By Martha Bebinger (WBUR)

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On Beacon Hill, a week before House leaders release a state budget many are calling draconian, there’s a renewed push to stave off budget cuts with new taxes.

Several hundred people, many wearing neon “Support New Revenue” badges, packed a Revenue Committee hearing at the State House Tuesday.

They urged lawmakers to approve narrow and broad tax increases. But, as WBUR’s Martha Bebinger reports, many lawmakers are wary.

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BOSTON (AP) — The Senate version of an $838 billion economic stimulus bill includes money for high-speed rail projects that could help jumpstart Gov. Deval Patrick’s proposed $1.4 billion commuter rail link to New Bedford and Fall River.

Sen. John Kerry said he pushed to include $2 billion for investments in high-speed rail projects in the Senate version of the bill — money that could aid construction of the New Bedford project.

Kerry said the Senate version would deliver less education aid to Massachusetts — about $700 million compared with about $1.2 billion under the House version. Kerry said he opposed the lower Senate number.

The two versions head to a conference committee where a final version of the bill will be hammered out.

BOSTON (AP) — Gov. Deval Patrick is considering asking the Legislature to raise the Massachusetts gasoline tax by 27 cents per gallon as part of a comprehensive transportation overhaul plan, The Associated Press learned Monday.

Such an increase would stave off a doubling of Turnpike tolls planned for this summer, but leave the state with the highest gasoline tax in the nation at 50.5 cents.

A policy draft obtained Monday by the AP said the added tax would be dedicated to paying down the debt of the Massachusetts Bay Transportation Authority, funding regional transit authorities and removing some tolls on the Massachusetts Turnpike.

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To close a new $1 billion gap in the current fiscal year, Patrick is making $191 million in emergency cuts.

He’s also proposing the state draw another $327 million from the rainy day fund in addition to the $200 million draw in October, bringing the savings fund down to $1.3 billion.

And Patrick is anticipating $533 million in Medicaid matching funds from a pending federal economic stimulus bill to close the rest of the hole.

For the 2010 fiscal year, Patrick wants higher meals and hotel taxes, higher Registry fees and the elimination of the sales tax exemption for alcohol. He also wants to take even more money from the rainy-day fund.

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Every Friday, business and technology reporter Curt Nickisch presents the economic week in review. Hear hosts Bob Oakes, Tom Ashbrook and Robin Young talk with some of the brightest thinkers. Hear stories about New England and beyond from the WBUR newsroom.

This week on The Bottom Line: Infrastructure. New York Times columnist David Leonhardt says we need to get smarter about infrastructure spending to stimulate the economy. Massachusetts Gov. Deval Patrick says the states deserves a big share of the next economic stimulus. And a transportation expert ranks the Mass Pike the most inefficient toll road in the country.

Gov. Deval Patrick and other governors wait for the arrival of President-elect Barack Obama at the bipartisan meeting of the National Governor's Association yesterday in Philadelphia. (AP)

The goals of the Obama administration’s economic recovery plan — job creation through broad infrastructure improvements — are closely aligned with goals that Massachusetts is already working on, Gov. Patrick says.

Patrick and other governors met yesterday with President-elect Obama (NPR), who promised them swift action on an economic plan to deal with the national recession.

Patrick told WBUR this morning that Massachusetts is faring relatively better than many other states, but also said it will have to suspend contract negotiations with state workers because of the economic downturn.

“The state just doesn’t have the cash right now to pony up,” Patrick said. Get the full interview (Real Audio).