On Friday, January 8, Governor Charlie Baker ordered $49 million in emergency spending cuts aimed at erasing a projected state budget shortfall. In a letter to state lawmakers, Baker said his administration had identified a $320 million gap between projected spending and revenues through the end of the fiscal year in July.

Secretary of Administration and Finance Kristen Lepore wrote in a letter to Baker that the majority of the shortfall, approximately $205 million, is a result of the failure of budgeted non-tax revenue, such as fees and fines, to materialize. Another “substantial portion” of the shortfall, according to Lepore, reflects non-discretionary spending obligations that were not budgeted for, including private compensation costs, human service caseload exposures, and settlement and judgement costs.