Governor Offers Plan to Plug $1.4B Deficit
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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.
"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:
The governor also had announced plans earlier to merge the Massachusetts Turnpike Authority with the Highway Department as a cost-saving measure.
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.
