Understanding the State Fiscal Crisis

Addressing the fiscal crisis in Greater Boston’s Cities and Towns
March 6, 2003

To help cities and towns come to grips with today’s budgetary challenges, the Rappaport Institute for Greater Boston held a special seminars for all public officials in the communities of the region. Three of the top experts on state and fiscal issues shared their expertise on fiscal matters. (More) Joining the discussion were:

• Robert Ciolek, former Budget Director, City of Boston
• Patricia McGovern, former Chair, Ways and Means Committee, Massachusetts Senate
• James Siegel, former president of the Massachusetts Municipal Association and candidate for state treasurer in 2002

Discussions ranged from expenditure pressures, such as health care costs, which after a brief respite have surged again; education reform; and capital spending and debt service to cost containment in specific areas, such as Medicaid, the Quinn bill, pension laws and management practices. Panelists also considered the pros and cons of management reforms and consolidation of government agencies and programs, privatization or competition among public and private providers and performance-based management systems such as CitiStat. Finally, time was spent on methods for creating more stable revenue systems such as Internet taxes, PILOT programs, and Prop 2 ½ overrides; the end of use-it-or-lose-it budgeting; audits and nonbiased analysis of what programs succeed and fail; and biennial budgeting.