Massachusetts to Lay Off Workers After Rejecting Casino Revenue
In the aftermath of the rejection by Massachusetts lawmakers of a plan to license casinos, the state budget crisis has grown so severe that over a thousand jobs will be eliminated. Governor Deval Patrick announced intentions to lay off a thousand state employees to help solve the state's $1.4 billion shortfall.
Patrick had pushed hard for the state to create three licensed casinos. He had expected Massachusetts to collect over $600 million in one-time fees, with hundreds of millions of dollars in annual tax collections.
But State Speaker of the House Sal DiMasi called in political favors, twisted arms, and promised support in the future to get other legislators to join him in voting down the casino proposal, even though polls showed the public favoring taxed gambling.
Now the state must deal with the reality of its financial mess. Patrick estimates the firings will save the state about $1 billion in wages and salaries. He also proposes drawing several hundred million dollars from the state's rainy-day savings, which contains $1.8 billion.
Advocates of casino gambling quickly suggested reconsidering the issue. Patrick has been rumored to be working on a revised proposal to introduce to the legislature. DiMasi was visibly disturbed when asked the prospect of gambling returning to the state agenda.
If the state reworked the passage in Patrick's original casino bill so as to regulate and tax online casinos, rather than threaten jail to Internet players, gambling might be enough all on its own to solve the Massachusetts money mess.
