Governor Offers Plan to Plug $1.4B Deficit

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BOSTON — Gov. Deval Patrick announced Wednesday nearly a $1 billion in cuts and the slashing of a 1,000 jobs as the state struggles to cover a looming deficit in downward spiraling economy.

He's also asking lawmakers to dip into $200 million from the state's rainy day fund.

"With the economy slowing and state revenue declining, we have to act," said Patrick. "These decisions are not easy. I know there is a good idea or a good person behind every one of these cuts. But we are going to share the sacrifice now so that we can all be stronger when the economy recovers."

Two weeks ago, the governor warned that the softening economy would require savings reform and set Oct. 15 as the day to unveil a five-point plan to control and reduce state spending.

Revenues for the first quarter of the fiscal year that began in July were $223 million below estimates, signaling "worse news ahead," said Patrick. "The national economic downturn, tightening credit and its impact on business activity and consumer spending, market volatility and its effect on capital gains all require us to take further steps now to assure a balanced budget."

The global financial crisis has sent Wall Street reeling; after bouncing back more than 900 points on Tuesday, the Dow Jones fell 733 points on Wednesday.

A disclosure document filed Friday for bond investors indicated state revenues would be $800 million to $1.5 billion less than expected this year.

Earlier Wednesday, Attorney General Martha Coakley pledged making between $500,000 and $1 million in budget cuts in her office for the remainder of the fiscal year.

"The attorney general's office plays multiple roles in the commonwealth, both bringing in revenue for the commonwealth and saving taxpayers' money," said the North Adams native. "As such, we are diligently and carefully reviewing our budget in order to best determine how we can trim our spending while not impeding our ability to recover funds for the commonwealth and to continue to advocate for consumers." 

Coakley said her office saved or recovered more than $200 million for the state last year.

State Rep. Denis E. Guyer, D-Dalton, last week urged the governor to consider a four-day work week for non-essential public workers as a way to save money.

"These desperate times require those of us in positions of leadership to push our comfort zones, and think outside the box a little more than we already do," said Guyer. "I am asking Governor Patrick to strongly consider this idea, which has been implemented in other states, and will save money primarily through reduced energy use."

To close the $1.4 billion deficit, Patrick proposes to:

  • To use his statutory authority to make $755 million in cuts across executive branch agencies and implement $146 million in additional spending controls.
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  • To draw an extra $200 million from the state's Stabilization Fund, leaving a balance of $1.6 billion.

  • Encourage nearly $100 million in voluntary spending cuts from other parts of government and quasi-public agencies, such as Coakley's efforts and the commitment from the Legislature to cut $9 million from its budget.

  • Depend on $100 million in expected corporate tax settlement payments currently being negotiated at the Department of Revenue, and $55 million in additional Transitional Aid to Needy Families funds from the federal government.

  • Restructure the way state employees pay for health insurance, which is expected to save $28.5 million for the remainder of fiscal 2009. The proposal is similar to what the governor introduced earlier this year.

  • The governor also had announced plans earlier to merge the Massachusetts Turnpike Authority with the Highway Department as a cost-saving measure.

    Patrick said cities and towns will not lose local aid, though their receipts will be reduced in direct proportion to the amount of revenue they will receive from the repeal of the telecom tax exemption. Communities that do not receive funding from the telecom tax will not see a decrease in their aid.

    Some $3 billion in bridge repairs, such as the long-awaited Hadley Overpass reconstruction, are also safe for now. According to The Boston Globe, Bernard Cohen, the state transportation secretary, said the eight-year program will be paid through the capital budget. Cohen said the governor hoped the bridge program would be a catalyst for the state's economy.
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    BRTA Looks to Another Year of Fare Free

    By Breanna SteeleiBerkshires Staff

    PITTSFIELD, Mass. — The BRTA is expecting another year of fare free rides.

    Berkshire Regional Transit Authority Administrator Kathleen Lambert told the advisory board recently that she expects to receive $1.3 million in state funding to remain fare free. She said RTAs may be given up to $40 million this year statewide, which is $5 million up from last year.

    While the state budget is not formally approved yet, the effect will take place on July 1.

    The news came at the same time the board approved the BRTA's budget of $13.6 million, which is an increase of 11 percent since last fiscal year.

    Some of the increases were in the fixed route area which jumped from $9 million to $12 million. Lambert said this is due to the contractual agreement between the union where they have a five percent raise for all of the drivers and other union members, as well as a seven percent raise for paratransit fleet operators.

    Lambert said much of the costs raised were fuel costs because of the ongoing war in Iran. The authority uses about 8,000 gallons of fuel a month and has planned for $5.75 per gallon.

    The customer service desk, which currently staffs two employees, will be shut down, she said. The two employees were given notice months in advance and one showed interest in becoming a bus driver and will plan to interview for that. Lambert said two new drivers have started and that the new transit company Keolis, which is taking over for Transdev, will continue to hold recruiting events. The new manager is Mark Moujabber, taking over for Bobby Quintos. 

    Lambert told the board she believed there are discrepancies in ridership data. Deputy Administrator Benjamin Hansen, who was in operations before his current role, said the authority has been seeing low ridership because of route cancellations, however, this past month, the numbers did not make sense as demand has stayed the same but ridership seemed exponentially low.

    To get the figures, bus drivers must manually push a button on the farebox to record passengers, wheelchairs, and bikes, which might have errors. There are automatic passenger counters (APCs) installed, but they are not certified, so are only used as a rough comparison tool as they are not accurate.

    Board member Stuart Lawrence asked if there has been any investigation on if this might be deliberate. Hansen said there is not as he does not know how they could watch for that to happen.

    Lambert said she has been working with professor Paula Consolini at Williams College, who will have a group of samplers who will ride the bus and gather a week's worth of data.

    In the last meeting, the board spoke about anonymous emails from drivers, and a letter iBerkshires received spoke of unhappy drivers who were considering quitting because of decisions being made without "input from frontline staff," frustration and falling morale, and the removal of the former general manager shortly after Lambert came in.  

    Multiple employees had also signed on to a vote of no confidence letter in the BRTA administration spearheaded by Raymond Killeen who is a bus driver and represents Cheshire on the advisory board. Killeen said losing Quintos was hard, stating he was an excellent general manager and not having him there led to hardships on accomplishing many things.

    "Once the removal was there, it was difficult to accomplish certain things, because we had lost the general manager. So, the letter was an attempt to get things moving a little bit quicker, so we could provide a better service for the residents of Berkshire County. I don't know if it accomplished that. We were able to do some things, though, but the concern amongst rank and file here is that we're not providing the best service we possibly could, and we're hoping that when the new management team comes in, that can be accomplished," Killeen said.

    Killeen said he was unhappy with the progress to a revised driver schedule. The day after the meeting, Lambert and the team had a meeting to discuss and negotiate run schedules, Lambert said it was a very good and productive meeting.

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