Gov. Deval Patrick, who is already facing resistance on Beacon Hill to his proposed cuts in local aid, is also getting some pushback from a state authority that is being asked to help balance this year’s budget by foregoing $23 million in spending.
Patrick administration officials announced plans last week to close an estimated $329 million spending gap this fiscal year by unilaterally cutting nearly $200 million from executive branch accounts and seeking approval from the Legislature and state authorities to pare back spending elsewhere, including $25.5 million in aid to cities and towns. House Speaker Robert DeLeo has already declared the local aid cut a nonstarter.
MassDevelopment, the state’s finance and development authority, was asked by the Patrick administration to forego $23 million it was awarded under an economic development bill signed into law this summer. The money was targeted for a fund to promote transformative development in Gateway Cities and a fund to promote redevelopment of brownfields.
At a meeting on Nov. 20, officials say board members of MassDevelopment debated whether to go along with the Patrick administration request or reject it. A final vote on the matter is scheduled for Dec. 11. One source said the board is likely to comply with the Patrick administration’s request as long as officials follow through on a promise to come up with funds from alternative sources.
Greg Bialecki, the governor’s secretary of housing and economic development and the chairman of the MassDevelopment board, told CommonWealth last week that he believes alternative sources of money can be found. He has declined to provide specifics so far.
Mark Sternman, a spokesman for MassDevelopment, noted that the governor’s request that the authority not tap the $23 million is only a request. He said everyone on the MassDevelopment board is enthusiastic about the programs that could potentially be cut, but he wouldn’t speculate about how the board will vote.
Sternman also said the authority’s funding could be cut if the Legislature voted to rescind its earlier spending plan. A spokesman for DeLeo couldn’t be reached for comment on that possibility.
Matthew Sheaff, a spokesman for Bialecki, said alternative funds for the MassDevelopment programs are being pursued because the programs are a high priority for the administration. Sheaff indicated it is unlikely the MassDevelopment board will reject the governor’s request, but added: “I guess that is a possibility.”

