DeLeo warns state budget cuts will be in the billions
House Speaker Robert A. DeLeo painted a dire picture of the budget for the next fiscal year yesterday, warning a breakfast meeting of business leaders that cuts will be in the billions and that federal stimulus money will not be enough to solve many of the problems.
"I want to warn you that the cuts that are required to balance this budget . . . will cut to the very core of government's purpose and mission," DeLeo said at the meeting of the Greater Boston Chamber of Commerce.
"It is almost impossible to overstate how dire the situation is for us," he added.
DeLeo also said the state should avoid tapping the state's reserve fund and should "not become captive to one-time revenue" by relying too heavily on federal subsidies approved by Congress as part of its economic stimulus package for states.
"This money, while a blessing, also creates a giant gap in local and state budgets when it inevitably dries up," he said. "Massachusetts cannot become captive to onetime revenue."
After the address, DeLeo told reporters that House lawmakers are reluctant to go along with Governor Deval Patrick's proposal to raise hotel and meals taxes. That money would account for at least $155 million.
Later in the day, Patrick kept up the pressure for that local taxing power.
"The more things of that kind that you take off the table, the harder it will be for local communities who are dealing with reductions in local aid," he said. "Every single one of those proposals is about a targeted way of helping to plug that gap, so this is all about choices right now.
"We put our ideas on the table," the governor said. "We're looking forward to seeing what ideas come forward from the House."
DeLeo said that next year's budget will probably have fewer earmarks in it. When he was chairman of the Ways and Means Committee, DeLeo was able to use the budget process to deliver for members so effectively that the earmarks became known as "DeLeo dollars."
During his 18-minute address, which was the first time he spoke to the group as speaker, DeLeo also emphasized his small-town roots - he is from Winthrop - and his approach to his new post.
"I do not view government as a game where I compete with fellow officials for credit and airtime," he said. "My goal is to work with the governor and Senate president as partners."
DeLeo reaffirmed his support for expanded gambling, saying he expected the House to debate either slots or casinos this session. "Later on in the legislative session you are going to see us take up this issue, and you are going to see us debate it in full," he said.
He also said that he has spoken with Patrick several times about gambling and said the chairman whose committee would review the legislation, Representative Brian Dempsey, has been meeting with people to discuss what approach to take.
Dempsey did not return calls seeking comment.
DeLeo also used the speech to highlight the need to overhaul the state's ethics, pension, and transportation laws.
"Right now, I can't say that those of us engaged in public service are held in very high regard," he said. "Clearly, we've got a lot of work to do."
DeLeo said he supported at least two areas of pension law changes that the Senate approved yesterday, including removal of a provision that credits a full year of service to employees after they have worked as little as one day in that year.
He also said he supports a provision that would bar employees from receiving an inflated accidental disability benefit after being injured while filling in for a supervisor. Some Boston firefighters have been collecting benefits based on their bosses' higher pay level after being injured on the job while substituting for them.
Matt Viser can be reached at maviser@globe.com. 