Gov. Deval Patrick speaks at a news conference at the Statehouse in Boston in January when he unveiled his proposed $34.8 billion state budget, which includes a hike in the income tax rate, from 5.25 percent to 6.25 percent, and a sales tax cut, from 6.25 percent to 4.5 percent.
BOSTON – In an effort to salvage his proposed $1.9 billion tax increase, Gov. Deval L. Patrick testified on Friday that it might be impossible to finance some major transportation projects in regions such as Western Massachusetts with a smaller revenue package.
Patrick’s testimony came the day after his sweeping tax plan was dealt a serious blow when House Speaker Robert A. DeLeo said any tax increase should of a “significantly smaller size” than the one proposed by the governor.
Speaking before the joint House-Senate Ways and Means Committees, Patrick said a smaller tax package – maybe an increase in the gas tax alone – might allow for avoiding large fare increases at the MBTA in Greater Boston and ending a practice of using debt to pay for certain transportation employees.
“But it does not assure that we can invest in needed projects outside the Greater Boston area,” Patrick told legislators. “Without regional equity, the plan is unacceptable to me and probably to many of your colleagues.”
In his proposed $34.8 billion state budget for the fiscal year starting July 1, Patrick is asking legislators to raise the income tax from 5.25 percent to 6.25 percent and lower the sales tax from 6.25 percent to 4.5 percent. He also wants to abolish 44 tax credits, deductions and other breaks, while doubling personal exemptions for all taxpayers.
Patrick advised legislators to look at maps released by his administration that show transportation projects and additional education aid that would be approved in their communities with the new revenues he is seeking.
“And as you consider scaling back my budget request, reflect on which of these projects and investments your community can and should do without,” he said.
Sen. Marc R. Pacheco, a Taunton Democrat, said people might want to invest in education and transportation but they might not want to pay for it.
“The old saying, ‘Everybody wants to go to heaven, no one wants to die to get there,’ ” Pacheco said. “That’s part of the problem.”
Patrick said the public should be trusted with the facts.
On Wednesday, DeLeo, in a speech before the Greater Boston Chamber of Commerce, said that he would support new revenues for transportation projects, but his package would be much smaller and far more narrow in scope than the one offered by Patrick
“We seek to fund the priorities we need to enhance the economy, without creating collateral damage,” said DeLeo.
Patrick suggested the greater risk could be a failure to invest properly in education and transportation in order to grow jobs and new opportunity.
Patrick said he would be wary of a program of narrower impact and smaller growth.
Despite the speaker’s comments, Patrick said he has been assured that “everything remains on the table” and he looks forward to see what is proposed by the state House of Representatives.
Patrick conceded that people are skeptical about regional fairness in transportation projects.
“For 15 years, all of the transportation dollars and then some were poured into one project in downtown Boston called the Big Dig,” Patrick testified. “As worthy a project as I think that was, it in fact starved other regions of the commonwealth of their investment. People want to be sure that if they are asked to contribute more they are going to get some return for that in their own community.”
Patrick said his proposal is about accelerating growth and creating more jobs through investment in education and transportation.
The proposal would raise $1 billion a year for transportation and $900 million a year for education, Patrick said.
He said 80 percent of the transportation dollars would be used for maintenance of roads, bridges and rails and 20 percent for expansions.
He said the additional education money would get 30,000 children off a wait list for state-subsidized day care and other early education programs. The extra funding would also allow for extending school days in middle schools affected by poverty, make colleges more affordable, partly by dramatically increasing money for a scholarship program, and allow community colleges to serve as a platform for training for skilled positions.
Patrick also wants to increase state aid for local roads and bridges from the current $200 million to $300 million a year.
His plan also includes about $400 million for an overhaul of the elevated section of Interstate 91 in downtown Springfield.
“The largest highway project we are proposing is to Springfield,” Richard A. Davey, secretary and CEO of the Massachusetts Department of Transportation, told reporters after the hearing. “We really have tried to be sensitive to those needs.”
Patrick’s budget is only the first step in the process.
The House will approve its version of the budget in April. The Senate will approve a budget in May.
A compromise House-Senate budget will be sent to the governor, probably in late June or early July. Patrick is expected to sign the annual spending plan but he could also seek amendments or veto line items.
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