Mass. House Proposes Alternative Budget

BOSTON--A state budget nearly $600 million trimmer than the governor's plan would need no new taxes but would force economies in state government as proposed yesterday by House Ways and Means Chair Richard Voke.

Warning of "runaway growth" in state spending, the influential House Democrat offered a pared-down budget with a bottom line of $12.3 billion in direct appropriations, compared to the $12.87 billion proposed last month by Gov. Michael S. Dukakis.

Voke thus positioned the House leadership on the side of what many House members believe is the prevailing popular sentiment against any tax increase. The House budget plan presents members with a clear alternative to the higher spending and $604 million tax increase advocated by Dukakis.

After expediting his budget plan through Ways and Means with little opposition and without debate, Voke told a crowded news conference that his goal is the downsizing of government, arguing that continuing present trends would require annual tax increases.

"The base of government spending is becoming so large that new tax and 'revenue enhancement' packages will become an annual event to support spiraling budget growth. This is intolerable," Voke said.

Nevertheless, Voke noted that his budget plan presumes revenue growth of 7.4 percent in the coming fiscal year, which begins July 1, and he stressed that his plan includes modest spending increases in many social programs.

The House budget plan is certain to have a major impact on the coming debate on Beacon Hill over spending and taxes, but most observers agreed that the proposal would almost certainly not be enacted as written. More important, they said, was that Voke began the debate early and clearly sketched the choices facing legislators.

"The politics of it is, Ways and Means is basically giving the citizens what has been demanded--a budget that requires no new taxes. The question is, is that budget acceptable," said Rep. Nicholas Paleologos.

The call for no new taxes disappointed many House liberals and provoked open concern among advocates for human services, environmental protection, affordable housing and other programs that depend on state spending.

Conservatives, including business groups and anti-tax forces, were pleased. Senate Minority Leader David Locke was so taken with Voke's approach that he proposed making the Chelsea Democrat an honorary Republican.

When the budget moves to the House floor on March 6, Voke said he would support adopting a rule long favored by Republicans that would require members who propose spending increases to propose offsetting spending cuts elsewhere in the budget.

Alternatively, Voke said, members will have to realize that they are in effect voting for a tax increase. The Chelsea Democrat said he would not rule out a tax increase.

Most of the savings in the House plan came about by rejecting the governor's call for a $120 million increase in local aid, by forcing state agencies to spend less on payroll costs, by providing no funds for state employee pay raises and by eliminating the Arts and Humanities Council and the state Office of Energy Resources.

Dukakis, who stood by his tax package and predicted compromise, was outwardly conciliatory, thanking Voke for starting the debate early.

"There's a lot we agree about, especially the necessity for saving every dime we can," the governor said.

"On the other hand, there are obvious differences," Dukakis added, citing his requests for more funds for local aid, higher education, toxic clean-ups and affordable housing.

Senate Ways and Means Chair Patricia McGovern, who last month urged the governor to withdraw his $1 billion proposed increase, gave Voke credit for presenting a spending plan more in line with the current "fiscal reality."

But she warned House members and advocacy groups that they cannot count on the Senate to solve all the problems that might be created if Voke's budget were to pass the House as written.