Crash globally, cut locally

IF EVER there was doubt that the worldwide financial crisis would soon infect local communities, the budget cuts announced yesterday by Governor Patrick are clear evidence of the contagion. Patrick's $755 million immediate spending cut - plus nearly $700 million in additional budget fixes, including deferred spending, tapping the rainy day fund, and other measures - is needed because capital gains tax revenues are plunging along with the stock and real estate market meltdowns. Steep reductions in sales and income taxes are also expected, as unemployment rises and consumers pare back on spending. It's a perfect, and expanding, storm in state revenues that will wash over everyone, even people who don't think they rely much on government.

The cuts won't be across the board, but slowdowns will come in Medicaid, higher and early education, and environmental programs. Up to 1,000 state jobs will be eliminated or remain unfilled. Importantly, though, Patrick has so far held the line against cuts in local aid or K-12 school funds. That would only provoke property tax increases in many communities - another powerful ripple effect of the crisis that needs to be stopped.

One heartening note is the way other constitutional offices and agencies rallied to help close the $1.4 billion budget gap. The courts have volunteered to cut $32 million. Quasi-independent authorities such as Massport or the Massachusetts Water Resources Authority have picked up small programs that would otherwise have been cut. But the administration's decision to defer fully funding the state's retiree pension system by two years, to 2028, unwisely loads debt onto future taxpayers.

A sad irony of economic downturns is that the government runs out of revenue precisely when citizens need its services most. The Globe reported this week that enrollment in the state's public universities is up by 7,000 students because the financial squeeze on families has put private colleges out of reach. The MBTA has seen record increases in ridership as the cost of commuting by car becomes too steep. And this is not to mention increasing strains on homeless shelters, soup kitchens, and other social welfare agencies that may seem to be charities but that are heavily subsidized by public funds.

Patrick doesn't make this point, but we will: These cuts are only a small taste of what would be required should voters pass the reckless question on November's ballot to eliminate the income tax. Instead of making up a $1.4 billion shortfall, Question 1 would force the state to find more than $12 billion. Budgets are not abstractions; they are statements of the values that define a communuty. The public may be concerned, even anxious, but this is no time for irrational acts.