At first blush, the state of state finances seems as if it could hardly be rosier.
The Massachusetts Taxpayers Foundation estimates the state will close the books on fiscal 2000 with $775 million in surplus revenue. Robust state tax revenue is expected to continue in fiscal 2001.
The current budget shows ample evidence that the governor and legislative leadership have not forgotten the lessons of the "Massachusetts miracle" and the painful recession that followed.
Much of the surplus generated by the booming economy has been earmarked for one-time expenditures, including the Big Dig and other transportation projects.
Yet, all is not well. The taxpayers foundation's new budget analysis sets the final spending plan for fiscal 2001 at more than $21.5 billion. That is up $1.37 billion -- 6.6 percent -- over the initial spending figure for fiscal 2000.
Worse, supplemental budgets for Medicaid and other significantly underfunded programs will result in an actual increase of 7.7 percent from last year.
There are other troubling signs of eroding discipline. One proposal, wisely vetoed by the governor, would have created an expensive paid parental leave entitlement -- draining money from the unemployment insurance trust fund. Another, enacted over the governor's veto, creates a costly, self-defeating early retirement benefit for teachers. Another authorizes a special $66 million project for the MBTA, undermining recent budget reforms at the agency.
Flush times notwithstanding, Massachusetts will pay dearly in years to come for unsustainable government growth.