According to the News Service, Massachusetts Budget and Policy Center, a state finance think tank, says its time for lawmakers to consider other ways to fill budget gaps, other than borrowing money.
They include tapping into the state’s $3.5 billion reserves and adopting “new policies to increase revenue.”
Translation: raising taxes.
MassBudget makes an excellent point in stating that debt must be paid back, and one short-term borrowing option — a $7.86 billion credit line through the U.S. Federal Reserve’s Municipal Liquidity Fund — would have to be paid back by 2023.
The report from MassBudget didn’t get into specifics, but it’s previously supported options that include raising the personal income tax rate, raising the tax rate on capital gains, imposing a surtax on the sale of multi-million dollar homes, taxing large private college and university endowments, and raising various corporate tax rates.