NEW YORK (CNNMoney) -- Massachusetts is bracing for the biggest budget cuts in 20 years...even as its tax revenues are on the rise.
Gov. Deval Patrick Wednesday unveiled a fiscal 2012 spending plan that would slash $570 million, or 1.8%, from last year's budget, hitting social services, health care and aid to municipalities in particular.
Among the cuts:
But the news isn't all bad. The budget calls for providing record levels of funding for K-12 education and maintaining its commitment to lower the corporate tax rate to 8.25%, from 8.75%.
Also, the spending plan does not include any tax or fee hikes, but it does take $200 million from the state's rainy day funds. And it assumes tax revenues will rise by $740 million, thanks to the strengthening state economy.
What's hurting the Bay State the most is the disappearance of federal stimulus funds. State officials relied on $1.5 billion in Recovery Act money for fiscal 2011, which ends June 30. In total the state has received $4 billion since the act was passed in February 2009.
Also, while tax revenues are on the rise, they remain far below pre-recession levels. The fiscal 2009 budget assumed $21.4 billion in tax revenues. The fiscal 2012 plan is budgeting only $20.5 billion, which takes into account an additional $1 billion in revenue from a sales tax hike passed in 2009.
"We've turned the corner, but the hole caused by the recession is so deep, it will take some time to get out of it," said Jay Gonzalez, the state's secretary of administration and finance.
Best Buy is the latest retailer to follow a new trend of week-long sales for 'Cyber Monday.' More
Nearly six in ten black Americans surveyed by CNN/Kaiser Family Foundation say that they or a close friend or family member have been incarcerated -- and a majority of them come from low-income households. That leaves the many families of inmates in a precarious financial situation. More
Raspberry Pi bests itself with a smaller, cheaper computer that costs $5. More
Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More