State layoffs imminent, lieutenant governor says

Flanked by local mayors, Lieutenant Governor Timothy P. Murray (at microphone) addressed the media after meeting with the elected officials at the State House yesterday on Beacon Hill. (Wendy Maeda/Globe Staff)

Lieutenant Governor Timothy P. Murray warned yesterday that layoffs to the state's workforce will be announced next week. Although the administration previously had said there would be impacts to state employees, it was the strongest indication that people would lose their jobs as a result of a decline in state revenues.

"There will be layoffs that will occur," Murray said at a press conference after he emerged from an hourlong meeting with mayors from across the state. He did not provide specifics.

Murray and Governor Deval Patrick summoned Massachusetts mayors to the State House yesterday for a closed-door briefing on the deteriorating condition of the state budget. The 27 mayors who came to Beacon Hill - and 10 more on a conference call - said they were relieved to hear that local aid payments from the state will most likely be spared from the first round of budget cuts. The future outlook is uncertain.

"I feel much better coming out than I did going in," said Mayor Kimberley Driscoll of Salem. "The governor is being clear - local aid cuts are a last resort, and he wants to do everything he can to prevent that. That's good news."

But other corners of state government will not be spared. With state revenues falling $188 million behind expectations in September, and $143 million behind expectations for the first quarter, Patrick is planning to announce "hundreds of millions of dollars" in budget cuts next week. Education advocates, state lawmakers, and nonprofit groups have spent the week worried what programs and jobs will be targeted.

Patrick, who can unilaterally impose cuts to about two-thirds of the state budget, has been seeking expanded powers from the Legislature that would allow him to cut local aid. Patrick addressed the mayors yesterday at the beginning of the closed-door meeting, but then left for other meetings with his staff without making any public comments.

He emerged from his office to a pack of reporters, but declined to take questions as he stood uncomfortably with two aides at the elevator.

Patrick has spent much of the week meeting with his staff and various interest groups, trying to figure out a solution to the budget crunch. As an indication of the depth of the crisis, Patrick indefinitely postponed a trip to Israel scheduled for November that was supposed to build ties for the state's biotech industry and other trade links.

But this weekend, Patrick will campaign in New Hampshire, Pennsylvania, and Ohio for Democratic presidential nominee Barack Obama. He plans to be back at work on Monday, but Republicans yesterday criticized the governor for campaigning instead of staying in Massachusetts to focus on the budget.

"He's yet again taking his eye off the ball," said Barney Keller, spokesman for the state Republican Party.

Although yesterday's assertion about local aid cuts being a "last resort" was good for local officials, state officials have been careful to avoid ruling out cuts to local aid in the future. The mayors are bracing for the worst.

"We all know we're facing a crisis," Mayor Joseph Curtatone of Somerville, president of the Massachusetts Mayors' Association, said after the meeting. "We all know there's pain in what might lie ahead."

Mayor Michael J. Sullivan of Lawrence said he is already starting to make plans for a 7 percent cut to the city's $230 million budget, in anticipation that the state will cut into local aid down the road. "We're hopeful it's not something that's going to happen," Murray said, when asked about local aid cuts. "The situation is obviously very fluid. We can't predict what's going to happen with the economy. But we're going to do everything we can with the information that we have in front of us to avoid those types of cuts."

Murray also said the administration plans to revive revenue-generating legislation that failed this year to gain traction in the Legislature. The legislation includes local options to allow municipalities to raise taxes on meals and hotel rooms.

The money helps cities and towns pay for everything from teachers to trash collection, and when the state cuts the funds, services may be cut and fees may be raised.

Cutting local aid would put Patrick on the same path as his predecessor, Republican Mitt Romney, who slashed local aid in 2003.

At the time, Romney faced a similar budget crisis, with a shortfall nearing $650 million. He cut $344 million in spending, including $114 million from local aid and $133 million from health and human service programs.

He also cut $41 million from education, including $16 million from public colleges and universities.

Tempers flared so badly that Mayor John Barrett of North Adams accused Romney spokesman Eric Fehrnstrom of bumping him with his chest and showering him with expletives after they appeared jointly on a television program.

It's an atmosphere that Patrick is hoping to avoid, in part by hosting the mayors yesterday. The administration is planning to hold a separate briefing next week for town managers and other local officials.

Matt Viser can be reached at maviser@globe.com.