Big Fiscal Woes Await Governors in Northeast; Dukakis Leaves Amid Parallels to 1st Term
When Gov. Michael S. Dukakis (D) took over from a Republican, the economy was spiraling downward and the state budget was mired in red ink.</br></br>Sixteen years later, Dukakis passes the reins to another Republican and returns the fiscal favor. The economy is in the cellar and Gov.-elect William Weld faces painful budget cuts or tax increases.</br></br>Dukakis promised no new taxes in his 1974 gubernatorial campaign. And when he took office he adopted as a symbol a meat cleaver that he said would be needed to cut state government down to size.</br></br>But the state was in deep financial trouble. A modest surplus of six months earlier became, early in 1975, a deficit of between $350 million and $500 million - of a total budget of about $3 billion.</br></br>Less than a year after taking office, Dukakis had to eat his campaign promise and back the largest tax increase in the state's history.