Massachusetts Governor Faces $1.4 Billion Deficit, to Cut Jobs

Massachusetts Governor Deval Patrick has announced job cuts totalling 1000 in an attempt to close a deficit of $1.4 billion in the state budget as the economy staggers and growth declines.

Governor Patrick, a Democrat who took over last year plans to lower spending and undertake a series of cost cutting measures in an effort to bridge the $1.4 billion gap that has appeared in the state budget. Foremost among the cost-saving measures are around 1000 job cuts in various state departments as well as lowering contributions to state pension fund by around $100 million. These steps are expected to save the state of Massachusetts around $1 billion. The Governor intends to shore up another $200 million by dipping into the state’s $1.8 billion rainy day fund but this is a step that will first require approval by the state legislature.

The state of Massachusetts has around 40,000 employees in its various departments. Even though the Governor declined to put an estimate on the number of jobs to be slashed in each agency, he warned that residents of Massachusetts should be ready to put up with delays in getting driver’s licenses, fewer community police patrols as well as limited state park maintenance. Massachusetts is one of the 21 states which together with District of Columbia face a combined shortfall of $8.9 billion in their state budgets as taxes dry up and unemployment rises.