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

Friday, December 7, 2012

Abuses of power and scandalous results


Taxpayers could be walloped for up to $20 million a year to keep the state gaming board running by the time Massachusetts’ first casino opens for business, as slowpoke bureaucrats drag out the selection process and burn through their publicly funded startup money, a new report shows.

“Red tape and a culture of delay is killing our state and hurting job creation,” fumed state Rep. Daniel B. Winslow, a Norfolk Republican. “We’ve got a lot riding on this.” ...

Casino expert Richard McGowan, a Boston College professor, blasted the commission for delays in the licensing process, as well as the board’s spending — including an October junket to Asia by MGC Chairman Stephen Crosby and another commissioner.

“There’s no reason why they can’t issue a license by the end of 2013,” McGowan said. “I don’t understand why it’s taking so long.” ...

The Herald reported this week that New Hampshire lawmakers are aiming to approve a casino next year at Rockingham Park in Salem — and have it open before a shovel is even put in the ground in Massachusetts. Critics said a casino just over the state line could siphon off up to 40 percent of the Boston market and could drastically slash how much cash the Bay State gets from gaming.

“They started after us and they’re going to finish before us,” Winslow said. “This is a cultural thing in Massachusetts government. And it’s the same story that any private sector developer will tell you is the way business has been done in Massachusetts for decades. The only difference is this is a high-profile public project.”

The Boston Herald
Saturday, December 1, 2012
Report: Board’s a bad bet
Predicts commission will run up nearly $20M deficit


The state’s public defender agency estimates it could need up to $332 million to represent thousands of people who faced criminal penalties or civil sanctions based on evidence potentially tainted at the now-closed state drug laboratory in Jamaica Plain.

The Committee for Public Counsel Services developed the budget projection as it seeks money from the Patrick administration to deal with the fallout from the drug lab scandal linked to chemist Annie Dookhan, who allegedly told State Police she falsified results....

Lisa Hewitt, general counsel for the agency, said the $332 million is an estimate that assumes each of the 190,000 cases handled at the lab since 2003 would have to be litigated and that an attorney would have to be assigned to represent each defendant. Hewitt said many of the cases could be resolved if prosecutors chose to dismiss the charges.

Hewitt said the estimate includes money to pay private attorneys to handle cases, hire translators and investigators, and train lawyers in navigating the complex legal questions raised by the unprecedented scandal....

Hewitt said the public defender agency, when required by law, will represent indigent clients in probate and family court, where they have lost, or may lose, parental rights because of what may be declared unlawful convictions. Spending on those cases would be in addition to the $332 million, she said....

Also Tuesday, Cape and Islands District Attorney Michael O’Keefe, the incoming president of the Massachusetts District Attorneys Association, said prosecutors have finalized their budget request and believe they need $12.7 million for more prosecutors, support staff, and in some cases, office space and computers, for all Dookhan-related cases....

The Patrick administration has asked lawmakers for $30 million to pay for Dookhan­related costs between now and February that are incurred by county prosecutors, the court system, local governments, the public defender agency, and social services agencies.

The administration has said it is open to seeking more money once more is learned about the damage to the criminal justice system that can be linked to Dookhan and the state lab.

The Boston Globe
Wednesday, November 28, 2012
Cost soars in Mass. drug lab scandal
Defending the thousands affected by suspect evidence
could take $332m, state agency says


Governor Deval Patrick announced an array of state budget cuts to help cover a $540 million shortfall Tuesday, including a further reduction in the money local communities use to pay teachers and firefighters.

Patrick said the midyear budget gap is a direct result of the economic uncertainty caused by failed fiscal cliff negotiations, which could trigger federal spending cuts and tax increases at the start of the new year.

The cuts in the $32.5 billion budget, some of which need legislative approval, are expected to have a direct impact on residents. They include cuts of $9 million in local aid, $11 million in special education, $5 million in reimbursements for towns to bus homeless students, and across-the-board reductions in spending on the overburdened court system....

Less than half of the state’s shortfall would be closed by withdrawing $200 million from the state’s rainy day fund, which is expected to have about $1.2 billion left at the end of the budget year on June 30. The Patrick administration said the state would still have one of the biggest reserve funds in the country.

Municipal leaders vowed to fight the $9 million local aid cut in the Legislature, noting that it comes on the heels of five tough budget years that brought $416 million in cuts....

The Massachusetts Municipal Association said it would ask lawmakers to take the $9 million out of the rainy day fund instead of risking losses to school budgets, public safety, and public works projects.

“There’s a major question mark looming over every single community’s budget,” said Geoffrey Beckwith, the association’s executive director. “They would have to reopen their budgets and they would wonder, if the governor’s granted additional authority, would there be further cuts down the road?”

The Boston Globe
Wednesday, December 5, 2012
Patrick targets local aid to help cover budget gap
Says $540m shortfall makes cuts necessary


Several House Republicans came out forcefully against Gov. Deval Patrick’s request Monday to trim local aid by $9 million to deal with a half-a-billion dollar budget gap, while some lawmakers said they needed more time to digest the governor’s new budget-balancing orders and requests.

Patrick rolled out his plan on Monday to deal with a projected $540 million revenue shortfall to fund the fiscal 2013 budget, ordering $225 million in spending cuts and requesting the use of $200 million in reserves and other measures, including cuts in legislative and judiciary branch spending, to keep the budget in balance.

"These are challenging times, but these are the same people who told us last month that the economy had turned around,” said Rep. Daniel Winslow, a Norfolk Republican. "I'm sorry they couldn't share the true condition of our state economy until after the election. Political rhetoric is no substitute for prudent fiscal management." ...

Rep. George Peterson (R-Grafton) said he would vote against giving the governor the authority to make local aid cuts, which Patrick called “modest.” Under Patrick’s plan, the local aid cuts would be reversed if Lottery revenues continue to exceed expectations.

“I’ve been to several meetings of my finance committees and school boards, and have told them that this is coming and to start planning for midyear cuts, but I will not be supportive of giving the governor that authority,” Peterson said. Asked why not, Peterson said, “We in the House and the Senate actually created this budget. It’s up to us to find the money to make up the shortfall, not the governor.” ...

House Minority Brad Jones accused Patrick of trying to mislead on local aid cuts by calling it a modest 1 percent reduction in local aid, not accounting for the other cuts to special education funding, regional school transportation, and homeless student transportation.

“Stagnant economic growth is not limited to national and state governments. Local cities and towns continue to feel the trickle-down effect of a worsening economy. Further paralyzing them through these cuts will only further aggravate the situation,” Jones said in a statement.

State House News Service
Tuesday, December 4, 2012
Lawmakers resist local aid cuts, digest Patrick's budget reductions


Massachusetts has a big budget problem on its hands and Gov. Deval Patrick is pointing the finger of blame toward Washington. But the alternative is to point the finger at himself and his fellow Democrats in the Legislature who control the state budget, and that simply won’t do!

Announcing a $540 million shortfall in the fiscal 2013 state budget, Patrick yesterday said state tax collections have slowed down because the private sector is reluctant to spend amid uncertainty over the fiscal cliff negotiations in Washington. And that happens to be true.

But is it the “direct cause” of the Bay State’s current budget woes, in which tax collections are actually ahead of last year, but trailing what Beacon Hill estimated for fiscal 2013, as Patrick suggested yesterday?

Well, he can’t say they just blew the revenue projections, now, can he? ...

A Boston Herald editorial
Wednesday, December 5, 2012
Spreading budget blame


Critics rolled their eyes at Gov. Deval Patrick’s “convenient” excuse yesterday — that his administration can’t crack the mystery of how repeat roadway offender Sheila Burgess became the state’s highway safety director because her hiring records were destroyed in the normal course of business....

Patrick again called her hiring a “screw-up” and said, as governor, he takes responsibility. The administration is still trying to find out how she was hired, but a paper trail doesn’t seem to exist, he said.

Patrick’s admission that “we look ridiculous” for placing Burgess at the head of highway safety drew mockery from the GOP.

“This administration,” said MassGOP Executive Director Nate Little in a statement, “ ... not only looks ridiculous but dangerously out of control.”

The Boston Herald
Thursday, November 29, 2012
Gov: Sheila Burgess’ records ‘gone’


Burgess was hired in 2007, hardly the dark ages before computers and electronic files. She got the job as highway safety director after a referral by U.S. Rep. James McGovern, despite her checkered driving history, which was either overlooked or ignored by the folks doing the hiring.

Asked yesterday during a radio show on WTKK whether anyone on his team will be held accountable for hiring a highway menace for a highway safety job, Patrick said they had looked into it.

“I think that (hiring) was in the early days of the administration. We can’t even find the documents because in the normal course those documents are gone, are destroyed,” Patrick said. “I can tell you she wouldn’t get through the screens today for a job like that. That’s been tied off ...  and I accept responsibility for it.”

Terrific, he takes “responsibility” for the “screw-up.”

A Boston Herald editorial
Thursday, November 29, 2012
Unplug the shredder!


Veering away from the traditional lighthearted and nostalgic farewell speech, outgoing Andover Rep. Paul Adams (R) took a shot at his Democratic colleagues on his way out of the House, saying they spend taxpayers’ money too easily and do not focus on places where government has a role, beliefs he said made him a “target” for state Democrats to unseat him.

Shortly after Gov. Deval Patrick announced plans to close a $540 million midyear budget gap, Adams said there is plenty of money in state coffers and argued the state spends it “incorrectly.” ...

Adams’ district was merged with one represented by another House Republican, Rep. Jim Lyons, during the redistricting process.... He opted to challenge Sen. Barry Finegold (D-Andover) instead of facing off against Lyons....

Adams said his race “was made as difficult as possible” and he hinted he would run again. “My political opponents might have a victory for the time being, but this won’t be the last time they deal with me.”

State House News Service
Tuesday, December 4, 2012
Adams to opponents: "This won't be the last time they deal with me"


With Bob Maginn announcing his plan to leave the chairmanship of the state Republican Party and former Gov. William Weld continuing to make waves in Massachusetts on the heels of his recent return here, veteran political observer Barbara Anderson put forward a few ideas for the direction of the struggling GOP.

Revising some of the thoughts she offered in the Salem News last month, Anderson, executive director of Citizens for Limited Taxation, laid out in an email her vision for the 2014 election cycle, saying the party needs the type of “strong chairman” that Ray Shamie was when Weld won the governor’s office in 1990.

State House News Service
Thursday, December 6, 2012
Anderson sees role for Weld in GOP's next act


A NEW WORD

CLICK GRAPHIC TO ENLARGE


Chip Ford's CLT Commentary

Another week of "Through the Looking Glass" Alice in Wonderland for Massachusetts taxpayers. The daily craziness that now passes for public policy has become almost too incredible to take seriously if we weren't watching it with our own eyes in real time, at our mounting expense.

Take just this sudden "fiscal crisis" that dropped like a tactical nuclear bomb delivered in the dark of night from high overhead by a Stealth aircraft. Omigod, there's not enough "revenue" coming in to cover all of Bacon Hill's "entitlements" and new "investments." Who among us could ever have expected such a thing in the midst of our long-running Great Recession?

Among Governor Patrick's solutions to this shocking shortfall is provide taxpayer-subsidized in-state tuition for children of illegal aliens! Now there's a Beacon Hill turn-around strategy for sure.

Okay, let's help solve this latest $540 million unexpected shortfall, our latest "fiscal crisis." Here are a few simple, obvious solutions.

First, stop digging the fiscal hole deeper with ever more taxpayer support for those who do not exist here legally. My next recommendation also addresses magnanimous taxpayer giveaways to illegal aliens.

CLT Update, Jun. 15, 2012 ("$118 million more for illegals acknowledged by Patrick administration — No wonder they say we need more taxes!")

State Rep. James Lyons (R-Andover) was a guest on Howie Carr's WRKO radio program yesterday to discuss how the state has spent $118 million providing health care for illegal immigrants, out-of-staters and others who couldn't provide proof of Massachusetts residency. During their discussion, Rep. Lyons further clarified the latest spending numbers he's finally pried loose from the Patrick Administration:

"This $118 million is in addition to the $93 million ... last year's '$93 million' number that they gave us is out of a different program...." Rep. Lyons said, then added, "Include another $60 million under 'status not available.'"

That's a total: $271 million. Remove just this one unjustified burden and we've cut the "shortfall" in half, down to $269 million.

A good start; next:

State House News Service, Apr. 4, 2012 ("Bipartisan group of lawmakers back EBT card reforms")

O’Connell, Holmes and Hedlund served on the commission, but said its recommendations did not go far enough to ensure that the $415 million spent annually on welfare benefits was being used appropriately by recipients.

Uncover how much "revenue" is being given out that is not "used appropriately by recipients" then eliminate it from that $415 million. The Legislature tinkered around the edges of EBT card reform during last session (so they could campaign on "doing something") but still has a very long way to go such as preventing those cards from being used for cash withdrawals then spent on anything.

I could go on, but while we're providing solutions that'll be ignored, they're running up our costs even faster. Nobody can keep up.

The governor's oversight malfeasance of his Department of Public Health is astounding, in both the fungal meningitis outbreak (caused by injections from the New England Compounding Center, which has sickened more than 540 people and killed 36), and the state drug lab scandals. The cost for the latter is mounting astronomically faster than anyone can keep up with.

Due to this one screw-up, the Committee for Public Counsel Services (the state’s public defender agency) estimates it could need up to $332 million (that's a third of a billion of our dollars) to re-defend the convicted, while the District Attorneys Association wants an additional $12.7 million to re-prosecute them. That's a total of $344.7 million; Governor Patrick has already asked the Legislature for a $30 million down-payment.

Has anyone yet thought about, never mind estimated, the potential cost of settlements from inevitable lawsuits brought by the 540 people sickened and 36 killed by the state's malfeasance leading to the national fungal meningitis outbreak? The U.S. Congress is now investigating.

Misfeasance, malfeasance, and unmitigated corruption run rampant in this dysfunctional state, unrestrained whatsoever.

Even when caught red-handed ("The Boston Globe. Nov. 18, 2012 "Safety chief has long list of driving violations; Democratic operative given state job in 2007"), the governor just smiles and graciously extends the Beacon Hill Middle-Finger Salute.

When questioned about the obvious patronage hiring of his director of the Massachusetts Highway Safety Division, Sheila Burgess, he replied: "We can’t even find the documents because in the normal course those documents are gone, are destroyed.” My goodness, how inconvenient; the dog ate his homework.

Passing casino gaming has only cost us taxpayers "up to $20 million a year to keep the state gaming board running" with no return in sight. Meanwhile New Hampshire is readying to open its first casino just over the border, starting after us and finishing first.

“This is a cultural thing in Massachusetts government," frustrated state Rep. Dan Winslow (R-Norfolk) observed.

Our state motto should again be changed:  "Only in Massachusetts"

So little space, so little time so many scandals and abuses we can't keep up with them.

Elections certainly do have consequences.

Congratulations to outgoing freshman state Rep. Paul Adams (R-Andover) on his farewell speech, leaving Beacon Hill with a roar not a whimper. He may have lost the race after being redistricted, but he certainly wasn't defeated.

Saddle up. It won't be long before we taxpayers will be expected to pay even more for the costs of Bacon Hill's misfeasance, malfeasance, and unmitigated corruption.

Chip Ford


 

The Boston Herald
Saturday, December 1, 2012

Report: Board’s a bad bet
Predicts commission will run up nearly $20M deficit
By Dave Wedge


Taxpayers could be walloped for up to $20 million a year to keep the state gaming board running by the time Massachusetts’ first casino opens for business, as slowpoke bureaucrats drag out the selection process and burn through their publicly funded startup money, a new report shows.

“Red tape and a culture of delay is killing our state and hurting job creation,” fumed state Rep. Daniel B. Winslow, a Norfolk Republican. “We’ve got a lot riding on this.”

The Massachusetts Gaming Commission could be running at a $1.1 million deficit by next fiscal year, $12 million by 2015, and an eye-popping $19.8 million by 2016, as the board is not expected to even issue a casino license until 2014, according to a report by Spectrum Gaming, a state-hired consultant. Spectrum officials recommend in the report that the gaming panel go back to the Legislature for more funding to cover costs until casinos are “operating” — which may not be until 2016.

Casino expert Richard McGowan, a Boston College professor, blasted the commission for delays in the licensing process, as well as the board’s spending — including an October junket to Asia by MGC Chairman Stephen Crosby and another commissioner.

“There’s no reason why they can’t issue a license by the end of 2013,” McGowan said. “I don’t understand why it’s taking so long.”

MGC spokeswoman Elaine Driscoll downplayed the consultant’s report, saying the board expects to begin hauling in casino licensing fees of $85 million-plus by early 2014.

“The (report) simply presents a number of variables for the commission to consider,” Driscoll said. “The commission fully anticipates to be generating fees from gaming applicants, which will provide the funding for commission operations. We remain on track to issue licenses by February 2014 with an effort toward condensing the process where possible.”

The Herald reported this week that New Hampshire lawmakers are aiming to approve a casino next year at Rockingham Park in Salem — and have it open before a shovel is even put in the ground in Massachusetts. Critics said a casino just over the state line could siphon off up to 40 percent of the Boston market and could drastically slash how much cash the Bay State gets from gaming.

“They started after us and they’re going to finish before us,” Winslow said. “This is a cultural thing in Massachusetts government. And it’s the same story that any private sector developer will tell you is the way business has been done in Massachusetts for decades. The only difference is this is a high-profile public project.”

News of the potential taxpayer hit comes as out-of-state casino bigwigs shake up the local landscape. In Springfield, Ameristar pulled out of plans for a nearly $1 billion casino, citing a murky local approval process.

In Holyoke, Paper City Development has paid a $25,000 initial fee to the city as it launches plans for a casino at a golf course. And in Everett, Las Vegas tycoon Steve Wynn has asked to meet with the state gaming board to discuss the licensing process. Wynn is bidding to build a casino off Route 99 that would challenge Suffolk Downs in East Boston.


The Boston Globe
Wednesday, November 28, 2012

Cost soars in Mass. drug lab scandal
Defending the thousands affected by suspect evidence could take $332m, state agency says
By John R. Ellement


The state’s public defender agency estimates it could need up to $332 million to represent thousands of people who faced criminal penalties or civil sanctions based on evidence potentially tainted at the now-closed state drug laboratory in Jamaica Plain.

The Committee for Public Counsel Services developed the budget projection as it seeks money from the Patrick administration to deal with the fallout from the drug lab scandal linked to chemist Annie Dookhan, who allegedly told State Police she falsified results.

The scale of the scandal came into sharper focus Tuesday when the attorney leading a state investigation into the drug lab, ordered by Governor Deval Patrick, provided the latest figures on how many people might be affected.

Boston attorney David Meier said his team has identified at least 10,000 people so far who were prosecuted based on drug testing conducted by Dookhan during the nine years she worked at the Department of Public Health lab.

Meier stressed that even more people could be affected because his team has not completed its inquiry into prosecutions in the district court and the Boston Municipal Court system, where most drug cases are prosecuted in the state’s criminal justice system.

A two-page budget proposal from the public defender agency, obtained by the Globe, sketches out an even direr scenario. The Committee for Public Counsel Services concludes that it needs $12.5 million right now to deal with Dookhan-related litigation and that it will need $62.5 million to deal with the estimated 35,000 criminal cases in which Dookhan played a role in testing seized substances that were suspected of being contraband.

But the public defender agency projects it could need as much as $332 million because the allegations against Dookhan could call into question every drug test performed at the Department of Public Health lab, regardless of whether Dookhan was directly involved.

Lisa Hewitt, general counsel for the agency, said the $332 million is an estimate that assumes each of the 190,000 cases handled at the lab since 2003 would have to be litigated and that an attorney would have to be assigned to represent each defendant. Hewitt said many of the cases could be resolved if prosecutors chose to dismiss the charges.

Hewitt said the estimate includes money to pay private attorneys to handle cases, hire translators and investigators, and train lawyers in navigating the complex legal questions raised by the unprecedented scandal.

“This is the worst-case scenario,’’ Hewitt said. “. . . We do not want this to come to pass. But we do ­believe it is in our scope of responsibility to find these ­clients.’’

Hewitt said the public defender agency, when required by law, will represent indigent clients in probate and family court, where they have lost, or may lose, parental rights because of what may be declared unlawful convictions. Spending on those cases would be in addition to the $332 million, she said.

“There are a lot of really, really massive problems with this situation,’’ Hewitt said.

Also Tuesday, Cape and Islands District Attorney Michael O’Keefe, the incoming president of the Massachusetts District Attorneys Association, said prosecutors have finalized their budget request and believe they need $12.7 million for more prosecutors, support staff, and in some cases, office space and computers, for all Dookhan-related cases.

O’Keefe declined to comment on the request from the public defender agency.

He said prosecutors may need more money, depending on what ongoing investigations unearth.

Suffolk District Attorney Daniel F. Conley’s office said Tuesday that 110 imprisoned defendants convicted in drug cases involving Dookhan have had their sentences put on hold in Suffolk Superior Court. About 40 defendants being prosecuted in the Boston Municipal Court system have also had sentences put on hold.

Meier, the attorney leading the Patrick-initiated investigation of the scandal, said the governor expanded Meier’s duties Tuesday to include a hand search of the case files prepared by Dookhan when she worked at the lab.

Meier’s team has been reviewing databases provided by the State Police, Department of Public Health, state’s courts, state prosecutors, and public defender agency. But that data has errors in it, and now the governor wants Meier’s team to study the actual paperwork that underlies the databases.

“I like to refer to it as a file-by-file review of every file at the Jamaica Plain laboratory, with the object being we should leave no file unturned to determine which files, which cases, and most important, which defendants Miss Dookhan may have touched,’’ Meier said.

Meier’s inquiry will be conducted in parallel with an investigation into the drug lab led by Inspector General Glenn Cunha and alongside Attorney General Martha Coakley, whose office is conducting a criminal investigation that has led to obstruction of justice charges against Dookhan.

Dookhan, who lives in Franklin, has pleaded not guilty in Boston Municipal Court to two counts of obstruction of justice and to an accusation she falsified her academic credentials. She remains free pending trial.

In court papers, Coakley’s office said it expects a grand jury investigating the drug lab to return indictments against Dookhan before her next scheduled court date, Dec. 20, in Boston Municipal Court.

The Patrick administration has asked lawmakers for $30 million to pay for Dookhan­related costs between now and February that are incurred by county prosecutors, the court system, local governments, the public defender agency, and social services agencies.

The administration has said it is open to seeking more money once more is learned about the damage to the criminal justice system that can be linked to Dookhan and the state lab.


The Boston Globe
Wednesday, December 5, 2012

Patrick targets local aid to help cover budget gap
Says $540m shortfall makes cuts necessary
By Noah Bierman

Governor Deval Patrick announced an array of state budget cuts to help cover a $540 million shortfall Tuesday, including a further reduction in the money local communities use to pay teachers and firefighters.

Patrick said the midyear budget gap is a direct result of the economic uncertainty caused by failed fiscal cliff negotiations, which could trigger federal spending cuts and tax increases at the start of the new year.

The cuts in the $32.5 billion budget, some of which need legislative approval, are expected to have a direct impact on residents. They include cuts of $9 million in local aid, $11 million in special education, $5 million in reimbursements for towns to bus homeless students, and across-the-board reductions in spending on the overburdened court system.

Patrick also said restrictions on state hiring that began in October would result in 700 fewer state workers than the budget projected.

Less than half of the state’s shortfall would be closed by withdrawing $200 million from the state’s rainy day fund, which is expected to have about $1.2 billion left at the end of the budget year on June 30. The Patrick administration said the state would still have one of the biggest reserve funds in the country.

Municipal leaders vowed to fight the $9 million local aid cut in the Legislature, noting that it comes on the heels of five tough budget years that brought $416 million in cuts. They said that the overall impact of Tuesday’s cuts on cities and towns will amount to $37.75 million. In addition, localities face a $20 million cut to the school building fund that was automatically triggered by weaker-than-expected sales tax collections.

Patrick cast the budget situation as serious, but not catastrophic. He said the state faced a gap that was six times larger during the height of the fiscal crunch in 2009. And he said the state would not need to raise taxes to fill the current void. But he continued to warn of a potential tax increase to cover longer-term problems in transportation, which lawmakers are expected to take up in the new year. “We’ve been here,” Patrick said at a news conference in the State House. “We know how to do this.”

“I don’t think this is draconian,” he added. “We are spreading the pain as broadly as possible.” Though many programs will be taking small hits, Patrick’s budget chief, Jay Gonzalez, said Tuesday that his office would release $20 million to pay for an approximately 2 percent salary increase for 29,000 low-wage human services workers. The workers had been without a raise for five years and have been protesting outside the governor’s office. The money for the raise, though previously budgeted, had been frozen while Patrick devised a plan to fix the budget gap.

The state still expects to collect more in tax revenues this budget year than it did in the previous budget year. But a year ago, budget writers, in consultation with economists, pinned their revenue estimates on a more robust economy. They expected an economic growth rate of 3 percent, resulting in nearly $900 million more in tax collections than last year, for a total of $22 billion in tax collections. They are instead seeing a 1.9 percent economic growth rate, and now expect about $381 million more in tax collections than last year.

Patrick on Tuesday renewed his call for a resolution to the budget negotiations in Washington, before automatic cuts and tax increases at the federal level take effect on Jan. 1.

“By all accounts, that uncertainty and resulting slowdown in economic growth is the direct cause of our budget challenges,” he said. “The private sector will be unwilling to make the kinds of investments that create jobs, grow state and federal tax revenue collections, and contribute to a lasting economic recovery until Congress and the president come to terms on a solution.”

Patrick, a Democrat and an active supporter of President Obama, cited statements from economists and business leaders in asserting that the fiscal cliff negotiations are hampering economic growth. He conceded that the state’s November tax collections — tabulated during a time of heightened anxiety over the fiscal cliff — were actually above projections. But he said state economists still believe the year will end with lower collections than originally forecast. And he said that the situation would only worsen — with a loss this year alone of $300 million more in state revenue — if Obama and Congress fail to reach a compromise.

Michael J. Widmer, president of the Massachusetts Taxpayers Foundation, said the fiscal cliff is only partly to blame.
“If you look at the recovery, since the bottom of the recession about three years ago, nationally and in Massachusetts, it’s been an anemic recovery,” said Widmer, whose group is backed by businesses. “But that’s not the fiscal cliff. It’s been a variety of factors.”

He said he did not expect the Legislature to agree to the $9 million local aid cut, given the political wrath they would face from mayors and local officials.

The Massachusetts Municipal Association said it would ask lawmakers to take the $9 million out of the rainy day fund instead of risking losses to school budgets, public safety, and public works projects.

“There’s a major question mark looming over every single community’s budget,” said Geoffrey Beckwith, the association’s executive director. “They would have to reopen their budgets and they would wonder, if the governor’s granted additional authority, would there be further cuts down the road?”

Mayor Thomas M. Menino’s spokeswoman, Dot Joyce, said the cuts announced by Patrick would add up to between $3 million and $5 million for Boston residents. “We certainly understand the Commonwealth’s need to cut spending and will work closely with both the Legislature and state partners in the hopes that local aid and special education cuts would be a last resort and not the first option,” she said.

Democratic leaders in the House and Senate were noncommittal, releasing a joint statement Tuesday indicating that they plan “to better analyze the effect these cuts would have on the programs and services we provide to the citizens of the Commonwealth.”

Republicans were more critical, calling local aid cuts a last resort and blaming Patrick for the sluggish recovery.
Senator Bruce E. Tarr, a Gloucester Republican who serves as minority leader, said in a statement that Patrick “is confronting the harsh reality of a faltering economic recovery.”

“Yet it’s also a harsh reality that this situation could and should have been addressed by more aggressive action to create a better climate for economic growth,” he said, criticizing Patrick for resisting legislative calls for more business tax breaks.


State House News Service
Tuesday, December 4, 2012

Lawmakers resist local aid cuts, digest Patrick's budget reductions
By Matt Murphy and Andy Metzger


Several House Republicans came out forcefully against Gov. Deval Patrick’s request Monday to trim local aid by $9 million to deal with a half-a-billion dollar budget gap, while some lawmakers said they needed more time to digest the governor’s new budget-balancing orders and requests.

Patrick rolled out his plan on Monday to deal with a projected $540 million revenue shortfall to fund the fiscal 2013 budget, ordering $225 million in spending cuts and requesting the use of $200 million in reserves and other measures, including cuts in legislative and judiciary branch spending, to keep the budget in balance.

"These are challenging times, but these are the same people who told us last month that the economy had turned around,” said Rep. Daniel Winslow, a Norfolk Republican. "I'm sorry they couldn't share the true condition of our state economy until after the election. Political rhetoric is no substitute for prudent fiscal management."

Both House Ways and Means Chairman Brian Dempsey and Senate Ways and Means Chairman Stephen Brewer said Monday that local aid should be a last resort for cuts. In a joint statement, the two budget chiefs said Patrick’s recommendations requiring legislative action were under review.

“These are difficult choices, but responsible governing from time to time requires such actions. We are reaching out to various stakeholders across the state, including the Massachusetts Municipal Association, to better analyze the effect these cuts would have on the programs and services we provide to the citizens of the Commonwealth,” Dempsey and Brewer said.

Winslow said he was not yet convinced that Patrick had “cut the fluff,” going on to say, “Do we have any spokespeople in the agencies? Do we have any lobbyists in the agencies? There’s been 2,000 new employees added in this administration. Do we need them, and are they all keeping their jobs?”

Asked to identify “the fluff,” Winslow said, “With all due respect to the media, I think press relations people. Why don’t we let the commissioners speak for themselves for a change?”

Patrick said the spending cuts would result in 700 new state government positions planned and funded in the fiscal 2013 budget being eliminated, leaving a total state workforce with 6,000 fewer positions than before the recession.

Winslow also told the News Service he disapproved of cuts to mitigation funding for communities like Norfolk and Walpole that host correctional facilities and prisons.

“The prison mitigation monies in the host communities was zeroed out, which is a concern to me because that creates a disproportionate impact on some towns that is not borne equally by all towns,” said Winslow, who said he has five correctional facilities in his district. He said, “If in fact there are sacrifices to be made, they should be sacrifices that are going evenly across the commonwealth, sparing the most vulnerable and the most needy from cuts that would disproportionately impact their lives.”

Rep. George Peterson (R-Grafton) said he would vote against giving the governor the authority to make local aid cuts, which Patrick called “modest.” Under Patrick’s plan, the local aid cuts would be reversed if Lottery revenues continue to exceed expectations.

“I’ve been to several meetings of my finance committees and school boards, and have told them that this is coming and to start planning for midyear cuts, but I will not be supportive of giving the governor that authority,” Peterson said. Asked why not, Peterson said, “We in the House and the Senate actually created this budget. It’s up to us to find the money to make up the shortfall, not the governor.”

Peterson said he would look at Medicaid, saying, “We already know that Medicaid has got a very large line item that is dealing with in some cases – and they admit at this point – that there a lot of people that are on that aid that should not be there.”

In October, Auditor Suzanne Bump said that thousands of out-of-staters could be receiving benefits from MassHealth, the state’s Medicaid program. Administration budget officials said anticipated savings from Medicaid of $500 million this year are currently on target.

House Minority Brad Jones accused Patrick of trying to mislead on local aid cuts by calling it a modest 1 percent reduction in local aid, not accounting for the other cuts to special education funding, regional school transportation, and homeless student transportation.

“Stagnant economic growth is not limited to national and state governments. Local cities and towns continue to feel the trickle-down effect of a worsening economy. Further paralyzing them through these cuts will only further aggravate the situation,” Jones said in a statement.

Senate Minority Leader Bruce Tarr said Patrick also bears some of the responsibility for not better preparing the state’s economy to recover from the recession, rejecting measurers such as a tax credit for start-ups and a quarterly business tax payment schedule that would have fostered growth.

“Governor Patrick is confronting the harsh reality of a faltering economic recovery and budgetary paralysis in Washington to meet the requirements of a balanced budget. Yet it’s also a harsh reality that this situation could and should have been addressed by more aggressive action to create a better climate for economic growth,” Tarr said.

The Gloucester Republican called for a fiscal control board to be put in charge of the MBTA and for planned expansions to the Green Line and South Coast rail to be halted. Tarr also said Medicaid patients should be moved to managed care plans, and said it was time for the Gaming Commission to “accelerate efforts” to bring casinos and gambling revenue to the state.

Rep. Alice Wolf (D-Cambridge) warned that if local aid and school funding is preserved from budget cuts it will be to the detriment of health care and human services.

“If local aid and schools are held harmless it’s going to take a big bite out of human services,” Wolf told the News Service, saying she preferred spending out of the state’s reserves, or rainy day fund. She said, “Look out the window, it is a rainy day. I mean the rainy day fund is much too low. I’ll be very clear. For the next downturn, it’s much too low. It should be $4 billion, actually. But if you ask me between denying homeless children a roof over their heads or taking it out of the rainy day fund, it’s an easy decision for me. I hope it will be an easy decision for everyone else.”

The state closed fiscal 2012 with the third largest “rainy day” account in the country with $1.65 billion. Patrick has proposed using $200 million to close some of the budget gap, and could also turn to those funds if necessary to deal with costs associated with the Hinton drug lab and the review of thousands of compromised criminal convictions.

Rep. Benjamin Swan (D-Springfield) told the News Service he hoped that health and human services would be spared from the cuts.

“We’ve been cutting over the years in those areas, and they’re operating by the skin of their teeth,” Swan said.

Several lawmakers, including Swan and Rep. Ellen Story, of Amherst, singled out the importance of preserving a $20 million reserve that would fund a salary increase for workers who provide personal services for people with developmental disabilities.

The administration did not cut the reserve and has lifted the freeze on those funds, freeing them up to be dispensed to workers.

“Wow. That’s tough,” Story said, after having the list of cuts described to her. She said she would need more time to review the governor’s cuts and proposals before commenting.

Rep. John Keenan (D-Salem) said the House would review Patrick’s proposal, and was deferential to the deliberations he said the governor must have put into his plan, but said local aid cuts would be hard for cities like Salem to absorb.

“That’s a tough place to go right now,” Keenan said.


The Boston Herald
Wednesday, December 5, 2012

A Boston Herald editorial
Spreading budget blame


Massachusetts has a big budget problem on its hands and Gov. Deval Patrick is pointing the finger of blame toward Washington. But the alternative is to point the finger at himself and his fellow Democrats in the Legislature who control the state budget, and that simply won’t do!

Announcing a $540 million shortfall in the fiscal 2013 state budget, Patrick yesterday said state tax collections have slowed down because the private sector is reluctant to spend amid uncertainty over the fiscal cliff negotiations in Washington. And that happens to be true.

But is it the “direct cause” of the Bay State’s current budget woes, in which tax collections are actually ahead of last year, but trailing what Beacon Hill estimated for fiscal 2013, as Patrick suggested yesterday?

Well, he can’t say they just blew the revenue projections, now, can he?

To make up for the state budget shortfall Patrick plans to cut $225 million from executive agencies and draw $200 million from the state’s rainy-day fund — that’s on top of the $350 million that he and the Legislature already drained from reserves to prop up the FY ’13 budget. He is also asking lawmakers for authority to trim spending in other branches of government as well as aid to cities and towns.

As Patrick notes, these mid-year budget “adjustments” aren’t on a par with those of previous years, when Beacon Hill was forced to make up a shortfall in multiples of billions.

But they do give him an opportunity to make another pitch for the White House’s particular answer to the fiscal cliff uncertainty — a “balanced” solution, as Patrick said yesterday, “with a combination of tax increases on the most fortunate and cuts to federal spending.”

Somebody’s been studying the talking points.


The Boston Herald
Thursday, November 29, 2012

Gov: Sheila Burgess’ records ‘gone’
By Chris Cassidy


Critics rolled their eyes at Gov. Deval Patrick’s “convenient” excuse yesterday — that his administration can’t crack the mystery of how repeat roadway offender Sheila Burgess became the state’s highway safety director because her hiring records were destroyed in the normal course of business.

“It’s all too convenient that basically we have no records of how she came to be hired ... particularly for an administration that came in saying, ‘We have to do things differently,’” said House Minority Leader Brad Jones (R-North Reading). “I’d like to find out who made the final decision to sign off on hiring this person. Was it the governor’s chief of staff? The lieutenant governor? Then I’d like to find out what made you decide that person? Was a background check done?”

“We’ve tried to get to the bottom of it,” Patrick insisted on WTKK’s “Jim & Margery Show” yesterday. “I think that was in the early days of the administration. We can’t even find the documents because in the normal course those documents are gone, are destroyed.”

Patrick again called her hiring a “screw-up” and said, as governor, he takes responsibility. The administration is still trying to find out how she was hired, but a paper trail doesn’t seem to exist, he said.

Patrick’s admission that “we look ridiculous” for placing Burgess at the head of highway safety drew mockery from the GOP.

“This administration,” said MassGOP Executive Director Nate Little in a statement, “ ... not only looks ridiculous but dangerously out of control.”

Record rules issued by the secretary of state’s office require hiring documents, including letters of recommendation, be kept for three years from the time of hiring. But personnel records, including job offer and acceptance letters, must be kept for six years after the employee leaves. Burgess, a Democratic political operative hired in 2007, resigned this month.

Patrick officials could not produce documents from Burgess’ personnel file yesterday.

“Obviously it does raise concerns,” said Pam Wilmot of Common Cause. “It’s important to find out who made the decision and to discipline that person and potentially move forward with reforms.”

Background checks expire after two years to prevent promotions based on expired checks and to safeguard personal information, said Patrick spokeswoman Kim Haberlin.

But Jones said he sees no reason to toss other hiring documents so quickly.

“Keeping letters of recommendation in a personnel file doesn’t seem unreasonable to me,” Jones said.


The Boston Herald
Thursday, November 29, 2012

A Boston Herald editorial
Unplug the shredder!


Sheila Burgess’ quiet, pre-Thanksgiving resignation from state service could have been the end of an embarrassing episode for Gov. Deval Patrick and his team, but for Patrick’s admission yesterday that any paperwork related to the disastrous highway safety hire had been “destroyed.”

Do people never learn?

Burgess was hired in 2007, hardly the dark ages before computers and electronic files. She got the job as highway safety director after a referral by U.S. Rep. James McGovern, despite her checkered driving history, which was either overlooked or ignored by the folks doing the hiring.

Asked yesterday during a radio show on WTKK whether anyone on his team will be held accountable for hiring a highway menace for a highway safety job, Patrick said they had looked into it.

“I think that (hiring) was in the early days of the administration. We can’t even find the documents because in the normal course those documents are gone, are destroyed,” Patrick said. “I can tell you she wouldn’t get through the screens today for a job like that. That’s been tied off ...  and I accept responsibility for it.”

Terrific, he takes “responsibility” for the “screw-up.”

But who screwed up? Is that individual (or group of individuals) still on the administration staff, with responsibility for hiring decisions? Without that information how can the taxpaying public be confident that the “screens” have been adequately “tied off?”

Documents aside (and what are the chances anyone wrote anything down on this horrible hire, anyway) Patrick’s leadership skills are lacking here. If the governor himself demands answers from his staff about who signed off on a patronage hire, he should be able to get them. Blaming the lack of a “paper trail” is plain political cowardice.


State House News Service
Tuesday, December 4, 2012

State Capitol Briefs
Adams to opponents: "This won't be the last time they deal with me"
By Colleen Quinn and Matt Murphy


Veering away from the traditional lighthearted and nostalgic farewell speech, outgoing Andover Rep. Paul Adams took a shot at his Democratic colleagues on his way out of the House, saying they spend taxpayers’ money too easily and do not focus on places where government has a role, beliefs he said made him a “target” for state Democrats to unseat him.

Shortly after Gov. Deval Patrick announced plans to close a $540 million midyear budget gap, Adams said there is plenty of money in state coffers and argued the state spends it “incorrectly.”

“I ran for state representative and then state senator to limit this body’s role, and by limiting government intrusion in our lives, in our families and our businesses these are the values that made me also a top target by the majority party for elimination,” Adams said during floor remarks to his colleagues. “That process had many different faces. I think those people know exactly who they are.”

Adams’ district was merged with one represented by another House Republican, Rep. Jim Lyons, during the redistricting process. He opted to challenge Sen. Barry Finegold (D-Andover) instead of facing off against Lyons or moving down the street, which he considered, to run in a new majority-minority district centered in Lawrence.

Adams said his race “was made as difficult as possible” and he hinted he would run again. “My political opponents might have a victory for the time being, but this won’t be the last time they deal with me.”

In response to Adams, Rep. Michael Moran, who led the House redistricting effort, told the News Service, “I think when people don’t get reelected often times they’re looking for an easy answer.”

Asked whether he intentionally targeted Adams, Moran said, "I intentionally tried to draw a map that maximized minority participation and in a few instances members were impacted in their districts."


State House News Service
Thursday, December 6, 2012

State Capitol Briefs
Anderson sees role for Weld in GOP's next act
By Michael P. Norton


With Bob Maginn announcing his plan to leave the chairmanship of the state Republican Party and former Gov. William Weld continuing to make waves in Massachusetts on the heels of his recent return here, veteran political observer Barbara Anderson put forward a few ideas for the direction of the struggling GOP.

Revising some of the thoughts she offered in the Salem News last month, Anderson, executive director of Citizens for Limited Taxation, laid out in an email her vision for the 2014 election cycle, saying the party needs the type of “strong chairman” that Ray Shamie was when Weld won the governor’s office in 1990.

“I would ask Bill Weld to become chairman, giving the GOP the face of a fiscal conservative/social liberal like Scott Brown and Richard Tisei, both of whom would run again,” Anderson wrote.

Saying Weld likes to delegate details, set campaign themes and work with the media, she further suggested that former Congressman Peter Torkildsen and Peter Blute, Maginn’s current deputy party chairman, take on the party building tasks handled by Sandy Tennant during some of the Weld years. Torkildsen also already served as party chairman himself from 2007 to 2009.

Anderson said she would slot “Weld-Republicans” for the next round of Congressional races and Charlie Baker for a second run for governor, with former Rep. Karyn Polito or former Mass. Turnpike Authority board member Mary Connaughton as his running mate.

And to wrap it up, Anderson offered, “The best of this year’s Republican legislative candidates give it another try, now part of a coordinated Weld-Republican effort. Social conservatives should be encouraged to stop beating the dead election issues of abortion/gay marriage and get serious about the national debt and the fiscal problems of Massachusetts, more serious than presently admitted.”

The Boston Globe reported Thursday that Brown is pushing Kirsten Hughes, a leader of his campaign finance team and a Quincy city councilor, as the next party chairman. The Globe also reported that Mass. Fiscal Alliance Chairman Richard Green is expected to run for party chair.

 

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