Posted on 01/30/2003 6:10:25 AM PST by Hemingway's Ghost
Gov. Mitt Romney vowed yesterday to bridge an immediate $485 million deficit by slashing deeply into local aid, health care for the poor, human services, public workers' health insurance and state recreation facilities - but without any new broad-based tax hikes.
Speaking live on TV from the Corner Office, Romney pledged ``the most far-reaching restructuring of government in decades'' next year - but said there's no time for anything but cuts in the remaining five months of this fiscal year.
Some of Romney's cuts are symbolic - like axing the notoriously patronage-laden Metropolitan District Commission and its controversial chief David Balfour - but mayors and advocates warned that most of the cuts would create real pain.
``I am asking everyone to share the burden,'' Romney said. ``I've tried to make the reductions as fair as I can, and they do not compromise the core missions of state government.''
While the ``good news'' is the free-falling economy seems to have hit bottom, Romney said the state must still ``face up to the reality'' - a shortfall that could hit $650 million by the end of the year.
The state will be forced to dip into its dwindling reserves if an expected $165 million implosion in capital gains revenues materializes late in the fiscal year, he said.
While the details of the cuts will not be released until today, Romney plans to unilaterally slash $343 million from programs and ask lawmakers to approve another $143 million in cuts - a total of $488 million in immediate savings, including $2 million in fee hikes.
The most controversial cut will fall on local aid, with Romney shaving $114 million out of the roughly $2 billion still due to cities and towns - a 5 percent cut over the last five months of the year.
Boston Mayor Thomas M. Menino said his city would suffer far more than a 5 percent cuts, since Romney plans to take most of the money from big cities like Boston that get so-called ``additional assistance.''
Menino predicted Boston's local aid during the next five months will be slashed by between $24 million and $27 million. ``It's not fair,'' Menino said. ``We're looking at an 11 percent cut in local aid. The devil is the details and he didn't talk about them.''
Lt. Gov. Kerry Healey is slated today to roll out a ``relief'' package of proposals to free cities and towns from costly mandates.
The single-biggest cut will fall on human service programs, with Romney cutting a $133 million swath - or 3 percent over the rest of the year - through programs that have already been hard hit.
And the governor hinted at potentially explosive changes to the $6 billion, budget-busting Medicaid program, which provides health care to nearly 1 million of the state's poorest residents.
``I'll ask citizens who receive free medical care to contribute a share of its cost,'' Romney said.
And in a move that has traditionally pitted GOP governors against lawmakers, Romney said he would ask the Legislature to increase state workers' health insurance contributions from 15 percent to 25 percent.
Public employee unions threatened warfare over Romney's insurance plan, which they said would balance the budget on the backs of workers who have already absorbed $30 million in higher health care costs.
``State workers have already done their part to solve the deficit,'' said John J. Templeton, president of the Service Employees International Union, which represents 9,000 human service workers.
Romney also warned of a ``slightly shorter season'' at state recreational facilities and higher fees for ``boaters and golfers.''
While much of Romney's speech focused on the cash shortfall in the current fiscal year, he raised a warning flag over the ``real bear'' - next year's expected deficit of $3 billion.
The governor said he would file a budget next month that avoids new taxes and protects the state's ``core mission'' by proposing to ``fundamentally restructure'' the way government operates.
Brandishing the banner of ``streamlining and economizing,'' Romney noted the state employs at least 800 lawyers - ``way too many.''
In addition to abolishing the MDC, Romney said he would meld agencies that fall under the rubrics of health and human services, transportation, the environment, and work force training.
Legislative leaders offered a televised Democratic response to Romney's speech - promising cooperation, but also issuing stark warnings.
House Speaker Thomas M. Finneran said Romney's popular election ``is not to be trivialized'' - but he immediately threw down the gauntlet on three areas which Romney, moments earlier, had threatened.
Finneran said he would seek to protect education and literacy programs, local police and fire services, and health care providers.
``How the governor defines `essential services' will likely receive much scrutiny in the weeks and months ahead,'' Finneran said.
But Romney said he would pursue drastic changes to the complex formula that dictates shares of school aid - saying the distribution should be ``more fair, efficient and effective.''
While Romney pledged not to cut direct school aid, his local aid cuts will squeeze municipalities that use general state aid to support both schools and public safety services.
And Romney pointedly noted that health services would be ``pared back'' and that he would ask hospitals, nursing homes and other health care providers to ``share'' in the ``emergency reductions.''
Both Finneran and Senate President Robert E. Travaglini insisted the Legislature behaved responsibly by building reserves, hiking taxes and cutting spending - a reaction to Romney blaming them for mismanagement.
Travaglini raised the specter of tax hikes as a ``last option'' for solving the state's budget woes next year, when the deficit balloons to five times the size of the current shortfall.
With tax-hike talk percolating from the highest circles, Romney drew a sharp line in the sand - saying tax hikes would push working families into ruin and further harm the state's faltering economy.
``That's the last thing we need,'' Romney said.
Exactly, and Romney's doing just that. I heard him on Howie Carr two nights ago, and he was talking about getting rid of most of the state-owned SUVs and most of the state-hired lawyers. Not a bad way to start trimming the fat.
From what I understand, they're going to be parcelled out to other state agencies and/or municipalities.
That doesn't even begin to make sense. But you're right---if this is the best the Democrats can muster up, it's a bright, shining day for Mitt.
BTW, anyone here see Finneran's response last night? Does that man have a lazy eye or what? He looked like death warmed over . . .
BITS
Uhhhh....it sounds to me like Finneran wants to protect jobs, jobs, and more jobs.
One place to cut would be MCAS. A fortune could be saved by using an in-place test (like the Iowas) and cutting out the programs to help kids pass. That's the job of their regular teachers.
Massachusetts residents my age will remember this kind of thing from back in the '60's when Volpe (a GOP governor) was elected. They may surprise you.
Similarly, a Medford resident, for three years I hiked every day in the Middlesex Fells, an MDC park. NOT ONCE did I see an MDC official inside the park, on foot, performing trail maintenance or anything else. The only time I saw an MDC official was in the parking lot, in an SUV, handing out parking tickets.What the MDC did was a complete mystery to me.
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