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CLT UPDATE
Tuesday, January 15, 2013

The Takers are storming the gates!


A good leader would have seen the staggering price tag associated with simply stabilizing the commonwealth’s transportation system and stopped right there, realizing that asking taxpayers and commuters to come up with billions to shore up the system will be painful enough.

Ah, but Gov. Deval Patrick and his team don’t do basic. They don’t do simply affordable.

No, the administration has decided that as long as they’re asking for billions to stabilize the system, well, what’s a few billion more to dramatically expand it! ...

What form the financial burden on the public will take is still a mystery. Patrick plans to release a financing plan when he files his budget proposal next week.

But once again keep in mind — this governor doesn’t do “basic.”

Davey and Patrick emphasized that the plan was built around the public’s stated desire for more of, well, everything.

But isn’t it a leader’s job to say when enough is enough?

A Boston Herald editorial
Tuesday, January 15, 2013
Patrick wants it all


When he addresses the state on Wednesday night, Gov. Deval Patrick, who sketched out plans Tuesday for massive new investments in education, will outline an ambitious and likely controversial plan to raise as much as $1.57 billion in new revenue next year.

Visiting the Orchard Gardens school in Roxbury – the same school he highlighted in a speech last summer at the Democratic National Convention – Patrick called for a $550 million investment in education in fiscal 2014 that would ramp up to $1 billion in new spending by 2017....

“The money’s going to come from new revenue. We’re going to put our proposal forward in the State of the Commonwealth and we’re going to make the case for investing in our growth and in our own future. It’s a proven strategy. It has gotten us a long way over the last couple years. We can go a lot further,” Patrick told reporters on Tuesday in Roxbury.

Patrick declined to elaborate on his revenue proposal, only acknowledging that “revenue” means tax and fee increases to pay for programs he believes will “accelerate” economic growth. “We got to stop being afraid of that conversation and start talking about the choices that we have to make in order to ensure that we are building a stronger future,” Patrick said....

Asked whether he felt politically freed to pursue substantial new revenues because he does not intend to seek a third term in 2014, Patrick said, “That’s not the reason. The reason is we have done all we can to move ourselves forward through reforms.” ...

The governor’s education investments, which will be filed as part of the fiscal 2014 budget he submits to the Legislature next week, will call for $550 million in new spending next year that will ramp up each year to $1 billion in annual new spending by fiscal 2017.

State House News Service
Tuesday, January 15, 2013
With revenue plans under wraps,
Guv calls for surge in education spending


Unsatisfied by the prospect of a $1 billion transportation investment and buoyed by the idea that legislative leaders are open to new revenue proposals, Democratic lawmakers and liberal activists are leading a new push to raise $2 billion through increases in the state’s income tax.

The proposal would increase the income tax from 5.25 percent to 5.95 percent, and increase capital gains and other investment taxes from 5.25 percent to 8.95 percent, according to campaign co-chairman Harris Gruman, who is executive director of the SEIU Massachusetts State Council. Middle-income seniors would keep the 5.25 percent rate for investment income, and anyone who has a median income or below would receive new deductions to keep their rate the same, according to the campaign organizers....

“We’re open to other proposals,” said campaign co-chairwoman Rebekah Gewirtz who is a lobbyist for the Massachusetts chapter of the National Association of Social Workers and an alderwoman in Somerville. She said that as long as another proposal met the twin aims of “fairness and substantial new revenue,” the group would consider it....

With [Sen. Sonia Chang-Diaz (D-Boston), a sponsor of the legislation] presiding the event drew a little under a dozen legislators, including Sens. Michael Barrett (D-Lexington), Eldridge and Dan Wolf (D-Harwich), as well as Reps. Mary Keefe (D-Worcester), James O’Day (D-West Boylston), Denise Provost (D-Somerville), Ellen Story (D-Amherst), and Aaron Vega (D-Holyoke). After the press conference, activists gathered in Nurses Hall and chanted “Si se puede,” and “Yes we can.”

Republican lawmakers have reacted with skepticism to Patrick’s plan to bridge a $1 billion transportation funding gap. On Tuesday, Patrick announced plans to increase education spending by $550 million....

The campaign to raise the rate back to the 1990s level will be two-pronged with efforts to gather public support and convince legislators of the proposal, according to the organizers.

“I think we have a very good message for the public, definitely for the membership, and organized folk who are involved in social work, involved in schools, involved in senior services, to get them out and active,” said Gruman. He said it would be a “grassroots” campaign with meetings in legislators’ districts to rally support.

The Campaign for Our Communities already has the endorsement of 126 organizations, including unions, city councils and boards of selectmen, and others, including the Massachusetts PTA, Stand For Children, and Clean Water Action Council.

The state constitution prohibits different tax rates for different income brackets. Campaign organizers said the proposal would not require a change to the constitution.

State House News Service
Tuesday, January 15, 2013
Groups push to raise income tax in bid for $2 Billion revenue increase


Chip Ford's CLT Commentary

As a taxpayer as one of us who works and funds everything government, its allies and cronies, and its constituent dependents are provided from our pockets is your head spinning yet?

●  Yesterday Gov. Patrick announced the recommendations of the Massachusetts Department of Transportation-produced 63-page document, “The Way Forward.” It calls for huge tax, fee, and toll hikes on us — at a cost of over $1 Billion a year for the next decade. (Never mind that we know too well that once in place they're forever.)

●  Twenty-four hours later, he called for an additional increase in "investments" [spending, for low-information voters] — by raising additional "revenues" [taxes, fees, and tolls, for low-information voters].

●  While he was speaking, another group of Takers was rallying at the State House, plotting yet another increase in "revenues" [low-information voters, see above] from us through another huge hike in the state income tax.

In just one day we've seen calls for increases in "revenue" of two or three billion dollars in this year and for years to come out of the pockets of just those of us who struggle to work for their survival and their family's — those of us who pay the government's entire freight.

In just twenty-four hours.

We're going flat-out here trying to keep up with just the Takers' offenses on so many fronts. It's overwhelming to say the least: mind-blowing audacity.

Deval Patrick — "Governor Mini-Me"   was Democrat campaign guru David Axlerod's test-tube baby for a successful run for president of nationally then-unknown freshman Illinois Senator Barack Obama. Both have an incredibly lot in common besides David Axelrod's management and all coming from Chicago, and both successful candidates have run off the rails. We have two elected chief executives — a president and a governor — who will have their transformative way over us at any cost. Or fail trying.

The Patrick/Axlerod campaign's slogan "Yes We Can" became the Obama/Axlerod campaign's "Together We Can." Patrick/Axlerod's "Hope and Change" was simply absorbed by the Obama/Axlerod campaign. "Hope and Change" focus-grouped well; the Patrick test-tube culture was perfected.

Here we are, and these are critically historic times — both for our nation and our state. Personally, I wouldn't miss this for anything! If I denied expecting it someday in my lifetime I'd be a liar.

I suppose this is why I've — why we’ve — stayed at this for so long for so little, and am grateful that I've stuck with it this long. This is why Barbara, Chip Faulkner and I are still fighting for you — and us.

We cannot allow this to happen on our watch. We must turn this "transformation" on its heels. This is our generational responsibility . . . and our time. I know now that I personally will go down fighting and generations to come won’t blame me.

There is no tomorrow — no "others" to do it.

It is why we are here and now.

Chip Ford


 

The Boston Herald
Tuesday, January 15, 2013

A Boston Herald editorial
Patrick wants it all


A good leader would have seen the staggering price tag associated with simply stabilizing the commonwealth’s transportation system and stopped right there, realizing that asking taxpayers and commuters to come up with billions to shore up the system will be painful enough.

Ah, but Gov. Deval Patrick and his team don’t do basic. They don’t do simply affordable.

No, the administration has decided that as long as they’re asking for billions to stabilize the system, well, what’s a few billion more to dramatically expand it!

And if it requires an increase in the income tax, or a sales tax hike or even a job-killing payroll tax to finance it all? Well, so be it.

Transportation Secretary Richard Davey yesterday presented the administration’s vision of the state’s transportation future. The state needs an additional $684 million next year just to maintain the current system and end the practice of paying hundreds of salaries with borrowed funds and to avoid the annual scramble to patch the MBTA budget, he said. But all told, it will require an additional $1 billion in revenue each year for the next 10 years to deliver the “21st century” system the commonwealth needs.

Now, had the administration made a simple case that state revenues are insufficient to fund the basics of a reliable and safe transportation system we might be open to arguments that a new, dedicated revenue stream will end the persistent funding woes.

But this plan includes nearly every fantasy ever dreamed up by a transportation planner. That includes expansion of commuter rail to the South Coast, the Green Line extension, a massive expansion of South Station, new rail service from Boston to Springfield and Cape Cod and between Pittsfield and New York City. Those projects alone carry a minimum $4 billion price tag.

What form the financial burden on the public will take is still a mystery. Patrick plans to release a financing plan when he files his budget proposal next week.

But once again keep in mind — this governor doesn’t do “basic.”

Davey and Patrick emphasized that the plan was built around the public’s stated desire for more of, well, everything.

But isn’t it a leader’s job to say when enough is enough?


State House News Service
Tuesday, January 15, 2013

With revenue plans under wraps, Guv calls for surge in education spending
By Matt Murphy


When he addresses the state on Wednesday night, Gov. Deval Patrick, who sketched out plans Tuesday for massive new investments in education, will outline an ambitious and likely controversial plan to raise as much as $1.57 billion in new revenue next year.

Visiting the Orchard Gardens school in Roxbury – the same school he highlighted in a speech last summer at the Democratic National Convention – Patrick called for a $550 million investment in education in fiscal 2014 that would ramp up to $1 billion in new spending by 2017.

The plan calls call for the state to deliver on its promise of universal access to early education by eliminating wait lists for infants, toddlers and pre-schoolers, and making Chapter 70 funding available for the first time to districts for pre-school for four-year-olds.

The governor also called for more expanded learning time, a $226 million increase in Chapter 70 education aid in his fiscal 2014 budget, and a $152 million increase in funding for community colleges, the University of Massachusetts, and college student grants.

“Investing in our children at a young age pays huge dividends for them and for our community as a whole. To those who say we cannot afford that, I challenge you to show me which one of these four-year-olds we should leave behind,” Patrick said, raising voice in the school auditorium as he delivered a message to the would-be detractors of his revenue push.

The governor’s plans for education, which span early childhood education to college, arrived a day after Patrick made his pitch for $1.02 billion in new revenue to pay for the maintenance and expansion of the state’s highways, bridges and public transit systems.

“The money’s going to come from new revenue. We’re going to put our proposal forward in the State of the Commonwealth and we’re going to make the case for investing in our growth and in our own future. It’s a proven strategy. It has gotten us a long way over the last couple years. We can go a lot further,” Patrick told reporters on Tuesday in Roxbury.

Patrick declined to elaborate on his revenue proposal, only acknowledging that “revenue” means tax and fee increases to pay for programs he believes will “accelerate” economic growth. “We got to stop being afraid of that conversation and start talking about the choices that we have to make in order to ensure that we are building a stronger future,” Patrick said.

The broad plans for new spending come a day after the administration and House and Senate budget writers agreed to a revenue estimate for fiscal 2014 reflecting modest 3.9 percent growth, an $838 million increase from this fiscal year’s revised estimate that will largely be consumed by spending associated with health care, fixed costs and caseload-driven programs.

“I think the economy is improving and we’re going to be stronger if we take action. We can’t treat the economy like the weather. We don’t have to stand around and wait for it, wait for it to happen to us, wait for someone to forecast what’s going to happen. We can build our own future and we can create our own growth,” Patrick said.

So far, legislative leaders have taken a wait-and-see approach to Patrick’s revenue plans, though House Speaker Robert DeLeo and Senate President Therese Murray have both indicated they may be more open to raising taxes this session than over the past couple of years.

Rep. Jeffrey Sanchez (D-Boston) attended the governor’s event in Roxbury with Reps. Gloria Fox and Russell Holmes.

“The governor’s on fire out the box. I’m happy and excited that this administration has this much energy,” Sanchez said. Sanchez said schools like Orchard Gardens prove that investment and “hard work” can pay dividends, but predicted a good debate in the House over revenue.

“I’m from Jamaica Plain. Taxes are always on the table in my district,” he told the News Service.

Asked whether he felt politically freed to pursue substantial new revenues because he does not intend to seek a third term in 2014, Patrick said, “That’s not the reason. The reason is we have done all we can to move ourselves forward through reforms.”

Patrick was joined on stage at the school by Boston School Superintendent Carolyn Johnson and new Education Secretary Matthew Malone. The governor has held up the school as a model for what investing in education and forging partnerships within the community can accomplish, citing a 184 percent improvement in English and a 533 percent improvement in math proficiency at the school.

After viewing student art work in the hall, Patrick listened to students of various ages tell him what they wanted to do with their lives, including one young boy who said he wanted to go to firefighting school. Others talked about the value of the after-school program and the commitment of teachers at the school.

“The pride students and educators have in this school is palpable,” Patrick said.

The governor’s education investments, which will be filed as part of the fiscal 2014 budget he submits to the Legislature next week, will call for $550 million in new spending next year that will ramp up each year to $1 billion in annual new spending by fiscal 2017.

Citing a persistent achievement gap for minority, low-income, and special needs students and a reading proficiency rate of just 61 percent for third-graders, Patrick said his plan would eliminate the 30,000 student wait-list for early education and care programs.

The plan would also invest $5 million next year, and up to $70 million a year by 2017, in expanded learning time programs at the middle-school level, with an additional $20 million dedicated to supports for students and their families in urban “Gateway Cities.”

The $226 million increase in Chapter 70 aid for public schools would guarantee a $25 per pupil increase in spending for each district, and keep all districts at foundation levels.

The governor’s plan would also spend $274 million more a year at its peak, starting with a $152 million investment in fiscal 2014, in higher education, increasing funding for financial aid through the MASSGrant program.

Patrick also wants to expand the Completion Incentive Grant fund, which allows students enrolled at certain campuses to receive up to $8,000 over four years for credits earned toward their degrees, and increase funding for community colleges by $20 million.

The governor will also request a commitment of state support to fund at least 50 percent of the education costs at the University of Massachusetts, state universities and community colleges by 2017.

Jason Williams, the executive director of Stand for Children, called for the governor and Legislature to work together to improve underperforming schools.

“When we invest in education, we invest in the future of our state. Increased education funding is crucial to ensuring that every child has equal access to a great education, but there remains a major challenge for Massachusetts in leveling the playing field for students of all incomes – we need to lift barriers that prevent badly-needed education innovation, including retaining the reforms at our turnaround schools, expanding opportunities to attend charter schools and extending learning time where needed,” Williams said in a statement.

Carolyn Lyons, president and CEO of Strategies for Children, applauded Patrick’s call for more spending on early education, calling it a “bold step toward closing the achievement gap and securing the commonwealth’s future economic vitality.”

Noting 39 percent of Massachusetts third graders scored below proficient in reading on the 2012 MCAS, Lyons said, “With funding for early education and care down more than $80 million since fiscal year 2009, we urge the Legislature to support these critical new investments in young children.”


State House News Service
Tuesday, January 15, 2013

Groups push to raise income tax in bid for $2 Billion revenue increase
By Andy Metzger


Unsatisfied by the prospect of a $1 billion transportation investment and buoyed by the idea that legislative leaders are open to new revenue proposals, Democratic lawmakers and liberal activists are leading a new push to raise $2 billion through increases in the state’s income tax.

The proposal would increase the income tax from 5.25 percent to 5.95 percent, and increase capital gains and other investment taxes from 5.25 percent to 8.95 percent, according to campaign co-chairman Harris Gruman, who is executive director of the SEIU Massachusetts State Council. Middle-income seniors would keep the 5.25 percent rate for investment income, and anyone who has a median income or below would receive new deductions to keep their rate the same, according to the campaign organizers.

“The subject of tax is always a sensitive one. I think it’s important to point out that An Act to Invest doubles the personal exemption so it reduces the burden on middle-income families. I think that’s an important part of this proposal,” Sen. Jamie Eldridge (D-Acton) told the News Service. “I would just say as far as the people’s reaction, I just finished up town hall meetings throughout my district, and the priorities were investing in local aid, transportation, health care and the environment.”

Eldridge said that because House Speaker Robert DeLeo and Senate President Therese Murray have said they are “open” to new revenue proposals, “I think this is the session to consider that.”

“We’re open to other proposals,” said campaign co-chairwoman Rebekah Gewirtz who is a lobbyist for the Massachusetts chapter of the National Association of Social Workers and an alderwoman in Somerville. She said that as long as another proposal met the twin aims of “fairness and substantial new revenue,” the group would consider it.

Murray and DeLeo have led Democrats in resisting new taxes in recent years, since raising the sales tax in 2009. Tax hike opponents have warned that Massachusetts residents continue to struggle amid weak economic growth and in the wake of the worst recession since the Great Depression.

Gov. Deval Patrick has said there is a $1 billion funding gap in transportation, and he is expected to lay out his revenue proposals to bridge that gap at his State of the State speech on Wednesday.

“The money’s going to come from new revenue. We’re going to put our proposal forward in the State of the Commonwealth and we’re going to make the case for investing in our growth and in our own future. It’s a proven strategy. It has gotten us a long way over the last couple years. We can go a lot further,” Patrick told reporters on Tuesday in Roxbury.

Patrick also said the additional spending made possible by tax increases would allow would be a good recipe for the economy.

“I think the economy is improving and we’re going to be stronger if we take action. We can’t treat the economy like the weather. We don’t have to stand around and wait for it, wait for it to happen to us, wait for someone to forecast what’s going to happen. We can build our own future and we can create our own growth,” Patrick said.

“I’m thrilled that the governor is making the case for the very serious needs that we have as a Commonwealth,” said Sen. Sonia Chang-Diaz (D-Boston), a sponsor of the legislation, which she also filed last year. Asked if she would be satisfied if the governor’s transportation plan passed and the larger revenue proposal failed, Chang-Diaz said, “Personally, I would not be satisfied,” and said the education needs are as “serious” as transportation needs. Chang-Diaz filed a similar bill last session.

More money would obviate things such as the fundraiser for school supplies that Vivian Moulden, a retired health care worker from Springfield, said her grandson was involved in, and it would provide other benefits, speakers said.

“As a Bristol Community College student and someone who is reliant upon public transportation, I have to say that the lack of adequate funding has not made the last few years easy for me,” said Sapphire Castillo, a New Bedford resident who said the local buses stop running at 6 p.m.

With Chang-Diaz presiding the event drew a little under a dozen legislators, including Sens. Michael Barrett (D-Lexington), Eldridge and Dan Wolf (D-Harwich), as well as Reps. Mary Keefe (D-Worcester), James O’Day (D-West Boylston), Denise Provost (D-Somerville), Ellen Story (D-Amherst), and Aaron Vega (D-Holyoke). After the press conference, activists gathered in Nurses Hall and chanted “Si se puede,” and “Yes we can.”

Republican lawmakers have reacted with skepticism to Patrick’s plan to bridge a $1 billion transportation funding gap. On Tuesday, Patrick announced plans to increase education spending by $550 million.

O’Day told reporters he is not worried about the old epithet Taxachusetts having a resurgence.

“I absolutely believe that today that’s not us. That may have been us 15 years ago, or 18 years ago, but if you look at what we’ve done over those years, that’s not us these days,” O’Day said.

In November 2000 with 56 percent of the vote, Massachusetts passed a ballot initiative that would have gradually lowered the income tax rate from 5.95 percent to 5 percent. The income tax was frozen at 5.3 percent in 2002 in the middle of an economic slump as part of a larger revenue proposal.

“When people did that they were told that ‘this will not have a negative effect on the economy,’ that ‘there won’t be any cuts because of this,’ and it was believable at the time because that was 2000,” Gruman said. “Two thousand was just at the end of the biggest boom, economic boom, in American history and Massachusetts history, so it seemed believable to people that they could cut their taxes and still have the kind of community they wanted. They’ve now had 12 years of experience of declining services, declining infrastructure, and worries about affordability of public universities and colleges and the quality of public schools.”

The campaign to raise the rate back to the 1990s level will be two-pronged with efforts to gather public support and convince legislators of the proposal, according to the organizers.

“I think we have a very good message for the public, definitely for the membership, and organized folk who are involved in social work, involved in schools, involved in senior services, to get them out and active,” said Gruman. He said it would be a “grassroots” campaign with meetings in legislators’ districts to rally support.

The Campaign for Our Communities already has the endorsement of 126 organizations, including unions, city councils and boards of selectmen, and others, including the Massachusetts PTA, Stand For Children, and Clean Water Action Council.

The state constitution prohibits different tax rates for different income brackets. Campaign organizers said the proposal would not require a change to the constitution.

“We’re comfortable that this bill will pass constitutional muster. What it does on the income tax side is raise the rate and simultaneously raise the personal exemption to hold down increases on low and middle income families,” said Andi Mullin, director of the campaign.

Wolf agreed that the legislation is legitimate.

“I think we’ve already set the standard that there can be and will be personal deductions,” said Wolf. “So what this does is it simply readjusts what the personal deductions are based on the state of the economy and what income levels have done.

 

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