DeLeo: State economy 1, maybe 2 years from recovery

REVERE – Massachusetts House Speaker Robert DeLeo on Thursday said legislators will have to rely on spending cuts, not more taxes, to absorb the impact of an economic slump experts tell him could linger for another year, maybe two.”I don’t see any appetite in the next budget cycle for any increase in taxes at all. You’re going to see more cuts in the state budget,” DeLeo, one of the state’s most influential elected officials, told Chamber of Commerce members who gathered to hear him speak at the Four Points Sheraton.Several business owners in his breakfast audience told DeLeo they feel legislators acted too hastily and without sufficient advice from their constituents in passing a sales tax increase this summer.DeLeo said the “worst economic downturn since the Great Depression” forced state budget crafters to face tough choices as they struggled to erase a state spending deficit. They rejected gas or income tax hikes and toll increases, ultimately settling on an increase in the sales tax from 5 percent to 6.25 percent.”When I think about the calls I received, by my way of thinking, the most equitable solution was to increase the sales tax. What we did with that tax is stop the necessity of toll hikes and send $220 million back to cities and towns. You have to make difficult decisions and that is what I make,” he said.DeLeo said small business owners will see tax relief through 2012 with reductions in business-related taxes. He said the Legislature is also reviewing a plan requiring a review of the impact of any new state business laws on small companies.Merchants also questioned why the state has not sponsored more tax-free weekends as a way to spur Massachusetts consumer spending and keep shoppers from driving to New Hampshire. DeLeo said the weekends cost the state $18 million in lost tax revenue and should be delayed until after the economy begins to recover.A long time supporter of introducing slot machines at racetracks, including Wonderland Greyhound Park, DeLeo said the Legislature in a month to six weeks will revive debate over expanding gaming in Massachusetts.Proposals range from resort casinos favored by Gov. Deval Patrick to adding slots at tracks and changing the law to allowing betting on live broadcast racing at Wonderland and the dog track in Raynham.DeLeo said gaming proposals should be reviewed by legislators “as just one facet” of an economic restoration package that includes ideas for spurring development.”I don’t look to expanded gaming as an end-all to solving economic woes; what I do see it as is another source of revenue we need.”His task for the next week is to usher legislation through the House paving the way for Patrick to appoint an interim U.S. Senator to fill the late Edward M. Kennedy’s seat. The proposal will also require state Senate approval before going to Patrick for final action.Legislators Thursday considered attaching a separate resolution to the bill prohibiting the interim nominee from running in the special election scheduled for January. The resolution would send a signal about legislators’ wishes for the U.S. Senate seat but not carry the weight of law.He said the Legislature will also consider setting aside money to reimburse communities for the cost of holding the special election.DeLeo jokingly suggested he would enjoy being named senator before dismissing the notion. He took a minute to praise fellow Revere legislator Kathi-Anne Reinstein who serves as a floor leader on his team of legislative lieutenants.”If I need something done, I call Kathi. If I need a vote, she does the arm twisting,” he said, drawing laughs from Chamber members.