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Gov. says state won't balance budget at local expense

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January 10, 2008


Gov. Deval Patrick addresses the MMA Annual Meeting on Jan. 11, 2008.Noting that the state faces serious fiscal challenges of its own – including a structural deficit of more then $1 billion for fiscal 2009 – Gov. Deval Patrick promised local leaders from across the state that the burden will not be shifted to cities and towns.

“Our budget will not be balanced on your backs,” he said in a speech that kicked off the MMA’s 29th Annual Meeting this morning in Boston.

He said he understands that cities and towns are facing very difficult fiscal challenges.

“This administration has been your partner, and I’m committed to keeping that partnership strong,” he said.

Just a week and a half before he files his fiscal 2009 state budget bill, however, the governor did not preview any specific budget proposals.

Patrick did vow that his administration will continue to push the Legislature to pass portions of his Municipal Partnership Act that have thus far been ignored, particularly a local option meals tax and the elimination of a property tax loophole that gives telecommunications companies an $80 million tax break.

Expressing his frustration, Patrick said, “So far not one of the revenue options has been heard for a vote in the Legislature. Not one! That is not acceptable.

“It ought not be acceptable to you, and you ought to show up and make that point. … Let your representatives and senators know that the cost of inaction is too high.”

Patrick brought some good news as well, saying 26,000 new jobs were created last year in Massachusetts, and the state is ranked No. 1 in “overall economic competitiveness” by one national study.

He said his administration understands that “economic development happens at the local level.”

The governor made another pitch for the job and revenue benefits he claims the state will reap from his proposal to license three resort casinos in Massachusetts.

“This is not the centerpiece of our economic strategy, it is a piece of our strategy,” he said.

He added that casinos “will not alter the character” of Massachusetts, where gambling, particularly the Lottery, has a long history.

“We are proposing solutions,” he said. “If our solutions are flawed, fix them. If our ideas are wrong, come forth with better ones. We welcome a robust debate.”

Prior to the governor’s speech, Boston Mayor Thomas Menino welcomed local leaders to his city with a strong call for more revenue flexibility for cities and towns.

“Cities and towns need the power to control their own destiny,” he said. “We need revenues we can depend on. We need to diversify our revenue sources [beyond the property tax], and we need it now.

“Our message is simple: What’s good for cities and towns is good for our Commonwealth,” he continued. “We need to say we’re going to change the course of this Commonwealth. It’s too important.”