CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

CLT UPDATE
Thursday, February 2, 2006

Record revenue rolls into state coffers


State revenue collections in January jumped 14.1 percent over last January, Gov. Mitt Romney announced on Wednesday, renewing his call for an income tax cut and his opposition to a proposed tax on certain employers that don't offer health insurance.

Romney, who called a press conference to announce the news, said the state is on track to collect $540 million more than what budget writers anticipated when they finalized the state budget last summer....

Seven months into the fiscal year, collections are up by 9.2 percent, a trend that has spending and tax cut proponents excited about the upcoming budget season....

"As revenues continue to rise well above our forecast, well above last year, the apparent need to finally accede to the request of our citizens to lower our tax rate to 5.15 percent and then to 5 percent is quite obvious," Romney said....

But other Democrats and teachers' union representatives today said the timing is still not right....

"This shouldn't be a knee-jerk reaction," said Rep. Martin Walsh (D-South Boston) ... "If we put together a couple of years of growth, then we could look at it."

The Massachusetts Teachers Association, through a statement, urged lawmakers to increase education aid to local school districts and create a new formula to distribute that money....

"The focus on these additional revenues coming in leads to a rosier picture about the state of the economy than really is there," said Cameron Huff, senior analyst at the Massachusetts Taxpayers Foundation ...

Romney said the revenue collections are also leading the state to post its highest balance in its Stabilization Fund ... The reserve fund currently has $1.728 billion and is projected to reach $2.349 billion by the end of fiscal 2006 ...

Lawmakers are scheduled this year to consider a constitutional amendment that would require 1 percent of all state tax revenues to go directly to the rainy day account. The measure was approved in 2004 by lawmakers meeting jointly in a Constitutional Convention 181-12. The amendment must receive 101 votes this session to advance to the statewide ballot in November.

Romney said today that while he is pleased the state is able to boost its rainy day fund, he believes the state should return surplus money to taxpayers, rather than storing it in a reserve account.

"Simply adding more and more money to the rainy day fund, when we have not honored the vote of the taxpayers to lower their tax rate, would be a wrong direction to take," Romney said.

State House News Service
Wednesday, February 1, 2006
Tax receipts jump again,
fueling calls for tax cuts, education spending


Year-to-date collections totaled $10.385 billion, an increase of $877 million or 9.2 percent over last year ...

Romney said the state is on track to collect more revenue in Fiscal Year 2006 than it ever has in history, following last year’s record-breaking collections. He said revenues are far in excess of what is necessary to support planned budgetary spending.

"Someone once said the law requires us all to pay taxes, but it doesn’t say anything about leaving a tip," said Romney. "That’s certainly the case with our state’s tax collections." ...

Romney called again for the Legislature to honor the wishes of the voters by lowering the income tax to 5 percent....

Receipts in January were $80 million above the monthly benchmark that was adjusted on January 17, 2006, the second upward revision.

The Commonwealth of Massachusetts
Executive Department
News Release - February 1, 2006
Romney announces January revenues total $1.924


The Boston Globe was swamped with more than 13,000 calls yesterday and approximately 200 customers canceled their subscriptions after learning that the newspaper had mistakenly released subscribers’ names and credit card numbers....

Attorney General Tom Reilly’s office said yesterday it would look into the distribution blunder.

"We take these types of matters seriously ... and look forward to meeting with Globe personnel on the issue," said spokeswoman Sarah Nathan....

In the meantime, the Globe said it was launching its own investigation into the snafu and deciding what disciplinary action to take, if any, said spokesman Al Larkin. Publisher Richard Gilman said it will offer customers credit monitoring services designed to track unusual activity, and will provide free access to credit reports for one year. Larkin said the Globe has no reports of any misuse of customers’ confidential information.

But some customers and security experts yesterday said they were appalled at the Globe’s response to the problem so far.

"The real question is who did they fire, are they firing anybody, because somebody should be," said Andrew Jaquith, senior analyst in the security solutions and services practice at the Yankee Group.

The Boston Herald
Thursday, February 2, 2006
World of trouble unfolds over Globe identity gaffe:
Irate subscribers have no trouble distributing blame


The newspapers said they provided the names and account numbers of affected subscribers to major credit card companies, which in turn were notifying the banks that issued the cards. Such notification can trigger increased safeguards against fraud.

No incidents of fraudulent use of the financial information had yet been reported, officials of the newspapers said.

In addition, the newspapers said they would offer affected subscribers a credit-monitoring service to track and identify unusual financial activity and notify the customers.

The newspapers will pay for the service for a year.

"We remain hopeful that this information will not be misused," the Globe's publisher, Richard Gilman, said in a statement. "But we want our customers to know that if any such thing does occur, we will provide them with means to correct the problem." ...

Peter Katz, a partner in the law firm of Day, Berry & Howard LLP and a specialist in privacy and data security, said, "On average, businesses haven't quite followed through to taking serious steps to cut down on the loss of information.

"Businesses have come to think they own this information," Katz said. "But the bias has to be the other way, that it's not their property, they don't have any right to it, and they have to be careful with it." ...

Bruce Spitzer, spokesman for the Massachusetts Bankers Association, said affected subscribers need to be extra vigilant about unsolicited phone calls, e-mails, and letters asking for additional personal and financial information. He said identity thieves often employ such tactics. In addition, he said, these subscribers need to monitor financial activity in their accounts very closely.

"Chances are there's nothing going to happen," Spitzer said. "But if you stay on top of it, and report it quickly, you'll be in good shape."

The Boston Globe
Thursday, February 2, 2006
Hot lines deluged after T&G, Globe leak
Reilly looks to see if papers violated consumer laws


Now that times are flush again — or getting there, anyway — lawmakers won’t exactly beat a path toward reform, especially if it’s proposed by the GOP governor. But they simply can’t afford to ignore one idea tucked into Gov. Mitt Romney’s fiscal 2007 budget — a call for state employees to contribute more toward their health insurance.

A Boston Herald editorial
Thursday, February 2, 2006
Insurance at a premium


Attorney General Tom Reilly’s campaign for governor is in crisis today after his newly anointed running mate, state Rep. Marie St. Fleur, dropped out of the race amid embarrassing financial disclosures that threatened to sink Reilly’s faltering candidacy....

State and federal records show St. Fleur has a $12,700 lien against her home for unpaid federal taxes and owes $40,000 in federally backed college loans.

A Herald review of her household financial records found a laundry list of embarrassing problems. Among them:

St. Fleur is facing non-renewal of her driver’s license because she failed to pay her 2005 excise taxes in Boston.

Registry records show her husband, Jean B. Lauture, also is facing non-renewal because he owes excises taxes from 2004 and 2005, as well as several unpaid Boston parking tickets. Lauture has eight license suspensions for unpaid traffic fines since 1988 and one revocation in 1998 for passing three bad checks, records show.

Together, the couple drew a $12,700 lien against their Dorchester home because of tax debts from 1999 and 2003, according to federal records. The couple has had three unpaid tax debts in the past four years, including bills from the city of Boston totaling more than $7,100. Those debts have since been paid.

St. Fleur also has a current debt of more than $5,200 from December on her campaign finance account and has faced a previous enforcement action for improperly using $5,000 of her campaign finance money to pay for a Honda wagon in 2001, state records show.

The Boston Herald
Thursday, February 2, 2006
St. Fleur’s drop out drops bomb on Reilly


Chip Ford's CLT Commentary

It's another one of those days in Massachusetts were there's so much news that it's hard to keep up with.  Let's get started and do what we can with it.

▪  State revenue continues to pour in, faster than ever before:  "the state is on track to collect more revenue in Fiscal Year 2006 than it ever has in history, following last year’s record-breaking collections," according to the Romney administration's news release.

Still, tax-and-spenders like most Democrats in the Legislature, and of course the Massachusetts Teachers Association and the so-called Massachusetts Taxpayers Foundation, say no, the state can't afford it.  Still, they resist the voters' mandate of 2000 to roll back the 1989 "temporary" income tax to 5 percent.

The "rainy day" stabilization fund is due to be fatter than it's ever been, but still the mantra is sounded:  "The state still can't afford to listen to the voters who elected them!"  And even $2.3 Billion isn't enough:  the Legislature is seeking a constitutional amendment that will mandate that one percent of all state revenue be added to it every year, automatically -- just as their pay raises arrive every two years.

Again I ask:  If not now -- with historic amounts of revenue pouring into state coffers -- then when?!?
 

▪  The Boston Globe/Telegram & Gazette is still apologizing for the "inconvenience" they caused when they made public so many of their subscribers' names, addresses and credit card numbers.  Yesterday their customer "hotline" melted down in response to the news that subscribers' financial security had been compromised.

Yesterday The Boston Globe also set up a website form so subscribers could check and discover if they were unsuspecting victims of its incredible breach of security.

Subscriber Lookup

Yes, we have located your name on the list of impacted accounts. We have tried to recover as much of the data as possible from our retailers and branches, but we recommend that you monitor your bills and report any unauthorized transactions to your bank or credit card company immediately. As a further precaution, we also recommend that you place a fraud alert on your credit file. If you have further questions, please contact The Globe hotline at 1-888-665-2644.

We sincerely apologize for the inconvenience that this incident may cause.

The Boston Globe just gave out names, addresses and credit card numbers (now down to 202,000 they think, from their original estimate of 240,000) but feels that it's only an "inconvenience" that we now must "monitor your bills and report any unauthorized transactions to your bank or credit card company immediately." Oh yes, today they "sincerely apologize for the inconvenience" -- as opposed to what yesterday, an insincere apology?

Having your credit card number and address disclosed to the world, subject to identity theft and fraud is not an "inconvenience"!

That's as if the White Star Line had announced, "Sorry the unsinkable Titanic hit an iceberg and sank; We sincerely apologize for the inconvenience that this incident may cause."

For more information see:
Credit Card Identity Theft Alert! (Feb. 1)
 

▪  State Rep. Marie St. Fleur (D-Boston), vice-chairwoman of the House Ways and Means Committee, flared up and burnt out within a mere 24-hours as a Democrat candidate for Lieutenant Governor and AG Tom Reilly's running-mate.  She joins a long list of Massachusetts Democrat legislators who don't feel the need to pay their taxes or other debts like mere working stiffs.  They usually represent the most zealous tax-and-spenders -- giving an even more radical definition to spending OPM, Other People's Money.  Imagine, she is the second-ranking member of the most powerful committee in the House, the Ways and Means Committee through which passes all spending and tax bills before -- if approved by her committee -- they go on to the rest of the Legislature.

Which brings us full circle, back to today's Item One:  historic revenues again pouring in, the state raking in more taxes than any time in history, the "rainy day" fund growing to its fattest level ever but still not enough.  Does anyone want to guess which way Rep. St. Fleur and other tax dodgers and scofflaws like state Sen. Dianne Wilkerson (D-Boston, convicted of federal tax evasion) and other pols in the Legislature's growing "Deadbeat Democrats Caucus" will vote on our tax rollback?

Chip Ford


State House News Service
Wednesday, February 1, 2006

Tax receipts jump again,
fueling calls for tax cuts, education spending
By Amy Lambiaso


State revenue collections in January jumped 14.1 percent over last January, Gov. Mitt Romney announced on Wednesday, renewing his call for an income tax cut and his opposition to a proposed tax on certain employers that don't offer health insurance.

Romney, who called a press conference to announce the news, said the state is on track to collect $540 million more than what budget writers anticipated when they finalized the state budget last summer.

Tax collections totaled $1.924 billion for January, with the largest growth in income taxes, corporate and business taxes and withholdings, the state reported. Seven months into the fiscal year, collections are up by 9.2 percent, a trend that has spending and tax cut proponents excited about the upcoming budget season.

The governor, who has proposed a 5.3 percent spending increase for next year, said the revenue picture should lead to talk about tax cuts, not tax increases, which the House has included in its bill designed to bring health insurance within three years to 95 percent of those residents who currently do not have it.

House and Senate leaders have been negotiating the final terms of that health care bill since November, and hope to strike an accord by mid-February. Negotiators say revenues are a major issue in the talks.

"As revenues continue to rise well above our forecast, well above last year, the apparent need to finally accede to the request of our citizens to lower our tax rate to 5.15 percent and then to 5 percent is quite obvious," Romney said. "The ability for us to be able to support a health care plan that gets insurance for all of our citizens is real. We don't need new tax revenues."

Recognizing Democrats have been cool to reducing the income tax rate to 5 percent in one year - as voters approved in 2002 - Romney is now proposing to roll back the rate in two phases, beginning with 5.15 percent. Following the governor's State of the State address earlier this month, neither House Speaker Salvatore DiMasi nor Senate President Robert Travaglini outright rejected the new rollback plan

But other Democrats and teachers' union representatives today said the timing is still not right.

"This shouldn't be a knee-jerk reaction," said Rep. Martin Walsh (D-South Boston), who noted that lawmakers included in a 2002 tax increase package automatic triggers that will eventually reduce the income tax rate. "If we put together a couple of years of growth, then we could look at it."

The Massachusetts Teachers Association, through a statement, urged lawmakers to increase education aid to local school districts and create a new formula to distribute that money. According to the union, state education spending, known as Chapter 70, is more than $400 million less than fiscal 2002 levels, when adjusted for inflation, and public higher education spending is $342 million less than fiscal 2001, also adjusted for inflation.

"It is good news that our economy and revenues are on the rebound," said MTA President Catherine A. Boudreau. "Massachusetts students, who suffered losses when times were tough, should benefit from this turnaround. The best way to ensure the long-term health and stability of our economy is to restore funding to our public schools and public higher education system."

Tax analysts say January is often a month with higher tax collections, due mainly to the influx of estimated tax payments on capital gains and other income outside of wages and salaries.

"The focus on these additional revenues coming in leads to a rosier picture about the state of the economy than really is there," said Cameron Huff, senior analyst at the Massachusetts Taxpayers Foundation, noting the state's slow employment growth. "As long as we're seeing that kind of moping along, we've got concern."

Lawmakers also point to the slow job growth in Massachusetts, with the state's unemployment rate remaining unchanged from the month before at 4.9 percent in December, and up from 4.7 percent from December 2004.

"We hear from some employers that they're having a harder time finding people who meet the qualifications they're looking for," Romney said today, noting particular difficulty in the engineering, nursing, and construction fields. "The increase in corporate profits would suggest that there is the opportunity for corporations to hire more people. Hopefully some of those that are doing better financially will decide to expand and use their newfound success to hire more people."

Romney said the revenue collections are also leading the state to post its highest balance in its Stabilization Fund, which lawmakers and the administration had raided during the economic downturn. The reserve fund currently has $1.728 billion and is projected to reach $2.349 billion by the end of fiscal 2006, according to the administration.

Lawmakers are scheduled this year to consider a constitutional amendment that would require 1 percent of all state tax revenues to go directly to the rainy day account. The measure was approved in 2004 by lawmakers meeting jointly in a Constitutional Convention 181-12. The amendment must receive 101 votes this session to advance to the statewide ballot in November.

Romney said today that while he is pleased the state is able to boost its rainy day fund, he believes the state should return surplus money to taxpayers, rather than storing it in a reserve account.

"Simply adding more and more money to the rainy day fund, when we have not honored the vote of the taxpayers to lower their tax rate, would be a wrong direction to take," Romney said.

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The Commonwealth of Massachusetts
Executive Department

News Release - February 1, 2006
Romney announces January revenues total $1.924


Governor Mitt Romney today joined Revenue Commissioner Alan LeBovidge to announce that revenue collections for January totaled $1.924 billion, an increase of $238 million or 14.1 percent more than last January. Year-to-date collections totaled $10.385 billion, an increase of $877 million or 9.2 percent over last year.

Romney said the state is on track to collect more revenue in Fiscal Year 2006 than it ever has in history, following last year’s record-breaking collections. He said revenues are far in excess of what is necessary to support planned budgetary spending.

"Someone once said the law requires us all to pay taxes, but it doesn’t say anything about leaving a tip," said Romney. "That’s certainly the case with our state’s tax collections."

Romney called again for the Legislature to honor the wishes of the voters by lowering the income tax to 5 percent. In his proposed budget for the coming fiscal 2007 year, the Governor proposed lowering the income tax in two stages – from 5.3 percent to 5.15 percent the first year, then to 5 percent in the second year.

Receipts in January were $80 million above the monthly benchmark that was adjusted on January 17, 2006, the second upward revision. Year-to-date collections are now tracking $540 million above the year-to-date benchmark corresponding to the original fiscal 2006 estimate of $17.448 billion.

"January’s collections were carried by very strong estimated payments on personal income taxes and on strong corporate and business payments," LeBovidge said. "In recent years, refunds have outpaced collections of corporate taxes in January, but not this year."

Income tax collections for January totaled $1.363 billion, an increase of $188 million or 16.0 percent over last January. Withholding tax collections totaled $811 million, an increase of $46 million or 6.0 percent. Sales and use tax collections were $387 million, up $11 million or 3.0 percent from last January. Corporate and business tax collections were $28 million, a rise of $27 million from last January.

Year-to-date income tax collections totaled $6.017 billion, an increase of $433 million over last year. Income tax withholding for the first seven months of fiscal 2006 totaled $4.787 billion, up $246 million or 5.4 percent. Total sales and use tax collections were $2.412 billion, an increase $90 million or 3.9 percent. Year-to-date corporate and business tax collections were $932 million, an increase of $364 million or 64.1 percent.

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The Boston Herald
Thursday, February 2, 2006

World of trouble unfolds over Globe identity gaffe:
Irate subscribers have no trouble distributing blame
By Jesse Noyes


The Boston Globe was swamped with more than 13,000 calls yesterday and approximately 200 customers canceled their subscriptions after learning that the newspaper had mistakenly released subscribers’ names and credit card numbers.

Some customers who called a hotline complained of being put on hold for as long as 15 minutes to find out if they were on a list of as many as 202,000 subscribers whose personal information may have been sent out with the Sunday Worcester Telegram & Gazette, the Globe’s sister paper.

But another backlash may come from local and federal officials.

Attorney General Tom Reilly’s office said yesterday it would look into the distribution blunder.

"We take these types of matters seriously ... and look forward to meeting with Globe personnel on the issue," said spokeswoman Sarah Nathan.

The Globe said it hadn’t been contacted by Reilly’s office but would cooperate with any investigations.

Credit and debit card information belonging to thousands of Globe subscribers was mistakenly sent out with bundles of T&G when internal reports were recycled as routing slips or "toppers" put on top of the bundles.

The T&G, which like the Globe is owned by The New York Times Co., also said as many as 1,100 customers’ personal check information might have been exposed. The Globe originally estimated as many as 240,000 customers’ data but was able to lower the number to 202,000 yesterday.

The error comes amid a spate of recent security breakdowns at major companies, such as Ameriprise Financial, Bank of America and ChoicePoint Inc., leading authorities including the Federal Trade Commission to clamp down on data breaches, said Jaikumar Vijayan a senior editor for tech magazine ComputerWorld.

The Globe has "more to fear from those sort of agencies then from customers" Vijayan said. "Legal issues are something that they need to be looking out for."

In the meantime, the Globe said it was launching its own investigation into the snafu and deciding what disciplinary action to take, if any, said spokesman Al Larkin. Publisher Richard Gilman said it will offer customers credit monitoring services designed to track unusual activity, and will provide free access to credit reports for one year. Larkin said the Globe has no reports of any misuse of customers’ confidential information.

But some customers and security experts yesterday said they were appalled at the Globe’s response to the problem so far.

"The real question is who did they fire, are they firing anybody, because somebody should be," said Andrew Jaquith, senior analyst in the security solutions and services practice at the Yankee Group.

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The Boston Globe
Thursday, February 2, 2006

Hot lines deluged after T&G, Globe leak
Reilly looks to see if papers violated consumer laws
By Robert Gavin, Globe Staff


Thousands of concerned and often angry Boston Globe and Worcester Telegram & Gazette subscribers flooded a special hot line yesterday, following the disclosure that their credit and bank card numbers may have been inadvertently distributed with the Sunday T&G.

Meanwhile, the office of Attorney General Thomas F. Reilly is reviewing whether the newspapers, in releasing the personal data, violated the state's consumer protection law, which prohibits unfair or deceptive practices.

"We take these matters involving the release of personal information seriously," said Sarah Nathan, a Reilly spokeswoman. "We are looking into it and look forward to meeting with Globe personnel on the issues."

Alfred S. Larkin Jr., spokesman for the Globe, said, "We have not heard from the attorney general's office, but if we are contacted, we will cooperate fully with any inquiry."

Subscribers yesterday deluged and initially overwhelmed the call center, with many customers complaining of busy signals and long hold times. By noon yesterday, customer service representatives had taken more than 4,200 calls, but had missed about 1,600 subscribers because of the backup.

Throughout the day, the newspapers added more than 200 customer service representatives to handle calls and set up a website on which subscribers could determine whether their names and financial information may have been released. The site is www.bostonglobe.com/cclookup.

By 5 p.m., the center had taken about 13,000 calls, while cutting hold time to less than two minutes. The hotline number is 888-665-2644.

The newspapers said they provided the names and account numbers of affected subscribers to major credit card companies, which in turn were notifying the banks that issued the cards. Such notification can trigger increased safeguards against fraud.

No incidents of fraudulent use of the financial information had yet been reported, officials of the newspapers said.

In addition, the newspapers said they would offer affected subscribers a credit-monitoring service to track and identify unusual financial activity and notify the customers.

The newspapers will pay for the service for a year.

"We remain hopeful that this information will not be misused," the Globe's publisher, Richard Gilman, said in a statement. "But we want our customers to know that if any such thing does occur, we will provide them with means to correct the problem."

On Tuesday, the Globe and the T&G disclosed that confidential information from as many as 240,000 subscribers -- including names, credit and bank card numbers, and expiration dates for credit cards -- was mistakenly printed out.

The paper was then recycled and used to wrap bundles of the Sunday T&G.

The Globe and the T&G are owned by The New York Times Co. and share a computer system.

The papers yesterday said they now believe the maximum number of subscribers who could be affected is 202,000. But they remain uncertain of the precise number.

While the circumstances that led to the security breach were unusual, several privacy specialists said yesterday that the underlying causes, such as the lack of effective policies, are not. In general, said Jeff Meldman, a professor at MIT's Sloan School of Management, businesses have improved their policies and practices only after embarrassing security breaches.

"Historically, there's been a long lag between concerns of coming problems and actually doing something about it," Meldman said. "It's always a reaction."

Peter Katz, a partner in the law firm of Day, Berry & Howard LLP and a specialist in privacy and data security, said, "On average, businesses haven't quite followed through to taking serious steps to cut down on the loss of information.

"Businesses have come to think they own this information," Katz said. "But the bias has to be the other way, that it's not their property, they don't have any right to it, and they have to be careful with it."

Globe and T&G officials said they have put into place new practices to prevent future releases of personal information, such as adding a safeguard to the computer system so only the last four numbers of credit and debit cards can be printed. In addition, they said, they have initiated a review of procedures for handling confidential information, to ensure proper safeguards are in place.

Privacy specialists praised the Globe and T&G for their response to the security breach, including the quick disclosure and providing credit card companies with the released data.

"Other companies have taken their time, so we definitely applaud the Globe," said Eric Bourassa, consumer advocate for the Massachusetts Public Interest Research Group.

Many subscribers, however, were upset.

In angry e-mails and phone calls, they complained that the Globe and T&G failed to protect their personal data and questioned how sensitive financial information could have been so easily accessed, printed, and released.

About 200 of the Globe's 450,000 home delivery customers canceled subscriptions yesterday, the newspaper said.

Jean Terranova of Melrose, a personal chef who subscribed to the Globe for six years, learned she was one of the customers affected. She said she was considering canceling her subscription, but at the very least would stop paying by credit card.

"This was all very shocking," she said. "This is a big, big deal and it hasn't been adequately explained how this happened. I certainly don't trust the Globe with my credit card information."

Bruce Spitzer, spokesman for the Massachusetts Bankers Association, said affected subscribers need to be extra vigilant about unsolicited phone calls, e-mails, and letters asking for additional personal and financial information. He said identity thieves often employ such tactics. In addition, he said, these subscribers need to monitor financial activity in their accounts very closely.

"Chances are there's nothing going to happen," Spitzer said. "But if you stay on top of it, and report it quickly, you'll be in good shape."

How to get help
To find out if your name and financial information may have been released, go to www.bostonglobe.com/cclookup. Also, customer service representatives are available to answer questions at this hot line number: 888-665-2644.

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The Boston Herald
Thursday, February 2, 2006

A Boston Herald editorial
Insurance at a premium


Now that times are flush again — or getting there, anyway — lawmakers won’t exactly beat a path toward reform, especially if it’s proposed by the GOP governor. But they simply can’t afford to ignore one idea tucked into Gov. Mitt Romney’s fiscal 2007 budget — a call for state employees to contribute more toward their health insurance.

The state could save $85 million in the first year by requiring active state employees to pay 25 percent of their premiums — up from 15 percent. That’s an average increase of $50 a month for an individual and $117 a month for a family plan. No small change — but neither are the annual premium increases the state coughs up every year for tens of thousands of employees it covers. Premiums jumped by more than 11 percent last year, the second-highest increase of any state. And it’s on a par with what private sector employers require of their workers.

They’ve tried it before. At the height of the fiscal crisis, lawmakers agreed to a tiered system that increased premiums and co-payments for some state workers. And funny, we don’t remember a revolt — just some carefully applied pressure from politically-connected union leaders. So they quietly allowed the new rates to expire.

Contrary to popular belief, there is no bottomless well of taxpayer dollars to subsidize state worker health premiums. Yes, the majority work hard and deserve good benefits. But if we’ve learned anything in the last few years, it’s that the state must run a lean operation if it expects to meet its obligations to all citizens — not just those who make their living at taxpayer expense.

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The Boston Herald
Thursday, February 2, 2006

St. Fleur’s drop out drops bomb on Reilly
By Casey Ross and Kimberly Atkins


Attorney General Tom Reilly’s campaign for governor is in crisis today after his newly anointed running mate, state Rep. Marie St. Fleur, dropped out of the race amid embarrassing financial disclosures that threatened to sink Reilly’s faltering candidacy.

Reilly, who raised St. Fleur’s arm to welcome her to the ticket Tuesday, did not appear with her last night as the Dorchester lawmaker faced reporters at Reilly’s campaign headquarters to terminate her day-old campaign for lieutenant governor.

"I will keep working to bring change to Massachusetts but will do so without a formal running mate," Reilly said in a short written statement handed out by his aides. "As I said before, there are many qualified candidates for lieutenant governor and I will be happy to serve with any one of them."

Reilly’s comments came as he faced harsh criticism for tapping St. Fleur, 43, to be his running mate without scrutinizing her long and easily accessible history of financial problems. State and federal records show St. Fleur has a $12,700 lien against her home for unpaid federal taxes and owes $40,000 in federally backed college loans.

A Herald review of her household financial records found a laundry list of embarrassing problems. Among them:

St. Fleur is facing non-renewal of her driver’s license because she failed to pay her 2005 excise taxes in Boston.

Registry records show her husband, Jean B. Lauture, also is facing non-renewal because he owes excises taxes from 2004 and 2005, as well as several unpaid Boston parking tickets. Lauture has eight license suspensions for unpaid traffic fines since 1988 and one revocation in 1998 for passing three bad checks, records show.

Together, the couple drew a $12,700 lien against their Dorchester home because of tax debts from 1999 and 2003, according to federal records. The couple has had three unpaid tax debts in the past four years, including bills from the city of Boston totaling more than $7,100. Those debts have since been paid.

St. Fleur also has a current debt of more than $5,200 from December on her campaign finance account and has faced a previous enforcement action for improperly using $5,000 of her campaign finance money to pay for a Honda wagon in 2001, state records show.

During a statement to announce the termination of her brief candidacy last night, St. Fleur, who joined the state Legislature in 1999, said yesterday was "one of the most difficult days of my life."

"I am withdrawing from the race for lieutenant governor," she said. "As I do so, I ask that the voices, dreams and hopes of all the individuals that I had hoped to bring to this race remain a central part of the Democratic message."

St. Fleur, who had jubilantly vowed to be a voice for working-class people, did not take questions from reporters, saying she would address inquiries about her finances after taking a few weeks to sort out the problems with her family.

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