CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

 

MEMO TO THE GOVERNOR
June 17, 2003


 

To:  Governor Mitt Romney and Lt. Gov. Kerry Healy
        June 17, 2003
Re:  Requested vetoes or send-backs

There is plenty of opportunity for vetoes in the budget and municipal relief bills; these are the items that fall within the CLT mission.

1. The Overlay exclusion from Proposition 2˝: This would increase property taxes in all communities, by, on average, 1.7%. It makes Prop 2˝, on average, Prop 4.2.

A full explanation of this issue in on our website, www.cltg.org. The Senate lets the communities raise the property tax at the will of the chief executive officer, which is probably unconstitutional anyway because only the legislative branch can raise a tax; the House requires a referendum vote. But the issue is too complicated for a fair election. If communities want the extra $160 million, they can ask now for general overrides for their share of that amount, in a way that voters would understand, instead of playing games with the abatement account. Governor Weld vetoed the Overlay exclusion three times; we hope you will veto it too no matter which version comes out of conference committee.

2. The Finneran power-grab: This bill gives the Speaker control over another 2/3 of the membership, those who hope to be the next in line for extra pay at his discretion. We – you and we taxpayers -- will lose what little ability we have to sustain a veto. The "compromise" that is offered means nothing; absolute power is always renewed. We hope you will veto this assault on Beacon Hill’s balance of power.

3. Local option taxes: Letting voters decide is fair when they are the ones being taxed. And most of us can simply avoid those communities that raise the taxes, though this is hard on local restaurants and other innocent tax-collectors. However, people who work but don’t vote in the city of Boston will be taxed without representation.

4. Education: Charter schools, MCAS and the voters’ will on bilingual education should be supported with vetoes of the changes. We also support keeping the work requirement in welfare reform.

5. The Resor amendment to the municipal relief package (roll call 25-12): Incredibly, some communities that have passed debt exclusions are attempting to raise extra taxes to cover the interest costs at the time of the override vote, not the actual interest required to be paid when the project is finally bonded. If there is a bond premium, the towns are pocketing the rest of the money. We understand that the Division of Local Services is refusing to certify the tax rate for these towns, so the Resor amendment says that the towns cannot do this anymore – after this year.

We like codifying the DLS opposition for next year. But taxpayers in these communities will be paying more than they should for a given project that they were "nice" enough to support. Maybe

DLS will have some idea on how this can be worked out to discourage the present cheating.


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