Help save yourself -- join CLT today!

CLT introduction  and membership  application

What CLT saves you from the auto excise tax alone


Ask your friends to join too

CLT UPDATE
Saturday, May 26, 2012

Senate Dems duck serious reform, spend more on EBT card fraud


A majority of the Senate on Thursday night brushed aside attempts to further stiffen restrictions on how electronic and cash welfare benefits are spent by recipients, agreeing in large part to the reforms already outlined by Senate leaders in the budget and eschewing tougher limits sought by the House....

The Senate’s plan, however, did not go as far as that adopted by the House in its budget, which included a longer list of prohibited uses, including on travel and spending outside Massachusetts and its border states, and calls for a study on what it would take to move toward a cashless system.

“The crux of the issue surrounding EBT and the abuse of EBT cards has to do with the fact that the cards are easily transferable to cash,” said Sen. Robert Hedlund, a Weymouth Republican, who proposed three different amendments to the budget all of which failed on successive roll calls with no more than 13 votes of support....

“This is not too far on the left and not too far on the right and carves out a very solid, logical middle,” Ways and Means Chairman Stephen Brewer [D-Barre] said.

Hedlund first attempted to restrict cash withdrawals on EBT cards from ATM machines to $20 a day for incidentals, but that amendment was defeated 11-25.

The second proposal adopted the language from the House plus the $20-per-day cash limit. That amendment failed 8-29.

The final amendment offered by Hedlund essentially mirrored the House proposal banning ATM machines that accept EBT cards from bars, liquor stores and adult entertainment facilities adding items such as concert tickets, political donations and travel to the list of prohibited uses. The amendment failed 13-24....

[Sen. Jennifer Flanagan, D-Leominster] said. “The issue that we are trying to really go after is the issue of fraud, and in the Senate budget we did that.”

State House News Service
Friday, May 25, 2012
Senate seeks out "logical middle" in EBT reform debate


The handwriting was on the wall . . .

By David Hitch
Worcester Telegram & Gazette
Sunday, April 8, 2012


Chip Ford's CLT Commentary

Professing “The issue that we are trying to really go after is the issue of fraud, and in the Senate budget we did that,” state Senator Jennifer Flanagan (D-Leominster) celebrated the amendment which did no such thing.

But such is life on Bacon Hill where one party rules.

The day before (Wednesday) when the small band of four Senate Republicans tried to introduce their budget amendments to roll back the state income and sales taxes, Senate President Theresa Murray (D-Plymouth) ruled that tax reductions are out of order, as the state budget is "not a money bill within the meaning of the constitution." When challenged by the Minority Leader, Senator Bruce Tarr (R-Gloucester), she would not relent.

According to the State House News Service transcript of the debate:

 

CLICK IMAGE TO ENLARGE

 

 

CLICK IMAGE TO ENLARGE

 

Sen. Tarr said:  "My inquiry was as to whether a change that reduced taxation, in accordance to court rulings, would make it a money bill. Could the chair clarify?"

Sen. Murray replied:  "It is the position of the chair that this is not a money bill, whether we increase or decrease."

By a roll call vote of 33-4, the Senate Democrat majority stood with her, determined that tax cuts cannot be contained

 within the Senate budget.

Sen. Tarr later added:

"Is this real or is this just something we are going to carry on the books, sort of like the reduction in the income tax

 that the voters approved that we have not enacted yet either.

"I know we can’t talk about the income tax. The budget, the largest spending document in the Commonwealth, is not a money bill. Only in this chamber would that definition prevail. Only in this chamber could we have a reverse sunset. The sun is held in the hands of the chair of Ways and Means."

So tax reductions were simply swept out of the budget debate by a party-line vote (33-4) and the Senate steamrolled on.

It was more of the same when it came to EBT card reforms: The small band of Republicans proposing honest reforms, Democrats (with rare exceptions) voting them down and sticking in a fig leaf for cover a distraction that will accomplish even less than the watered-down reforms adopted by the Democrat majority in the House version.

Here are the three serious reforms offered by Senator Robert Hedlund (R-Weymouth) and the results:

Amendment #139.1 Establishment of Taxpayer Accountability Office
Roll Call #218  [YEAS 11 - NAYS 25] (Further) GOV Robert L. Hedlund Establishment of Taxpayer Accountability Office Rejected

Amendment #144.2 EBT Reform Twenty Dollar Limit
Roll Call #219 [YEAS 8 - NAYS 29] (Further) GOV Robert L. Hedlund EBT Reform Twenty Dollar Limit Rejected (Image Right-Top)

Amendment #405 EBT Reform
Roll Call #220 [YEAS 13 - NAYS 24] (Redraft) EPS Robert L. Hedlund EBT Reform  Rejected (Image Right-Bottom)

Sen. Jennifer Flanagan's (D-Leominster) EBT card "reform" amendment was all that remained as even an attempt to improve the Senate Ways & Means Committee recommendation. But it offered little but camouflage, protective coloration so she and her Democrat majority could disingenuously announce: “The issue that we are trying to really go after is the issue of fraud, and in the Senate budget we did that.” The only game in town was adopted unanimously (34-0).

Taxpayers will still be funding EBT card cash withdrawals from ATM machines. Taxpayers will now also be funding and additional $750,000 for a special State Police unit to investigate EBT abuse and fraud then the additional cost of courts, public defenders, mandated translators, and incarceration (1-2 years) if an abuser is found guilty of violating one of the restrictions. Of course any hope of collecting a court-ordered fine or restitution will be futile.

One of the "reforms" I get a kick out of is intended to address all those "missing" ETB cards the state keeps replacing free of charge reportedly 20,000 each month. The Senate addresses this ridiculous abuse with:

[The state will] "send a notice to any benefit recipient who requests more than 3 replacement electronic benefit transfer cards in a calendar year and monitor future requests for replacement cards; provided that the notice shall state that the department has noted an unusual number of requests for replacement electronic benefits cards and will be monitoring all future requests for replacement cards."

Yeah, I usually lose my credit card three or four times a year don't you?

The next step in this budget procedure is the appointment of a six-member House-Senate conference committee to resolve differences between the Senate budget and the one previously passed by the House. Unfortunately, any compromise would only weaken the already anemic House version of EBT card reform; at best the House version would prevail.

After the massive amount of exposure and outrage of the past few months over EBT card abuse and outright theft [e.g., CLT UPDATE, April 15 Stop the EBT Card Rip-Off Now], with all eyes across the state focused on Beacon Hill for a solution to such an obvious rip-off, all the sound and fury again signified nothing, very little at best. As long as the ruling Democrat Party reigns imperiously nothing will change. They don't feel any need to be accountable to the taxpayers and will keep steamrolling over the minority party with arrogance and self-assured impunity.

The only salvation against such domination is to elect more responsive legislators, and that opportunity is coming.

Check the roll call votes (click on the above images to be taken to enlargements) on this "reform" sham, see how your senator voted.

Then if necessary consider supporting a replacement this fall, and remember in November when you vote.

Chip Ford


 

State House News Service
Friday, May 25, 2012

Senate seeks out "logical middle" in EBT reform debate
By Matt Murphy


A majority of the Senate on Thursday night brushed aside attempts to further stiffen restrictions on how electronic and cash welfare benefits are spent by recipients, agreeing in large part to the reforms already outlined by Senate leaders in the budget and eschewing tougher limits sought by the House.

The debate over EBT card benefits capped the second day of debate on the Senate’s fiscal 2013 budget proposal that saw resolutions reached to keep Taunton Hospital open with 72 beds, to fund the Community Preservation Act with an additional $5 million and to allow for the expansion of hotels on the South Boston waterfront.

The Senate plans to resume its debate at 9 a.m. on Friday morning with the long Memorial Day holiday weekend looming and 43 of the 694 amendments filed to the budget still pending. Amendments dealing with immigration, stricter financial reporting for mutual companies and a repeal of the pharmaceutical gift ban still await action.

“Hopefully, we’ll finish tomorrow,” Senate President Therese Murray said.

The Senate budget, as proposed by Ways and Means, would prohibit the use of cash assistance for pornography, firearms, tattoos, piercings, gambling, fines, fees and bail. The budget bill would also create a new unit in the State Police to investigate EBT fraud, establish a crime of food stamp trafficking, and add a fee for lost cards.

The Senate’s plan, however, did not go as far as that adopted by the House in its budget, which included a longer list of prohibited uses, including on travel and spending outside Massachusetts and its border states, and calls for a study on what it would take to move toward a cashless system.

“The crux of the issue surrounding EBT and the abuse of EBT cards has to do with the fact that the cards are easily transferable to cash,” said Sen. Robert Hedlund, a Weymouth Republican, who proposed three different amendments to the budget all of which failed on successive roll calls with no more than 13 votes of support.

The Senate did, however, modify its EBT reform plan unanimously adopting an amendment filed Ways and Means Vice Chairwoman Jennifer Flanagan that would prevent cash from being withdrawn in liquor stores, casinos and strip clubs, require the MBTA and each regional transit authority to move toward acceptance of EBT cards for fares, and directs the Department of Transitional Assistance to work toward a vendor payment system would allow the department to directly pay landlords and utilities if it is determined that cash benefits are being spent inappropriately on other things.

“This is not too far on the left and not too far on the right and carves out a very solid, logical middle,” Ways and Means Chairman Stephen Brewer said.

Hedlund first attempted to restrict cash withdrawals on EBT cards from ATM machines to $20 a day for incidentals, but that amendment was defeated 11-25.

The second proposal adopted the language from the House plus the $20-per-day cash limit. That amendment failed 8-29.

The final amendment offered by Hedlund essentially mirrored the House proposal banning ATM machines that accept EBT cards from bars, liquor stores and adult entertainment facilities adding items such as concert tickets, political donations and travel to the list of prohibited uses. The amendment failed 13-24.

While the debate over EBT abuse did not generate quite the level of tension in the Senate as it did in the House where some members accused their colleagues of attacking the poor, the discussion had its moments of intensity.

While urging her colleagues to reject Hedlund’s proposal to limit cash withdrawals, Sen. Jennifer Flanagan called out Hedlund for his poor attendance at the EBT reform commission on which they both served.

“When we have five meetings and the gentleman showed up for one and a half of them, it really pains me to stand here at 9:30 at night and talk about how we need to revamp the EBT system…,” Flanagan said. “The issue that we are trying to really go after is the issue of fraud, and in the Senate budget we did that.”

Hedlund said that being a member of a minority caucus of four with multiple committee assignments and other obligations made it impossible for him to attend all the meeting, but he said he can account for every minute he was not there.

Sen. Sonia Chang-Diaz also tried to muddy the waters with a further amendment that would have applied all the spending restrictions and fines being proposed for welfare recipients to corporate entities that receive tax breaks or subsidies. The Boston Democrat used the example of David Long, the CEO of Liberty Mutual, who reportedly spent $4.5 million to renovate the executive suit with luxury accommodations to illustrate her point.

“They shouldn’t be not be knocking on the taxpayers door with their hand out making the argument they can’t possibly create more jobs in Massachusetts without this help and turn around spend those dollars on categories like alcohol, entertainment venues, pornography, and luxury fixtures for office suites,” Chang-Diaz said.

Suggesting that Chang-Diaz’s amendment would nullify programs such as the film tax credit, Senate Minority Leader Bruce Tarr adamantly questioned whether the proposal violated Senate President Therese Murray’s previous ruling that tax changes were out of order during the budget debate.

Though the clerk disagreed, Tarr protested prompting Murray to slam the gavel and recess the session. After huddling at the rostrum with Tarr and members of the clerk’s staff, Murray left the chamber with her chief of staff, Chang-Diaz and the assistant clerk of the Senate, only to have Chang-Diaz withdraw the amendment when they returned 20 minutes later.

On Thursday, the Senate also increased funding for the METCO education diversity program by $1 million, and supported Sen. Brian Joyce’s amendment to ban “any procedure which causes obvious signs of physical pain, including, but not limited to, hitting, pinching or electric shock for the purposes of changing the behavior of such person” by programs or facilities treating a person with a disability.

 

NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


Citizens for Limited Taxation    PO Box 1147    Marblehead, MA 01945    508-915-3665