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Lawrence Borrowing Bill Stirring Political Opposition

By Bill Kirk

Saturday, January 30, 2010

BOSTON — State legislative leaders are getting bombarded with complaints from colleagues and constituents over a bill to allow the city of Lawrence to prop up its budget by borrowing up to $35 million.

Outrage over the bill has taken on statewide political overtones. One candidate for governor, Charlie Baker, denounced it on a conservative talk-radio show. Another, Christy Mihos, weighed in against it on a Facebook page set up by a disgruntled former Lawrence employee. Baker and Mihos are Republicans.

Gov. Deval Patrick, who faces re-election this fall, supports the legislation to allow the city to borrow the money to close its $24.5 million budget gap this fiscal year and to get a jump on next year's projected $15 million deficit. Under the bill, if the city's fiscal house isn't in order by January 2011, the state would take over.

State Rep. Karyn Polito, R-Shrewsbury, a member of the Ways and Means Committee, calls it a "bailout," and says Lawrence should be placed into "receivership."

Local legislators say much of the outcry is based on misinformation.

On Thursday, the chairman and vice chairman of the House Ways and Means Committee met with local legislators, including Rep. William Lantigua, who is also mayor of Lawrence.

"We discussed the possibility that our colleagues will need to be educated," said Rep. Barbara L'Italien, D-Andover, vice chairman of the committee. "It's not a bailout. It's a loan to be repaid. We talked about that, and we floated the idea of holding a public hearing about the bill, which would give an opportunity for our colleagues to hear, and for the public to hear, the particulars of the bill. People think it's a handout. It's not. It's a loan."

Committee Chairman Rep. Charles Murphy, D-Burlington, said he's getting "quite a few inquiries" from colleagues, and that he has spoken with House Speaker Robert DeLeo about holding a public hearing to clear the air.

Murphy said he is studying whether the language in the bill is strong enough to ensure that Lawrence doesn't misuse the loan.

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