TAX ISSUE FINALLY SETTLED, BEACON HILL FOCUSES ON DEBT THIRD Edition

• Published in: The Boston globe
• Main Author: M.E. Malone and Frank Phillips, GLOBE STAFF
• Format: Newspaper Article
• Language: English
• Published: Boston, Mass Boston Globe Media Partners, LLC 20.07.1990
• ISSN: 0743-1791

Administration and Finance Secretary L. Edward Lashman confirmed that state officials are seeking several hundred million dollars more to cover fiscal year 1990's deficit spending than they told potential bondholders and the public in June would likely be needed to balance the year's books. Last July, the state raised the income tax on what was supposed to be a temporary basis. The revenue was expected to clean up the state's accumulated Medicaid debts. It could not be learned yesterday why there are still $120 million more in Medicaid bills to be paid. Lashman also said that the state will likely formulate the payback of the bond loan in such a way as to spend only $50 million in the current fiscal year to repay the loan, with more expensive installments of $250 million or more in the remaining years.