It continued to get worst. By the time Mitt Romney took office as governor of Massachusetts, the upcoming state budget for that year would have a structural deficit of nearly $3 billion if the budget was not cut. ^[2] Furthermore, the existing budget passed the previous year, that would be in effect for several more months, had a projected total deficit of approximately $1.2 billion ^[3]. He inherited about a $650 million deficit in that budget by the time he took office. ^[4]

Governor Romney convinced the legislature to allow him to immediately make changes to the existing budget. He immediately slashed spending and balanced that budget. ^[5] He then balanced each of the four annual budgets he created. He was dealing with a veto-proof legislature that was 85% democrat, but he was able to 'hold the line on all the spending that the democrats up there wanted to do.' ^[6] The budgets he submitted, fought for and succeeded in obtaining not only were balanced each year, but provided a surplus of $700 million in 2004, ^[7] nearly $1 billion in 2005 ^{[8a],[8b],[8c]} and a surplus of $700 million in 2006. He balanced the budget every year without raising taxes. ^[9] By the end of his term, he had taken "Massachusetts from billions in deficit to billions in surplus". ^[10] He turned in a $2 billion rainy day fund at the end of his term in office. ^[11] He sought to lower the state income tax from 5.3% to 5.0% but was unable to get the legislature to comply. ^[12]

When he took office in January 2003, unemployment had reached 5.7%, and was increasing at a rate of nearly 1% a year. He implemented pro-growth policies and programs. By summer the increase in unemployment had stopped and by fall unemployment was dropping. ^[13] While Massachusetts was 50th, or nearly the worst in the nation in the increase in unemployment rates the year that just ended when he took office, he got it down to 38th place his first year in office. ^[14] The unemployment rate continued to rapidly drop for nearly two years, hit a plateau for about a year and a half, then started dropping again at the end of his term of office (see chart below). The year he left office (2007), the trend in Massachusetts' unemployment rate was the 11th best in the nation ^[15], a big improvement from the 50th place it was in the year he won office.

U.S. Bureau of Labor Statistics - Massachusetts

While jobs were shrinking by the thousands each month in Massachusetts when he took office ^[16], by the time he left office, "the state had attracted hundreds of new companies and added [a net total of] 60,000 new jobs." ^[17] It takes time for pro-growth policies to effect the economy, but before the end of his first year in office the job losses had stopped, and in his remaining time in office 81,000 new jobs were created. ^[18] The people in the state benefited not only by increased employment and not having their taxes raised, but they also saw tax cuts by the governor. As the following article pointed out:

“He cut capital gains taxes, benefiting well over 150,000 residents. Thousands more are currently benefiting from new jobs in the biotech field because of Romney's manufacturing tax relief and because he made the investment tax credit permanent. Thousands of Massachusetts families saved their hard-earned dollars when Romney enacted sales tax holidays. Seniors are benefiting from property tax relief proposed and signed into law by Romney. Our honorable veterans and National Guard members have several new tax breaks because of Romney's belief that they should be taxed less. Commuters can now deduct expenses for travel because Romney believes they shouldn't be penalized for helping increase commerce.”

INFORMATION RELATED TO GOVERNOR ROMNEY AND TAXES/FEES »