Oct 2, 2008 6:38 pm US/Eastern
State Cuts To Hit Pension System, Turnpike Auth.
BOSTON (WBZ) ―
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Gov. Deval Patrick is pushing a series of spending cuts and reforms after state revenues fell $223 million short of expectations in the first quarter.
WBZ
Gov. Deval Patrick is pushing
a series of spending cuts and reforms (pdf)-- including dismantling the Massachusetts Turnpike Authority -- after state revenues fell $223 million short of expectations in the first quarter.
The slowing economy will force officials to lower their estimate for expected revenue for the rest of this fiscal year.
Reducing the number will give Patrick the authority to make cuts across the executive branch. He's also asking lawmakers for the power to make cuts throughout the rest of state government.
Patrick says he'll also file legislation to dismantle the Turnpike Authority, restructure the Big Dig debt and consolidate other departments.
Michael Widmer, President of the Massachusetts Taxpayers Foundation said that there were parts of Patrick's proposal that the organization liked and disliked, but thinks the Turnpike Authority has nothing to do with the budget problems facing the state.
"There will be very little savings," he said. "In fact, it will be a huge distraction from the underlying transportation funding problems that are facing the state of Massachusetts, namely for our roads and bridges and public transit systems."
Patrick's budget reduction plan also includes reforming the State and MBTA pension systems.
In a joint statement released shortly after Patrick's announcement, Senate Pres. Therese Murray and House Speaker Salvatore DiMasi said they agree with Gov. Patrick that the state has to act now to deal with the effects of the economic downturn.
"The Legislature agrees with the governor on the need to make cuts now across state agencies under his statutory authority and we will cooperate in that effort and in our continuing efforts to find greater savings and efficiencies in state government."
In fact, instead of the 7 percent budget cut proposed by the governor, Murray and DiMasi say they'll go even further by reducing their budget for the 2009 fiscal year by 10 percent, which would send $9.1 million to the General Fund for other critical spending priorities.
Patrick said the cuts and consolidations are needed because revenues will likely continue to drop given the nation's ongoing economic crisis.
When asked about Patrick's proposal to revamp state pension plans, Widmer said, "Obviously changing the benefits of public employees is a very difficult proposition. On the other hand, in this kind of situation, the state is facing this may be the best time to take some kind of unpopular action."
State Treasurer Tim Cahill acknowledged that Patrick's ambitious pension reform plan won't come without its obstacles.
"We've tried to reform the pension fund and tried to make minor reforms, and we have not been successful with the legislature. They sort of close ranks every time we venture in there."
(© 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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