Dukakis, Lawmakers to Meet

Gov. Michael S. Dukakis will meet today with House and Senate leaders to discuss the state's financial crisis and present ideas about eliminating the $721 million dollar deficit.

The private meeting in the office of Senate President William M. Bulger (D-South Boston) will include House Speaker George Keverian '53 (D-Everett) and the chairs of the House and the Senate Ways and Means Committees.

"I'm just trying to get the lines of communication going," Bulger said, who planned the meeting. He added, "It will be a chance for us to hear from [the House speaker]."

Bulger said the group may also discuss a new tax package now being planned by the House Democratic leadership.

Last week, the House approved a $368 million deficit reduction bill, which included state spending cuts and new, non-tax revenue initiatives. The House worked late into the night for a week adding amendments to the legislation and scrapping other provisions of the bill, including one that would have recovered $46 million from the soda and beer industry.

The Senate is expected to debate the bill after Thanksgiving.

Taxes Called Inevitable

Both Bulger and House majority leader Charles F. Flaherty (D-Cambridge) have called some form of new taxes inevitable if lawmakers want to solve the state's deficit problem, and Flaherty said an increase in at least one "broad-based" tax would be part of any package considered by the House.

Some of these broad-based taxes include the state sales tax, the capital gains tax, "sin" taxes on alcohol and cigarettes and taxes on gasoline, according to lawmakers and legislative aides.

Flaherty said initiating new taxes is the only way to make up the rest of the deficit, while Republicans and Democrats alike criticized the House Democratic leadership for poor performance in uniting the party behind a single deficit reduction strategy.

"In my estimation, irresponsible delays and irresponsible taxation doesn't reflect good public policy," said Rep. John H. Flood (D-Canton), chair of the Taxation Committee and a gubernatorial candidate.

"People will vote for new taxes when they see that really sincere efforts have been made towards budget spending reform," said Jordan St. John, press secretary for Steven D. Pierce (R-Westfield), the House minority leader and another candidate for governor.

St. John said the tax package--which he said should go before the House late next week or the week after--would be difficult to pass in the current politcal atmosphere on Beacon Hill.

"In order to get a tax bill through the House, you have to have a consensus," St. John said. "Now, there is none."

"I think we should have all acted sooner," said Bulger.