Leadership Through Our Shared Values
BOSTON - Thursday, October 29, 2009 - At a speech in front of the Worcester Chamber of Commerce today, Governor Patrick outlined his plans to responsibly close the $600 million budget gap he announced two weeks ago while protecting funding for education, local aid for communities and other core programs that reflect our shared values and are lifting Massachusetts out of the global recession faster and stronger than other states. To preserve these core services, the budget plan makes $352 million in reductions elsewhere in state government, including up to 2,000 layoffs.
Below, watch Governor Patrick's video message detailing these cuts and our shared values:
Read the Governor's remarks to the Worcester Chamber of Commerce later that afternoon
Click here to review the revised budget
Click here for an itemized list of 9C reductions
Below, watch Governor Patrick's October 15 remarks announcing the budget gap:
Read the Governor's remarks
Read the press release
Five-Point Fiscal Management Plan for Closing the Gap
Governor has made the tough choices needed to bring the budget into balance. His five-point plan for closing the gap includes:
- Executive Branch 9C Cuts: The Governor will review suggested reductions in government programs, so-called 9C cuts, submitted by Executive Branch agencies, and make hundreds of millions of dollars in mid-year cuts.
- State Personnel Impacts: The Governor's plan also calls for greater sacrifices from state employees, including:
- the elimination ofup to 2,000 positions as a result of programmatic reductions;
- requiring all Executive Branch Managers to take up to nine furlough days, depending on their salary levels;
- calling on union leaders to work with the Administration to identify ways union employees can share in this sacrifice to mitigate layoffs and continue to provide vital services.
- Consolidation of Agencies: The Governor has directed his Cabinet to provide by December 1 a plan for consolidating as many different agencies and functions as possible in order to achieve savings and provide services in a more efficient manner.
- Pooling State's Energy Purchases: The Governor has directed all state facilities managers to work with the Executive Office for Administration and Finance and Executive Office of Energy and Environmental Affairs on a plan for centralized energy purchasing, which would greatly reduce state energy costs.
- Expanded 9C Powers and Voluntary Cuts from Non-Executive Branch Agencies: The Governor will seek expanded 9C authority which will allow him to make mid-year reductions to accounts outside of the Executive Branch. He has also asked each constitutional officer to submit a plan to voluntarily reduce their own spending in the current fiscal year at levels consistent with what he is asking of Executive Branch agencies.
Governor Patrick and Lieutenant Governor Murray meet with their budget team
(including Administration and finance Secretary Jay Gonzalez, at right) in the General Council Chambers of the State House on October 16, 2009.
Aggressively Responding to the Budget Crisis
Below is a timeline of the Patrick-Murray administration's efforts through early October 2009:
View this timeline as a text document
Five months before any drop in state revenue, on April 9, 2008, Governor Patrick laid out his vision for weathering the expected downturn at the Massachusetts Institute of Technology. His plan included a $3.8 billion capital plan to start repairing hundreds of structurally deficient bridges throughout the Commonwealth. The Governor also kicked off a series of announcements to identify regional growth districts throughout Massachusetts:
Go to the video from this event
Read a transcript of the event (opens in a new window)
Read the press release
On Thursday, October 2, 2008, the Governor Deval Patrick announced he will cut spending and implement a series of cost-savings reforms as part of a five-point Fiscal Action Plan, to address fiscal challenges confronting the Commonwealth.
Go to the video from this event
Read the transcript of the speech (opens in a new window)
Read the press release
Learn more about the budget and state government's fiscal obligations at http://www.mass.gov/gaa
Intelligently Preparing for Stimulus Dollars in 2008
Governor Patrick (pictured speaking with Congressman Stephen Lynch) meets with the Massachusetts Congressional delegation
(including Congressman Jim McGovern, at left, and Congressman Edward Markey, at right) in his office on December 17, 2008.
On Wednesday, December 17, 2008, a month before President Obama and the Congress had even passed the American Reinvestment and Recovery Act, Governor Deval Patrick became one of the first Governors in the nation to announce a series of federal stimulus funding recommendations. In separate meetings with members of the state's Congressional delegation, economic experts, and representatives from various industries, the Governor outlined his administration's comprehensive efforts to get the state's economy back on track today and build a stronger foundation for tomorrow.
The Governor announced two major iniatives at the time:
- A mobilization plan to ensure the Commonwealth is prepared to maximize federal funds to create local jobs and grow the Massachusetts economy.
- An updated capital investment plan which includes $1 billion of actual construction spending over the next six months. The full capital plan can be found at www.mass.gov/capital
Learn more about the administration's preparation for stimulus funds
Massachusetts Already Recovering
Back on October 2, the Governor reminded reporters that private sector in Massachusetts is already recovering. That week the Boston Globe ran a front page story detailing that Massachusetts is emerging from the economic downturn faster than the rest of the nation, due in part to the Patrick-Murray administration's intelligent fiscal management during this crisis. State government, however, relies on tax collections (from revenue made over the past year) for much of its revenue, and therefore lags behind the private sector both in terms of slowdowns and in terms of growth.
Early signs of recovery, including slowing employment losses, leading sectors adding jobs and gains in the housing market, have already started. Additional positive signs include:
- The Milken Institute ranked the Cambridge-Newton-Framingham area 3rd nationally in 2009 economic turnaround.
- CNBC recently ranked Massachusetts as the 8th best state to do business in the country.
- MSNBC and Moody's found that of only 23 metro areas in the country that showed a moderation of the recession, two were here in Massachusetts.
- The Warren Group recently reported that home sales in Massachusetts have increased three consecutive months.
- In August, the Associated Industries of Massachusetts found that business confidence has improved 5 of the last 6 months, and is at its highest level since November of 2008.
Worried or Want to Help?
For those affected by the downturn, resources and helpful programs are available at the following link: Need Help?
For those who wish to help out turning these difficult times, opportunities are available at the following link: Want to Help?