Nov 07, 2016

NAGE Applauds Chairman Dempsey and Gov Baker on Budget Compromise

NAGE National President David J. Holway was pleased to see Governor Baker and Ways and Means Chairman Brian Dempsey come together and compromise on mid-year budget cuts. Baker had originally proposed using “9c” cuts to address a $294m deficit. Article 9c of the MA constitution gives the Governor authority to make cuts to the executive branch.

Chairman Dempsey advised the Governor that in light of the higher than projected October tax revenue the Governor should reassess the situation and put off large budget cuts for now.

NAGE National President David J. Holway commented, “I am happy to see State government work as it should and I am very encouraged in both the Governors level headedness and Chairman Dempsey’s leadership.” Holway continued, “Seeing the two parties work together is truly remarkable and should be celebrated, especially in today’s political climate.”

Chairman Dempsey spoke on the state’s economy and explained to the press how we got to we are now and why implementing 9c cuts may be premature. "If you look at sales (taxes), although it's not hitting what the projections were it is still growth of two and a half percent," he said. "We had projected 5 percent ... So there's still growth. It's the level of growth. But what's interesting is that you see corporate (taxes) over-perform. So as much as our sales numbers are less than what we projected our corporate is exceeding our projections. And I'm optimistic that that will continue to bode well for us.” Dempsey continued, "But I think anecdotally you hear from folks all the time that restaurants are packed, unemployment is down, what's happening with revenues? I think that there's some uncertainty in the climate with respect to the election and I think folks are holding off on maybe some of the larger decisions."

NAGE’s legislative team Raymond McGrath and Jim Redmond have been meeting regularly with the legislative leadership at the State House and were equally pleased to see Governor Baker soften his stance.

Governor Baker is still able to make cuts at any time with the authority granted to him through 9c but this is a step in the right direction for NAGE members. We will keep you up to date in this matter and remember to check for updates on this and other matters effecting you.

Where trade unions are most firmly organized, there are the rights of the people most respected. - Samuel Gompers
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Quincy, MA 02169
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