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CLT UPDATE
Wednesday, April 24, 2013

Tax hikes and more spending are happening suddenly and quickly


A political operative who represents the MBTA’s secret pension fund also does public relations for a union-backed group that has pushed Gov. Deval Patrick’s massive tax hike plan to boost transportation spending.

Steve Crawford, an independent public relations flack working for the MBTA Retirement Fund, would not say who pays his salary at Campaign for Our Communities, an organization which corralled the endorsements of various unions and groups to support boosting the state income tax rate to funnel more money to MBTA projects and education.

“I’m not going to tell you that,” Crawford told the Herald when asked who funds the Campaign for Out Communities.

Crawford said “there is no connection” between the union-backed group and the MBTA Retirement Fund, which he called “a longtime client.” He did not respond to questions about who hired him for the campaign....

Crawford, who worked as a spokesman for Patrick’s political committee and U.S. Rep. William R. Keating’s (D-Bourne) campaign, also declined to respond to questions about who founded Campaign for Our Communities, which is not registered with the state as a lobbying group despite the organization’s political maneuvering to convince lawmakers to raise taxes.

“If they’re lobbying, they should register,” said secretary of state spokesman Brian McNiff.

McNiff said the campaign’s director, Andi Mullin, is registered as a lobbyist for SEIU Local 509 — not Campaign for Our Communities.

Mullin told the Herald she still works for the human service workers union and is “appropriately registered” with the state.

She said the Campaign for Our Communities includes funding from the Massachusetts Teachers Association and SEIU, but she declined to list all sponsors or answer questions about who pays her salary, Crawford’s salary and the organization’s expenses.

The campaign’s website was registered by Boston-based digital media strategy firm Alipes, which was co-founded by former Patrick new media political operative Charles SteelFisher. The Alipes worker who registered the site declined to say who hired the company and SteelFisher did not return a call seeking comment yesterday.

The Boston Herald
Saturday, April 13, 2013
Pushing tax hike, shielding T fund
Operative works for pension firm, group backing gov


The bargaining has indeed begun — or at least that’s what Gov. Deval Patrick would have the Legislature’s leftier Democrats believe.

The House has passed a $500 million tax hike to support transportation needs in the state — not everything on the governor’s $1 billion wish list — but enough to bail out the MBTA and put toward road and bridge repairs. It increases gas, cigarette and corporate taxes.

The Senate is scheduled to take up the transportation package today in a rare Saturday session — made necessary by those doing the governor’s bidding in that chamber.

The Senate version of the bill rapidly ramps up new transportation spending to $805 million by fiscal 2018, including the diversion of a tax on underground storage tanks and some $40 million from leasing rights of way — always a rather problematic fudge factor....

Yes, the taxpayers will be totally screwed, and still it won’t be enough, because Patrick will want another $1 billion for his other non-transportation pet projects.

This is no time for the more sensible members of the Senate to be drinking the Kool-Aid.

Deval Patrick is as good as gone. Lawmakers shouldn’t allow him to bankrupt us all on his way out.

A Boston Herald editorial
Saturday, April 13, 2013
Tax hikes on the line


The one credible issue on the table for lawmakers to wrestle with is the budgetary hole the MBTA has created for itself. That does indeed need to be addressed, but a new report out from the Pioneer Institute is a sobering look at how the system got that way.

And unless its wild spending ways are curbed, no amount of tax hikes or fare increases will fix the system for very long....

So that’s where all those new taxes will be going — to support a bloated system desperately in need of reform.

A Boston Herald editorial
Saturday, April 13, 2013
... To support bloated T


Legislation raising gas, tobacco and business taxes in Massachusetts by $500 million and eventually dedicating up to $800 million a year in new revenues for transportation cleared the Senate 30 to 5 during a rare Saturday session.

With the absence of the contingent of media and lobbyists that would normally be attracted to a debate on a tax bill, Senate President Therese Murray led the charge to pass the tax bill, presiding as the Senate roared through more than 100 amendments to the legislation before approving it with all but two Democratic votes. Senators said differences over amendments had been talked through during a long private caucus.

Gov. Deval Patrick, who chastised the House for a similar tax bill that he vowed to veto, had more congratulatory words for the Senate following the final vote a few minutes before 8 p.m....

Critics of the bill said the Patrick administration was failing to meet cost saving benchmarks under a 2009 transportation reform law and argued the legislation would further burden taxpayers by pulling more of their money into a transportation system that they said is rife with problems and inefficiencies. Without reforms, they said, the new revenues will not be enough to keep up with MBTA spending patterns.

The push to pass the bill, which cleared the House just before midnight Monday on a 97-55 vote, underscored the pressure that Murray and House Speaker Robert DeLeo are under since the House has already proposed a budget spending revenues from the still unapproved tax hikes and the Senate plans to do the same in May. Differences in the House and Senate tax bill remain to be ironed out by the branches....

[Sen. Robert Hedlund, R-Weymouth] said reforms included in a 2009 law were intended to produce $6.5 billion in savings over 20 years, but so far had delivered only $500 million. Of that, Hedlund said, $320 million was attributable to ending interest rate swap practices that were not a focus of the 2009 law.

“Obviously we have discarded the concept of reform before revenue,” said Hedlund.

State House News Service
Saturday, April 13, 2013
Senate adopts $500 mil tax plan, steers more $$$ to transportation


The Senate voted overwhelmingly Saturday to approve a transportation finance bill that would funnel more than $800 million into the state’s transit agencies by fiscal 2018 in what seemed a compromise between packages proposed by House legislators and Governor Deval Patrick in recent weeks....

After the 30-5 vote, Patrick expressed mixed feelings on the bill.

“Today’s Senate bill is a significant step in that direction and I commend them for their work,” he said in a statement. But, he continued, “it is concerning that some of the resources in this bill are diverted from current spending on other needs.” ...

The transportation finance package is far from settled. The bill will move on to a joint conference committee before it makes its way to the governor’s desk. But it’s a coup for Patrick, who was angered when the House proposed a package he deemed too small, threatening a veto and urging legislators to tack other sources of revenue onto the bill.

Patrick suggested earlier this week that he would not veto a transportation finance package close to the halfway point between his and the House’s proposals.

The Boston Globe
Sunday, April 14, 2013
Mass. Senate OKs $800 million transportation bill


Four days after the House named three representatives to a transportation tax bill conference committee, the Senate appointed its negotiators on Monday morning.

Senate Ways and Means Chairman Stephen Brewer (D-Barre), Senate Chairman of the Joint Committee on Transportation Thomas McGee (D-Lynn) and Sen. Robert Hedlund of Weymouth, the ranking Republican member of the Transportation Committee, were appointed before the Senate recessed on Monday.

The Senate is waiting to determine whether a Thursday formal session will take place, according to an agenda distributed to members. The six-member committee will attempt to reconcile two versions (H 3415/ S 1770) of a $500 million tax bill that would fund transportation.

On Thursday, the House appointed House Ways and Means Chairman Brian Dempsey (D-Haverhill), House Chairman of the Joint Committee on Transportation William Straus (D-Mattapoisett) and Rep. Steven Howitt (R-Seekonk), a member of the Transportation Committee, to the conference committee.


State House News Service
Monday, April 22, 2013
State Capitol Briefs - Lunch Edition
Tax bill negotiating committee fully named


The House on Monday commenced debate on a $33.8 billion annual state budget proposal with consideration of a plan to reduce the sales and income tax rates to 5 percent over five years, an initiative voted down by the Democratic majority.

“I would call it the death by a thousand cuts proposal,” said Rep. Jay Kaufman, a Lexington Democrat and co-chairman of the Revenue Committee.

House Minority Leader Bradley Jones (R-North Reading) said that under the Republican-sponsored amendment, the 5 percent income tax rate would be achieved 19 years after voters approved reducing the income tax rate to 5 percent through a ballot initiative.

Invoking last week’s Boston Marathon bombings, Kaufman argued that the amendment would deprive the state government of $2 billion in revenue critical to providing funding for public safety and other programs. The amendment failed on largely party-line, with 35 representatives supporting it and 118 voting against the proposal.

“I’m a little disappointed that it only took until the third speaker of the day to bring up the events of last week as to why we should or shouldn’t do things this week and frankly I think it’s disappointing,” Jones said.

Rep. Timothy Toomey, a Cambridge Democrat, called it “fundamentally irresponsible” to lower taxes, worried that it would impact job training used to support technology start-ups in Cambridge.

The fiscal 2014 budget debate, expected to continue through much of the week, started with debate over revenue and tax amendments plucked from the 888 amendments filed to the budget bill....

The Legislature and Gov. Deval Patrick raised the sales tax rate to 6.25 percent from 5 percent in 2009. A ballot question calling for a 5 percent income tax rate passed in 2000, but was not fully implemented — the income tax rate is currently 5.25 percent.

State House News Service
Monday, April 22, 2013
House turns down plan to phase in income, sales tax cuts


House lawmakers tacked on close to $27 million in additional spending for education and local aid on the first night of debate on a $33.8 billion fiscal 2014 budget Monday, engaging in sporadic debate, including a fiery back-and-forth over in-state tuition for undocumented immigrants....

In a testy exchange over in-state tuition for undocumented immigrants, the House voted 107-46 to study the issues around tuition rates for immigrants and returning veterans, avoiding a direct vote on a budget amendment offered by Rep. Marc Lombardo (R-Billerica) that would have reversed Gov. Deval Patrick's directive extending the tuition break to immigrants who qualify for legal status under a new federal program.

Lombardo, Rep. James Lyons and Rep. Shaunna O'Connell argued taxpayers are being asked to subsidize tuition for immigrants who broke the law by coming to the United States. Lombardo said the policy forced taxpayers to subsidize tuition for immigrants who “break the rules,” while Lyons accused Patrick of circumventing the Legislature. “This is about fairness,” said Lyons, noting a 2006 roll call vote the House took to limit in-state tuition.

The Patrick administration last November determined under existing state policy that immigrants granted deferred status by the federal government are eligible for in-state tuition rates, which are lower than rates paid by out-of-state students. The ruling was not a new policy, but an application of the new federal rules established by executive order by President Barack Obama, the administration said....

State House News Service
Monday, April 22, 2013
House adds $27 mil to budget, sends immigrant tuition issue to study


Chip Ford's CLT Commentary

We should have known at least have suspected that Steve Crawford had his fingers in Deval's massive tax hike, and the so-called "Campaign for Our Communities" organization of state hacks and takers. Steve has always been there for the tax-borrow-and-spend cabal. His reaction to being exposed it so typical of Democrat political operatives that it didn't surprise even me.

CLT "39-Years as The Voice of Massachusetts Taxpayers and It's Institutional Memory"!

Ah memories.  The last time I debated Crawford was in defense of Carla Howell's outright repeal of the state income tax.  This wasn't a CLT initiative, and CLT didn't think it was the best means of limited taxation in the short term, but the question made it onto the 2008 ballot Question 1. We needed to defend it.  The debate sponsor, The Salem News, didn't want to hear Carla's regurgitated 'mantras' any more.  I was invited to fill in, to oppose Crawford, if I was willing to accept. Of course I did, rather than risk leaving taxpayers with no voice against the special-interests' opposition to it, and the principal of limited taxation.

Back then I wrote:

Barbara was off-camera as an observer and Salem News columnist, gathering information for a forthcoming column on the ballot questions. She wrote to [Howell's] Committee for Small Government, "Crawford was taken aback by this; he had come to debate Carla [Howell] and thought he'd be dealing with her talking points, was totally unprepared for [my] 'union attack'."

WATCH THE 2008 DEBATE HERE

As with most the political operatives, Steve Crawford has probably made more just recently in his latest role than CLT has been able to afford paying me, or Barbara, or Chip Faulkner, over our entire lifetimes.

As long as we're around we're such a fantastic deal for you lunch-bucket taxpayers!


Regardless, the so-called "Campaign for Our Communities" which we've been exposing for years for the sham it is, has become or is becoming — recognized at last: the latest incarnation of the public employees' union bully front. It's about time. If CLT is ever able to attach salaries, dragoon union dues into its coffers, mandate the state to administer collections into our treasury like them, we could probably become more competitive, an equally fearsome threat — not that we'd ever even consider such extortion. Nonetheless, underfunded as CLT is, we've so far managed to hold our own for us and you taxpayers against the Gimme hordes.

Believe it or not — there are some among our "lapsed members" who assume we are somehow state-funded or state-subsidized, like the unions! They honestly believe we can survive without voluntary contributions!  To them I say, we taxpayers defend ourselves and stand on our own.

That's why we're not too disappointed if we lose their drag.


Even with the State House News Service, news from Bacon Hill has been sparse since the despicable Boston Marathon bombings. I've done my usual diligent news searches seven days a week, but there's been nothing to pass on for a week, since the state Senate vote on April 11th on the transportation tax hike, while Barbara and I were on Boston Common at the Greater Boston Tea Party rally.

It's been like waiting for white smoke over the Vatican, but finally yesterday some news emerged.

We're back in full swing.  School vacation week coincided with the bombings; legislators were apparently more or less on vacation for the week too.  (Is there some significant metaphor there?) They're back to work again and seemingly moving fast which is their usual method.

We're on top of things, and will be moving just as fast to stay on top over the next few days, and the weeks ahead.

Stay tuned. We'll have more for you and them soon . . .


Again the "temporary" income tax rollback was killed by the majority Democrats.  Below is the House roll call vote on rolling back the income and sales tax to their historic 5%.

This year, the Republicans offered a reduction of the income tax to 5%, the sales tax to 5%, over five years.  (We'll never give Bacon Hill any wiggle-room again like we allowed on our 2000 ballot question; "now or never" can't work any worse!)

Remember when you vote in the coming year how these alleged "representatives" voted on respecting the voters' mandate YOUR vote thirteen years ago after a promise "our" Legislature made twenty-four years ago when it hiked the tax "temporarily."  Remember this typical MIDDLE-FINGER BEACON HILL SALUTE!

Mark down how your "representative" voted — then remember and badger your friends and neighbors from now till then!  Then keep badgering them.

For a printable, downloadable PDF file
CLICK HERE


The House voted 107-46 to "study" the issues around in-state tuition rates for illegal immigrants killing it. The budget amendment offered by Rep. Marc Lombardo (R-Billerica) would have reversed Gov. Deval Patrick's unilateral directive extending the tuition break to immigrants. It was backed voraciously by Rep. James Lyons and Rep. Shaunna O'Connell. It would have reversed taxpayers' responsibility for subsidizing tuition for immigrants who broke the law by coming to the United States illegally. Sending it to "study" is the bureaucratic death knell of any legislation a dodge for any legislator who dares not vote or be caught on record, who intends to stand for re-election and must ultimately answer to the voters in their district.

 

Chip Ford


 
 

The Boston Herald
Saturday, April 13, 2013

Pushing tax hike, shielding T fund
Operative works for pension firm, group backing gov
By Erin Smith


A political operative who represents the MBTA’s secret pension fund also does public relations for a union-backed group that has pushed Gov. Deval Patrick’s massive tax hike plan to boost transportation spending.

Steve Crawford, an independent public relations flack working for the MBTA Retirement Fund, would not say who pays his salary at Campaign for Our Communities, an organization which corralled the endorsements of various unions and groups to support boosting the state income tax rate to funnel more money to MBTA projects and education.

“I’m not going to tell you that,” Crawford told the Herald when asked who funds the Campaign for Our Communities.

Crawford said “there is no connection” between the union-backed group and the MBTA Retirement Fund, which he called “a longtime client.” He did not respond to questions about who hired him for the campaign.

Critics have called for transparency in MBTA pensions, but Patrick, who has been seeking nearly $2 billion in new taxes for transportation and education, said he accepts that pensions for the publicly funded authority should remain secret — even as the MBTA’s share of pension contributions skyrocketed 42 percent from $30 million in 2007 to $52.3 million in 2011.

Three of the pension fund’s seven-member board are also appointed by the MBTA.

Crawford has declined the Herald’s request to release MBTA pensions and state courts have sided in the past with the agency, which argues its pension information isn’t public because the fund was set up as a private trust by the agency’s predecessor, the Metropolitan Transit Authority, in 1948.

Crawford, who worked as a spokesman for Patrick’s political committee and U.S. Rep. William R. Keating’s (D-Bourne) campaign, also declined to respond to questions about who founded Campaign for Our Communities, which is not registered with the state as a lobbying group despite the organization’s political maneuvering to convince lawmakers to raise taxes.

“If they’re lobbying, they should register,” said secretary of state spokesman Brian McNiff.

McNiff said the campaign’s director, Andi Mullin, is registered as a lobbyist for SEIU Local 509 — not Campaign for Our Communities.

Mullin told the Herald she still works for the human service workers union and is “appropriately registered” with the state.

She said the Campaign for Our Communities includes funding from the Massachusetts Teachers Association and SEIU, but she declined to list all sponsors or answer questions about who pays her salary, Crawford’s salary and the organization’s expenses.

The campaign’s website was registered by Boston-based digital media strategy firm Alipes, which was co-founded by former Patrick new media political operative Charles SteelFisher. The Alipes worker who registered the site declined to say who hired the company and SteelFisher did not return a call seeking comment yesterday.


The Boston Herald
Saturday, April 13, 2013

A Boston Herald editorial
Tax hikes on the line


Ah, we should have known ...

The bargaining has indeed begun — or at least that’s what Gov. Deval Patrick would have the Legislature’s leftier Democrats believe.

The House has passed a $500 million tax hike to support transportation needs in the state — not everything on the governor’s $1 billion wish list — but enough to bail out the MBTA and put toward road and bridge repairs. It increases gas, cigarette and corporate taxes.

The Senate is scheduled to take up the transportation package today in a rare Saturday session — made necessary by those doing the governor’s bidding in that chamber.

The Senate version of the bill rapidly ramps up new transportation spending to $805 million by fiscal 2018, including the diversion of a tax on underground storage tanks and some $40 million from leasing rights of way — always a rather problematic fudge factor.

Now the governor, who had been taking the my-way-or-the-highway approach on Beacon Hill — which so impresses legislative leaders, calling the House tax hike a “pretend fix” — got down to the serious business of dealing by mid-week. Oh, yes, he’s such a sly devil.

“If the Senate can get to the seven-fifty, eight hundred number, net of fees, fares and tolls — not including fee, fares and tolls,” he told State House News Service, “we can take care of that, and reforms. We can take care of that. If they can get in that range, then we will have done something important for transportation. We still need to deal with education.”

Another 24 hours after that and he was still trying to assess whether the Senate plan would accommodate his must-have boondoggles like rail service from Pittsfield to New York City.

“We’re trying to see whether the [Senate] dollars are real,” he said.

Yes, the taxpayers will be totally screwed, and still it won’t be enough, because Patrick will want another $1 billion for his other non-transportation pet projects.

This is no time for the more sensible members of the Senate to be drinking the Kool-Aid.

Deval Patrick is as good as gone. Lawmakers shouldn’t allow him to bankrupt us all on his way out.


The Boston Herald
Saturday, April 13, 2013

A Boston Herald editorial
... To support bloated T


The one credible issue on the table for lawmakers to wrestle with is the budgetary hole the MBTA has created for itself. That does indeed need to be addressed, but a new report out from the Pioneer Institute is a sobering look at how the system got that way.

And unless its wild spending ways are curbed, no amount of tax hikes or fare increases will fix the system for very long.

Pioneer focuses on two aspects of T spending that cry out for reform. First, its workers are paid substantially more than other state workers for the same job. An assistant attorney general makes about $65,000 a year, but an assistant general counsel at the T makes $85,000. A painter for the state makes $46,742; a painter for the T $79,279. Customer service workers at the Registry top out at $45,117, but at the T they get $61,110.

The other huge chunk of change goes for commuter rail service — the next five-year contract is expected to cost about $1 billion. The real problem is that at the beginning of that procurement process 25 commuter rail operators expressed an interest in bidding. However, when the time came for actual bidding, there were only two — the current operator, Massachusetts Bay Commuter Rail (MBCR) and Keolis, which is still struggling to get accurate information from their only competitor.

The Pioneer report also notes that over the past few years MBCR has been negotiating higher and higher labor costs (a 13.7 percent boost through June 2013) and eased work rules that will mean more overtime. Those contract elements will make it difficult for any other bidder to roll back costs, making it less attractive to bid and further burdening taxpayers.

So that’s where all those new taxes will be going — to support a bloated system desperately in need of reform.


State House News Service
Saturday, April 13, 2013

Senate adopts $500 mil tax plan, steers more $$$ to transportation
By Michael Norton and Andy Metzger


Legislation raising gas, tobacco and business taxes in Massachusetts by $500 million and eventually dedicating up to $800 million a year in new revenues for transportation cleared the Senate 30 to 5 during a rare Saturday session.

With the absence of the contingent of media and lobbyists that would normally be attracted to a debate on a tax bill, Senate President Therese Murray led the charge to pass the tax bill, presiding as the Senate roared through more than 100 amendments to the legislation before approving it with all but two Democratic votes. Senators said differences over amendments had been talked through during a long private caucus.

Gov. Deval Patrick, who chastised the House for a similar tax bill that he vowed to veto, had more congratulatory words for the Senate following the final vote a few minutes before 8 p.m.

“Experts agree that we need approximately $1 billion more a year -- in addition to further operating efficiencies -- to give our citizens a safe, functional, modern transportation system to keep pace with a growing economy,” Patrick said in a statement. “Today's Senate bill is a significant step in that direction and I commend them for their work.”

Supporters of the bill said it would prevent a second major MBTA fare hike in as many years, deliver funds to address regional transportation needs and expedite construction projects, and over three years end the longstanding practice of paying about 1,900 state transportation employees with borrowed funds.

Critics of the bill said the Patrick administration was failing to meet cost saving benchmarks under a 2009 transportation reform law and argued the legislation would further burden taxpayers by pulling more of their money into a transportation system that they said is rife with problems and inefficiencies. Without reforms, they said, the new revenues will not be enough to keep up with MBTA spending patterns.

The push to pass the bill, which cleared the House just before midnight Monday on a 97-55 vote, underscored the pressure that Murray and House Speaker Robert DeLeo are under since the House has already proposed a budget spending revenues from the still unapproved tax hikes and the Senate plans to do the same in May. Differences in the House and Senate tax bill remain to be ironed out by the branches.

The House bill fell just short of the vote required to override a potential veto. The resounding vote in the Senate well cleared the two-thirds threshold required.

After Patrick threatened to veto the original bill offered by DeLeo and Murray, saying it didn’t provide enough new revenues to meet transportation system needs, the Senate pulled money from other areas of state government into the bill to bolster planned new revenues closer to the $1 billion sought by Patrick, who spoke favorably about the Senate plan late this week.

On the tax front, the House and Senate bills raise new revenue from a $1 per pack increase in the cigarette tax and increases on cigar and smokeless tobacco products, new sales taxes on computer design services and software modifications, the removal of a tax exemption for utilities, and a three-cent increase in the gas tax, which would also be indexed to inflation under the legislation (S 1766).

A contingent of liberal senators attempted to include a trigger that would raise the gas tax an additional three cents if projected revenue falls short in 2015, but that vote garnered the support of only 10 members.

“The rest of the body was very careful in how much they wanted to raise, and how much they wanted to tax,” Murray told reporters after the final vote. Asked how it would match up with the House version, Murray said, “It’s the same framework as the House, for taxes, and we just did other revenues that we moved over from other accounts, so I’m hoping that the House will look on this favorably. Hey, the House did the heavy lifting first, and they are our partners, and hopefully the governor will be our partner in this also.”

During a speech in opposition to the gas tax trigger, applause erupted from the gallery, and Murray directed court officers to clear the crowd, during which time “Don’t tread on me” flags were displayed and criticism rained down on the senators as some chanted “No new taxes.”

On her way out, a woman wagged her finger at the chamber below and said, “Think about your children and your grandchildren when you take these votes, you idiots.”

“You might not have seen what was going on, but we were getting Nazi salutes from the people in the corner and some really vulgar language before they disrupted,” Murray told reporters afterwards.

Another amendment, sponsored by Sen. Karen Spilka (D-Ashland) enabling state officials to start discussing with the federal government the idea of establishing tolls on the state’s borders, won approval by a 19 to 15 margin, with some senators who represent border areas saying tolls would hurt their constituents.

Spilka had said that removing increases in current tolls from the formula the Legislature is using to move the transportation department toward more fiscal self-sufficiency was an essential condition to win her vote on the bill. That amendment passed on a voice vote after the Senate voted down on a voice vote a Sen. Sonia Chang-Diaz (D-Jamaica Plain) further amendment that would have also exempted fares for MBTA riders.

“So we can have perpetual gas tax increases, but we can’t look at tolls,” said Sen. Robert Hedlund (R-Weymouth).

Senate Ways and Means Committee Chairman Sen. Stephen Brewer (D-Barre) said the bill also makes $160 million in new tax revenues available to spend in the fiscal 2014 budget he plans to roll out next month. The House budget plan unveiled on Wednesday steers some of those new revenues to education and local aid.

Hedlund said reforms included in a 2009 law were intended to produce $6.5 billion in savings over 20 years, but so far had delivered only $500 million. Of that, Hedlund said, $320 million was attributable to ending interest rate swap practices that were not a focus of the 2009 law.

“Obviously we have discarded the concept of reform before revenue,” said Hedlund.

Rafael Mares, staff attorney at the Conservation Law Foundation, said that the final Senate version devoted more money to transportation than what Senate Ways and Means had proposed by indexing a 2.5-cent-per-gallon underground storage tank gas tax to inflation, and devoting those revenues to transportation.

On Friday night, before some changes were made to the bill in session, Mares calculated that the average amount of money over five years designated for transportation in the Senate bill was $602 million, compared to $504 million in the House plan and $858 million in the governor’s plan.

Kristina Egan, executive director of Transportation for Massachusetts, said the roughly $800 million in transportation revenues the Senate projected to raise by 2018 is “optimistic,” and hoped the bill would be modified to include more gas-tax hikes before reaching the governor.

Six of the more liberal members of the Senate, who all supported the final bill, praised the process and signaled that if substantially changed it would lose their support.

“Through both the work of the Senate Ways and Means Committee and the amendment process, the transportation finance bill passed by the Senate today reaches a level of revenue that allows for meaningful investments in a fiscally-sound, 21st century transportation system. It is for this reason that we vote yes on this bill today,” the six senators wrote in a joint-statement. “We look forward to the bill continuing to the joint House-Senate conference committee. Should the bill be reported out of the conference committee having lost the revenue gains we made, it will also lose our support.”

“There’s definitely more money in this bill,” Somerville Mayor Joe Curtatone told the News Service. “I appreciate the work the House did. A week before the House bill, we were at zero. We went from zero to a half a billion. While I appreciate that work it wasn’t enough… This is a huge step forward in that direction.”

Curtatone said he was hopeful that the revenue would be enough to enable matching federal funds for the Green Line Extension to his city, and said it would provide a needed investment for transportation through the whole state.

Among amendments adopted by the Senate were proposals to enable transportation agencies to collect more property taxes from private parties using public land, to require better reporting by the MBTA on its capital projects, and requiring the MBTA to gather information from 23 companies that opted against bidding on the commuter rail operations contract after submitting statements of interest.

Among the amendments rejected by the Senate were calls for a larger gas tax hike, for universities to play a greater role in funding transportation through student pass programs, and to eliminate the indexing of the gas tax to inflation. While Hedlund argued against locking the state into incremental gas tax hikes, Senate Transportation Committee Chairman Thomas McGee said the gas tax would be 9 cents higher per gallon if an indexing measure had been adopted in 1991, with each penny of tax worth $32 million.

Sen. Michael Rush (D-West Roxbury), in a floor speech highly critical of the MBTA and calling for a long menu of reforms, came up short in his bid to prevent the gas tax hike from taking effect until a task force recommended reforms and the Legislature adopted them. His amendment failed 7-24.

During debate, Murray said a proposal calling on the MBTA to contract with taxi companies to deliver RIDE services at lower costs would be dealt with by the Senate in separate legislation. An amendment pushing that reform was offered by Sen. Patricia Jehlen (D-Somerville) but was withdrawn.

A Republican alternative, which Senate Minority Leader Bruce Tarr said would include potential new revenues from an overhaul of how taxi medallions are administered, fell along party lines with Hedlund, Tarr and the only other Republican in the chamber, Sen. Richard Ross (R-Wrentham) supporting it.

The six senators who said they would not support a final bill with less revenue were Chang-Diaz, Jehlen, Katherine Clark (D-Melrose), Ken Donnelly (D-Arlington), Jamie Eldridge (D-Acton), Mark Montigny (D-New Bedford) and Dan Wolf (D-Barnstable).


The Boston Globe
Sunday, April 14, 2013

Mass. Senate OKs $800 million transportation bill
By Martine Powers


The Senate voted overwhelmingly Saturday to approve a transportation finance bill that would funnel more than $800 million into the state’s transit agencies by fiscal 2018 in what seemed a compromise between packages proposed by House legislators and Governor Deval Patrick in recent weeks.

Democrat legislators who voted for the bill sought to offer a more amped-up version of the $500 million House bill, passed Monday, by finding revenue sources that would not require further tax increases.

In addition to redirecting money from a little-known gas tax fund for underground storage tanks and requiring contracts between the state Transportation Department and utility companies, the Senate also voted Saturday to require that transportation and MBTA officials issue a request for proposals on licensing the naming rights to subway, bus, and commuter rail stations.

After the 30-5 vote, Patrick expressed mixed feelings on the bill.

“Today’s Senate bill is a significant step in that direction and I commend them for their work,” he said in a statement. But, he continued, “it is concerning that some of the resources in this bill are diverted from current spending on other needs.”

But Senator Thomas M. McGee, cochairman of the Joint Transportation Committee, said he considered the bill a success.

“I feel good about what we’ve done today,” McGee said, “but it’s an ongoing issue that we need to focus on every year.”

The transportation finance package is far from settled. The bill will move on to a joint conference committee before it makes its way to the governor’s desk. But it’s a coup for Patrick, who was angered when the House proposed a package he deemed too small, threatening a veto and urging legislators to tack other sources of revenue onto the bill.

Patrick suggested earlier this week that he would not veto a transportation finance package close to the halfway point between his and the House’s proposals.

The Senate bill, which was debated in a rare Saturday session because many legislators will be on vacation next week, called for the same revenue sources in the House version: a 3-cent gas tax, a $1 tax on cigarettes, and $244 million in utility and business-related computer fees.

But the Senate version also rerouted a little-known 2.5-cent gas tax originally dedicated to underground storage tank cleanups. And the bill established a consistent process for the Transportation Department and the MBTA to enter into leases with telecommunications and utility companies that use their property.

Those additional funds could be used for capital projects such as the South Coast Rail, a South Station expansion, the extension of the Green Line, and new cars to replace the MBTA’s aging fleet — though the extra cash would not be nearly enough to fund all of them.

According to a study by Northeastern University’s Dukakis Center for Urban and Regional Policy, the Senate version provides about $265 million in fiscal 2014 — just $5 million less than Patrick’s proposal prescribed — but ramps up less steeply than the governor’s plan, reaching $805 million per year in 2018, rather than the governor’s $1.1 billion.

Over the next five years, the Senate’s plan would allocate $600 million per year on average in new revenue to transportation, short of the average $800 million Patrick’s plan would have provided, according to the Dukakis Center.

Some transportation advocates worry that legislators’ estimates on the measures included in the Senate plan could prove to be less lucrative than suggested on the Senate floor.

“The difference between the Senate and the House bill is really not that huge,” said Rafael Mares, staff attorney at the Conservation Law Foundation, a transportation and environmental advocacy organization. “It’s a little bit like a blanket that’s too small, and you’re not sure what part of the body is going to be covered.”

Senator Stephen M. Brewer, a Democrat of Barre and chairman of the Senate Ways and Means Committee, praised members of the Senate for their work on trying to find a compromise in a politically tense environment.

“There’s been a lot of emotion and a serious case of hard-ball politics during the last couple of weeks,” Brewer said.

That combustible environment became evident when dozens of antitax protesters, fired up from a rally on Boston Common, filed into the State House and burst into applause and hoots when Senate minority leader Bruce E. Tarr lambasted his fellow legislators for supporting tax increases.

“But the question is, Madam President, what is enough, and when will it ever be enough?” Tarr yelled.

The protesters erupted into chants of “No more taxes!” and were escorted out of the gallery by State House police.

The Senate’s bill closes operating budget gaps for the MBTA next year, and requires that the Department of Transportation transfer personnel costs from its capital budget to its operating budget in the next three years.

The bill would allow the state’s 15 regional transit authorities — bus systems that serve communities outside of the MBTA’s reach — to pay their yearly budgets in advance, rather than borrowing their operating costs each year. The regional transit authorities would also receive an additional $12 million per year in funding — an 18 percent increase over what they currently receive.

Senators also voted to pass an amendment that would reinstate tolls on the western portion of the Massachusetts Turnpike, which had been eliminated in the 1990s. The revenue would be directed exclusively to transportation projects in that part of the state.

Many of the amendments focused on pushing for accountability within the state’s transportation agencies.

The legislation mandates that the MBTA conduct a review of fare collection policies; the Transportation Department publish job titles and salaries of employees moved onto the operating budget; regional transit authorities publish annual ridership data; and officials interview the 23 companies that expressed interest in bidding on the state’s gargantuan commuter rail contract, but did not ultimately submit.

The Senate rejected a proposal to establish a special legislative task force to hunt for cost-saving measures within the MBTA.

One of the most heated debates came on a further increase to the gas tax, as well as MBTA naming rights, with legislators arguing that they were fearful the amendment would result in “Dunkin’ Donuts Copley Station.”

“What is the price tag that we can appropriately put on our history, on our identity as a state, and on our identity as a public sector?” asked Senator Sonia Chang-Diaz, a Democrat of Boston.

Others, such as Senator Michael F. Rush, a West Roxbury Democrat, maintained that considering the dire financial situation of the state Transportation Department and the T, every possible revenue source that did not tax residents had to be pursued — even the painful options.

Rush said naming rights contracts would be pursued at the less-historic stations and stops within the T and commuter rail system.

“We do not have the luxury of turning our back on easy money,” Rush said.

The Senate voted down two amendments, one to increase and one to decrease the growth rate of the 3-cent gas tax, and rebuffed a proposal that would legalize fireworks in Massachusetts.


State House News Service
Monday, April 22, 2013
State Capitol Briefs - Lunch Edition

Tax bill negotiating committee fully named
By Andy Metzger and Michael Norton


Four days after the House named three representatives to a transportation tax bill conference committee, the Senate appointed its negotiators on Monday morning.

Senate Ways and Means Chairman Stephen Brewer (D-Barre), Senate Chairman of the Joint Committee on Transportation Thomas McGee (D-Lynn) and Sen. Robert Hedlund of Weymouth, the ranking Republican member of the Transportation Committee, were appointed before the Senate recessed on Monday.

The Senate is waiting to determine whether a Thursday formal session will take place, according to an agenda distributed to members. The six-member committee will attempt to reconcile two versions (H 3415/ S 1770) of a $500 million tax bill that would fund transportation.

On Thursday, the House appointed House Ways and Means Chairman Brian Dempsey (D-Haverhill), House Chairman of the Joint Committee on Transportation William Straus (D-Mattapoisett) and Rep. Steven Howitt (R-Seekonk), a member of the Transportation Committee, to the conference committee.

The House will be busy Monday and later this week debating the annual budget, which spends some of the revenues lawmakers anticipate raising by boosting taxes on tobacco, gas and businesses, as is proposed by the bill that is in conference. Conference committees usually, but not always, vote to conduct their deliberations in private.

Gov. Deval Patrick denounced the original bill put together by House and Senate leaders and approved 97-55 by the House, threatening to veto it. The Senate padded the proposed investments in transportation in its version of the bill, drawing some praise from the governor who said he remained concerned that the Senate plan pulls revenues from other areas of government.


State House News Service
Monday, April 22, 2013

House turns down plan to phase in income, sales tax cuts
By Matt Murphy


The House on Monday commenced debate on a $33.8 billion annual state budget proposal with consideration of a plan to reduce the sales and income tax rates to 5 percent over five years, an initiative voted down by the Democratic majority.

“I would call it the death by a thousand cuts proposal,” said Rep. Jay Kaufman, a Lexington Democrat and co-chairman of the Revenue Committee.

House Minority Leader Bradley Jones (R-North Reading) said that under the Republican-sponsored amendment, the 5 percent income tax rate would be achieved 19 years after voters approved reducing the income tax rate to 5 percent through a ballot initiative.

Invoking last week’s Boston Marathon bombings, Kaufman argued that the amendment would deprive the state government of $2 billion in revenue critical to providing funding for public safety and other programs. The amendment failed on largely party-line, with 35 representatives supporting it and 118 voting against the proposal.

“I’m a little disappointed that it only took until the third speaker of the day to bring up the events of last week as to why we should or shouldn’t do things this week and frankly I think it’s disappointing,” Jones said.

Rep. Timothy Toomey, a Cambridge Democrat, called it “fundamentally irresponsible” to lower taxes, worried that it would impact job training used to support technology start-ups in Cambridge.

The fiscal 2014 budget debate, expected to continue through much of the week, started with debate over revenue and tax amendments plucked from the 888 amendments filed to the budget bill.

The House earlier this month approved a package of $500 million in new taxes for transportation, a proposal now being worked out in conference committee with an alternative proposal okayed in the Senate.

The Legislature and Gov. Deval Patrick raised the sales tax rate to 6.25 percent from 5 percent in 2009. A ballot question calling for a 5 percent income tax rate passed in 2000, but was not fully implemented — the income tax rate is currently 5.25 percent.

House Ways and Means Chairman Brian Dempsey, of Haverhill, started Monday’s deliberations with an introduction of the bill that he said increased spending by 3.9 percent over last year’s budget, and comes in about $1 billion lower than Gov. Deval Patrick’s budget filed in January.

Dempsey called the budget a “fiscally prudent” spending plan that recognizes the “economic difficulties facing our Commonwealth and our nation.”

While relying on $350 million in reserves to balance the bottom line, Dempsey the budget proposed by the Ways and Means would increase unrestricted local aid to cities and towns for the first time since 2010 and make significant investments in higher education to avoid fee and tuition hikes at UMass and public universities and community colleges.

“These investments reflect our belief that higher ed is important to the future of the Commonwealth and important to our workforce,” Dempsey said.

Dempsey said the House leadership’s budget also increases spending on child and adolescent mental health services, community-based adult day and work programs and family assistance.

In addition to spending, the Ways and Means budget also proposes some reforms, including photo IDs for electronic benefit transfer card recipients to crack down on card trafficking and a task force established to standardize the benefit eligibility determination process across state agencies.

“One of the themes of the Ways and Means proposal this year is one that focuses on accountability and oversight,” Dempsey said, adding that before the state considers greater investment in early education as pressed by Gov. Patrick the state must “get back to basics” to ensure the proper oversight of the early education waiting list.

House Democrats also prevented votes on Republican-sponsored amendments to exempt municipalities from the gas tax offered by Rep. Marc Lombardo (R-Billerica) and to extend a five-day meals tax holiday to benefit restaurant worker this summer by Rep. Shaunna O’Connell (D-Taunton).

The House voted to study both issues, adopting amendments that prevented votes on the underlying proposals.

In his maiden speech in House Monday afternoon, Rep. Steven Howitt made his colleagues laugh when he said he wanted to give them the “poop” on Title 5 septic system tax credits.

Howitt, a Republican from Seekonk, proposed an amendment that would have increased a tax credit for homeowners who repair or and replace septic systems, allowing them to deduct 40 percent of the costs, up to $25,000 over five years. Currently homeowners can deduct 40 percent of the costs up to $15,000.

Howitt said the tax credit, instituted in 1991, has not kept pace with the rising costs of repairing septic systems. Increasing the credit would spur economic activity by encouraging homeowners to repair or replace old systems, and provide jobs for the workers involved, Howitt said.

“This bill is a royal flush for everyone involved,” he said.

Rep. Jay Kaufman, (D-Lexington) co-chair of the Revenue Committee, argued against it. Making a case he has often used to help turn back tax-related amendments, Kaufman said the committee was looking at the idea, and needed to study the tax implications further. The amendment failed 33 to 114.

House Democrats plan to start debate on amendments dealing with education and local aid, constitutional officers and housing by holding private meetings on the many amendments.

Rep. Thomas Sannicandro, co-chair of the Committee on Higher Education, tweeted that he was discussing education amendments with colleagues in advance of the released of a consolidated amendment.

Colleen Quinn contributed reporting


State House News Service
Monday, April 22, 2013

House adds $27 mil to budget, sends immigrant tuition issue to study
By Matt Murphy


House lawmakers tacked on close to $27 million in additional spending for education and local aid on the first night of debate on a $33.8 billion fiscal 2014 budget Monday, engaging in sporadic debate, including a fiery back-and-forth over in-state tuition for undocumented immigrants.

Rep. Alice Peisch, the co-chair of the Committee on Education, said the boost in education and local aid spending added money to the Metco, Head Start, libraries, YouthBuild and universal pre-kindergarten programs, as well as $5.3 million in additional Chapter 70 spending for some districts well below their so-called foundation levels.

The House also adopted a bundle of amendments relating to the state’s six constitutional officers and state administration issues that added $851,000 to the budget’s bottom line, boosting funding for the Secretary of State to administer elections and for the Office of Campaign and Police Finance.

When the House returns on Tuesday at 10 a.m., amendments relating to housing and social services are expected to be on tap first, including those dealing with welfare programs and the administration of electronic benefits transfer cards. House Democrats who wrote the budget bill have proposed requiring photo IDs on EBT cards to prevent trafficking of public assistance benefits, but some members would like to see further reforms.

Members also met behind closed doors throughout the evening Monday discussing bundled amendments on the energy and environmental matters and transportation. A meeting is scheduled for 10:30 a.m. Tuesday in the Members Lounge, a room off the House floor, on amendments related to veterans’ services and soldiers’ homes.

During the first day of budget deliberations, the House gaveled in at 11 a.m. and met until just after midnight, adopting two consolidated amendments hashed out privately and dispensing with nearly 200 of the 888 amendments filed in two unanimous roll call votes.

Through the day, representatives engaged in debates over amendments sponsored by lawmakers who sought floor debate and votes on their specific proposals.

In a testy exchange over in-state tuition for undocumented immigrants, the House voted 107-46 to study the issues around tuition rates for immigrants and returning veterans, avoiding a direct vote on a budget amendment offered by Rep. Marc Lombardo (R-Billerica) that would have reversed Gov. Deval Patrick's directive extending the tuition break to immigrants who qualify for legal status under a new federal program.

Lombardo, Rep. James Lyons and Rep. Shaunna O'Connell argued taxpayers are being asked to subsidize tuition for immigrants who broke the law by coming to the United States. Lombardo said the policy forced taxpayers to subsidize tuition for immigrants who “break the rules,” while Lyons accused Patrick of circumventing the Legislature. “This is about fairness,” said Lyons, noting a 2006 roll call vote the House took to limit in-state tuition.

The Patrick administration last November determined under existing state policy that immigrants granted deferred status by the federal government are eligible for in-state tuition rates, which are lower than rates paid by out-of-state students. The ruling was not a new policy, but an application of the new federal rules established by executive order by President Barack Obama, the administration said.

Rep. Carl Sciortino (D-Medford) accused Republicans of trying to restrict access to higher education for immigrant children brought to the United States through no fault of their own, and Rep. Denise Provost called the GOP amendment “preposterous and offensive.”

Rep. Steven Walsh, of Lynn, delivered a thunderous defense from the podium of the Patrick policy. He called it "ludicrous" that Republicans would bring up a 2006 vote to restrict in-state tuition given the turnover in the House the past three elections.

Walsh said the tuition break would apply to just 400 students who otherwise would not go to college, thereby costing the state nothing. He also noted that the executive order extended only to those immigrants who spent at least three years at a Massachusetts high school, passed the MCAS and were applying for citizenship under the new Obama administration policy.

Democrat Reps. James Arciero, Bruce Ayers, Tom Calter, Linda Dean Campbell, Josh Cutler, Stephen DiNatale, Jim Dwyer, John Fresolo, Colleen Garry, Thomas Golden, James Miceli, Kevin Murphy, David Nangle, Dennis Rosa, Thomas Stanley and Walter Timilty voted with the Republican caucus against the study amendment.

While boosting school aid for local public school districts, Democrats rejected an amendment offered by Rep. Paul Frost (R-Auburn) to create a $20 million grant program to pay for school supplies like textbooks and computers.

Rep. Brad Hill (R-Ipswich) also tried to add even more money to Chapter 70 to bring underfunded districts that receive less than 17.5 percent of their budget from the state to the foundation threshold within two years. The proposal was rejected, with Democratic leadership arguing that the state didn’t have the resources to ramp up spending that quickly.

Earlier Monday, Democrats beat back the annual attempt by Republicans to roll the income and sales tax down to five percent. Republicans pointed out that voters in 2000 passing a binding ballot law calling for a 5 percent income tax rate. The income tax rests currently at 5.25 percent.

The House also rejected an amendment offered by Rep. Angelo Scaccia that would have capped the film tax credit program at $40 million, a step proposed by Gov. Deval Patrick and shot down on a voice vote. Scaccia said tax credits “drive me nuts,” and the film tax credit in particular has taken taxpayer money and given it to film producers.

Majority Leader Ronald Mariano said the film tax credit doesn’t just benefits movie producers, but creates jobs in the local economy at production houses and in the trades that work on film and television sets. Rep. Sheila Harrington, a Groton Republican, noted the jobs that will come from the construction of a sound studio at Devens.

Scaccia also proposed to levy a 2.5 percent excise tax on college endowments over $5 billion, effectively taxing Harvard University and the Massachusetts Institute of Technology. The amendment was voted down 11-144.

Rep. Denise Andrews, an Orange Democrat, backed the amendment. “It’s time we redistribute wealth and take care of raising revenue,” she said.

Rep. Thomas Sannicandro, the co-chairman of the Higher Education Committee, questioned the constitutionality of the amendment, and Republican Rep. Elizabeth Poirier called it a “slippery slope,” concerned the idea could spread to charitable organizations.

Republican Rep. Geoff Diehl’s proposal to create a tax amnesty plan to collect overdue taxes by waiving the penalties for delinquent taxpayers was also defeated 39-110.

 

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