The Nation - News from July 14, 1989

Massachusetts Gov. Michael S. Dukakis cut nearly half a billion dollars from the state budget in a move he said was made necessary by “miscalculations, mistakes and misinformation.” He said the needy would be hurt the most, and he renewed his call for a tax increase. The spending cuts in the $12.3-billion budget include a $210-million reduction in aid to cities and towns, a freeze in welfare benefits and a $62-million cut in public and higher education spending. Dukakis, whose state’s budget problems have called into question the “Massachusetts Miracle” he touted during his Democratic run for the presidency, had argued for six months for tax increases to avoid such cuts.