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Gov. Patrick Orders Deep Cuts to Close Deficit By Associated Press
Patrick is also asking lawmakers to dip into the state's rainy day for another $200 million. The bulk of the $1 billion in cuts and spending controls comes through $755 million in budget cuts that Patrick ordered the heads of state agencies to make during the current fiscal year, which ends June 30. That's on top of another $52 million in voluntary cuts already being made by the courts, district attorneys and other constitutional offices including the attorney general and state auditor. "Just like families all across the commonwealth, state government is feeling the pinch," the governor said at a late-afternoon news conference at the Statehouse. He warned residents to expect longer lines at the Registry of Motor Vehicles, fewer community policing patrols, slower permitting processes, and less frequent maintenance of parks and open spaces. Patrick said he tried to make the least severe cuts to services critical for the future, such as health care and education. He said the "sacrifice must be shared." "I understand that behind the numbers is often somebody's first chance or only chance at a better life," he said. "I have tried to be mindful of that in making decisions, and for that reason have not made cuts in equal measure across the board." Senate President Therese Murray, whose members would have to join with the House to approve $341 million of Patrick's actions, said the plan is "indicative of the serious nature of our budget situation in context of the global market crisis." She did not commit to any of the requested changes, but said, "During this necessary and difficult process, we must remain calm and take proactive steps to do what is best for our commonwealth." The action is being taken as Patrick faces the biggest fiscal crisis of his time in office. The $1.4 billion hole opened up for two reasons: a $1.1 billion anticipated drop in tax revenues due to plummeting capital tax returns and a $300 spike in unavoidable expenses, including soaring caseloads, the increase in the cost of debt and snow and ice removal costs not originally included in the existing budget. Patrick's plan also saves $100 million by slowing the rate of pension fund payments. Under the existing schedule, the state would fully fund the pension fund by 2023. Extending that by two years would save the extra $100 million. Another key part of Patrick's plan is to force agencies that typically come back to the state midyear to ask for additional funds to instead live within their existing budgets. That is expected to save about $146 million. The $341 million requiring legislative approval includes taking the $200 million from the state's rainy day fund. That would also come on top of the $400 million rainy day fund withdrawal already included in the existing budget. The $600 million hit would leave just $1.6 billion left in the savings account. The plan also anticipated $168 million in new revenues, including $100 million in one-time corporate tax settlements with the Department of Revenue and $55 million in additional federal dollars not included in the original budget approved by lawmakers during the summer. Patrick said some portions of the state budget are off-limits -- at least for now -- including local aid payments and school aid to cities and towns.
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