Despite a solid economy, low unemployment, and a former state budget chief in Gov. Charlie Baker and two former Ways and Means Committee chairs – House Speaker Robert DeLeo and Senate President Stan Rosenberg – running state government, Massachusetts finds itself turning the page on one fiscal year and entering a new one with major questions swirling about spending exceeding revenues in two state budgets.

Most lawmakers are waiting on Baker and legislative leaders to outline a path forward and with new taxes and the use of reserve funds being frowned upon, spending cuts or other revenue raids appear as possible courses. Due to faulty revenue assumptions agreed to in the winter by Baker and legislative leaders, negotiators have two weeks to take two $39.5 billion spending bills and somehow adjust them to reflect revenues that the Baker administration disclosed this week are now likely to come up short by between $450 million and $750 million next fiscal year, and as much as $370 million short this fiscal year. The stunning news, coming just months after Baker’s team increased its expectation of tax revenues for fiscal 2016, was followed by several days of head-scratching and pledges to work together on solutions that are still not apparent heading into the conference committee crunch time.

The budget woes, even as Baker tries to downplay the scope, have turned into a surprise distraction from the business of wrapping up work on other bills with 44 days until formal sessions come to an end. The momentum of a transgender rights bill has slowed, the Senate has yet to debate its energy and ride-hailing industry regulation bills, and the House has yet to take up Senate-approved pay equity legislation. An economic development bill has yet to hit the floor in either branch.

Click the audio player above to hear Matt Murphy speak with NEPR’s Henry Epp.