CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

 

CLT UPDATE
Wednesday, February 5, 2003

MTF fires up Finneran's Tax Hike Express


Gov. Mitt Romney and House Republicans are taking a pass on controversial pay hikes for lawmakers, refusing to tangle with Speaker Thomas M. Finneran over his plan to reward top lieutenants with bonuses....

Barbara Anderson of Citizens for Limited Taxation praised House liberals for standing up to Finneran.

"This is a snapshot of what is wrong with Beacon Hill, this craving for more and more power ... and the Republicans are just as much a part of the problem as anyone else," she said.

The Boston Herald
Feb. 5, 2003
Romney, House GOP won't challenge speaker's pay hikes


Democrats said House Republican leaders didn't try to block Finneran's bill.

"I know for a fact that they signed off on it," [state Rep. Jay] Kaufman said. "I was told they had no problem with it."

House Minority Leader Bradley Jones didn't return a telephone call seeking comment yesterday.

The MetroWest Daily News
Feb. 5, 2003
Pay raises raise eyebrows


There is too much work to do to squander time or energy on palace intrigue. Finneran and his supporters and foes in the House of Representatives should get to it.

A Boston Herald editorial
Feb. 5, 2003
Focus on priorities instead of payback


House Speaker Thomas Finneran is showing himself once again to be a man of metal -- with an iron fist and a tin ear....

Last year Finneran labored to warn citizens of the fiscal peril that the state was beginning to experience. He deserved respect for tackling the problem head-on, skillfully pulling together enough votes to pass a moderate tax increase ...

A Boston Globe editorial
Feb. 5, 2003
Finneran's way


It is unfortunate that we will have to wait for Gov. Romney to present a budget that we expect will truly hurt the poor, elderly, young, jobless and struggling in our society for us to wake up. We hope our leaders will then level with us that there is a need to pay taxes to support a civilized, compassionate society.

A New Bedford Standard-Times editorial
Feb. 5, 2003
Taxes are part of nurturing our civilization


Chip Ford's CLT Commentary

Today's Boston Globe editorial stated that after last year, Finneran "deserved respect for tackling the problem head-on, skillfully pulling together enough votes to pass a moderate tax increase..."

If "The Biggest Tax Increase in State History" can be shrugged off as "a moderate tax increase," I wonder what the Globe would consider a large one?

What's with the House Republicans? Are they delusional enough to think they'll take over after the next election, and can bestow the perks on themselves? Not at this rate they won't! Don't they realize that the emphasis on the phrase "loyal opposition" ought to be on "opposition," not "loyal"? Maybe they like being the exiled as minority party in perpetuity. We sent out a memo to them this morning.

We also sent out a news release this morning to again expose the so-called Massachusetts Taxpayers Foundation for what it is: a shill for tax increases on average taxpayers.

It appears that Tom Finneran has again handed over the keys to the Tax Hike Express bus to Michael Widmer, president of the so-called Mass. Taxpayers Foundation -- the "nonpartisan, business-backed" special interest group -- and has instructed him to begin the tour. Widmer's Boston Fat Cat membership, bear in mind, has already been targeted from the left for tax increases; repeal of their business tax credits and cuts.

Mickey W. has got his work cut out to shift those tax hikes he's advocating again onto the shoulders of "working men and women" again. If he doesn't effectively do Tommy Taxes' bidding, his members will wind up footing the bill next ... and Widmer can't survive that scenario!

Remember that former Dukakoid Mickey W. was the face of opposition to Carla Howell's ballot question to abolish the state income tax. He's never met a tax he didn't like ... unless it falls on his Fat Cat buddies.

Today, a New Bedford Standard-Times editorial ("Taxes are part of nurturing our civilization"), stated:

"'It's going to be ugly,' Michael Widmer, the president of the fiscally conservative Massachusetts Taxpayers Foundation, told the editorial board of The Standard-Times yesterday.

"These were his words when asked to predict what the next few months will be like as a smart, accomplished new governor and the Legislature attempt to close a budget gap for this year and next year that has not been this large since the Depression.

"Although reluctant to criticize Gov. Mitt Romney at this early stage, Mr. Widmer does not believe that the new governor can close an estimated $2 billion to $3 billion gap expected in 2003-04 without seeking some tax increases..."

On May 29 of last year, the so-called Mass. Taxpayers Foundation -- the big business-backed special interest group -- issued another of its incessant and meaningless reports: "The Commonwealth's Fiscal Crisis: Opportunity for Important Spending Reforms," which proposed all sorts of spending reductions, such as blowing up the Quinn Bill, ending paid police details, repealing the Pacheco Law, reforming the school construction boondoggle, freeing the patronage-ridden judicial system, Medicaid reform, blah, blah, blah.

So what did MTF get for its support and advocacy of "The Biggest Tax Increase in State History"?

The Biggest Tax Increase in State History, period.

Later last year, on Aug. 22, Michael Widmer and his Boston Fat Cats issued another useless report: "MTF 2003 Budget: Major Accomplishments in Closing Gap." It concluded:

"The state has also missed a major opportunity presented by the fiscal crisis to attack a long list of "sacred cows" and eliminate spending abuses and inefficiencies. While no one with any clear understanding of the state budget argues that rooting out wasteful spending would solve the Commonwealth's fiscal problems, the state had both the occasion -- and the responsibility -- to take on longstanding abuses. To name just one egregious example, it is difficult to justify spending more on the scandal-ridden police incentive pay program (the "Quinn bill") ..."

The Standard-Times editorial philosophy is eerily reminiscent of a quote from Supreme Court Justice Oliver Wendell Holmes Jr. that "Taxes are what we pay for civilized society." He "uttered those words in 1904, before there was an income tax," Barbara reminds us in her most recent column (to be posted soon), "when, by some definitions, we had more civilization than we have now."

While CLT never has never advocated class warfare, and we don't intend to begin now -- if Mickey W. and his MTF continue carrying the water for tax increases on average citizens he will have thrown down the gauntlet and will make it impossibly difficult for us to also defend his membership, as we historically have done.

It's time for Mickey W. to go ... if for no other reason than for the good of the business community.

Chip Ford


The Boston Herald
Wednesday, February 5, 2003

Romney, House GOP won't challenge
speaker's pay hikes

by Elizabeth W. Crowley

Gov. Mitt Romney and House Republicans are taking a pass on controversial pay hikes for lawmakers, refusing to tangle with Speaker Thomas M. Finneran over his plan to reward top lieutenants with bonuses.

Finneran is poised today to push through a measure giving him unlimited power to pass out bonuses to favored lawmakers, easily swatting aside opposition from a tiny band of dissident Democrats.

But the powerful speaker will get no fight from the new governor who railed against "business as usual" on Beacon Hill during the campaign.

Romney spokeswoman Shawn Feddeman said the governor would not weigh in on the issue since it involves, "how the House organizes itself. When the governor files his reorganization plan for the executive branch, he hopes for the same courtesy."

Rep. James Marzilli Jr. (D-Arlington), a Finneran foe, said, "You can count on (the pay hikes) happening. The House Republicans are tanking, it sounds like (Romney) is diving in the tank too and we may not even have enough votes to force a roll call."

On Monday, Finneran tried to slip a bill past House members that would clear the way for pay hikes of $7,500 each for at least six chairmen and vice chairmen of House committees.

Rep. Frank M. Hynes (D-Marshfield) is the only member who would actually take a $7,500 cut if the plan is not approved because he is switching from a committee that pays him a $15,000 stipend to one that currently pays $7,500.

"This is awkward for me," Hynes said. "I didn't ask for this."

The measure would give Senate President Robert E. Travaglini the same expanded power of the purse and would strip the governor of the ability to say no.

The Republican leader in the Senate, Brian P. Lees of East Longmeadow, said that each chamber should be able to set its own rules but that legislative pay raises - especially during the state budget crisis - should not be so stealthy.

"This would take away the procedures by which these stipend increases see the light of day. You should never try to hide these kinds of things," he said.

The deafening silence from House Republican leaders yesterday was taken as a sign that they have already sided with Finneran because they stand to gain.

As he increases stipends for his committee leaders, he is also likely to boost the pay of the ranking Republicans on those committees.

None of the four House Republican leaders returned phone calls yesterday. "They are hiding because they've already cut a deal with the speaker - once again proving that the real loyal opposition in the House are the progressive Democrats," Marzilli said.

The opposition - defined loosely as the 17 House Democratic members who voted last month to replace Finneran as speaker with Rep. Byron Rushing - caught Finneran Monday as he tried to push through the pay-raise bill.

Rep. Jay R. Kaufman (D-Lexington) objected. "I wish I could say I was surprised by this but I've learned to play defense," he said.

Finneran's only comment yesterday was issued in a press release, saying, "It is always a challenge to retain gifted and productive members. The best members develop expertise, institutional knowledge and personal credibility. They represent the future of Massachusetts."

Barbara Anderson of Citizens for Limited Taxation praised House liberals for standing up to Finneran.

"This is a snapshot of what is wrong with Beacon Hill, this craving for more and more power ... and the Republicans are just as much a part of the problem as anyone else," she said.

Elisabeth J. Beardsley contributed to this report.

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The MetroWest Daily News
Wednesday, February 5, 2003

Pay raises raise eyebrows
By Michael Kunzelman

Two MetroWest lawmakers could collect pay raises under a controversial plan that House Speaker Thomas Finneran quietly tried to gavel through this week.

Finneran's plan would allow state Rep. Peter Koutoujian, D-Newton, to earn an extra $15,000 for his new post as chairman of the Health Care Committee, according to Democratic House members.

Meanwhile, state Rep. Paul Loscocco, R-Holliston, could collect an additional $7,500 for being the ranking Republican on the Transportation Committee, lawmakers said.

Finneran introduced the pay raises in the form of a late-filed bill, which he tried to admit in the House on a voice vote Monday.

But Finneran agreed to temporarily shelve the bill after a group of liberal legislators, led by state Rep. Jay Kaufman, objected to the move at the end of the session. Finneran had said minutes earlier that no controversial items remained, the group said.

Kaufman, a Lexington Democrat, said Finneran didn't tell legislators about the proposed pay hikes when House Democrats met in a closed-door caucus earlier in the day.

"It strikes me as a little unfathomable and a little bit odd that it would even be tried," he said.

State Rep. Ruth Balser, D-Newton, said she found it disturbing that Finneran didn't share his plan with the entire House.

"Why be sneaky about it? Why does everything have to be done this way? It's insulting to the members," she said.

Up to six Democrats who serve on Finneran's leadership team could receive pay raises, while an unspecified number of Republicans with high-ranking committee assignments also could earn a salary boost, lawmakers said.

Finneran's bill doesn't specify which lawmakers would receive raises. His spokesman, Charles Rasmussen, said the speaker hasn't proposed raises for any particular legislator.

"It's still up in the air," Rasmussen said. "The speaker hasn't put forward a specific proposal yet. All the speaker proposed yesterday was a legal change...so that anything having to do with stipends would only be brought up in joint rules."

However, Democratic House members said Koutoujian and Rep. Joseph Wagner, who was promoted this week to chairman of the Transportation Committee, both would receive $15,000 raises for their new assignments, doubling the previous amount of extra pay for chairmen.

The bill also would award $7,500 raises to four committee vice chairmen.

In past years, when a committee's vice chairman received a raise, the ranking Republicans also earned a boost in pay by the same amount, lawmakers said.

Although it's unclear whether Loscocco would be entitled to a pay raise, lawmakers said state Rep. Frank Hynes, D-Marshfield, is in line for a $7,500 raise for serving as vice chairman of the Transportation Committee.

Loscocco could receive the same salary increase for being the ranking Republican on the same committee.

Neither Loscocco nor Koutoujian could be reached for comment yesterday.

Democrats said House Republican leaders didn't try to block Finneran's bill.

"I know for a fact that they signed off on it," Kaufman said. "I was told they had no problem with it."

House Minority Leader Bradley Jones didn't return a telephone call seeking comment yesterday.

Finneran said the pay hikes wouldn't cost the state more money because his leadership team identified certain cost-saving measures, such as renegotiating its contract with WGBH to televise House sessions, lawmakers said.

Some critics, however, questioned why Finneran would seek pay raises for some lawmakers while the state is mired in a budget crisis.

"I think we can only assume that the speaker benefits when there are more people dependent on him for their livelihood," Balser said.

State Rep. Patricia Walrath, a Stow Democrat and close Finneran ally, rejected claims that Finneran tried to sneak the bill past members.

"I don't know how specific he was, but I know he mentioned it," she said.

Another member of Finneran's leadership team, state Rep. Marie Parente, said it should have been clear to every House member that new committee chairmen and vice chairmen would earn raises.

"(Finneran) explained that there would be new committees," Parente, a Milford Democrat, said. "Unless you're in the first grade, you know a new chairman is going to be paid."

Last month, about half of the 160 House members opted to turn down an automatic 6.5 percent pay raise that lawmakers were entitled to receive this year. Finneran left it up to each legislator to decide whether to accept the $3,258 raise.

"Asking members to take a voluntary salary furlough while we're being asked to approve pay increases for others is, on the face of it, offensive," Balser said.

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The Boston Herald
Wednesday, February 5, 2003

A Boston Herald editorial
Focus on priorities instead of payback

Sometimes you just have to shake your head. House Speaker Tom Finneran (D-Mattapan) scored some points with his liberal detractors last week when, in responding to Gov. Mitt Romney's budget address, he waxed eloquently about budget priorities such as health care and literacy that deserved protection. Now he has re-energized his critics by banishing legislative opponents to a dust-covered legislative committee and pushing a backdoor pay raise for six of his loyalists.

Fine, it shouldn't surprise anyone that Finneran is moving to consolidate his power by sending his opponents to the legislative equivalent of Siberia and putting his own loyalists into committee leadership positions.

Remember that adage from Emerson, "When you strike at a king, you must kill him"?

Well, King Finneran didn't even suffer a superficial wound in the latest coup attempt and his opponents will have to accept their fate in his legislative kingdom. But with state services for the poor and the disabled on the chopping block, Finneran goes too far in trying to sneak raises through for his leadership team by adding stipends for some posts and increasing stipends for others.

Regardless of whether the raises would result in an increase in House expenditures - Finneran says they won't because of other savings - this is an ill-timed move and Republican House members should join the effort to derail it.

We also think a nice long walk in the fresh air would help Finneran clear his head and get his priorities straight. Instead of pay raises and power moves, he should devote his considerable leadership skills to gathering support for Romney's budget plan.

The Legislature has $143 million worth of cuts on its plate to consider. Throwing the ball back into Romney's court because it may take, as Finneran put it, "a few, several, many weeks to get through some, if not all, of the elements" of the governor's plan is shirking responsibility.

There is too much work to do to squander time or energy on palace intrigue. Finneran and his supporters and foes in the House of Representatives should get to it.

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The Boston Globe
Wednesday, February 5, 2003

A Boston Globe editorial
Finneran's way

House Speaker Thomas Finneran is showing himself once again to be a man of metal -- with an iron fist and a tin ear. On Monday, after making committee assignments that further reward supporters and punish dissenters, Finneran told House members that nothing controversial would be taken up for the rest of the day. Then he attempted to gavel through admission of a late-filed bill to increase his power -- already unparalleled -- to reward his loyalists with money.

The small group of Democrats who have been critical of Finneran stopped the effort Monday, but John Stefanini, the speaker's top aide, said yesterday he will try again, either today or "sometime in the near future."

Finneran, who already appoints some 41 House Democrats to positions with elevated pay -- mostly $7,500 or $15,000 above their $53,381 base salaries -- wants to add eight more to the list. And he wants to change the law so future raises for his team can be given out internally with no need for legislation that could be vetoed by the governor or challenged by voters.

Finneran already has tighter control of his House than any other legislative leader in the country. This is another example of his autocratic excess, and it should be resisted by all representatives whose constituents value independence.

What adds an element of shock in this case is the timing. With the state facing enormous budget deficits this year and next, Finneran seems more intent on slipping a bonus to a handful of his spear carriers than on rolling up his sleeves and helping to solve the deficit problem.

Last year Finneran labored to warn citizens of the fiscal peril that the state was beginning to experience. He deserved respect for tackling the problem head-on, skillfully pulling together enough votes to pass a moderate tax increase and use reserve funds and program cuts to solve most of the problem.

Now he seems to be tossing that hard-won credibility out the window. The $45,000 to $50,000 that he wants to dole out to his friends while other state workers face higher fees and layoffs is one nasty symbol. Another is his decision to give the House two February weeks off, starting Friday, instead of the usual one week.

Some cynical Democrats would be happy to see Mitt Romney, the new Republican governor, struggle to solve the budget crisis on his own. But the Legislature should not take a pass while the state's needy are threatened. As Representative Jim Marzilli of Arlington said: "We will have been in session for two months, and the only thing we will have to show for it is raising a few members' pay." Representative Paul Demakis of the Back Bay said Finneran survives because "whenever there's a furor, it dies down."

Finneran may rule the House, but he does not rule the state, which has a right to expect more in times of crisis.

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The New Bedford Standard-Times
Wednesday, February 5, 2003

Editorial
Taxes are part of nurturing our civilization

"It's going to be ugly," Michael Widmer, the president of the fiscally conservative Massachusetts Taxpayers Foundation, told the editorial board of The Standard-Times yesterday.

These were his words when asked to predict what the next few months will be like as a smart, accomplished new governor and the Legislature attempt to close a budget gap for this year and next year that has not been this large since the Depression.

Although reluctant to criticize Gov. Mitt Romney at this early stage, Mr. Widmer does not believe that the new governor can close an estimated $2 billion to $3 billion gap expected in 2003-04 without seeking some tax increases, among other strategies. Mr. Widmer's organization has advocated that all revenue-raising and expense-cutting strategies be placed on the table so state leaders can devise the fairest, most reasonable recovery plan.

Instead, he expects that Gov. Romney, who has pledged to never raise taxes, will deliver one of the most radical budgets ever seen on Feb. 26. Then the public and Legislature will react. And out of this angry dialectic will come some strategy for hanging on to the most important functions of state government.

Mr. Widmer points out that 90 percent of the state budget supports education, human services, public safety and health care for the poor and disabled. These are not frills.

No matter how brilliantly Gov. Romney reorganizes state government to cut out any waste, he will not be able to make $2 billion to $3 billion in savings to make up the projected deficit.

So Gov. Romney's yet-to-be seen budget will cut to the bone of what we as Bay Staters have decided over the years is a responsibility of our government and worth paying taxes for. We have come to a strange time in our nation's history when it is highly fashionable to be against any taxes for anything.

Mr. Widmer traces the seeds of this attitude to the Reagan presidency of the 1980s, when Americans embraced his optimistic attitude that we should have only minimal government involvement in domestic programs. During the Reagan-George H.W. Bush years, we saw the federal government shed responsibility for many services and the states pick up that responsibility in some cases. We also saw the beginnings of a trend that has accelerated: the polarization of wealth and poverty.

This polarization goes hand-in-hand nicely with the anti-tax philosophy. As the rich get further from the poor, there is less empathy for those who struggle in our country for medical care, jobs, quality education and safe communities.

It is unfortunate that we will have to wait for Gov. Romney to present a budget that we expect will truly hurt the poor, elderly, young, jobless and struggling in our society for us to wake up. We hope our leaders will then level with us that there is a need to pay taxes to support a civilized, compassionate society. We cannot go on deluding ourselves that taxes can be continually cut and civilization can still be nurtured.

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