DOWNSIZING STATE GOVERNMENT
By State Representative Don Humason, Jr.
November 29, 2008
I hope you had a Happy Thanksgiving.
My congratulations to the Westfield High School Bombers who beat Cathedral High School, their Thanksgiving Day rivals, in a great football game on Thursday.
In response to the economic crisis at the national level, and falling state revenue receipts, both the Republican and Democratic members of the House and Senate, along with Governor Deval Patrick, have been looking for ways to balance the state budget revenue shortfall of approximately $1.4 billion.
Due to projected revenue deficiencies for FY09, Governor Patrick was forced to undertake a number of actions to keep the budget in balance. These included 9C reductions to all state agencies directly under his control.
Should these reductions prove insufficient in offsetting the expectant deficiencies, the Governor may again request that the Legislature grant him enhanced powers to deal with deficiencies in other parts of the FY09 budget not currently under his control. The Governor asked for these powers in his July 2008 supplemental budget, but his request was not considered by the Legislature at that time.
It is worth noting that some of us have warned since March that the FY09 budget was out of balance and that as passed by the legislature and signed by the Governor, notwithstanding his vetoes, we were spending beyond our means. Had appropriate action been taken then, the need for more drastic action now might have been minimized.
Go to my website at www.donhumason.org and look under the columns tab. You will see that in my March 1 column, Unsustainable, I warned we were spending too much, too fast. In my May 3 column, Spending Other Peoples Money, I cautioned that my colleagues were engaged in a giddy and irresponsible spending spree despite the fact we knew that hard times lay ahead.
What we have to do now, in this time of national economic turmoil, is downsize state government. 9C cuts are just one way to do that. Below is a summary of the Governors power under Section 9C of Chapter 29.
Section 9C of Chapter 29 affords the Governor the authority to address funding deficiencies, typically by reducing the appropriations for state agencies under his administration. As outlined under Section 9B, these appropriations generally fall under the jurisdiction of a secretariat, and certain appropriations do not qualify for gubernatorial reduction. These include: (1) the Legislature; (2) the Judicial Courts; (3) the Constitutional Officers, including pension, Lottery Funds, and debt payments; and (4) Local Aid.
9C authority also allows the Governor to propose revenue raising measures or to request a transfer from the Rainy Day Fund to generate the necessary revenue; however, any such proposals must be approved by the Legislature.
Under current law, the Governor must either reduce funding or propose a means to raise the necessary revenue within 15 days of notification by the Secretary of Administration and Finance in such that revenue will be insufficient to meet appropriations authorized by the budget. Finally, 9C authority allows the Governor to make multiple reductions to appropriations if necessary. The Governor, however, must submit a written report to the House and Senate Committees on Ways & Means prior to any additional reductions.
Even before we formally convene in January, the House and Senate have taken steps during the current informal session to do our part to act on the state of the Commonwealths economy and financial situation.
Last month, the Legislature took up parts of a Supplemental Budget bill filed by Governor Patrick that complement the Governors 9C cuts and further assist with balancing the state budget.
Things like extending the pension funding schedule two years from 2023 to 2025, permitting the Mass Highway Department and the Department of Conservation and Recreation to spend up to $50 million for FY 09 for emergency snow and ice removal in order to accommodate for timing discrepancies between the need for snow removal and availability of funds, allowing transferability within the Executive Office Secretariats, providing a two month tax amnesty program to infuse the state with revenue that might otherwise not be collected, and authorizing the transfer of up to $200 million from the Stabilization/Rainy Day fund to the General Fund.
The Legislature has frozen hiring, conference travel expense reimbursement, and the purchase of many office supplies.
I wholly expect the budget situation to get worse before it gets better. This state and our country have weathered financial crisis before. I am confident we will come through if we all pull together. We should not pass up this rare opportunity to downsize/rightsize state government while we can.
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Representative Humason and his Legislative Aide Jonelle Gingrich may be reached at his State House office, Room 542. Boston, MA 02133. (617) 722-2803.
Representative Humason and his Chief of Staff Sarah Latour may be reached at his Westfield district office, 64 Noble Street, Westfield, MA 01085. (413) 568-1366.
Representative Don Humason’s website is www.DonHumason.org |