Legislature Heads Meet To Discuss Budget Plan

BOSTON--House and Senate negotiators met privately yesterday to work out differences on a $350 million savings package aimed at reducing Massachusetts' budget deficit, which the administration of Gov. Michael S. Dukakis has pegged at more than $800 million.

The earliest the bill is expected to reach the House floor is tomorrow since no formal House session is scheduled for today, and it is expected to take a day to write the formal comprise report once House-Senate negotiations are completed.

Meanwhile, House Speaker George Keverian '53 (D-Everett) was calling representatives yesterday to ascertain their position on a tax bill and to see if they would be available next week.

Vacation Plans

Some lawmakers have made vacation plans for the week between Christmas and New Year's Day and do not plan to cancel them, a move that could crimp efforts to bring a tax increase bill to the floor by the year's end.

House leaders are considering a plan that would increase the 5 percent sales tax by a penny on the dollar and broaden it to apply to additional items. Also under consideration is a gasoline tax increase to raise money to repair roads and bridges.

The delay in formal action on the savings package affects the tax bill since many House members want to vote on the savings compromise before turning again to taxes.

Both measures must also be approved by the Senate.

House Democratic leaders were forced to shelve a $1.2 billion tax plan December I when they could not get the votes for its passage.

Health Premiums

The savings package included several items that have encountered opposition from public employee unions, including a provision that would require state and municipal workers to contribute more toward their health insurance premiums.

Currently, state workers pay 10 percent of the cost for traditional health insurance, but many are able to pay nothing toward insurance costs if they enroll in a health maintenance organization.

The Senate's version of the savings bill would require all state workers to pay 10 percent of their health premiums, regardless of the plan they choose.

For municipal workers and teachers, the Senate plan would change a law that now requires contribution of an equal dollar amount to health premiums by employers to one that would require an equal percentage contribution.