Patrick Calls for Consolidation, Job Cuts to Close Budget Gap
Gov. Deval Patrick on Thursday unveiled a five-point proposal to stem the bleeding caused by a $212 million shortfall for the first quarter of fiscal 2010. His administration has reduced projected revenue for the rest of the year to $18.279 billion, after consulting with the Department of Revenue and members of his Economic Advisory Council.
"Better times will come and there are signs they are not far off," said Patrick in a statement. "We will and must continue to make the investments we can in our long-term economic and community strength. But right now, for those who look to state government for help or support, we face still more challenges, and we will have to stick together and work together - in the spirit of community - to get through it."
The governor over the next two weeks plans to review suggested reductions in government programs, so-called 9C cuts, submitted by Executive Branch agencies and make hundreds of millions of dollars in mid-year cuts.
It could mean eliminated up to 2,000 positions; making executive branch managers take up to nine furlough days; and calling on union leaders to work with the administration to identify ways employees can share in the sacrifice to mitigate layoffs and continue to provide vital services.
The administration is also looking at consolidating agencies. Patrick has directed his Cabinet to provide to him by the time he files his fiscal 2011 budget proposal a plan for consolidating as many different agencies and functions as possible.
He would also pool the state's energy purchases by having agencies and departments work with the Executive Offices for Administration and Finance and for Energy and Environmental Affairs on a centralized plan to reduce state energy costs.
The fifth point will require the Legislature to give him expanded 9C powers to make mid-year cuts in agencies outside the executive branch. He also wants non-executive branch directors to voluntary make cuts in their departments. Patrick has asked each constitutional officer to submit a plan to voluntarily reduce their own spending in the current fiscal year at levels consistent with what he is asking of executive branch agencies.
"We have actively, responsibly, and thoughtfully managed state finances through this unprecedented economic downturn, and we will continue to do so," said Secretary of Administration and Finance Jay Gonzalez. "We must continue to be fiscally responsible, spending only what we can afford and making decisions that will give us a strong foundation as we begin planning for an even more challenging fiscal year ahead."
In addition to closing the budget gap, the governor said he is focused on decisions to address what fiscal watchdogs estimate to be a $2 billion to $3 billion shortfall for fiscal 2011. In addition to making significant reductions from the 2010 budget, the administration will continue to push for reforms to make government more efficient and save money, he said, while continuing to make targeted investments to help create new jobs.
In spite of these budget challenges, Massachusetts continues to fare relatively well compared to other states. The fiscal 2010 budget was balanced and on time and credit-rating agencies have affirmed the commonwealth's AA credit rating.
The governor will release further details of his plan to close the gap by Oct. 30, as required by law.
