Says local aid safe, at least for now

BELCHERTOWN - Gov. Deval Patrick stopped by Town Hall Thursday with one message for local leaders: Don't panic.

Patrick stopped short of a firm commitment to spare state aid to cities and towns from cuts, but he did say he would cut local aid only as a last resort. He said current fiscal forecasts indicate that won't be necessary.

The governor spent an hour in a private meeting with town officials from Belchertown, Amherst, Granby and Ware, as well as several area legislators including state Sen. Stan Rosenberg and state Rep. Ellen Story, both Democrats from Amherst. Patrick is holding several similar meetings around the state to allay fears that a $1.4 billion state budget shortfall will filter down to the local level through state cuts to local aid.

In a side room after the Town Hall meeting, Patrick offered a brief interview with area newspaper, radio and television reporters before setting off for a land donation ceremony in the Berkshires.

Patrick outlined his plans to make up the deficit by carving $1.1 billion out of state offices and programs, and by drawing $200 million from reserves.

His vow to spare local aid, he noted, could change with the elimination of the state income tax. Patrick and other legislators warned about the dire consequences if ballot Question 1, which seeks to abolish the state income tax, is adopted by voters Nov. 4. It would eliminate about 41 percent of the state's revenue, opponents say.

"If it passes, it's a catastrophe for the commonwealth," Patrick said. "This is a reckless and extreme measure."

Rosenberg agreed. "Question 1 would decimate state government and put tremendous pressure on municipalities to provide local services," he said.

Officials in Belchertown - and nearly every other community in the area - have come out against Question 1, too.

About 65 percent of Belchertown's $2.9 million state aid would be lost if the ballot question passes, Town Administrator Gary Brougham estimated earlier this week. He said that would cause the town to close up to five municipal buildings, lose 20 or more employees and freeze purchasing.

In addition to local aid, Patrick also vowed to protect funding for domestic violence programs and services for veterans, disabled people and the homeless. He also said initiatives to prevent home foreclosure and to rehabilitate abandoned property are priorities.

Before the budget cuts, the fiscal 2009 state budget was to have totaled $28.2 billion.

State Sen. Stephen Brewer, D-Barre, said economic forecasters expect it will be 2½ years before state revenues stabilize. He attributed the current budget woes to a sharp drop in revenue from capital gains taxes and the lottery.

Patrick put an optimistic spin on his proposed budget cuts, noting that some of them - more than $33 million from the state's judicial system and $9 million from the Legislature - were offered up by the agencies themselves. Higher education and several quasi-public agencies, such as the Educational Finance Authority and MassHousing, also face cuts.

The governor said there also are plans to restructure health insurance payment plans for state employees as a cost-saving measure.

"There's a lot of pain in these cuts," he said. "There were no good choices, but it's spread broadly ... We should seize the challenge before us as an opportunity for even greater reform."