CITIZENS   FOR  LIMITED  TAXATION  &  GOVERNMENT
and the
Citizens Economic Research Foundation

 

CLT UPDATE
Friday, December 6, 2002

CLT files bills for 2003 session


CLT files Income Tax Rollback bill, and new constitutional amendment for allegedly confused voters

CLT NEWS RELEASE
Dec. 4, 2002


Citizens for Limited Taxation, Sen. JoAnn Sprague (R-Walpole) and Rep. Scott Brown (R-Wrentham) are sponsoring legislation to set the income tax rate at 5 percent, effective Jan. 1, 2003. Supporters of the bill point out that voters statewide have approved the change as part of a 2000 initiative petition. Legislators froze the income tax rate this year as part of a $1.2 billion tax-raising bill. CLT officials say the state's fiscal crisis is not the fault of the taxpayers and is due to years of overspending.

CLT is also filing a constitutional amendment would repeal the 118th amendment to the Massachusetts constitution and would prohibit taxpayer-funded pay raises for members of the Legislature unless a majority of the voters support a proposed pay raise on the statewide ballot at the next election.

State House News Service
Dec. 4, 2002
Lawmakers file 5,820 bills for consideration in 2003-04 session


Citizens for Limited Taxation filed legislation to roll back the income tax to 5 percent - the successful 2000 ballot question, which lawmakers changed last year by freezing the income tax at 5.3 percent. Advocates say cutting taxes would help the stalled economy.

"Yes, we hear there is a fiscal crisis," CLT chief Barbara Anderson said. "Our response would fit on a bumper sticker: 'The state's problem is not our fault.'"

But liberal lawmakers are gearing up to push new tax hikes ...

"Nobody wants to raise taxes," said Rep. James Marzilli (D-Arlington), co-sponsor of a bill to hike the income tax to 5.6 percent.

The Boston Herald
Dec. 5, 2002
State legislators are planning to propose some 6,000 new laws


Gov.-elect Mitt Romney yesterday backtracked on a key campaign pledge, admitting he no longer believes that simply cutting "waste and inefficiency" from state government will close the state's burgeoning budget deficit.

Romney painted a grim picture of the state's fiscal health, saying he will be forced to eliminate or consolidate "non-core" programs and services to close the $2 billion-plus budget hole.

"With a gap as large as $2 billion or more, I think we're going to have to recognize that we have a lot more to do than just squeezing out inefficiency and waste," Romney said in a speech to the Massachusetts Newspaper Publishers Association.

The Boston Herald
Dec. 6, 2002
Romney: Cuts are not enough


Governor-elect Mitt Romney hinted yesterday at more state worker layoffs, painful budget cuts, and even a salary cut for himself. But he firmly ruled out tax increases, despite the yawning budget gap with which his administration will have to contend next year.

The Boston Globe
Dec. 6, 2002
Romney sees tougher task


About 47,000 daily rail passengers from west and north of Boston, and thousands more who ride the MBTA's Green and Orange lines to a new underground "platform" near North Station, are potential security threats, according to officials....

FleetCenter/North Station has the added concern of the underground Big Dig running close to the base of the building....

Commuters and subway riders could be subject to metal detectors, baggage restrictions and temporary stations outside North Station.... Banning of backpacks and suitcases, or security checks on riders boarding at outlying stops, are possible...

The Boston Herald
Dec. 6, 2002
FleetCenter poses challenge for convention security team


Chip Ford's CLT Commentary

Barbara and I got back last Sunday from a short trip out west to spend the holiday with her son, daughter-in-law and twin grandchildren. Since getting home, we've been busy getting out the legislative bills we wanted to have filed before Wednesday's deadline for the next session, so I haven't had time to write an Update commentary until today. To catch up on our trip and Barbara's latest column, "Trying year gives the holiday special meaning" click here.

Aren't you getting a little tired already of Mayor Tom Menino's whining for more and more money to run the City of Boston? This is the guy who saddled us with the national Democratic convention, who no sooner had announced his success when he had his hand in state taxpayers' pockets ... and he's still in there grabbing for more loose change.

State Rep. George Petersen (and a couple CLT members) made an excellent point: If Tom Menino is running Boston's budget into the ground, and if he wants to be able to pay for the national Democratic convention, let him propose -- for the first time in history, ever -- a Proposition 2½ override on his city constituents as so many other cities and towns have had to do over the past two decades, instead of begging for more from taxpayers across the state ... after all, the City of Boston's been enjoying our largess to the tune of $600 million a year!

I just got back from airlining it cross-country, with a side trip to San Diego to sail with an old friend for a few days before hooking back up with Barbara in Nevada. Airport security is a real pain in the butt, but it was less stressful than our trip out there last summer, which didn't take much. It now looks like airport security will soon be coming to the highways and byways of Boston, thanks to Mayor Tom Menino's big "win" landing the national Democratic convention.

Get ready for the U.S. Transportation Safety Administration to start pulling you over on the Expressway going past the convention for inspection when the Democrats are in town, on commuter trains and at subway stops. The big question is, will they be confiscating tweezers, nail files and pocket knives at those check-points too?

CLT got its bills filed on for the next session. One would return the income tax rate to 5 percent next year; the other takes all-knowing Speaker Tom Finneran at his word that voters were clueless in 1998 and didn't know what they were voting on. He was, of course, referring to the dreaded Clean Elections Law. the bane of incumbent politicians.

We're referring to the Legislature's automatic pay raise ensconced in the state constitution, passed as a constitutional amendment and placed on the 1998 ballot by the Beacon Hill pols. A "yes" vote, as described in the Voter Information booklet, would "prohibit legislators from voting themselves across-the-board pay raises."

Some already have doomed our efforts, but remember, our efforts were doomed before ... before becoming law, like our voluntary tax check-off.

"I'm surprised that a legislator who purports to be a serious leader would submit such a silly proposal," said James St. George, executive director of the Tax Equity Alliance, which opposed Question 4. [The Brockton Enterprise, Dec. 7, 2000. "Marini bill tweaks tax-cut opponents"].

"It's a joke," St. George said. "All they're doing is yanking the chain of reporters, getting cheap media coverage. It borders on being an obscene joke." [State House News Service Apr. 10, 2001, "Tax cut winners tweak the losers with new 'targeted tax hike' plan"].

CLT's "obscene joke" -- our bill filed in 2000 -- will be on everyone's state income tax form next year. You can pay the old rate of 5.85 percent if you want, like I'd expect every honest member of the Gimme Lobby to do. After the April 15, 2003 filing deadline we'll learn just how many honest members -- who "didn't need or want the money" -- the Gimme Lobby can claim.

Chip Ford


CLT NEWS RELEASE
December 4, 2002

CLT files Income Tax Rollback bill,
and new constitutional amendment for allegedly confused voters

Citizens for Limited Taxation filed two pieces of legislation for the upcoming legislation session.

1.  A statute that says -- one more time -- that the income tax rate will be 5% for tax year 2003, which begins on January 1st.

Yes, we hear there is a fiscal crisis. Our response would fit on a bumper sticker: "The state's problem is not our fault." We tried to repeal the income tax hike after the 1989-90 deficit bonds were paid off, but the state preferred to continue spending the money or stashing it in slush funds for future spending. So the voters repealed the income tax hike, while the state continued to spend itself into fiscal trouble. Not our fault.

This bill has been co-filed by Citizens for Limited Taxation, Senator JoAnn Sprague (R-Walpole) and Rep. Scott Brown (R-Wrentham), all supporters of the successful initiative petition when it was on the ballot in 2000. The income tax rate has dropped to 5.3% this year, and was due to drop to 5% next month, until the passage of the 2002 tax bill.

2.  A constitutional amendment that responds to Speaker Finneran's claim that voters did not know what they were voting on in 1998, when they originally supported Clean Elections. He placed the issue back on the ballot, sort of, by focusing on just one aspect of a large issue: not overall election reform, but the funding mechanism of taxpayer dollars. With this emphasis, it lost.

Just moments before they supported Clean Elections in 1998, Massachusetts voters supported Question One on the 1998 ballot that prevented the Legislature from ever again increasing its own base pay. We would like to see that issue back on the ballot too, but with a focus on what the real issue was: taxpayer money used to give automatic pay raises to legislators every other year of a growing economy.

The CLT constitutional amendment would repeal the 118th amendment to the Massachusetts constitution and would prohibit taxpayer-funded pay raises for members of the Legislature unless a majority of the voters support a proposed pay raise on the statewide ballot at the next election. It would be interesting to see if voters, given a chance, would change their minds on this issue too.

This amendment should be part of the discussion we anticipate on repeal of Clean Elections. It was filed (by request) for CLT Associate Director Chip Faulkner by his state Rep, Scott Brown.

-30-

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State House News Service
Wednesday, December 4, 2002

Lawmakers file 5,820 bills for consideration in 2003-04 session

Aides and legislators spent the day shuttling bills to the House and Senate clerks' offices. Minutes after the 5 pm biennial filing deadline passed, the clerks reported that 5,820 bills had been submitted for consideration in the upcoming 2003-2004 session.

Erasing the $2 billion gap between projected spending and revenues in the fiscal year that begins next July 1 will be the main focus on Beacon Hill during the first half of the year. But the crisis doesn't completely stop the flow of thousands of legislative proposals, although it certainly serves as a barrier.

House clerks, after locking their door at exactly 5 pm, reported that 3,890 bills had been filed, compared to 4,108 at the deadline in 2000. Senate clerks estimated there were 1,930 bills filed this year, compared to 1,830 in 2000.

Here's a look at a few of the bills and legislative agendas that will be pursued next year:

* The pro-choice lobby is pushing bills that prevent protesters from photographing people entering and leaving health facilities with the intent of invading their privacy, require schools to make health education part of the core curriculum, and make emergency contraception available to rape survivors at hospitals.

* Education Committee Co-chairman Rep. Peter Larkin (D-Pittsfield) is filing a bill to change the voter-approved law abolishing bilingual education and replacing it with English immersion. Larkin wants the law changed to include provisions approved by the Legislature earlier this year. Those provisions, he said, would give school districts more flexibility in designing English learning programs, instill more accountability in the law, and strengthen the bilingual education teaching requirements, among other things.

* Sen. Steven Tolman (D-Brighton) is taking over as lead Senate sponsor of legislation creating a single payer health care system in Massachusetts. Presumptive Senate President Robert Travaglini (D-East Boston) had pushed the bill unsuccessfully for the past few years. Rep. Frank Hynes (D-Marshfield) is the new lead House sponsor of the bill, taking over that duty from Rep. Kevin Fitzgerald (D-Boston), who did not seek reelection. The single payer bill has support from more than 80 labor, professional, health care provider, religious and other advocacy groups. The bill's proponents this year are emphasizing that the health care finance system is collapsing.

* Citizens for Limited Taxation, Sen. JoAnn Sprague (R-Walpole) and Rep. Scott Brown (R-Wrentham) are sponsoring legislation to set the income tax rate at 5 percent, effective Jan. 1, 2003. Supporters of the bill point out that voters statewide have approved the change as part of a 2000 initiative petition. Legislators froze the income tax rate this year as part of a $1.2 billion tax-raising bill. CLT officials say the state's fiscal crisis is not the fault of the taxpayers and is due to years of overspending.

CLT is also filing a constitutional amendment would repeal the 118th amendment to the Massachusetts constitution and would prohibit taxpayer-funded pay raises for members of the Legislature unless a majority of the voters support a proposed pay raise on the statewide ballot at the next election.

* Greyhound advocates have filed a bill to make Hopkinton-based Greyhound Friends, the oldest and largest greyhound adoption agency in New England, eligible for state adoption assistance funding. Bill supporters say lawmakers should strike a "discriminatory" law that prevents adoption assistance for groups that have taken a position for or against greyhound racing.

* On behalf of the Massachusetts Medical Association, Rep. James Vallee (D-Franklin) filed for an overhaul of the state's medical malpractice system. It would cap "non-economic damages" at $500,000 and impose new reporting requirements aimed at error prevention.

* Sen. Richard Moore (D-Uxbridge), who chairs the Senate side of the Health Care Committee, has filed 66 bills. They address such issues as Medicaid reform, patient safety and ethics. Moore is also recommending that the state create a Health Care Cost Containment Council, establish a Children's Services Cabinet, and move to a system of performance-based budgeting.

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The Boston Herald
Thursday, December 5, 2002

State legislators are planning to propose some 6,000 new laws
by Elisabeth J. Beardsley

State lawmakers have come up with nearly 6,000 new ways to tinker with the laws governing everything from stem cell research to the tax code.

And new bills were still coming in as of yesterday's 5 p.m. deadline for filing legislation for the two-year session that starts in January.

With the state's fiscal crisis first and foremost on many lawmakers' minds, the huge pile of bills - 3,890 in the House and 1,931 in the Senate - shows evidence of looming skirmishes over taxes.

Citizens for Limited Taxation filed legislation to roll back the income tax to 5 percent - the successful 2000 ballot question, which lawmakers changed last year by freezing the income tax at 5.3 percent. Advocates say cutting taxes would help the stalled economy.

"Yes, we hear there is a fiscal crisis," CLT chief Barbara Anderson said. "Our response would fit on a bumper sticker: 'The state's problem is not our fault.'"

But liberal lawmakers are gearing up to push new tax hikes - if Gov.-elect Mitt Romney fails to balance the budget without raising taxes or cutting services, as he promised during the gubernatorial campaign. Several lawmakers worry that hikes will be necessary to stave off painful cuts to core services.

"Nobody wants to raise taxes," said Rep. James Marzilli (D-Arlington), co-sponsor of a bill to hike the income tax to 5.6 percent.

"(The bill) really is there as a placeholder for those of us who don't want to raise taxes but are willing to consider it if the governor fails to protect basic human services," Marzilli said.

As lawmakers hunt for ways to raise a buck, numerous newly filed bills would legalize gambling - from stand-alone slot machines at racetracks to a wholesale embrace of Connecticut-style casinos.

This successful ballot question to replace bilingual education with English immersion also sparked a flurry of legislation, with House and Senate leaders seeking to repeal some or all of the law and replace it with their own reform package.

And in the wake of voters' resounding disapproval of spending tax dollars on political campaigns, House leaders filed a bill to repeal the so-called "clean elections" law, which was also approved by voters in 1998.

The Planned Parenthood League of Massachusetts backed a package of bills to prevent protesters from photographing visitors to health clinics, and to provide emergency contraception to rape victims.

A newly introduced Senate bill would authorize controversial stem cell research within the state's borders - trying to head off an exodus by the Bay State biotech industry.

If history is any guide, most of the new bills will die in legislative committees over the next couple of years.

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The Boston Herald
Friday, December 6, 2002

Romney: Cuts are not enough:
Gov.-elect eyes consolidation, elimination of programs

by Joe Battenfeld

Gov.-elect Mitt Romney yesterday backtracked on a key campaign pledge, admitting he no longer believes that simply cutting "waste and inefficiency" from state government will close the state's burgeoning budget deficit.

Romney painted a grim picture of the state's fiscal health, saying he will be forced to eliminate or consolidate "non-core" programs and services to close the $2 billion-plus budget hole.

"With a gap as large as $2 billion or more, I think we're going to have to recognize that we have a lot more to do than just squeezing out inefficiency and waste," Romney said in a speech to the Massachusetts Newspaper Publishers Association.

Romney also said he would consider raising some fees - such as licensing fees - but firmly stood by his campaign pledge not to raise taxes, calling that a "Draconian" solution that would make the state a "basket case."

Throughout his campaign, Romney insisted he would be able to deal with the deficit by eliminating patronage and waste, using reserves and tobacco settlement money and securing more federal funds.

But he acknowledged yesterday that that plan is now "insufficient" because the budget gap may be "substantially more than $2 billion" next year.

"We've got tough work ahead. It's not going to be easy," he said in the address at Hanscom Air Force Base in Bedford.

But while warning of steep cuts, Romney also said he is studying ways to increase the salaries of his Cabinet in order to attract good candidates.

Romney said some job candidates in the private sector have turned him down because Cabinet posts pay only a maximum of $118,000 annually.

"There are a lot of people who just can't take that kind of cut in pay, even given their desire to be a public servant," he said, adding it was his "expectation that we're going to find some way to provide additional compensation" to Cabinet members.

A move to increase his Cabinet's pay could be controversial given the state's fiscal health, but Romney said he is studying ways to increase compensation that would not need legislative approval.

Romney, a multimillionaire venture capitalist, is due to receive a $135,000 salary but said he may use some of that to buttress the salaries of his Cabinet.

"I will anticipate taking a salary. I'm not sure whether it will be that full amount," he said.

Romney so far has named only one Cabinet designee - Eric Kriss as secretary of administration and finance - but sources said he plans to broom nearly all of acting Gov. Jane M. Swift's Cabinet.

Sources said the only top Swift official who may be asked to stay is Angelo Buonopane, director of the Department of Labor and Workforce Development.

Romney is not planning on keeping Environmental Affairs Secretary Robert Durand, whose supporters have made a lobbying push to keep him on, the sources said.

Romney repeatedly refused to say what specific cuts or possible layoffs he was looking at, saying only that his budget team would not touch "core" services - such as public safety, education, and aid to "those people who cannot care for themselves."

But he did cite some examples of potential cuts, saying that he doesn't believe the state needs "60 press secretaries" buried throughout state government.

"I think we can probably do with substantially less than that," he said.

Romney also said he may consolidate hundreds of legal and technology services positions, saving potentially tens of millions of dollars.

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The Boston Globe
Friday, December 6, 2002

Romney sees tougher task
Hints he'll target 'non-core' services

By Yvonne Abraham
Globe Staff

Governor-elect Mitt Romney hinted yesterday at more state worker layoffs, painful budget cuts, and even a salary cut for himself. But he firmly ruled out tax increases, despite the yawning budget gap with which his administration will have to contend next year.

"The job that we have to do is going to be a good deal more difficult than it looked like six months ago, than it looked like from the outside," Romney said. "What we have ahead of us is going to be incredibly difficult."

Speaking to newspaper publishers at Hanscom Air Force Base, Romney compared his new job as governor to taking the helm at Bain Capital, and at the Salt Lake City Olympics, both troubled when he was hired to turn them around.

The governor-elect was building on an address given Wednesday by Eric Kriss, secretary-designate of Administration and Finance. Kriss called the state's fiscal crisis the worst since the Depression, but offered few details of how the Romney administration would plug the 2004 deficit, which he estimated to be at least $2 billion.

Romney was not much more specific than Kriss yesterday, but he was more determined than his finance chief to beat the drum about hard times ahead and lower expectations of his proposed budget, due at the end of February.

On the campaign trail, Romney said, he had anticipated a 2004 deficit of about $1 billion, and he has long said that he could close that gap with savings gained from rooting out waste and mismanagement. Some budget analysts argued that was impossible, that government costs had already been cut back dramatically. A Globe analysis showed yesterday that the state has cut 7 percent of its payroll, or 5,861 jobs, over the last 18 months.

Romney maintained yesterday that he can find $1 billion in cuts but added that those savings, which will come only after "tough decisions," will not be sufficient or come quickly enough to plug the deficits. He said he will need to make one-time use of money from the state's tobacco settlement fund and from its dwindling reserves to make up some of the shortfall before his "reform savings" kick in.

"But now, with a gap as large as $2 billion or more, we have a lot more to do than just squeezing out inefficiencies and waste," Romney said.

He said his administration will differentiate core services from "non-core." Romney did not define the non-core services, but hinted at layoffs during his speech. He questioned the need for state governmental departments to employ a total of 60 press secretaries, hundreds of lawyers, and thousands of information technology workers, saying that many of those jobs can be consolidated. He said that will save the state hundreds of millions of dollars.

He outlined areas of state government that he considers essential, however: public safety, education, "care for people who cannot care for themselves," and services for the homeless.

Romney reiterated his campaign pledge not to raise taxes to fund some of those essential services, saying he believes voters sent a clear antitax message on Election Day. He argued that simply raising taxes will not generate revenues fast enough to help this year or next. Nor will an income-tax hike to 5.6 percent raise enough extra money to make a dent in a $2 billion deficit, he said.

"If we wanted to fill that hole [with tax increases], we would be talking about a tax rate of 7 or 8 percent and that kind of increase would hurt working people, hurt chances of a swift economic recovery, and would hurt the economy on a permanent basis," Romney said.

He said the state will raise additional revenue by going after federal funds more aggressively, and by raising fees for some state services, such as hunting licenses.

Romney said building the team that will deal with the fiscal problems he outlined yesterday "will take a lot of work," because some of the people to whom he has spoken about Cabinet positions "cannot even consider doing so" because Cabinet salaries, which range from $105,000 to $118,000, are lower than what those individuals command in the private sector.

"I am concerned given those pay levels that at some point, only wealthy people will step forward and make the kind of sacrifice that is necessitated," Romney said. "We're going to try to find some ways to provide additional compensation to folks."

After his speech, Romney said he had given some thought to taking less than the full $135,000 governor's salary, calling it "an excellent idea."

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The Boston Herald
Friday, December 6, 2002

FleetCenter poses challenge for convention security team
by Steve Marantz

The FleetCenter's location atop North Station - the nexus of thousands of daily rail riders, a subway tunnel, and an underground parking garage - is giving terror-conscious security planners for the 2004 Democratic National Convention an unprecedented headache.

About 47,000 daily rail passengers from west and north of Boston, and thousands more who ride the MBTA's Green and Orange lines to a new underground "platform" near North Station, are potential security threats, according to officials.

"It poses an unusually difficult security challenge because of all the moving parts," said John Haley, an MBTA security consultant and former general manager.

"Clearly North Station is the key one - not just because of the number of people coming in, but because it literally sits under the FleetCenter."

Security experts say rail riders pose the biggest problem.

"There's nothing more vulnerable in the transportation system than railroads, and that's according to the FBI," said Rich Grassi of Techmark Security. As a security risk, FleetCenter/North Station stands alone - even riskier than New York City's Madison Square Garden, also the nexus of commuter rail and subway lines, and vehicle parking, said Dave Aggleton, vice president of the International Association of Professional Security Consultants.

FleetCenter/North Station has the added concern of the underground Big Dig running close to the base of the building.

"It could be twice or three times or 10 times as vulnerable as (stand-alone) arenas - I don't know," said Aggleton.

Even though the probability of a terrorist attack at the convention is "minute," Aggleton said, any commuter with a backpack or suitcase would be a potential threat.

Transportation officials say they are devising a plan to accommodate commuters, subway riders and the convention.

Commuters and subway riders could be subject to metal detectors, baggage restrictions and temporary stations outside North Station.

"The MBTA will do what it has to do. If it has to go to the extreme to accommodate conventioneers, we will," said MBTA spokeswoman Lydia Rivera. "At the same time we are trying to not negatively impact everyday riders."

Such options as retrofitting North Station and routing passengers around security checkpoints are being considered, she said.

Banning of backpacks and suitcases, or security checks on riders boarding at outlying stops, are possible, Haley said.

Boston 2004 President David Passafaro said the organizing committee, in its proposal to the Democratic National Committee, suggested using "temporary walkways" for rail passengers allowing them to get on and off at the far end of existing platforms and bypassing the building.

"Ideally we would move people from the rail to the street, minimize inconvenience to the working people coming in and still maintain a level of security acceptable to the Secret Service and Boston police," said Passafaro.

"But I don't know how we would manage 45,000 people coming in if you had to go through a screening process," he said.

Metal detectors could be set up at every entrance for riders getting on and off trains, Aggleton said, "but the logistics would be incredible."

Convention-goers will be specifically credentialed and have their own entrance to the FleetCenter - segregating them from commuters - said John Timoney, former Philadelphia chief of police now consulting with Boston police.

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