Swift outlines more cutbacks in state spending
by Daniel
J. Fitzgibbons, Chronicle staff
s state tax revenue projections continue to drop, Acting Gov. Jane Swift this week cut $55 million in state spending and revived her proposal to save another $134 million by deferring payments to the state pension fund.
The cuts outlined by Swift on Monday included funding for antismoking education and prostate cancer prevention. Although Swift can use her emergency powers to slash spending, changes in the pension system require legislative approval. Last month, the Legislature rejected Swift's attempt to stretch out pension fund payments for 10 years beyond the target date of 2018. If the pension shift fails to win legislative backing, Swift reportedly directed her cabinet to cut spending by $134 million.
Meanwhile, Swift was due to file her proposed fiscal 2003 budget on Wednesday. Over the past week, the Swift administration floated details of the plan, which reportedly calls for cuts of $500 million in the fiscal year that begins July 1.
According to news reports, Swift's budget package is aimed at closing a projected $2 billion revenue shortfall. Areas identified for cuts include affordable housing, antismoking efforts, the statewide Drug Abuse Resistance Education (DARE) program, and routine dental care for Medicaid recipients. Funding for higher education is expected to be reduced by $60 million though most of that money is projected to come from the early retirement incentive program.
Swift is also proposing using bond issues to pay for building maintenance, low-cost housing and school technology initiatives. She also floated a plan to reduce state lottery prizes to free up money for aid to cities and towns.
|