Romney delays reform plan

BOSTON, May 1 (UPI) -- Massachusetts Republican Gov. Mitt Romney backed off Thursday's scheduled filing of his government reorganization plan after it became clear there was little support for it in its present form in the Democratic-controlled Legislature.

Lawmakers, meanwhile, on Thursday took up several more proposals to raise taxes to help address a $3 billion deficit in fiscal 2004, but judging from Wednesday's action, approval appeared unlikely.

One proposal to borrow some $300 million and another to increase the state's income tax were overwhelmingly defeated on Wednesday.

The reorganization proposal is a key component to Romney's agenda to balance the fiscal 2004 budget without new taxes, but legislative leaders warned him Wednesday it faced almost certain rejection as a take-it-or-leave-it package.

Legislators balked at having to vote up or down on the single piece of legislation, urging the governor instead to submit his reform ideas as separate measures.

Romney "risks losing it all" unless he submits his reforms in several pieces of legislation so that lawmakers can pick and choose rather than be forced to vote on an all-or-nothing package, Democratic Sen. Dianne Wilkerson wrote to the governor.

"In order to get out of this economic crisis, your administration needs to work alongside the Legislature in focusing on governing and the real problems at hand rather than polarizing issues," Democratic House Speaker Thomas Finneran said in another letter to the governor.

Although agreeing to an indefinite delay in submitting his proposal, Romney vowed that he was "not going to step aside" and was "going to fight" for his agenda.

Part of that agenda was Romney's proposal to shake up public higher education, a move that would eliminate the office of University of Massachusetts President William Bulger at a savings of $14 million.

Bulger, however, enjoys widespread support in the Legislature where the South Boston Democrat formerly served as president of the Senate.

Romney reportedly is considering revising his reform package so that the House can vote on eliminating Bulger's position as a separate issue.

The governor "is not backing off," said spokesman Eric Fehrnstrom. "It has been our intent from day one to eliminate the office of the UMass president."

As the House began debate on the budget on Wednesday, some 1,000 demonstrators rallied outside the Statehouse demanding legislators raise taxes rather than cut programs to balance the budget.

Some protesters chanted and carried signs reading: "Raise revenues. Stop the Cuts!"

Despite the protests, the House voted 126 to 31 to defeat a proposal to raise $300 million through a five-year "bridge loan." Opponents noted that borrowing would add $47 million more in interest costs to the state.

Also defeated, 118 to 37, was a bill to raise the state income tax from 5.3 percent to 5.95 percent to raise nearly $1 billion.

Up for debate Thursday were bills to raise the sales tax from 5 percent to 6 percent, impose the sales tax at 5 percent on alcoholic beverages, and allow local option tax hikes.