Governor weighing deal on pay hikes

Governor Deval Patrick, in a significant departure from former governor Mitt Romney, is contemplating a deal with Democratic legislative leaders that would grant significant pay raises to their top lieutenants in return for their support in implementing his plans for sweeping government changes, according to sources involved in the discussions.

No agreement has been struck, but in behind-the-scenes conversations, sources said, Patrick has signaled that he may be willing to take the inevitable public criticism about the pay raises, but he wants significant payback: broad cooperation on his proposals to overhaul the state's quasi-public authorities and boards.

House Speaker Salvatore F. DiMasi, the driving force in the Legislature for pay raises, has not been persuaded that that is a fair deal, sources say. The pay raises would cost about $40,000 for each branch, while Patrick is asking for a far more expansive and complex change in government operations and philosophy.

"That's a quid pro quo?" asked one lawmaker who is aware of the proposed deal.

Patrick, on the other hand, is facing the potential political consequences of granting a legislative pay hike, an issue that often creates a public furor and can politically damage a governor -- especially at a time when the state is facing a budget deficit of more than $1 billion.

The negotiations provide a glimpse into the evolving relationship between legislative leaders and the new Democratic governor. One consequence that Patrick's advisers must consider is whether such a deal would fan public fears that one-party rule on Beacon Hill -- after 16 years of Republican leadership in the corner office -- could lead to uncontrolled spending.

The discussions also provide the first hint of how Patrick, a political newcomer, will try to negotiate in pursuit of legislative victories. Patrick has demonstrated a more engaged style than Romney, who rarely lobbied lawmakers to support his agenda.

During his first weeks in office, it has not been unusual to see Patrick roam the State House corridors, popping into legislative offices, even, as he did several weeks ago, at one point dropping unannounced into a Republican leader's office.

For now, Patrick and legislative leaders are at an impasse.

"They need to work it out," said one source, who asked to remain anonymous because negotiations are ongoing. "The governor is not going to roll. He feels he is going to take the heat for it, so he wants something for it." The source noted that Patrick took a political risk when he restored $383 million in emergency budget cuts that Romney made in his final days in office.

Lawmakers who lead committees or serve as top deputies to the House speaker and Senate president are paid $7,500 to $15,000 on top of their annual salaries of $55,569. The leaders of the two Ways and Means committees receive an additional $25,000.

The deal under negotiation would allow DiMasi and Senate President Robert E. Travaglini to beef up the stipends and give them to more lawmakers, according to sources. In so doing, they can expand their influence, creating a stronger band of loyalists.

The leaders argue that the stipends are the same as they were three decades ago -- when the legislative base salary was not much more than $20,000 a year. It is only right, they said, that those doing much of the committee's work are adequately compensated

"These committee chairs work very hard on very important and complicated issues," said one legislator who is aware of the effort.

An aide to DiMasi said the speaker will announce his committee assignments for the 2007-2008 legislative session tomorrow and that they would not include extra pay for leadership posts.

"There are absolutely no plans to increase stipends for chairmen," said Kimberly Haberlin, DiMasi's spokeswoman.

Aides to Travaglini and Patrick did not respond to requests for comment.

In a 2003 standoff with lawmakers, Romney used his veto powers to block an effort by then-House Speaker Thomas M. Finneran to pass a bill that would have stripped the governor of his role in approving the legislative salary perks. After a prolonged political battle between the new Republican governor and the powerful Democrat, the Legislature could not muster the needed two-thirds majority to override his veto.

Romney ultimately approved a bill that gave bonuses to top lawmakers, while retaining the right for the executive branch to review future requests.

Much is at stake for Patrick, who needs the cooperation of the Legislature to approve plans to streamline some of the quasi-public authorities and independent boards that control -- and often conflict -- with the policies that governors want to put in place. Patrick is said to be focused on education, transportation, and economic development. He has not released the details of his proposal.

On the target list are such high-profile agencies as the Massachusetts Turnpike Authority, the MBTA's governing board of directors, the various boards that oversee the state's education policies, and the authorities that control and finance economic development projects for the state. Patrick is not expected to include the Massachusetts Port Authority on his initial list.

In his first full day in office this month, Patrick told reporters that control of the state's independent agencies would be key to creating an effective and streamlined administration. He said he needed the control in order to be able drive his agenda.

Like past governors, Patrick would have to wait until the end of his term before his appointees capture a majority on the boards that control the agencies, which operate some of the most important projects and operations in Massachusetts. The agencies are now controlled by Romney appointees.

Patrick's attempts to gain control of the authorities would run counter to the long standing legislative rationale for creating the independent authorities: that it insulates them from the state budget process and the volatility of state politics.

Patrick would need the strong backing of DiMasi and Travaglini if he hopes to accomplish his goal. A takeover would require complex legislation for each agency, requiring the governor and his legislative allies to work closely to keep a tight rein on the process.

Bondholders, along with many companies that deal with the agencies, may raise concerns over the upheaval that would ensue.