800
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Includes ARRA funding.
August 2, 2004
42. Local Aid
1,600
29%
decrease
1,200
Millions of $ (FY10)
800
400
0
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
August 2, 2004
43. Public Health
700
20%
decrease
600
Millions of $ (FY10)
500
400
300
200
100
0
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
August 2, 2004
44. Public Health
700
19%
decrease
600
Millions of $ (FY10)
500
400
300
200
100
0
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Includes ARRA funding.
August 2, 2004
45. Environment
350
29%
decrease
300
Millions of $ (FY10)
250
200
150
100
50
0
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
August 2, 2004
53. A Tax System Should Be…
Adequate
Stable
August 2, 2004
54. A Tax System Should Be…
Adequate
Stable
August 2, 2004
55. A Tax System Should Be…
Adequate
Stable
Simple/Eficient
August 2, 2004
56. A Tax System Should Be…
Adequate
Stable
Simple/Eficient
August 2, 2004
57. A Tax System Should Be…
Adequate
Stable
Simple/Eficient
Fair
August 2, 2004
58. MA State Local Taxes are
Regressive
15.00%
11.25%
% of Personal Income
7.50%
3.75%
0%
Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $526,000 or more Top
Eect of Federal Deduction
TOTAL TAXES Top 20%
Source: ITEP, 2006 data
August 2, 2004
59. Sales Taxes are Typically
Regressive
$140,000
Average annual income
$107,250 Average annual expenditures
$74,500
$41,750
$9,000
Lowest 20% Third 20% Highest 20%
Source: Bureau of Labor Statistics, 2004
data
August 2, 2004
60. Who Pays the Sales Tax in MA?
4.0%
% of Personal Income
3.1%
2.2%
1.3%
0.4%
Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $203,000 - $526,000 Next 4%
Top 20%
Source: ITEP, 2006 data
August 2, 2004
61. MA Income Tax is Progressive
4.500%
% of Personal Income
3.425%
2.350%
1.275%
0.200%
Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $526,000 or more Top
Top 20%
Source: ITEP, 2006 data
August 2, 2004
62. Who benefits from an Income Tax
Cut?
Tax Rate Cut From 5.95% to
5.3%
$12,000.0
$10,226
$9,002.5
Average Tax Cut
$6,005.0
$3,007.5
$1,776
$751
$377
$214
$76 $0
$10.0
Less than $19,800 Lowest 20% $63,800 - $105,200 Fourth 20% $218,000 - $562,500 Next 4%
Top 20%
Source: ITEP, April 2008
August 2, 2004
63. Who benefits from a Dividends Interest Tax
Cut?
Tax Rate Cut from 12.0% to 5.3%
$12,000
$10,057
$9,000
Average Tax Cut
$6,000
$3,000
$959
$242
$109
$55
$27
$2
$0
Less than $19,800 Lowest 20% $63,800 - $105,200 Fourth 20% $218,000 - $562,500 Next 4%
Top 20%
Source: ITEP, April 2008
August 2, 2004