CLT UPDATE
Tuesday, September 18, 2007

Another False Choice


"The false choices posed by liberalism and conservatism make it extremely difficult for the perfectly obvious preferences of the American people to express themselves in our politics. We are encouraging an 'either/or' politics based on ideological preconceptions rather than a 'both/and' politics based on ideas that broadly unite us."

E.J. Dionne, Jr.
Why Americans Hate Politics © 1992 - Pg. 14


What can you buy with $120 million? Not much if you're the State Department of Public Works. When the gas tax was increased last summer, $120 million of the new revenue was appropriated directly to the DPW. The money was supposed to be used as cash to leverage federal matching funds for road and bridge projects. But after the Executive Office of Administration and Finance moved in with a dazzling series of cuts, transfers, and reallocations -- not to mention "freezing" $89 million to help offset the deficit -- only $7.4 million of the original $120 million remained. The state now says that since it no longer has the cash, it'll have to borrow the money needed for road work. We can only hope that with a new administration those "frozen" funds will be thawed out and spread over our roads.

AAA World - Update
January/February, 1991
The $120 Million Mirage


Here’s a question we might ask before Massachusetts turns into one giant slot machine.

Why should we believe casino money, as Gov. Patrick said yesterday, will actually be used for property tax relief and crumbling roads and bridges?

The 1990 gas tax increase was supposed to be earmarked for crumbling roads and bridges, too.

What happened?

Here’s another question: Why should we all be expected to pay, as a finance commission proposed yesterday, nearly $19 billion in new taxes and tolls before the Legislature institutes any anti-scam reform -- not even one? ...

The point is: We’re getting mugged. Politicians do not fix the scams. We just keep getting told the state’s broke. So pay up. And little old ladies who can’t pay escalating property taxes are told, basically, to drop dead.

Asked if she thought things might be different this time -- you know, reforms first, tax hikes second -- anti-tax crusader Barbara Anderson started laughing yesterday. “Obviously the clear and simple response is, ‘Let’s do the reforms first.’ There’s no possible excuse for them not to.”

The Boston Herald
Tuesday, September 18, 2007
Stem scams before tapping taxpayers
By Margery Eagan


Let’s not kid ourselves. In the end, Gov. Deval Patrick was left with no choice.

Since taking office, it seems this governor of caviar tastes couldn’t speak into a microphone without announcing a new government program, one that typically carried a billion-dollar price tag:

Stem cell research and other life sciences grants ($1 billion). Commuter rail service to the South Coast ($1.4 billion). Free community college for all (who knows how much). To say nothing of the campaign promise to create 100,000 jobs -- and provide property tax relief to homeowners.

The trouble is, there weren’t nearly enough taxpayer dollars to achieve any of that. And let’s be honest, even if the Legislature goes along with his plan to auction off three state licenses for full-scale resort-style casinos, the governor’s eyes are still far bigger than the taxpayers’ wallets....

And anyone who doubts the wisdom of the governor’s proposal should decide whether they prefer an 11 cent hike in the gas tax -- and a “Big Brother”-style system for tracking how far Bay State motorists drive, then charging them by the mile. Coming on the same day, those proposals by the Transportation Finance Commission should make this casino proposal that much more attractive.

The Boston Herald
Tuesday, September 18, 2007
A Boston Herald editorial
Gov shows hand, taxpayers may win


Gov. Deval Patrick yesterday said his big gamble on three destination casinos would pay off in statewide property tax relief, infrastructure improvement and well-paying jobs.

The Boston Herald
Tuesday, September 18, 2007
Pick Your Poison
Deval: Gamble could pay off big
Touts relief for property tax, road work


Governor Deval Patrick, ending months of private study and public speculation, invited the casino industry to come to Massachusetts yesterday in a watershed proposal that he said will create 20,000 jobs and generate $2 billion in economic activity from three resort-style casinos in various regions of the state.

In unveiling his proposal, Patrick said the financial windfall would outweigh the serious social ills associated with gambling. The hundreds of millions of dollars in additional state revenues, he said, would be directed toward rebuilding the state's crumbling roads and bridges and providing property tax relief for beleaguered homeowners....

The administration estimates that bidding for the 10-year licenses would produce between $600 million and $900 million in upfront fees for the state. The state would then receive 27 percent of gambling proceeds from all three casinos each year. That would amount to $400 million a year, after subtracting the costs of treating chronic gamblers, beefing up police enforcement, and creating a regulatory branch of government....

Under the governor's plans, the state's proceeds from the casinos would be evenly divided between paying for road and bridge repairs and bringing tax relief to an estimated 1 million property owners. He proposed a property tax credit that would range from $150 to $400 a year for qualified property owners and average about $215. Property owners who pay 2.5 percent or more of their income on property taxes would qualify for the credit. The average property tax bill in the state was $3,962 in the last fiscal year.

The Boston Globe
Tuesday, September 18, 2007
Governor predicts a jackpot
Millions targeted for road, bridges, property tax relief


Chip Ford's CLT Commentary

False choices.  "Would you rather be skinned alive, or boiled alive?"  A false choice.  I want to undergo neither treatment and don't intend to.  I refuse to make the best selection between two bad choices, and don't need to.  The choices offered are merely misdirection and distraction, like a magician's sleight-of-hand trick to keep our eyes off the real act:  Someone's being positioned, set up with false choices.  This, or that, like there are no other options to pick from.

"Would you rather be skinned alive, or boiled alive?"  Neither -- I'd rather squash you before you can impose either.  Ah hah, another choice!

But that's what we taxpayers are being presented with:  a classic false choice.  Either stratospheric new highway taxes or casino gambling, to save our crumbling highways and neglected bridges and our lives, to provide Governor Patrick with a means of perhaps keeping his vague campaign promise to "provide property tax relief."  We're expected to blindly pick the lesser of two evils.

"I'd rather squash you before you can impose either.  Ah hah, another choice!"

Gambling casinos and their potential new revenue have nothing to do with decades of highway neglect.  The Legislature's institutional neglect of highways and bridges proves that a gas tax hike or other burdens on motorists provides no assurance that this infrastructure won't continue to crumble, bridges won't collapse and kill somebody else -- that "dedicated highway funds" won't again be diverted elsewhere to all the "needs" and wants of society, which politicians providing them use to get themselves reelected.

This is Massachusetts, after all.  The record here is clear.  Can you honestly expect anything more?

Let's reject the premise that more revenue is needed, at least at first.  Let's figure out how much it's actually going to cost taxpayers to make up for years of misguided neglect and misappropriation of highway funds.  Let's just -- as they say -- move on.

The Transportation Finance Commission driving this debate has suggested 22 reforms.  Let the Legislature finally get off its "full-time" collective duff and enact them, now.  Get rid of police details at last.  Honestly reform pensions and health insurance and perks for public employees, now.  Complete the list of recommended reforms, then come back and tell us taxpayers what is then the bottom line to keep us alive on our roads.

Is it still $20 billion, or has this figure dropped to $17 billion, $15 billion, or $12 billion over the next twenty years?

First do the reforms, then let us know the bottom line -- what we need to further spend keep our collective roads, bridges and turnpike from killing us.  Is this too much to ask?

With reforms accomplished finally, how much will it cost us taxpayers to straighten out years of government mismanagement and mis- if not malfeasance?  Hey, unfortunately we elected them.  A majority of voters empowered them to screw us over the decades.  The pols don't know any better, nor should they care; they keep getting reelected, returned to do it to us all over again.

$17 billion?  $15 billion?  $12 billion?  How much will it cost us again to keep our roads from killing us?  Give me a number -- after the reforms have been instituted.

Then -- and only then -- can we intelligently discuss how to fund the past obvious neglect and move on toward finally making our infrastructure safe.  Whatever the source of revenue required.

Just don't consider me stupid.  Don't treat me like an idiot.  And don't give me only false choices.

Chip Ford

 


The Boston Herald
Tuesday, September 18, 2007

Stem scams before tapping taxpayers
By Margery Eagan


Here’s a question we might ask before Massachusetts turns into one giant slot machine.

Why should we believe casino money, as Gov. Patrick said yesterday, will actually be used for property tax relief and crumbling roads and bridges?

The 1990 gas tax increase was supposed to be earmarked for crumbling roads and bridges, too.

What happened?

Here’s another question: Why should we all be expected to pay, as a finance commission proposed yesterday, nearly $19 billion in new taxes and tolls before the Legislature institutes any anti-scam reform -- not even one?

Here’s a little scam, but an enraging one, particularly to those struggling to pay health care costs.

Mike Levine, briefly, was principal of King Philip Regional High School in Wrentham, where he negotiated a health-care-for-life deal (health care for life is de rigueur around here). But his deal was sweeter: taxpayers must continue paying 75 percent of his $15,000 annual policy even though Levine left the school and now works as principal of East Greenwich High in Rhode Island, $112,500 a year, said enraged Wrentham tax watchdog Keith Billian yesterday.

If Levine lives for another 20 years, that’s $225,000 in today’s dollars, Billian says. When Levine dies, by the way, the benefit transfers to his wife. Should she die before him -- “God forbid,” says Billian -- and he marries some Rhode Islander 20 years younger, taxpayers “will pay her health care costs for life too. And how exactly does this benefit the students of King Philip?”

I called Mike Levine in Rhode Island to ask him that. He had no comment.

Here’s three big-time scams.

Police details on state road and bridge projects, almost unique to Massachusetts, cost about $100 million a year, says the commission that wants to get rid of them. But that will never happen because Beacon Hill is scared to death of police unions.

Cities and towns could save another $100 million in health insurance in 2009 alone if they join the state’s insurance program. Patrick has signed a law allowing them to do that. But yesterday, Dolores Mitchell, who runs the state’s group insurance commission, said only 20 communities have shown much interest in joining. It’s unclear how many of those towns are also begging for Prop. 2˝ overrides.

Did you know that MBTA workers get full pensions after a mere 23 years of service, no matter how young they are? That MBTA retirees make no contribution to their health care premiums, that “this incentive,” reports the state Transportation Finance Commission, “combined with generous pension benefits, makes it more attractive to retire than to stay employees?”

It was recently reported that two former MBTA officials are getting full pensions plus six-figure salaries from other state agencies. Michael Mulhern, 48, takes home a $225,000 state salary as well as a $130,00 state pension.

James Rooney, 49, gets a $255,000 state salary and a $70,000 pension.

Meanwhile, the MBTA (which was supposed to be bailed out once before by a sales tax hike) has raised fares three times in six years, and yesterday’s proposal calls for raising them 10 percent every three years.

I could go on.

The point is: We’re getting mugged. Politicians do not fix the scams. We just keep getting told the state’s broke. So pay up. And little old ladies who can’t pay escalating property taxes are told, basically, to drop dead.

Asked if she thought things might be different this time -- you know, reforms first, tax hikes second -- anti-tax crusader Barbara Anderson started laughing yesterday. “Obviously the clear and simple response is, ‘Let’s do the reforms first.’ There’s no possible excuse for them not to.”

Here’s betting they’ll find one anyway.


The Boston Herald
Tuesday, September 18, 2007

A Boston Herald editorial
Gov shows hand, taxpayers may win


Let’s not kid ourselves. In the end, Gov. Deval Patrick was left with no choice.

Since taking office, it seems this governor of caviar tastes couldn’t speak into a microphone without announcing a new government program, one that typically carried a billion-dollar price tag:

Stem cell research and other life sciences grants ($1 billion). Commuter rail service to the South Coast ($1.4 billion). Free community college for all (who knows how much). To say nothing of the campaign promise to create 100,000 jobs -- and provide property tax relief to homeowners.

The trouble is, there weren’t nearly enough taxpayer dollars to achieve any of that. And let’s be honest, even if the Legislature goes along with his plan to auction off three state licenses for full-scale resort-style casinos, the governor’s eyes are still far bigger than the taxpayers’ wallets.

But at least we won’t have to endure the hypocrisy of a chief executive who demands more and more from taxpayers -- but overlooks one of the solutions that is staring him in the face, then hopping into its car and driving to Connecticut.

And anyone who doubts the wisdom of the governor’s proposal should decide whether they prefer an 11 cent hike in the gas tax -- and a “Big Brother”-style system for tracking how far Bay State motorists drive, then charging them by the mile. Coming on the same day, those proposals by the Transportation Finance Commission should make this casino proposal that much more attractive.

Patrick would dedicate half the revenue from the casinos to improving the state’s roads and bridges, and the other half to tax relief for about a million property owners. He’s talking in broad strokes now, so we’ll be interested in a more robust discussion over those “earmarks.” And there are still questions to be answered about the “nationally unprecedented regulatory oversight” he has promised.

But the claim by critics, that casinos are a sucker’s bet, and somehow the commonwealth will actually lose money on them, truly rings hollow.

And while no one wants tourists to shun the Freedom Trail in favor of a climate-controlled gambling Mecca, fears that our state’s character is going to be “destroyed” are wildly overblown. After all, visitors to New Orleans don’t shun the French Quarter simply because there are slots.

There is no small obstacle to all this in the person of House Speaker Sal DiMasi, an avowed casino opponent, who now holds the cards. The House could choose to follow the leader and block Patrick’s proposal with ease.

But without the revenue from casino licenses -- and without a continuing source of revenue from slots -- the governor’s pricey priorities come up snake eyes.


The Boston Herald
Tuesday, September 18, 2007

Pick Your Poison
Deval: Gamble could pay off big
Touts relief for property tax, road work
By Jay Fitzgerald

Gov. Deval Patrick yesterday said his big gamble on three destination casinos would pay off in statewide property tax relief, infrastructure improvement and well-paying jobs.

Patrick, unveiling details of his much-anticipated casino proposal, said the state could set aside about $50 million to help pay for new public health initiatives, community mitigation and regulatory oversight related to any new casinos built in Massachusetts.

But he said his proposal for three “destination resort casinos” - one in Western Massaschusetts, one in Southeastern Massachusetts and one in Greater Boston - would generate an additional $400 million to $450 million a year that could be split between property tax relief, via new tax credits, and the state’s huge transportation needs.

In addition, Patrick said his plan would also generate “tens of thousands” of construction jobs and about 20,000 permanent jobs at three resorts that could have hotels, meeting halls, golf courses, entertainment venues and other facilities that could attract visitors from across the country and world.

“Casino gambling is neither a cure-all nor the end of civilization,” said Patrick at a State House press conference. But if “done right,” he said, the state can reap economic gains while managing social ills associated with gambling.

Dan O’Connell, Patrick’s secretary of housing and economic development, said putting the licenses out to bid early could raise an additional $600 million to $1 billion, not counting revenue from annual state taxes of at least 27 percent on each casino’s proceeds.

But Geoff Beckwith, executive director of the Massachusetts Municipal Association, expressed concern that new casinos could hurt the revenue stream of the state Lottery, which distributes more than $900 million a year to local government.

Patrick conceded the Lottery may take a hit in the future, but a casino package can be structured in a way to offset any lost Lottery funds.

The governor’s casino plan got support yesterday from Boston Mayor Thomas Menino.

“It’s not a moral issue, it’s an issue of revenue and jobs,” Menino said. He expressed hope that one of the new licenses could go to Suffolk Downs in East Boston.

But Patrick made clear yesterday that the owners of Suffolk Downs, Wonderland Racetrack in Revere and other racetracks would not be considered if they don’t include massive “resort” investments at their sites.

Patrick also made clear he believes the Mashpee Wampanoag Tribe - which is using its clout as a federally recognized Indian tribe to push for a new casino in Middleboro - should be given “special” consideration when the state issues licenses.


The Boston Globe
Tuesday, September 18, 2007

Governor predicts a jackpot
Millions targeted for road, bridges, property tax relief
Proposal is hailed, faces turbulence on Beacon Hill
By Frank Phillips and Andrea Estes


Governor Deval Patrick, ending months of private study and public speculation, invited the casino industry to come to Massachusetts yesterday in a watershed proposal that he said will create 20,000 jobs and generate $2 billion in economic activity from three resort-style casinos in various regions of the state.

In unveiling his proposal, Patrick said the financial windfall would outweigh the serious social ills associated with gambling. The hundreds of millions of dollars in additional state revenues, he said, would be directed toward rebuilding the state's crumbling roads and bridges and providing property tax relief for beleaguered homeowners.

"Casino gambling is neither a cure-all nor the end of civilization," Patrick said at a State House press conference. "Under certain conditions, I believe casinos can work well in and for the Commonwealth."

Patrick's plan immediately encountered turbulence in key places on Beacon Hill. House Speaker Salvatore F. DiMasi, a longtime gambling opponent, responded coolly to the initiative, saying, "We in the House remain skeptical."

"So far, our concerns for ushering in casino gambling have not been eased," DiMasi said. "But we will hear the governor out, and we will be asking the governor to explain the rationale behind his conclusions."

Patrick, who must win the support of the Legislature for his plan to proceed, wants to license three casinos: in Southeastern Massachusetts, Western Massachusetts, and the Boston metropolitan area. His plan would encourage bidding by the Wampanoag Indian tribe, which has proposed a casino resort in Middleborough, by including a provision that would give special consideration to an Indian bid for one of the licenses.

The administration estimates that bidding for the 10-year licenses would produce between $600 million and $900 million in upfront fees for the state. The state would then receive 27 percent of gambling proceeds from all three casinos each year. That would amount to $400 million a year, after subtracting the costs of treating chronic gamblers, beefing up police enforcement, and creating a regulatory branch of government.

"With that potential economic generator, we cannot reject the casino industry out of hand," Patrick said. He presented the initiative as an alternative to raising taxes.

His long-awaited decision was praised by advocates for casino gambling, including the potential bidders for the licenses, the labor unions that represent hotel and resort workers, trade unions, some municipal officials, and the state's tourism officials.

"This is a way of helping Massachusetts' beleaguered cities and towns without raising revenues through taxation," said Mayor Thomas M. Menino, who supports a casino resort at Suffolk Downs race track in East Boston. He called the facility "the only feasible site in Boston."

But Patrick's proposal is also creating strong opposition that cuts across ideological lines. Some of his closest supporters denounced his decision, as did social conservatives, including the Roman Catholic Archdiocese of Boston and the state's leading group opposing same-sex marriage.

Scott Harshbarger, the former attorney general and a liberal Democrat who was an early supporter of Patrick last year, said he was disappointed in the decision. "This is bad public policy, and it would be a huge mistake for Massachusetts to take this step in expanded gambling," he said. "His campaign was not about casinos but real economic development, on the merits and not on quick fixes."

The Massachusetts Family Institute, an anti-gambling group, called the proposal a "short-sighted, dangerous approach to economic growth." Kris Mineau, the group's president, said the institute and other opponents are considering taking the issue to the state ballot for voters to decide. The earliest it could appear before voters is 2010.

Under the governor's plans, the state's proceeds from the casinos would be evenly divided between paying for road and bridge repairs and bringing tax relief to an estimated 1 million property owners. He proposed a property tax credit that would range from $150 to $400 a year for qualified property owners and average about $215. Property owners who pay 2.5 percent or more of their income on property taxes would qualify for the credit. The average property tax bill in the state was $3,962 in the last fiscal year.

The governor's proposal calls for the state lottery, which provides about $950 million a year in aid to cities and towns, to receive additional funds from the casino money to make up for the expected loss because of the new gambling competition.

Patrick said 2.5 percent of gross casino proceeds would be placed in a public health trust fund to pay for increased problem gambling referrals. Another 2.5 percent would be set aside to help host towns and adjacent towns with increased police, fire, and transportation costs.

A special gaming commission, paid for by the casino operators, would be created to oversee the casinos. Patrick said the details of the commission membership and other details are still being worked out. A special unit would be created in the attorney general's office to enforce gaming laws.

"We will regulate casinos vigilantly, professionally, and independent of politics," Patrick said.


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