Republican Charles Baker is adopting a familiar political strategy in his bid for governor: Fault the incumbent for not making tough fiscal decisions while avoiding discussion about what budget cuts he would make.
Baker, who is hoping to oust Democrat Gov. Deval Patrick, has instead packaged 13 money-saving ideas into a “Baker’s Dozen” of changes he says will save $1 billion. The state is facing an estimated $2 billion budget gap next year.
“Beacon Hill has a spending problem and unless we get that spending under control, the budget deficit is only going to grow,” said Baker campaign spokesman Rick Gorka.
Several of Baker’s recommendations are designed to curb the influence of unions.
Among them are proposals to eliminate the requirement that state contractors enter into labor agreements ($75 million-$100 million in estimated savings); allow cities and towns to join the state’s Group Insurance Commission without union approval ($100 million); end a law limiting the state’s ability to privatize services ($75 million-$100 million); and curtail what Baker describes as “overly generous” public employee retiree benefits ($50 million-$100 million).
The biggest estimated savings in Baker’s plan comes from shrinking state government, which he said could save $400 million by consolidating health and human service agencies, overhauling the state’s purchasing practices, and streamlining permit processes.
Baker’s plan also calls for smaller savings like bringing welfare reform in line with federal standards ($50 million-$75 million); requiring proof of legal residency for state benefits ($10 million-$25 million), toughening eligibility standards for state benefits ($10 million-$20 million), and charging prisoners room and board ($10 million-$40 million).
Not everyone agrees Baker’s plan would save $1 billion.
Michael Widmer, president of the business-backed Massachusetts Taxpayers Foundation, said he agrees with some of the changes but at best, they might eventually save about $500 million a year.
“He is correct in saying that the Legislature has not addressed a series of reforms that they should have in this fiscal crisis,” Widmer said. “At the same time, even if you did everything that he’s talking about, you wouldn’t come anywhere near closing the shortfall.”
David Tuerck, executive director of the Beacon Hill Institute at Suffolk University, agreed with Baker’s $1 billion estimate.
“He’s very much in the ballpark,” Tuerck said.
But Tuerck also agrees with Widmer that the only way the state can cope with its ongoing fiscal crisis is with more cuts.
“There are service cuts that we could have that are tolerable as opposed to intolerable,” he said.
Even as he calls for more fiscal discipline, Baker has criticized Patrick for some recent budget cuts, chief among them the decision to reduce state aid to cities and towns by 4 percent.
Not only would he not cut local aid, Baker said he would push to funnel 1 percent of annual revenues into the state’s rainy day savings fund and roll back the state sales tax back to 5 percent.
Both those steps would reduce annual state revenues, adding pressure for cuts.
Baker’s campaign said his “Baker’s Dozen” is only the first step. Baker has said he would reduce the state’s work force by 5,000 and consolidate other state agencies. He’s also argued that by cutting taxes he will help stimulate the economy.
Four years ago, it was Patrick who vowed he could save more than $700 million though a series of what he called reforms.
Patrick’s plan included limiting the use of legislative “earmarks” in the state budget ($100 million in savings), cracking down on Medicaid fraud ($300 million), and enforcing the state’s wage and hour laws ($150 million).
Once the recession hit, Patrick and state lawmakers were forced to take more drastic action, from cutting services and laying off state workers to raiding the state’s rainy day fund and hiking the sales tax from 5 percent to 6.25 percent.
Jay Gonzalez, Patrick’s top budget official, said the governor not only pursued each of his promises, but far beyond them by signing pension, ethics and transportation overhaul bills and cutting the state work force by 2,600 jobs.
“He followed through with all his commitments in some cases exceeding his estimates,” Gonzalez said. “Republicans for many years have talked about doing a lot of these things. The governor has actually done them.”
Associated Press