New Massachusetts Politicians Sworn In

On the day he was inaugurated in the State House, Governor A. Paul Cellucci maintained his promise of fiscal discipline in his inaugural address.

Over the next few weeks, Cellucci will hold fast on his promises of fiscal responsibility by adopting recommendations from a transitional economic advisory committee chaired by Baker Professor of Economics Martin S. Feldstein '61.

While the group did not focus on the anticipated cut in the state income tax from 5.95 to 5 percent, some of its key recommendations centered on ways to lower spending in the state budget.

"There's an enormous appetite out on spending," said Kristen A. Keel, the Cellucci chief of staff for the committee.

While Keel did not say exactly what form the committee's recommendations would take, she emphasized that the governor would look favorably on the committee's input.

"I can't image him not embracing these recommendations," Keel said.

Feldstein conducted two preliminary meetings with Cellucci's staff before the full committee's three meetings in December.

The committee was composed of nearly 30 business and labor leaders, ranging from Cathy Minehan, president of the Federal Reserve Bank of Boston, to George Cashman, president of the Teamsters Union's Local 25.

Feldstein received praise for chairing the committee from Michael Astrue, general counsel of Biogen, the Cambridge-based biotech firm, and former member of a 1988 transition team of President Bush.

"Feldstein did a suberb job. Anytime you're have that many CEOs, you are going to have a lot of ego. If you're not careful, it can get out of hand," Astrue said.

Keel also said many members of the committee personally came up to Feldstein after the end of the last meeting to praise him for his work.

One of the committee's key recommendations was to effectively cap the spending from the state's stabilization fund, which was termed as a "slush fund" by Barbara Anderson, founder and executive director of Citizens for Limited Taxation & Government. While other states have similar "rainy-day funds," there are no limits to what Massachusetts can spend from the stabilization fund.

"We don't think that the state should have a savings account coming from our savings account," Anderson said.

While the committee reached consensus on spending caps, there was dissent on other issues, especially on unemployment insurance. Some members supported bolstering the unemployment fund, while others thought it would be more fiscally effective to let the fund run out and then borrow from the federal government.

Feldstein helped the committee stick to an agenda and tried to insure that the committee did not waste time on fruitless measures.

"There was a general effort to avoid anything that were dead turkeys and wouldn't get off the ground," Astrue said.

The committee faced other difficulties simply because many of the business leaders were unfamiliar with governmental intricacies and policy.

"It was important that people in the business community learned that you can't run government like a business," Anderson said. "It was a giant briefing session; we weren't there to advise, but to become advised.

Feldstein conducted two preliminary meetings with Cellucci's staff before the full committee's three meetings in December.

The committee was composed of nearly 30 business and labor leaders, ranging from Cathy Minehan, president of the Federal Reserve Bank of Boston, to George Cashman, president of the Teamsters Union's Local 25.

Feldstein received praise for chairing the committee from Michael Astrue, general counsel of Biogen, the Cambridge-based biotech firm, and former member of a 1988 transition team of President Bush.

"Feldstein did a suberb job. Anytime you're have that many CEOs, you are going to have a lot of ego. If you're not careful, it can get out of hand," Astrue said.

Keel also said many members of the committee personally came up to Feldstein after the end of the last meeting to praise him for his work.

One of the committee's key recommendations was to effectively cap the spending from the state's stabilization fund, which was termed as a "slush fund" by Barbara Anderson, founder and executive director of Citizens for Limited Taxation & Government. While other states have similar "rainy-day funds," there are no limits to what Massachusetts can spend from the stabilization fund.

"We don't think that the state should have a savings account coming from our savings account," Anderson said.

While the committee reached consensus on spending caps, there was dissent on other issues, especially on unemployment insurance. Some members supported bolstering the unemployment fund, while others thought it would be more fiscally effective to let the fund run out and then borrow from the federal government.

Feldstein helped the committee stick to an agenda and tried to insure that the committee did not waste time on fruitless measures.

"There was a general effort to avoid anything that were dead turkeys and wouldn't get off the ground," Astrue said.

The committee faced other difficulties simply because many of the business leaders were unfamiliar with governmental intricacies and policy.

"It was important that people in the business community learned that you can't run government like a business," Anderson said. "It was a giant briefing session; we weren't there to advise, but to become advised.