Oct. 29, 2009 : State budget cuts

>> ON GREATER BOSTON
GOVERNOR PATRICK SWINGS THE
BUDGET AXE AGAIN, HOW WILL
THESE CUTS IMPACT THE STATE.
PLUS THE MAYORAL REMATCH IN
QUINCEY THAT TURNED PERSONAL.
>> AND HONORING A BLUES LEGEND,
HUEY LEWIS AND {SWRAMS}
MONTGOMERY WITH THE BOSTON
TRIBUTE TO JAMES COTTON.

>> Rooney: GOOD EVENING.
FOR THE FOURTH TIME THIS YEAR
GOVERNOR DEVAL PATRICK HAS HAD
TO TAKE A KNIFE TO THE STATE
BUDGET.
FACING A $600 MILLION DEFICIT
THE GOVERNOR SAID HE IS
PROTECTING LOCAL AID TO CITIES
AND TOWNS BUT STATE WORKERS
WILL BE FACING FURLOUGHS AND
LAYOFFS.
AT THE NEW ENGLAND BUSINESS
EXPO IN WORCESTER TODAY
GOVERNOR DEVAL PATRICK
ANNOUNCED HIS PLAN TO CLOSE THE
BUDGET GAP, EXPRESSING
LONG-TERM OPTIMISM BUT SHORT
TERM PAIN.
>> THERE HAVEN'T BEEN BUDGET
CUTS, EASY BUDGET CHOICES FOR
SOME WHILE NOW.
AND THIS ROUND WAS NO
DIFFERENT.
THEY HAVE A REAL IMPACT AND I
KNOW THAT.
>> Rooney: THE GOVERNOR'S
PROPOSAL CALLS FOR CUTTING $352
MILLION FROM STATE GOVERNMENT.

NEW TODAY, THE GOVERNOR WANTS
TO PHASE OUT THE QUINN BILL
THAT BOOSTS THE PAY OF POLICE
OFFICERS BASED ON THEIR
EDUCATION.
AND HE WANTS TO ELIMINATE
BUNKER HILL AND EVACUATION DAY
HOLIDAYS.
AND HE'S PROPOSING NINE
ADDITIONAL FURLOUGH DAYS
WITHOUT PAY FOR NONUNION
EMPLOYEES.
THE PLAN CALLS TO KEEP THE SAME
FUNDING FOR SCHOOLS.
BUT THE BIGGEST SIGH OF RELIEF
MAY HAVE COME FROM THE STATE'S
MAYORS.
>> WE WILL NOT CUT LOCAL AID.
LOCAL COMMUNITIES, LOCAL
COMMUNITIES ARE THE FRONT LINE
OF BOTH OUR ECONOMIC AND OUR
SOCIAL LIFE.
AND THEY ARE STRUGGLING AS IT
IS.
>> A STRUGGLE THAT WILL
CONTINUE UNTIL TAX REVENUES
REBOUND.
>> AND WITH ME NOW ARE MICHAEL
WIDMER OF THE MASS TAXPAYERS
FOUNDATION AND NOAH BERGER,
EXECUTIVE DIRECTOR OF THE
MASSACHUSETTS BUDGET AND POLICY
CENTER.
WELCOME TO BOTH OF IS YOU.
>> MICHAEL, DID THIS COME AS A
SURPRISE TO YOU THAT THERE ARE
WERE GOING TO TO BE NO CUTS IN
LOCAL AID.
>> YES, IT DID.
I WAS VIRTUAL {SLOOERN} GIVEN
THE SIZE OF THE DEFICIT THAT
THE STATE FACES THIS YEAR THAT
THERE WOULD BE CUTS IN LOCAL
AID.
I THINK WE MAY STILL SEE THOSE
CUTS.
>> HOW ARE WE GETTING AROUND
THIS.
>> IN JANUARY AND IF NOT IN
JANUARY THEN WE'RE GOING TO
DEFINITELY SEE MAJOR CUTS IF
LOCAL AID NEXT FISCAL YEAR.
SO THIS IS ONLY A TEMPORARY
REPRIEVE.
>> NO, TODAY I HEARD THE
GOVERNOR TALK AS HE HAD SEVERAL
WEEKS AGO ABOUT THE WILL NAME
-- ELIMINATION OF 2,000 STATE
JOBS.
BUT I DIDN'T HEAR ANY SPECIFICS
ABOUT THAT.
HE SAID WE MAY HAVE TO LAY OFF
UP TO AS MANY BUT NO SPECIFICS,
WHY NOT?
>> A LOT OF THAT WAS CUTS IN
VARIOUS AGENCIES THAT YOU SEE.

THERE WERE CUTS IN
ENVIRONMENTAL HEALTH.
CUTS IN THE MEDICAID OFFICE BUT
THE REALITY IS MOST OF STATE
GOVERNMENT SPENDING IS NOT ON
PUBLIC DISPLAY.
THE STATE FOR MOST OF WHAT IT
DOES PURCHASES SERVICES,
MEDICAID BUYS SERVICES FROM
DOCTORS, NURSING HOMES, EVEN
THOUGH EDUCATIONAL, THEY ARE
LOCAL, CITY AND TOWN EMPLOYEES,
NOT STATE EMPLOYEES.
SO IT IS HARD TO ACHIEVE
SIGNIFICANT SAVINGS BY LOOKING
PRIMARILY AT STATE EMPLOYEES.
BUT IT LOOKS LIKE HE IS GOING
TO BE MAKING SOME CUTS THERE.
>> Rooney: HE DIDN'T DO THAT
TODAY.
I THOUGHT MAYBE HE WOULD BE
MORE SPECIFIC.
>> I THINK IT IS A MATTER OF
WHAT PROGRAMS HE IS CUTTING.
AND THEN OUT OF THERE THAT
THERE BE SOME LAYOFFS.
>> Rooney: HE SAID TODAY AND
MAYBE YOU CAN TRANSLATE THIS
FOR ME.
HE SAID THIS BUDGET HAS TO
REPRESENT OUR CORE VALUES.
WHAT DO YOU MEAN.
WHAT DOES THAT MEAN, DO YOU
HAVE ANY IDEA.
>> I THINK WHAT HE WAS TRYING
TO SAY IS EVAL US EDUCATION AS
A TOP PRIORITY AND THERE
WEREN'T THESE CUTS TO EDUCATION
WHICH I THINK PROBABLY SOME
PEOPLE --
>> I THINK ONE OF THE REASONS
HE WAS ABLE TO DO THAT WAS THE
FEDERAL STIMULUS MONEY.
ONE OF THE PIECES IS THEY ARE
USING CONDITIONAL $60 MILLION
OF FEDERAL MONEY TO BACKFILL
CUTS THAT WOULD HAVE BEEN MADE
TO PUBLIC HIGHER EDUCATION.
I THINK LOOKING FORWARD, I
THINK MIKE IS RIGHT.
NEXT YEAR IS MORE DIFFICULT
THAN THIS YEAR.
>> WITHOUT THAT.
>> WE ARE GOING TO BE HAVING
LESS STIMULUS MONEY UNDER
CURRENT CITY,.
THE THING TO REMEMBER IS ALMOST
EVERY STATE IN THE COUNTRY IS
FACING A SIMILAR SITUATION TO
MASSACHUSETTS, NATIONWIDE WE
ARE LOOKING AT CLOSE TO $IT00
BILLION IN STATE BUDGET DEFICIT
NEXT YEAR SO ONE OF THE
POSSIBILITYS IS THAT CONGRESS
WOULD STEP FORWARD AND ACT TO
HELP STATE GOVERNMENT.
I THINK THEY DO THAT FOR TWO
REASONS.
ONE ALL OF THE HARD CHOICES
WE'RE FACE BEING LAYING OFF
TEACHERS AND FIREFIGHTERS AND
CUTTING BACK ON HEALTH CARE ARE
BEING FACED EVERYWHERE.
AND IF THOSE THINGS HAPPEN THEY
NOT ONLY HURT PEOPLE IN LOCAL
STATES BUT IF IT HELPS PUSH THE
ECONOMY BACK INTO A RECESSION
BECAUSE WE ARE CULLING MORE
MONEY OUT OF THE ECONOMY AT
JUST THE TIME WE CAN.
SO IF THERE IS AN EFFORT TO TRY
TO ADD TO THE STIMULUS TO MAKE
SURE THE ECONOMY GETS OUT OF
THE RECESSION, ONE OF THE REAL
POSSIBILITIES WOULD BE MORE AID
TO STATE GOVERNMENT.
>> ONE OF THE HOT BUTTONS HAS
BEEN THIS QUINN BILL WHICH
GIVES POLICE OFFICERS EXTRA PAY
FOR EXTRA EDUCATION.
HE HAS BEEN TALKING ABOUT
PHASING IT OUT OR ELIMINATING
IT FOR SOME TIME.
WILL THAT GO THROUGH THE
LEGISLATURE, WILL THEY PASS
THAT, BECAUSE IT IS AN
EMOTIONAL ISSUE.
>> IT IS EMOTIONAL BUT THEY
HAVE CUT MOST OF THE PROGRAM
ALREADY IN THIS BUDGET SO YES,
I THINK THEY WILL GO THROUGH
WITH IT IS MY GUESS.
IT IS AN EMOTIONAL ISSUE BUT
THEY HAVE ALREADY DONE MOST OF
THE DAMAGE SO TO SPEAK IN TERMS
OF FROM THE POLICE UNION POINT
OF VIEW.
>> Rooney: THE OTHER THING THAT
THE GOVERNOR SAID IS HE WANTS
THE LEGISLATURE TO PASS THIS
MUNICIPAL PARTNERSHIP ACT.
WHAT IS THAT?
>> WELL, I THINK THAT IS A GOOD
QUESTION.
IT IS EASY TO TALK ABOUT.
RELIEF FOR MUNICIPALITIES BUT
THE NUMBER ONE ISSUE THAT THE
STATE COULD DO IN THE
LEGISLATURE AND THE GOVERNOR
COULD DO IS VALIDATE THE POWER
TO DESIGN THEIR OWN HEALTH-CARE
PLANS SIMILAR TO WHAT THE
INSURANCE COMMISSION DOES FOR
THE STATE.
THAT'S NOT IN THE PLAN NOW.
AND WITHOUT THAT, I DON'T
REALLY THINK THERE IS GOING TO
BE A LOT OF HELP FOR
MUNICIPALITIES.
>> Rooney: SO THIS IS THE
ARMOUR THAT WOULD MAKE PEOPLE
CREATE THEIR OWN PENSION PLANS
AND ALL THAT, IS THAT IT?
>> IT IS REALLY MORE ON THE
HEALTH CARE, IT SAYS FOR THE
LOCAL OFFICIALS THAT YOU CAN
ADJUST COPAYS AND THAT KIND OF
THING WHICH IS HAPPENING ACROSS
THE COUNTRY, OF COURSE.
NOT AT THE MUNICIPAL LEVEL
BECAUSE IT HAS TO GO THROUGH
COLLECTIVE BARGAINING.
ONE OF THE PROBLEMS HERE IS
THAT YOU HAVE THIS ON THE ONE
HAND CUTTING OF LOCAL AID AND
THERE WILL BE AT LEAST ONE MORE
ROUND AND MAYBE TWO MORE ROUNDS
OF CUTS.
AT THE SAME TIME WE TIE THE
HANDS OF LOCAL MANAGERS IN
TERMS IT OF MANAGING THEIR COST
STRUCTURE.
SO IT IS A DOUBLE-WHAMMY.
I DON'T EXPECT MUCH OUT OF THE
PARTNERSHIP ACT THIS YEAR.
WE'LL SEE IF THE {LJ} SLATE
TURE, THE GOVERNOR STEP UP ARE
STRONGLY NEXT YEAR.
>> Rooney: THE OTHER CUT IS TWO
PAID VACATIONS, EVACUATION DAY
AND BUNKER HILL DAY WHICH IS
REALLY A SUFFOLK COUNTY HOLIDAY
IS THAT REALLY A BIG DEAL IS IT
GOING TO BE A BIG SAVINGS DO
YOU THINK.
>> I HAVEN'T SEEN NUMBERS TO
SUGGEST IT IS A VERY BIG DAY.
I THINK IS A LARGELY A SYMBOLIC
SHOP.
AND I THINK THE SYMBOLISM IS
OBVIOUS.
>> Rooney: BECAUSE ONE OF THE
STATE REPS I WISH COY SAY THE
SAME, FLOATED IT LAST YEAR.
>> I FORGET WHO IT WAS.
>> Rooney: IT GOT BOOED DOWN.
>> WELL, IT A VERY SYMBOLIC
ISSUE.
PEOPLE ARE CUTTING BACK IN THE
PRIVATE SECTOR, THEY SAY WHAT
WHAT IS THIS, THE PUBLIC
EMPLOYEE GET THESE TWO
HOLIDAYS.
.
>> Rooney: AND THE FURLOUGH,
SAME THING.
I MEAN NINE DAYS IS ACTUALLY
FAIRLY SIGNIFICANT.
YOU COULD TAKE ALL, WHAT IS IT,
68,000 -- THAT IS FAIRLY
SIGNIFICANT.
>> THE NINE DAYS IS JUST FOR
THE NONUNION AND ALSO ABOVE A
CERTAIN LEVEL.
SO IT WON'T BE 68,000 BUT IT IS
SIGNIFICANT.
AND I THINK IT'S UNFORTUNATE
THE UNIONS HAVEN'T MADE ANY
CONCESSIONS BECAUSE THIS IS
SUCH A HUGE HOLE WITH THE
COLLAPSE OF TAX REVENUE THAT
EVERYBODY NEEDS TO SHARE IN THE
PAIN.
>> YOU ARE SEEING UNIONS
DIGGING IN ALL OVER THE STATE.

ALL OF THESE MUNICIPAL
ELECTIONS THAT ARE GOING ON
RIGHT NOW, ALL OF THE UNIONS
ARE DIGGING IN.
WE ARE ABOUT TO TALK TO THE
QUINCEY MAYORS, TO THE PEOPLE
RUNNING FOR QUINCEY MAYOR, SAME
THING IS HAPPENING THERE.
I MEAN IT'S A PATTERN.
IS IT GOING TO BREAK AT SOME
POINT, DO YOU THINK?
>> I THINK IT IS HARD TO SAY.
I THINK UNIONS NATURALLY FIGHT
FOR THEIR MEMBERS.
JUST LIKE EVERYBODY ELSE IN
THIS ECONOMY, FOLKS WHO ARE
PUBLIC EMPLOYEES DON'T WANT TO
SEE HEALTH-CARE COSTS SHIFTED
ON TO THEM AND THEY DON'T WANT
TO SEE THEIR SALARIES CUT.
I THINK WE WILL CONTINUE TO SEE
THAT TENSION AS THIS GOES ON.
>> ALSO AREN'T CITIES AND TOWNS
LOOKING REALLY HARD AT WHETHER
THEY NEED THE NUMBERS IN THESE
POLICE AND FIRE DEPARTMENTS?
THEY MAY BE -- IT WAS A GOOD
MODEL FOR 20 YEARS AGO, MAY NOT
BE NOW.
>> I THINK ONE THING THAT IS
IMPORTANT TO START TO LOOK AT
IS MORE REGIONALIZATION.
>> I DON'T UNDERSTAND WHY THAT
HAS NOT HAPPENED.
>> I THINK IT IS PARTLY THAT
THE LONG TRADITIONAL LOCAL, TO
THE PEOPLE LIKE TO CONTROL
THEIR OWN TALENT BUT I THINK IT
IS IMPORTANT TO BEGIN TO LOOK
BEYOND THE BOUNDARIES OF THE
TOWN AND SAY CAN WE DO THINGS
MORE EFFICIENTLY BY BANDING
TOGETHER.
>> ONCE THE STATES ARE REALLY
HUGE LIKE BROOKLINE OR QUINCEY,
OR NEWTON IT IS CRAZY.
>> THAT'S RIGHT.
ON THE OTHER HAND EVEN IF YOU
REGIONALIZE YOU WILL CLEARLY
HAVE TO CONTROL THE GREATER
GROWTH OF -- CARE COSTS OR
PENSION COSTS.
THERE IS NO WAY THE TAXPAYERS
CAN PAY THE OBLIGATIONS FOR THE
BENEFITS OF PUBLIC EMPLOYEES
OVER THE LONGER-TERM.
SO SOMETHING HAS TO GIVE THERE.

OBVIOUSLY A TOUGH UNION ISSUE.

>> ANOTHER SHOE TO DROP.
THANK YOU.