CLT UPDATE
Tuesday, August 12, 2008
Win some, lose some
Governor Deval Patrick last week
quietly vetoed a pension increase for retired teachers and state workers
that would have boosted benefits by $120 per year, a major stand for a
governor to take against unions that helped elect him.
Fiscal watchdogs had warned that the benefit could cost the state more
than $3 billion over the next 20 years, but retirees argued that they
desperately need a cost-of-living increase as costs for everything from
groceries to gas are on the rise....
"We rolled the dice and came up empty," said Ralph White, president of
the Retired State, County and Municipal Employees Association of
Massachusetts.
The Boston Globe
Tuesday, August 12, 2008
Patrick rejects pension increase
Benefit could have cost state billions
State Parole Board members - who can
earn up to $120,000 a year - are given both take-home cars and
state-paid credit cards to gas up their free rides as part of a pricey
perk fiscal watchdogs fear could exhaust taxpayers.
As reported in yesterday’s Herald, Gov. Deval Patrick’s administration
disclosed this week that more than 500 state employees are allowed to
cruise home on the taxpayers’ dime in state-provided cars and trucks....
The free-vehicle perk for board members, said Barbara Anderson of
Citizens for Limited Taxation, is a fiscal flat tire for those
looking to cut costs in these tight times as gas hovers around $4 a
gallon.
“We all have to go to meetings,” said Anderson, “so why not give a car
to all state employees who need to attend meetings?
“The evidence keeps piling up (that) this is the worst run state after
Louisiana,” she added.
Anderson said she’s driven to help pass the income tax repeal on the
Nov. 4 election ballot as payback for such perks.
If voters back the repeal, the state’s 5.3 percent income tax would be
phased out over two years with the rate being cut to 2.65 percent in
January and eliminated in January of 2010.
“Then the state won’t be able to afford cars,” Anderson said.
The Boston Herald
Tuesday, August 12, 2008
State Parole Board riding on Easy Street
All seven members get take-home cars — and gas cards!
Barbara Anderson's CLT
Commentary
Chip Ford is weather-stranded coming back from
Maine in his small sailboat, waiting for
the seas to subside so he can get home and do these Updates
himself. But I thought you should know that Governor Patrick
vetoed those state employee pension increases. Someone seems to
be getting the message! It has been my theory that the governor,
coming from the private sector, doesn't fear the public employee
unions the way other politicians do; this might bode well for
decisions that could be made if Question One passes.
However, on the issue of state spending and waste, the governor
does seem a tad disengaged! But if these recent Herald exposés
help Carla and the taxpayers win in November, that's a GOOD thing, right?
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Barbara Anderson |
The Boston Globe
Tuesday, August 12, 2008
Patrick rejects pension increase
Benefit could have cost state billions
By Matt Viser
Governor Deval Patrick last
week quietly vetoed a pension increase for retired teachers and state
workers that would have boosted benefits by $120 per year, a major stand
for a governor to take against unions that helped elect him.
Fiscal watchdogs had warned that the benefit could cost the state more
than $3 billion over the next 20 years, but retirees argued that they
desperately need a cost-of-living increase as costs for everything from
groceries to gas are on the rise.
"I recognize that people across the Commonwealth, particularly retirees
on a fixed income, are facing difficult economic times," Patrick wrote
in his message informing the Legislature that he had vetoed the bill
Friday. "However, I returned an earlier version of this legislation,
expressing concern about adding significant costs to the Commonwealth's
already large unfunded retirement liability."
The governor had been largely supportive of the pension boosts - and was
expected to sign the legislation - but requested that the cost-of-living
increases be restricted to workers with pensions less than $40,000. He
argued that would make the plan more affordable for the state, while
providing pension boosts for those who need it most.
"He was trying to strike a balance between helping the retirees on the
truly fixed incomes while also helping the affordability of the
Commonwealth," said Leslie Kirwan, secretary of administration and
finance.
But supporters of the legislation, who had unanimous backing from the
House and Senate, decided not to go along with the governor's plan and
gambled that he would not use his veto.
"We rolled the dice and came up empty," said Ralph White, president of
the Retired State, County and Municipal Employees Association of
Massachusetts. "We were taking a certain amount of risk. Hindsight being
20-20, we underestimated the priority the governor placed on his
amendment."
State pensions in Massachusetts are adjusted annually by the
Legislature, which since 2000 has given a 3 percent increase on the
first $12,000 of retirement pay, or $360 each year.
Under legislation approved by the House and the Senate, the base amount
would be raised from $12,000 to $16,000, in effect raising the pension
for every retiree by $120, a 33 percent increase.
The governor objected to that plan and sent an amendment back asking for
the bump to apply only to the 87 percent of retirees with pensions under
$40,000.
Lawmakers, in approving legislation in the final hours of their session,
agreed to that approach, but only in the first year. The following year,
the remaining retirees also would have received the $120 yearly bump.
The measure sailed through the House and Senate on voice votes July 31
and received final approval just hours before the end of formal sessions
at 1:30 a.m.
There was no opposition until it reached the governor's desk.
The individual numbers are seemingly small, a boost of about $120 a year
more for every retiree, which advocates say is well deserved. But
multiplied by over 100,000 former teachers and state workers in the
state's pension system, it would add up fast, critics say.
The cost could reach between $2.7 billion and $3.5 billion by 2026,
according to the Massachusetts Taxpayers Foundation, a business-backed
fiscal watchdog group.
"It was an act of political courage," Michael Widmer, president of the
Massachusetts Taxpayers Foundation, said of the governor's veto. "The
easy decision would have been to sign it and give an added benefit to
100,000 employees.
"But the state didn't have any money to pay for it," Widmer said. "This
is clearly the responsible course."
Representative Frank M. Hynes, a Marshfield Democrat and the chief
sponsor of the legislation, is out of the country on vacation and could
not be reached for comment. Senator Marian Walsh, a Boston Democrat who
championed the issue in the Senate, did not return calls.
A study commission has been established and is scheduled to hold a
preliminary meeting before the end of the month. Advocates are hoping
that changes can be made through the commission, which has until next
year to complete its report.
"I truly believe the governor wants to do something," said White, who
represents retirees. "He was not prepared to handle this legislation at
this time, but I believe he wants to do something to improve the [cost
of living adjustments] for retirees."
The Boston Herald
Tuesday, August 12, 2008
State Parole Board riding on Easy Street
All seven members get take-home cars — and gas cards!
By Joe Dwinell
State Parole Board members
- who can earn up to $120,000 a year - are given both take-home cars and
state-paid credit cards to gas up their free rides as part of a pricey
perk fiscal watchdogs fear could exhaust taxpayers.
As reported in yesterday’s Herald, Gov. Deval Patrick’s administration
disclosed this week that more than 500 state employees are allowed to
cruise home on the taxpayers’ dime in state-provided cars and trucks.
Most of the vehicles are for public safety and public works employees,
but others are for bosses and board members.All seven members of the
Parole Board are given free transportation so they can attend hearings
at prison facilities across the state, according to a board spokesman.
“They must attend over 10,000 hearings annually,” said Terrel Harris,
spokesman at the Executive Office of Public Safety.
The Parole Board is based in Natick but is obligated under the law to
also hold hearings at prisons, Harris told the Herald. He said buying
each a car is more cost-effective than reimbursing them for mileage.
The board members include Chairwoman Maureen Walsh, set to earn $120,000
this year, and new member Mark Conrad, the governor’s former driver
during his election campaign, who will bring home $86,595, according to
state payroll records and sources.
The free-vehicle perk for board members, said Barbara Anderson of
Citizens for Limited Taxation, is a fiscal flat tire for those looking
to cut costs in these tight times as gas hovers around $4 a gallon.
“We all have to go to meetings,” said Anderson, “so why not give a car
to all state employees who need to attend meetings?
“The evidence keeps piling up (that) this is the worst run state after
Louisiana,” she added.
Anderson said she’s driven to help pass the income tax repeal on the
Nov. 4 election ballot as payback for such perks.
If voters back the repeal, the state’s 5.3 percent income tax would be
phased out over two years with the rate being cut to 2.65 percent in
January and eliminated in January of 2010.
“Then the state won’t be able to afford cars,” Anderson said.
The governor’s office is blaming the sky-high number of take-home
vehicles on previous administrations and say they are looking at
trimming the fleet.
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