On
the one hand, I am grateful that the legislature has decided we can't
simply cut our way out of the fiscal crisis. If it ultimately becomes
law, Monday night's veto-proof vote in the House to boost the state
sales tax would mean less severe cuts in critical services at the state
and local level. New revenue must be part of a balanced solution to our
problems and – whatever their source – any and all new revenues will
help.

On the other hand, Governor Patrick was right when he
called the Legislature on its failure to focus on reform first. Reform
is what gives the public confidence that it's no longer business as
usual on Beacon Hill. Without reform, any revenue enhancements or
service cuts become much harder sells.

When you put aside all
the overheated talk-show rhetoric, it's pretty clear that the best
approach to ending this fiscal crisis is to come up with a balanced,
well-designed mix of structural reforms (including pension and benefit
reforms, agency consolidation, and greater managerial flexibility for
cities and towns), some targeted adjustments in revenue and some
difficult but inevitable budget-cutting. That's exactly what Governor
Patrick has proposed.

But what the Governor also understands is
that the various "reform" bills floating around Beacon Hill – on
transportation, ethics, and pensions – simply don't go far enough. He
also understands that his revenue proposals – such as his calls for an
increase in the gas tax, for closing the telecommunications tax
loophole, for local options meals and hotel taxes, and for ending the
sales tax exemptions for candy, soda, and alcohol – are more targeted
than a general hike in the sales tax. The revenues they would generate
would go straight to areas of greatest need; they would encourage
better public buying patterns while promoting healthier and more
energy-efficient lifestyles.

Don't get me wrong: Any new
revenues that allow the state to reduce its deep and painful cuts in
local aid will be very welcome, and we will accept them with thanks.
Under the circumstances, I think Representatives Provost and Sciortino
were right to support the sales tax increase and I appreciate their
continuing efforts on behalf of our community. I am also grateful to
Speaker DeLeo for his willingness to consider a wide range of revenue
options – and for his leadership in a difficult situation.

But
I also think this fiscal crisis should be seen as an opportunity to fix
long-standing structural problems in the way we collect and spend
public revenue – as well as an opportunity to push for much-needed
reforms in the ways that the legislature micromanages cities and towns,
and the way public retirement and benefit systems have fallen into
patterns of inefficiency and even abuse.

That is why I hope that
the Governor sticks to his guns, and that we will see reform come back
to the forefront in our budget discussion. That is why I look forward
to working with our delegation to pass legislation that gives cities
and towns the choice of imposing modest local-option hotel and meals
taxes in order to reduce our dependence on a regressive property tax
system. That is why I hope cities and towns will also receive greater
freedom to develop health-care plans that help manage costs while
maintaining quality of care. All of these changes are part of the
governor's reform agenda, and all of them will contribute to long-term,
structural change.

We need to understand, however, that these
changes – as welcome as they are – will still leave us with hard
choices in next year's budget. Even if we get the reform we need, and
even if we get some restoration of local revenue either through the
governor's package or the sales tax hike – we will still have to find
ways to save money in FY2010.

So please don't think that the
House vote to increase the sales tax means there will be less pressure
on cities and towns to achieve structural reforms of their own. We will
need to scrutinize every program, every service, every revenue source
in order to come up with a plan to manage our way through this fiscal
crisis.

And while we're on the subject of scrutinizing every
cost and making hard choices: I announced on April 22nd that Janice
Delory, who has been working as an Aide to the Mayor, is taking over as
Chief of Staff from Mike Lambert, who has taken on a new role as the
City's Director of Transportation & Infrastructure. (Mike is
filling an existing and critical slot in the Office of Strategic
Planning and Development.) In view of the current fiscal situation, I
will not be back-filling Janice's prior position. Reducing the size of
the Mayor's Office in this way will mean more work for fewer people,
but cost control has to start at the top. This is by no means the first
or the last step we will be taking to manage costs across the face of
city government. As I've said before – and will continue to say no
matter what happens on Beacon Hill – all options, layoffs included,
remain on the table.