NEWS RELEASE
October 12, 2000
Contact: John Brockelman, (617) 423-2000
Cellucci Exposes O'Brien's True
Record on Debt
in WBZ TV-4 / Boston Globe Debate
In 1990, Standard & Poor's described O'Brien's
voting record in the House as one that left Massachusetts with "a
legacy of debt for perhaps the next two administrations"
In today's WBZ Ch.4 / Boston Globe debate on
Question #4, the initiative to rollback the state's income tax to 5%,
Governor Paul Cellucci, while touting tax cuts, exposed Treasurer
O'Brien's real record on debt.
Cellucci noted that under Weld-Cellucci-Swift, debt
has risen a total of 33% or less than 5% over 8 fiscal years. He also
noted that Shannon O'Brien adds the last 2 years of the Dukakis era
when labeling the Weld-Cellucci-Swift administration with "almost
doubling debt." Cellucci added that under Weld-Cellucci-Swift the
state's bond rating has been upgraded 9 times, under O'Brien-Dukakis
it was near junk bond status.
Finally, he noted that O'Brien is a newcomer to the
cause of debt reduction. When O'Brien was in the Legislature she voted
for the $1.8 billion debt bond to pay for Mike Dukakis' fiscal
deficit. At the time Standard & Poor's described the Legislature's
fiscal policy as one that would leave Massachusetts with "a
legacy of debt."
Debt increases
33% increase over 8 years under Weld-Cellucci-Swift:
From FY'92 (when Weld-Cellucci took office) to FY'00 state debt has
grown from $9.26 billion to $12.29 billion or a total 33% increase
over 8 fiscal years. Treasurer O'Brien conveniently adds the last two
years of Mike Dukakis' tenure when claiming Weld-Cellucci-Swift have
"almost doubled debt."
In fact, a large portion of the increase in debt
over the Weld-Cellucci-Swift years came from the Dukakis deficit bonds
that Shannon O'Brien voted for which cost the state $1.8 billion from
1990 to 1997 (Roll Call # 306, 7/28/90). The $1.8 billion in deficit
bonds would have funded two years worth of capital projects in the
state.
125% increase over 4 years under O'Brien-Dukakis:
From: FY'88 (when O'Brien took office in the state House of
Representatives) to FY'92 (when Weld-Cellucci took office) state debt
grew from $4.12 billion to $9.26 billion or a total 125% increase over
4 fiscal years.
Here is what the experts have had to say about both
eras:
MTF on Weld-Cellucci-Swift: "(MTF President)
Widmer says that slowing the yearly issuance of debt has been one of
the signal successes of the Weld-Cellucci years." (Boston
Globe, 10/3/98)
Standard & Poors on O'Brien-Dukakis:
"'Rapid economic changes resulted in fiscal problems which the
state was unwilling to resolve in a timely manner,' the (Standard
& Poor's) report declared. 'Legislative inactions over the past
two years will leave a legacy of debt for perhaps the next two
administrations." (Boston Globe, July 31, 1990)