CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

CLT UPDATE
Friday, October 13, 2006

When will Deval
divulge his "property tax relief" plan?


Gov. Mitt Romney had a recent and all-too-rare opportunity to make a spending veto stick and that’s good news for Bay State taxpayers. But it’s a troubling reminder of what legislative spending, left unchecked, could mean for our state finances.

In this case, lawmakers wanted to siphon $450 million out of the state’s rainy-day account to balance the books. But that transfer would have effectively authorized a slew of pet projects approved earlier in the summer (including $150,000 for that infamous study of the winter moth worm) which the governor had vetoed....

Without Romney’s veto, the transfer would have drained nearly a quarter of the balance of the stabilization fund. In this rare case he was able to put on the brakes. But that only happened because legislators have gone home. Taxpayers can’t always count on that.

The Boston Herald
Thursday, October 12, 2006
A Boston Herald editorial
It’s not raining . . . yet


The governor’s actions, irreversible unless legislators convene an increasingly unlikely special session, strike at the core of the difference in fiscal philosophies between the Democrat-run Legislature and the more fiscally conservative executive branch.

Romney Communications Director Eric Fehrnstrom said, "The first rule of fiscal discipline is don’t take money out of the Rainy Day Fund when it’s not raining. Gov. Romney is not going to be a party to the Legislature’s overspending."

The Legislature whipped the bill through much of the legislative process in under 24 hours last week, reporting it from committee Wednesday night and marking it for the governor’s desk Thursday afternoon....

Anticipating the argument that a transfer from the stabilization account is needed to bring the state budget into balance, Fehrnstrom said, "If the Legislature thinks the budget is out of balance, they should come back and make cuts."

State House News Service
Thursday, October 5, 2006
Romney nixes $450 Million transfer
from supplemental budget


Senate Ways and Means Chairwoman Therese Murray said Thursday that Gov. Mitt Romney’s veto of a $450 million transfer from the stabilization account to the General Fund leaves "unfunded mandates in the budget." ...

Murray was responding to comments by Romney Communications Director Eric Fehrnstrom criticizing what he called the Legislature’s overspending. Fehrnstrom said later that Romney had in fact vetoed more than $450 million, but lawmakers put the spending back.

State House News Service
Thursday, October 5, 2006
State Capital Briefs [Excerpt]
Murry hits back on veto of $450M Rainy Day transfer


There’s no question that on the basics - tax policy, business costs and education standards and access - Healey has the upper hand over Patrick on being pro-business. And as she pointed out in her Chamber speech yesterday, the defense a governor is forced to play on Beacon Hill against bad-for-business policies is as important as a pro-business offense. Heck, if it took a court ruling or two - and a couple of tough Herald editorials - to get Gov. Mitt Romney on the right side on the retroactive capital gains tax fight, where would Deval Patrick have come out?

The Boston Herald
Thursday, October 12, 2006
Campaigns short on bold new ideas
By Virginia Buckingham


Addressing over 400 business types and civic players in the Marriott Copley hotel, the three candidates [for governor] splayed their platforms, hitting on fiscal management proposals and education.

With just under a month until the Nov. 7 election, Patrick has been leading substantially in polls, but encountered problems last week when revelations about his efforts to secure parole for Benjamin LaGuer, a man DNA tests show raped his neighbor in 1983.

A CBS4 Fast Track poll released Wednesday showed Healey narrowing the lead to 18 points, seven points down from the 25-point edge Patrick held in a CBS4/Boston Globe survey released Oct. 1. Mihos appeared stuck, at 7 percent close to where he’s been for weeks. And Green-Rainbow candidate Grace Ross continued to hover on the bottom rung, at 1 percent....

Citing her own "no-new-taxes" pledge, Healey said, "Both of my opponents here this morning took a very different pledge. They signed a pledge to the unions, the special interests that control Beacon Hill. And I have a deep concern that that pledge will end up in making us less competitive here in Massachusetts in the long run. There’s a direct correlation between spending and taxes." ...

"This state is on her knees," Mihos said. "It is eminently unaffordable."

The convenience store franchise owner held up his proposal to freeze property values, for tax purposes, between purchases and sales, saying he was confident he could garner enough support for a constitutional amendment.

State House News Service
Wednesday, October 11, 2006
Trio of Guv candidates meet with business group


Chip Ford's CLT Commentary

Governor Romney this week vetoed the Legislature's $450 million raid on its personal slush fund -- the so-called "Rainy Day Fund."  You know, that fund we "need for emergencies" when the economy again begins to slow, even at the cost of the voters' tax rollback mandate.  Despite the monthly revenue report issued by the state commissioner of revenue that the state is way over anticipated revenues:  "Preliminary revenue collections for September were $2.070 billion, an increase of $129 million or 6.6 percent over last September. September collections passed the $2 billion mark for the first time," Commissioner LeBovidge reported on Oct. 2.

And because our fulltime Legislature -- "The Best Legislature Money Can Buy" -- has been out since July, "in the district" campaigning for reelection as if they need to break a sweat.  The governor's veto this time prevailed, only because legislators weren't around during their extended biennial (election year) vacation.


Boston Herald columnist Virginia Buckingham yesterday opined:  "Heck, if it took a court ruling or two - and a couple of tough Herald editorials - to get Gov. Mitt Romney on the right side on the retroactive capital gains tax fight, where would Deval Patrick have come out?"

She made a good point -- but she forgot one of the most motivating forces for repeal of the retroactive capital gains tax; a consistent and primary advocate against that obscene legislation:  Citizens for Limited Taxation, at the forefront of repeal from the beginning and even before.  Governor Romney even thanked CLT and it members with a personal letter for our advocacy!  [See also:  CLT Update, Nov. 19, 2005, "Joined by CLT members, Gov calls for fairness on retroactive cap gains tax"]


"The convenience store franchise owner held up his proposal to freeze property values, for tax purposes, between purchases and sales, saying he was confident he could garner enough support for a constitutional amendment," the State House News Service reported of unenrolled gubernatorial candidate Christy Mihos.  It looks like he has finally recognized that if elected somehow he can't do it unilaterally, by fiat, as CLT had told him early on.  "Christy's Proposition 1" is a pipe dream.


But Democrat candidate for governor Deval Patrick refuses to honor the voters' mandate and roll back the state income tax to 5 percent.  He professes that instead he wants to relieve our property tax burden.

When will he give us taxpayers a plan -- detailed or anything whatsoever -- explaining just how he intends to accomplish that?  Say what you  want about Christy Mihos; at least he laid out his plan to be reviewed and challenged.

When will Deval Patrick divulge his alleged "property tax relief" plan?

Chip Ford


The Boston Herald
Thursday, October 12, 2006

A Boston Herald editorial
It’s not raining . . . yet

Gov. Mitt Romney had a recent and all-too-rare opportunity to make a spending veto stick and that’s good news for Bay State taxpayers. But it’s a troubling reminder of what legislative spending, left unchecked, could mean for our state finances.

In this case, lawmakers wanted to siphon $450 million out of the state’s rainy-day account to balance the books. But that transfer would have effectively authorized a slew of pet projects approved earlier in the summer (including $150,000 for that infamous study of the winter moth worm) which the governor had vetoed.

In fact, the governor vetoed nearly $600 million in proposed spending this summer, all of which the Legislature overrode. Why would he OK a rainy-day transfer to cover any of it?

But that didn’t stop Senate Ways and Means Chairman Therese Murray (D-Plymouth) from crying foul, telling the State House News Service the veto will leave "unfunded mandates."

Well, of course it will, Senator - but the mandates are largely a creation of the Legislature! As Romney’s spokesman, Eric Fehrnstrom, noted: "If the Legislature thinks the budget is out of balance, they should come back and make cuts." We won’t hold our breath.

Without Romney’s veto, the transfer would have drained nearly a quarter of the balance of the stabilization fund. In this rare case he was able to put on the brakes. But that only happened because legislators have gone home. Taxpayers can’t always count on that.

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State House News Service
Thursday, October 5, 2006

Romney nixes $450 Million transfer
from supplemental budget
By Jim O’Sullivan


Gov. Mitt Romney vetoed on Thursday a $450 million transfer to the state’s general account from its Rainy Day Fund, but signed off on nearly all the rest of an $89 million supplemental spending bill passed last month by the Legislature.

Parts of the legislation Romney approved include $4.4 million to compensate public higher education campuses for waiving active National Guard members’ tuition and fees, $5 million for bulletproof vests for state and municipal police officers, nearly $9 million for the Department of Revenue, and close to $8 million for Treasurer Timothy Cahill's office. Romney vetoed out language establishing an International Education Fund.

Romney also authorized $10.5 million, marked for Fiscal Year 2006, but carried forward to be spent in FY ’07.

The governor’s actions, irreversible unless legislators convene an increasingly unlikely special session, strike at the core of the difference in fiscal philosophies between the Democrat-run Legislature and the more fiscally conservative executive branch.

Romney Communications Director Eric Fehrnstrom said, "The first rule of fiscal discipline is don’t take money out of the Rainy Day Fund when it’s not raining. Gov. Romney is not going to be a party to the Legislature’s overspending."

The Legislature whipped the bill through much of the legislative process in under 24 hours last week, reporting it from committee Wednesday night and marking it for the governor’s desk Thursday afternoon.

Democratic budget committee aides said the $450 million was needed to balance this year’s budget. Romney, the legislative aides said, used $200 million in onetime revenues to balance the budget.

Anticipating the argument that a transfer from the stabilization account is needed to bring the state budget into balance, Fehrnstrom said, "If the Legislature thinks the budget is out of balance, they should come back and make cuts."

Since their formal sessions expired by statute on July 31, lawmakers have hesitated to reconvene formally, despite a capital bond bill that both Democratic leaders and Romney agree is necessary. Neither bond legislation nor vetoes can be addressed during informals.

Earlier this week, Information Technology chief Louis Gutierrez tendered his resignation to Romney over the bond bill’s failure to pass, complaining that he was "presiding over the dismantling of an IT investment program."

State Revenue Commissioner Alan LeBovidge reported Monday that the state lags fiscal 2007 benchmarks by about a million dollars to date, though September intakes passed the $2 billion mark, an all-time high for that month.

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State House News Service
Thursday, October 5, 2006

State Capital Briefs  [Excerpt]
Murry hits back on veto of $450M Rainy Day transfer


Senate Ways and Means Chairwoman Therese Murray said Thursday that Gov. Mitt Romney’s veto of a $450 million transfer from the stabilization account to the General Fund leaves "unfunded mandates in the budget."

The money was to be used to balance the Fiscal Year 2007 budget, with large amounts for $58 million in health care spending, $30 million for nursing homes, and $53 million for Chapter 70, Murray said.

She said, "He can’t have it both ways. He can’t say he’s not going to move the money but sign a budget that has these things included in it, unless he wants to tell the cities and towns that their schools are not going to get the money we put in, and I assume he doesn’t want to stand up and say that."

Murray was responding to comments by Romney Communications Director Eric Fehrnstrom criticizing what he called the Legislature’s overspending. Fehrnstrom said later that Romney had in fact vetoed more than $450 million, but lawmakers put the spending back.

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The Boston Herald
Thursday, October 12, 2006

Campaigns short on bold new ideas
By Virginia Buckingham


The egg concoction on the plates was something new, but the crowd gathered at the Greater Boston Chamber of Commerce Government Affairs breakfast forum yesterday was the same old, same old. And the gubernatorial candidates’ ideas on the economy? Older still.

It was Boston’s reputation as a stagnant, insular, and some would say incestuous, breeding ground of inside dealers and special interest powerbrokers which Deval Patrick took a gentle rhetorical shot at yesterday. Boston, he essentially said, you’ve got an "attitude" problem.

"We need to start looking out," Patrick noted, relating a conversation with a Democratic State Convention delegate who criticized the presence of Illinois Sen. Barack Obama at a pre-convention rally. "We don’t need any outsiders," the delegate told Patrick. "Oh, yes we do," Patrick answered.

Do we ever.

(And sorry, Christy, you don’t qualify. A guy’s who’s been appointed to two powerful state boards by a governor is, by definition, an insider. And a guy who can’t resist referring to his female opponent’s hair and clothes and this state as on "her" knees is the worst kind of "old boy.")

I also have my doubts that Patrick, the candidate of the unions and the Beacon Hill powerbrokers (past and present) will stamp an "outsider" imprimatur on his administration. Yet, after 16 years in the corner office, the GOP is losing its claim to be the party of change.

So here’s the issue. Neither Patrick nor Healey wowed the admittedly insider-heavy business crowd yesterday with a soaring economic vision. Has the nation’s well of creative economic ideas run dry or just our own parochial sources?

There’s no question that on the basics - tax policy, business costs and education standards and access - Healey has the upper hand over Patrick on being pro-business. And as she pointed out in her Chamber speech yesterday, the defense a governor is forced to play on Beacon Hill against bad-for-business policies is as important as a pro-business offense. Heck, if it took a court ruling or two - and a couple of tough Herald editorials - to get Gov. Mitt Romney on the right side on the retroactive capital gains tax fight, where would Deval Patrick have come out?

But I doubt I was the only one needing to swill more weak coffee to get excited about the consensus among Healey and Patrick that the state needs more trains to outlying burgs where housing is cheaper. And one-stop shopping for permitting? Be still my heart, what a brilliant idea.

Our competitors aren’t just in Connecticut and New Hampshire but in Lahore and Shanghai, we were informed by Patrick. Really? Perhaps the new governor will lead trade missions of business leaders abroad where he or she can open doors, sign sister state agreements and find you don’t even have to point out Massachusetts on a map thanks to Harvard and Mass. General Hospital.

There were a few bright moments in yesterday’s otherwise repetitive forum. Patrick’s notion of Massachusetts as an incubator of renewable energy businesses was cool and Healey’s knowledgeable riff on Canadian pipelines and provinces was impressive. I noticed Healey’s focus on improving the English language skills of legal immigrants made employers’ ears perk up too.

But the mostly warmed over proposals and rhetoric in Patrick’s and Healey’s economic stump speeches made the eggs the most exciting part of yesterday’s event. We’re short on new faces, as Patrick rightly noted. And as a result, we’re woefully short on new ideas.

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State House News Service
Wednesday, October 11, 2006

Trio of Guv candidates meet with business group
By Jim O’Sullivan


Deval Patrick signaled Wednesday that he may shift the largely upbeat tone of his campaign, as Kerry Healey continues to drill him over his defense of criminals.

"We will respond as and when we have to," the Democrat said in response to a reporter’s question about whether he had a negative ad prepared. He said, "Listen, there’s a whole lot that this administration and this lieutenant governor have to answer for … There is a lot of distance between the rhetoric of the lieutenant governor and her actions, and I do intend to call that out."

A Healey ad released Wednesday hammered Patrick over not revealing all the facts about his advocacy on behalf of a convicted rapist until contradicted by press reports. Patrick said Wednesday he thought her campaign was trying to exploit the case for political gain.

Healey, the Republican lieutenant governor whom a new opinion survey shows whittling Patrick’s advantage, told reporters, "I think you have to choose sometimes in life whose side you’re going to be on, and again and again I’ve chosen to be on the side of the victim and victims of crimes and Deval Patrick has chosen to be on the side of the criminal."

Patrick has stood by his record as both a prosecutor and a defense attorney and said Wednesday that Healey, a criminologist, "lives in the world of theory." Of the new Healey ad, he said, "If I had the current administration’s record, I’d try to change the subject as well."

Before addressing the criminal justice issues during media scrums, the top two gubernatorial contenders, along with independent Christy Mihos, brought their visions for improving the state’s business climate to the Greater Boston Chamber of Commerce Wednesday, clashing over the income tax rate and each other’s approaches to the economy.

Addressing over 400 business types and civic players in the Marriott Copley hotel, the three candidates splayed their platforms, hitting on fiscal management proposals and education.

With just under a month until the Nov. 7 election, Patrick has been leading substantially in polls, but encountered problems last week when revelations about his efforts to secure parole for Benjamin LaGuer, a man DNA tests show raped his neighbor in 1983.

A CBS4 Fast Track poll released Wednesday showed Healey narrowing the lead to 18 points, seven points down from the 25-point edge Patrick held in a CBS4/Boston Globe survey released Oct. 1. Mihos appeared stuck, at 7 percent close to where he’s been for weeks. And Green-Rainbow candidate Grace Ross continued to hover on the bottom rung, at 1 percent.

Each candidate tried to appeal to the business-heavy crowd.

Citing her own "no-new-taxes" pledge, Healey said, "Both of my opponents here this morning took a very different pledge. They signed a pledge to the unions, the special interests that control Beacon Hill. And I have a deep concern that that pledge will end up in making us less competitive here in Massachusetts in the long run. There’s a direct correlation between spending and taxes."

Healey drew guffaws when, answering an audience question about whether her "no-new-taxes" pledge extended to fees, she replied, "Taxes and fees are different things." Romney has faced criticism from the business community over corporate tax loophole-closings they say amount to new fees.

Healey said she found the proposal to erect a liquefied natural gas facility on Outer Brewster Island, a controversial plan opposed by local officials and environmentalists, "probably the least objectionable" of the several LNG options before the state.

Talking with reporters, Healey said, "We heard that Deval Patrick has no intention of making it more affordable here in Massachusetts for working families or companies."

Repeating what has become a common refrain in his speeches, Patrick said Democrats should be more comfortable working on behalf of the private sector, and pointed to his hope that government will help strengthen the state’s renewable and alternative energy industry.

Using "us" as a substitute for Democrats, Patrick said, "The difference between us and the right is, or ought to be, that we understand there’s more than one bottom line." He touted his corporate work at Texaco and Coca-Cola, "as well as various boards."

Patrick hit current state policies he said "make doing business in Massachusetts expensive and frustrating," repeating a widespread complaint of policymakers that the permitting and regulatory processes governing commercial and residential developments are too slow. Healey also said she wanted smoother permitting.

Patrick said, "We live in a netherworld right now where we complain about the pace of regulation but then we starve the agencies of the resources they need to do what we ask them to do."

Patrick also re-stated his support for standardized testing as a graduation requirement, repeating his proposals for others on top of it; Healey’s campaign has flatly said Patrick opposes the tests as prerequisites. Calling his answer "especially for the lieutenant governor," Patrick looked at Healey from the podium and said, "I’m going to say this one more time, I’m going make sure you hear me: I support the MCAS."

Democrats have circulated video of Healey during a 2000 House race saying she opposed MCAS as a graduation requirement. She now supports it.

With a lead over Healey as broad as 25 points in polls released late last month, Patrick has carried the optimistic tone that helped him in the primary into the general election. But attacks on his judgment and depictions of him as soft on violent criminals have eaten into Democrats’ confidence. Some have questioned privately why Patrick has not changed into fighting mode.

At a press conference Monday, Patrick said his campaign was striving as much as "humanly possible" to maintain a positive tone. A new Patrick ad criticizes the administration’s record on the Big Dig, rising property taxes, and economic failures like job loss.

Patrick Communications Director Richard Chacón said the campaign had been trying to direct attention toward the administration’s record.

"This is not really any kind of shift. We welcome that there are more who recognize … and are paying attention to this administration’s record," Chacón said.

In his often playful remarks, Mihos rejected criticisms that he has been a "junkyard dog" attacking Healey, saying the administration’s record is "fair game" because it has failed to revive the economy sufficiently, leaving the state with a population drain.

"This state is on her knees," Mihos said. "It is eminently unaffordable."

The convenience store franchise owner held up his proposal to freeze property values, for tax purposes, between purchases and sales, saying he was confident he could garner enough support for a constitutional amendment. Mihos wants to increase affordable housing stock, install slot machines at the state’s racetracks and pursue Big Dig contractors aggressively to recoup what he says was misused payouts.

"We’ll go after everything like a businessman would, not like a politician would," he said.

He reeled off a number of one-liners, noting that Chamber members had joined calls for Mihos to step down from the Turnpike Authority board. "This is just a wonderful opportunity to be back here," Mihos said to laughs and applause, later calling Chamber President Paul Guzzi "my new best buddy."

Answering speculation he is motivated by a "vendetta" against the state GOP with which he’s had a stormy familial relationship, Mihos said, "How can you be mad at the Republicans? I mean, you’ve got to pity them sometimes."

One question Guzzi put to both Mihos and Healey, and tailored slightly differently for Patrick, drew smiles from all the candidates. He asked the candidates to say something they liked about their opponents.

Mihos said, "I like Kerry Healey. We’ve been together socially. She’s very warm. She's not what they say she is, stiff or anything like that, she's a very warm person.

Saying Healey, "refuses to even look at me," Mihos pressed on: She's very well dressed and very well coiffed, and I really do like her a lot, I respect her."

Healey credited Patrick with being "an eloquent speaker."

Asked what he’d learned from his opponents, Patrick said he "respect[s] the vigor of their campaigns," admired some of their ideas and would attempt to implement some of them.

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