4th Plymouth District Serving the Towns of Marshfield and Scituate |
REP. HYNES STATE HOUSE REPORT Recovery: These have been sad and somber weeks for all of us. The horrific terrorist actions on September 11 have killed nearly 6,000 of our fellow citizens and wounded all of us. Only now are we beginning to return to some sense of routine and normalcy, after days of preoccupation and reflection. Yet at the same time, we have rediscovered a collective sense of self and purpose. This threat to our very way of life has given rise to a more profound appreciation for our freedom and our community. Our faith in America is strengthened and our hope in a better nation for ourselves and our children is renewed. Carl Sandberg wrote: “Always the path of American destiny has been into the unknown. Always there arose enough reserve of strength, balances of sanity, portions of wisdom to carry the nation through to a fresh start with ever renewing vitality.” We are confident that these same characteristics which served well previous generations of Americans, will now assist us in the difficult journey ahead. State House Security: Shortly after we became aware of the true import of the terrorist activities against the World Trade Center and the Pentagon, state and federal office buildings in Boston, including the State House, were closed. They opened the next day with security personnel stationed visibly and prominently in and about these buildings. Additionally, across the state, security measures have been implemented to protect private and public buildings, water supplies, airports and other facilities deemed vulnerable to terrorist activities. Many of these heightened security measures will remain permanently in place altering some of our behavior but providing a greater sense of security. The Governor estimates that these heightened measures have cost the Commonwealth $500,000 weekly since September 11. State Economy: Even before the September 11 attack on America, Massachusetts was beginning to feel the economic downturn which the nation had been experiencing since early 2000. This serious economic slowdown sees higher unemployment and a decline in business investment spending, particularly in the state’s high tech manufacturing sector. The events of September 11, at least in the short term, exacerbate the economic slowdown. Consumer confidence and spending tumble and leading economic sectors, like travel and tourism, are hit hard. It is uncertain what the long-term consequences will be but consumer confidence in the strength of the American economy is key to recovery. Construction activities and housing markets remain strong. The hope is that these sectors of the state’s economy, combined with medical science production and research, higher education, and finance will provide a stable base of employment that will prevent a steep decline in economic activity and prohibit the current slowdown from turning into a repeat of the last recession, ten years ago. State Finances: The FY’ 2002 state budget, due July 1, remains unresolved, with the Legislature and Governor approving two week spending plans, limited to last year’s levels. The failure to pass the budget on time is now snatched as virtue by legislative leaders from these newfound somber fiscal realities. July and August saw the first back to back revenues’ declines in a decade; September’s revenues tumbled to 13% below last year’s levels. This economic downturn comes on top of the income tax decrease passed in last November’s election. In order to reconcile this new fiscal order, budget makers and the Governor have agreed to limit the new budget to $300 million below the House and Senate passed measures of this past spring. In addition, the Legislature, in particular, has prepared the state well to weather, at least, a temporary fiscal downturn with a stabilization fund of $2.3 billion and an Unemployment Compensation Trust Fund of $2 billion. With unemployment still historically low, yet 50% ahead of last year, this later fund is critically important in helping transition newly laid off workers into new employment opportunities. At the same time curbing the appetite of legislators and administration officials for new spending is not easy. Many were not in their present position during the last recession and have little experience of the restraint and discipline now required. I am trying to sound the alarm that caution and prudence now will halt and heal the fiscal hemorrhaging more quickly and, in the long term, will allow for budgetary stability and citizen confidence not only in state fiscal matters but in the economy as a whole. The failure of government leaders to quickly identify and control state budget problems fourteen years ago exacerbated the last recession and caused citizen outrage at Massachusetts elected officials and a more profound insecurity in their own financial situation. All of this morass is avoidable now: the underlying factors of today’s economy are much stronger; Massachusetts has prepared reasonably well for this eventual downturn with sound reserves; and the problems are being addressed seriously. Hopefully this will be of short duration and long term fiscal stability will not be threatened. Reflection: “Let every nation know, whether it wishes us well or evil, that we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, in order to assure the survival and the success of liberty.” John F. Kennedy Presidential Inaugural Address, |