Baker’s budget chief warns of deeper deficit to come

The state’s budget problems apparently could get even worse, Gov. Charlie Baker’s budget chief warned yesterday.

Secretary Kristen Lepore told lawmakers that beyond the $294 million budget gap she’s already identified, the state could be staring down an additional $100 million deficit at MassHealth due largely to a mounting caseload.

Lepore also warned that while the state isn’t making cuts “at this time” in the executive branch, she could target some of the roughly $230 million in vetoes they overrode during the budget process for “future allotment reductions.”

Lepore’s two-page letter, which she sent to legislators yesterday, adds to what’s been a gloomy financial picture for the state.

Two weeks ago, she announced that the Baker administration was launching a monthlong buyout program for 42,000 employees in an attempt to thin the workforce and save $25 million. She said yesterday that if too few employees take the buyouts, layoffs could follow.

Baker’s bean-counters are using a number of different methods to close the gap, including $92 million in higher-than-expected federal reimbursements, officials say.