Jun 29, 2009 5:37 pm US/Eastern
No Pike Toll Hike, But Patrick OK's Sales Tax Hike
BOSTON (WBZ) ―
Governor Deval Patrick says the $27 billion state budget he signed late Monday afternoon protects education and health care, among other vital areas; but he also says this is "the worst global economic decline since the Great Depression."
The situation leaves him and legislature with "no perfect solutions...no perfect balance...no perfect decisions" and "nothing but tough choices among miserable options."
The Governor signed the FY2010 spending plan as firefighters in Lawrence wondered how they'll protect that densely populated city with a $1.6 million shortfall.
The budget makes steep cuts to service and slashes aid to cities and towns.
It also includes the biggest broad-based tax increase in two decades -- a measure that would increase the state sales tax from 5 percent to 6.25 percent.
Lawrence appliance store owner, Chris Lozowski, wondered how the state budget's 25 percent sales tax hike on August 1, might send customers one town up the road to New Hampshire which has no sales tax.
"It's just going to push some people away, maybe new customers that were looking," said Lozowski adding that he understands the Lawrence Fire Department around the corner badly needs local aid from the state.
"My feeling is there will be consequences. It's just a matter of when," said Chief Peter Takvorian, talking about the imminent prospect of laying off 14 firefighters and closing two fire stations. The stations in question are on Prospect Hill and Tower Hill, which is already temporarily closed as is each of Lawrence's fire stations on a rotating basis to save money.
"It could potentially cause a conflagration where house after house and block after block could go up and I hate to be the one that's sort of sounding this alarm but somebody has to," Chief Takvorian said.
Considering that, we asked the Governor if he can say every non-essential item has been cut from the budget.
"I think we have struck responsible balances and done the very, very best we can to continue be a constructive partner for Lawrence and every other city and town," Gov. Patrick said.
Even so, Chief Takvorian is writing state and federal officials trying to get help for his department and the City of Lawrence, one of many Massachusetts cities and towns experiencing painful choices.
The tax hike will also help the Massachusetts Bay Transportation Authority close a $160 million budget gap.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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