Patrick proclaims a $1 billion deficit Romney spokesman says budget is balanced

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January 6, 2007

By Edward Mason , Staff writer The Salem News Sat Jan 06, 2007, 09:48 AM EST

BOSTON - Gov. Deval Patrick said yesterday the Romney administration left a budget gap of "at least" $1 billion for next year, which a top aide to the former governor called "ridiculous."

Patrick, speaking to reporters during a brief break in his first cabinet meeting, said former Gov. Mitt Romney's team used gimmicks to make it look like there would be a budget surplus in fiscal 2008 instead of a deficit.

"There are all kinds of patches and plugs that have been used in the outgoing administration to make it look like it (the deficit) isn't that big," Patrick said.

Patrick said his administration would be looking at cutting state spending within the agencies he controls to help close the gap but did not outline specific steps.

During the campaign, Patrick did not rule out a tax increase but also didn't come out in support of one.

Patrick said the $1 billion gap for the fiscal year that begins July 1 could grow larger as his new administration takes a closer look at the budget blueprint Romney created for him in December.

"There's some work to do to figure exactly the state of play in our government right now," Patrick said.

The looming deficit is no reason to worry, Patrick said.

"It's a very significant structural deficit," Patrick said. "We have to deal with that, and we will deal with that. There's no reason to panic."

Patrick, who has pledged to have an open and transparent government, said he would not imitate the way Romney created a surplus.

"That's not the way I want to operate," Patrick said.

Romney spokesman Eric Fehrnstrom countered that it was Patrick who wasn't being candid with taxpayers.

Fehrnstrom said it is disingenuous for Patrick to believe a budget gap exists for next fiscal year but that he can restore more than $380 million in emergency spending cuts Romney made in November to keep this year's budget balanced.

"Deval Patrick can't have it both ways," Fehrnstrom said. "He can't restore cuts to the state budget and then claim there's a budget problem.

"Gov. Romney balanced the budget every year he was in office," Fehrnstrom said. "The reason he cut spending just recently was because of the need to maintain fiscal discipline."

Who is correct will become clearer later this month, when administration and legislative leaders meet to agree on how much money they think they will have to spend in the next fiscal year.

Michael Widmer, president of the Massachusetts Taxpayers Foundation, said Patrick is on target.

Widmer predicted revenue would grow but only at half of this fiscal year's pace, resulting in revenues falling at least $800 million.

Widmer said his position as an unpaid adviser to the incoming Patrick administration did not influence his take on the state's finances. He has served on transition teams for other new administrations.

House Ways and Means Chairman Robert DeLeo, D-Winthrop, pegged the revenue shortfall at between $500 million and $750 million, but said "$1 billion wouldn't knock me off my chair."

Like Widmer, DeLeo said revenue growth is not expected to match this fiscal year. Meanwhile, just maintaining this year's services next year comes at a higher price.

Barbara Anderson, founder of Citizens for Limited Taxation, said Patrick's pronouncement gives her a sense of deja vu.

She said a new, reform-minded governor named Michael Dukakis came into office claiming he was left a fiscal mess in 1975 and responded by raising taxes.

But this time might be different. For even if Patrick supported raising taxes, the Legislature seems to have little interest in following.

Senate President Robert Travaglini said Wednesday that a tax increase is off the table. Similarly, DeLeo, the House budget writer, said there is "no appetite" for a tax increase in the House.

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