Official Threatens More Local Aid Cuts

The administration of Gov. Michael S. Dukakis plans to freeze state aid to cities and towns throughout Massachusetts if the legislature is unable to close the estimated $500 million budget deficit, the governor's chief financial advisor said last week.

L. Edward Lashman, secretary of finance and administration, said at a public hearing of the House Ways and Means Committee Friday that if the legislature does not pass a tax package soon, the administration will use some of the $1.2 billion in local aid to be paid to cities and towns in June to close the remaining deficit.

"We have no choice but to make cuts if we do not have sufficient revenue," Lashman said.

Several legislators at the hearing said they considered Lashman's remarks an attempt to pressure the House into adopting a new tax package. Despite several efforts by House Speaker George Keverian '53 (D-Everett), the legislature has repeatedly balked at passing a tax increase.

"It certainly is a threat," said Rep. Joseph K. Mackey (D-Somerville), a member of the House Ways and Means Committee. "It's clear that the governor must make cuts, so the remaining deficit falls on local aid."

Mackey and House Ways and Means Chair Richard A. Voke (D-Chelsea) said the House leadership is currently formulating a tax package to be presented to the floor sometime this week which will include a one-cent increase in the sales tax, raising it from five cents to six cents, an increase in the gasoline tax and increases in "sin" taxes on cigarettes and alcohol.

But Mackey and Voke both said Friday that the tax package will not raise the revenue needed to close the budget deficit this year.

"Nothing's impossible, but [the package] is unlikely to raise $500 million in tax revenue," Voke said.

"I don't see a $500 million tax package. The taxes being discussed will raise a quarter of a billion," Mackey said. Even with the tax increase, Mackey said, a freeze in local aid would cost cities and towns at least $250 million.

Boston Mayor Raymond Flynn, who has said he will run for governor next year if the state's budget crisis is not resolved within the next two months, made an unscheduled stop at the State House to condemn the proposed local aid cuts.

Cuts in local aid would decimate programs supported by cities and towns, including many human services, and would close down local governments that depend on state funds for up to 80 percent of their budgets, Flynn said.

"What's happening now is absolutely outrageous. It's outrageous to the poor people of this state," Flynn said.

At the hearing, the mayor turned in his seat before the committee and directlyaddressed Lashman, who was seated behind him.

"This is no way to make friends," Flynn said.

In July, Dukakis slashed $200 million in localaid from the state budget, a move which city andtown officials said have already strained theirresources.

Cambridge Treasurer James Maloney said a cut instate funds, which he said constitute 15 to 18percent of the city's budget, would force the cityto continue the hiring freeze initiated lastsummer as a result of the Dukakis cuts.

Maloney said cuts in the June payment willdrastically hurt the city's ability to providebasic municipal and human sevices.

"It certainly is not good news," Maloney said.

In Somerville, which depends on state aid forslightly more than 50 percent of its budget, MayorMichael E. Capuano said a cut in the June paymentwill be devastating.

"If it takes a significant hit the city is introuble," he said