The Commonwealth of Massachusetts
Executive Department
State House Boston, MA 02133
(617) 725-4000
MITT ROMNEY
GOVERNOR
KERRY HEALEY
LIEUTENANT GOVERNOR
FOR IMMEDIATE RELEASE:
January 10, 2003
CONTACT:
Shawn Feddeman
(617) 727- 2759
ROMNEY SEEKS EXPANDED AUTHORITY TO BALANCE BUDGET
Calls for shared sacrifice in order to avoid disproportionate cuts to poor and needy
Saying the choice is between disproportionate cuts to programs serving the most needy citizens of Massachusetts or shared reductions in spending, Governor Mitt Romney today filed legislation to broaden his authority to bring the state budget into balance in the current fiscal 2003 year.
"A true partnership means sharing in good times and bad. In good times, the Commonwealth shared its prosperity with cities and towns," said Romney in an address to the Massachusetts Municipal Association.
"Now that the state has hit hard times, we need cities and towns to join us in tightening their belts," Romney said.
Romney said he anticipates a significant shortfall for the remainder of Fiscal Year 2003, which was not foreseen a few short months ago. Most of the focus had been on a looming budget gap in the 2004 fiscal year.
"Our problem is simple: spending is high and cash is low. When we began our transition two months ago, every indication was that the current budget was balanced. That is not the case, and immediate, hard action is required to achieve fiscal balance," said Romney.
The proposed legislation would permit the Governor to review local aid and higher education accounts in addressing deficiencies in revenue for the current fiscal year. Those accounts are currently beyond the reach of Romney's so-called "9C authority" to reduce spending.
According to Romney, his current "9C authority" would force disproportionate cuts on the elderly, poor and disabled.
"If we are forced to balance this budget on the backs of our seniors and the poor, we will expose the core services of government to disproportionate cuts," said Romney. "That is not fair. The best solution is to spread the burden."
Romney tasked Lieutenant Governor Kerry Healey with the job of acting as liaison to cities and towns during the fiscal emergency. She will work with mayors and local officials to devise a package of changes designed to give them the flexibility to manage their local budgets.
Healey will collect information in direct meetings with mayors and electronically via the Internet.
"Over the next few weeks, I will be traveling the state meeting with mayors and local officials to solicit their advice on how we can make the coming months less challenging for local communities," Healey said.
"We view this moment of economic crisis as an opportunity to remove some of the financial and bureaucratic burdens the state has saddled local government with over the years," she added.
Healey said she has already heard from local officials seeking relief with transportation issues, purchasing requirements, unfunded mandates and onerous construction regulations.
Due to balance of power issues, Romney's proposed legislation does not affect the Judiciary or the Legislature, although each will be asked to make voluntary reductions in their own spending.
"I do not believe the best way to find solutions to our fiscal problems is to sit on Beacon Hill and simply issue directives and orders to our cities and towns. Instead, I believe we must come together to find the least painful path through this crisis," said Romney.
"We must have the cities and towns at the table as we craft our answer to the budgetary challenges that confront us so that the solutions we propose do not unfairly target health and human service programs," he said.
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