Another $310 Million Cut by Dukakis; Welfare Aid Reduced

Gov. Michael S. Dukakis announced another $310 million in state spending cuts Tuesday that will include elimination of entire human service programs in order to preserve the state’s credit rating.

Dukakis said the new reductions, which are in addition to $419 million in cuts ordered previously this fiscal year, are necessary for the state to cope with still-declining revenues and to clear the way for a massive bond sale within the next 10 days to cover last year’s budget deficit.

In the last year, the state has cut more than $1 billion in spending and eliminated more than 9,000 jobs. The new round of cuts will reduce the state budget to $13.39 billion for the fiscal year that began July 1.

Dukakis’ announcement was made as the Wall Street bond rating firm of Standard & Poors issued a bulletin reaffirming the state’s BBB rating, the lowest state bond rating in the nation.

Among the ordered cuts are:

--Elimination of the entire remaining $2.4 million for the state contribution to the federal program that helps poor people pay for home heating oil.

--Elimination of $2.3 million for support services for residents of housing projects.

--Elimination of general relief and medical benefits for those over age 45 who have no work history, for a $10.5-million savings.