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CLT UPDATE
Thursday, July 25, 2013
Bay State's first Perpetual Tax Hike adopted
|
Heralding the impending $500 million tax bill
that he hopes will fail to become law, Rep. Dan Winslow on Wednesday
took a parchment from British royalty to mock the “birth” of a law
that will wed Massachusetts residents to guaranteed gas tax
hikes....
Winslow said he would be voting to uphold Gov.
Deval Patrick’s veto of the legislation, though the two have
extremely different reasons, as Patrick has insisted on greater
assurances for the revenue increases contained in the bill. The
expected votes by the House and Senate to override Patrick’s veto
would put in place a $1 increase in the per-pack cigarette tax, the
new application of the sales tax to certain software services, and a
3-cent gas tax hike, while also chaining future gas tax increases to
inflation....
Gas prices have been climbing steadily in recent
weeks, but [House Speaker Robert] DeLeo said he’s hopeful taxpayers
will put a 3-cent gas tax hike in context. “Hopefully they’ll say
Speaker DeLeo and Senate President Murray didn’t make it as bad as
it could have been,” he said....
In 2009 the Legislature rejected Patrick’s
proposed 19-cent gas tax, opting instead to bump the sales tax up to
6.25 percent, as a means of raising revenues hampered by the
recession.
State House News Service
Wednesday, July 24, 2013
Ahead of final votes, GOP heralds birth of a tax increase
The House voted 123-33 Wednesday to override Gov.
Deval Patrick's veto of legislation raising taxes by an estimated
$500 million to make investments in transportation and other areas
of the state budget. A Senate vote to override on Wednesday would
put the tax hikes into law....
Rep. George Peterson (R-Grafton) said it's
unclear how much will be raised by the bill's proposed application
of the sales tax to software services, calling into question the
estimate of $500 million in anticipated revenues.
House Minority Leader Brad Jones (R-North
Reading) urged his colleagues to sustain Patrick's veto, noting
declining consumer confidence and rising gas prices. “Your vote
today on taxes is the one that matters most, not the one you took in
April. So if you voted against it in April, don’t think that covers
you,” Jones said, alluding to coming elections next year.
Jones said Democratic leaders had succeeded in
framing the debate as being more about "telling the governor to
shove off" than voting to raise taxes by $500 million. He also said
the tax hike was not necessary in part because state tax collections
last fiscal year surpassed estimates by more than $600 million.
"We could have survived within our means," said
Rep. Viriato deMacedo (R-Plymouth). "We didn't have to go after the
taxpayer again." Citing a rising unemployment rate, deMacedo
expressed concern that mobile innovation economy jobs will move out
of state due to the software tax.
Rep. Dan Winslow said indexing the gas tax to
inflation, as the bill calls for, amounts to taxation without
representation. "Today is our last chance to kill this gas tax, to
send it back to the drawing board," Winslow said.
Rep. Marc Lombardo said tech industry officials
are alarmed by the application of the sales tax to software
services. "Folks, we have a chance today to stop the death of the
tech industry in Massachusetts," Lombardo said.
State House News Service
Wednesday, July 24, 2013
House votes to put tax-raising bill into law over Patrick's veto
In the face of claims that higher taxes will hurt
a slowly recovering economy, the House and Senate voted Wednesday to
override Gov. Deval Patrick's veto of legislation raising taxes by
$500 million to invest in transportation and other areas of the
state budget.
The House voted 123-33 and the Senate 35-5 to
override the governor’s veto with two-thirds majorities in both
branches. The tax increases are scheduled to take effect in seven
days....
After the Senate moved immediately to a vote
without debate, Sen. Robert Hedlund, a Weymouth Republican, said the
issue deserved more than the 10 minutes of debate allotted Wednesday
to a motion to reconsider the vote.
Hedlund said the new taxes could “cripple” the
tech and software industry, hurt industries that are most heavily
reliant on gas, and suggested the “revenues are there” in the
transportation system but that the system needs management
improvements.
“This is something that is going to set us back
and make us much, much less competitive,” Hedlund said....
In the House, Democrats James Miceli, Dennis Rosa
and Thomas Stanley joined with all 30 Republicans in voting to
sustain Patick’s veto. Senate Minority Bruce Tarr, Sen. Richard
Ross, Sen. Robert Hedlund, Sen. Mark Montigny and Sen. Marc Pacheco
voted to sustain in the Senate.
State House News Service
Wednesday, July 24, 2013
Legislature enacts tax-raising bill over Patrick's veto
After overriding Gov. Deval Patrick’s veto of a
$500 million tax bill, the House and Senate restored $177 million in
local aid funding, along with $240 million in transportation
funding. The votes by the Upper Chamber completed the Legislature’s
plan to put its tax legislation into law and use the tax revenues to
fund budget priorities over Patrick’s objections.
State House News Service
Wednesday, July 24, 2013
Lawmakers restore local aid, transpo $$$ after raising taxes
The measures, which takes effect in a week,
include raising the gas tax by 3 cents this year, adding $1 to all
cigarette packs and imposing the state sale tax on computer software
services. It also ties the gas tax to inflation in coming years, a
provision that drew heavy criticism even in the 11th hour from House
Republicans.
The Boston Herald
Wednesday, July 24, 2013
Gas, cigarette taxes on way as transportation bill passes
Seven days from now, the gas tax will increase by
three 3 cents, from 21 cents per gallon to 24 cents. The bill also
adds a $1 per pack charge on cigarettes and institutes a broad tax
on computer software services. It was passed by both House and
Senate last month, but became mired in controversy after Patrick
voiced disapproval, arguing that it failed to address the uncertain
future of tolls on the Massachusetts Turnpike.
Democratic legislators dismissed those concerns,
saying that current law makes it unlikely that tolls would end
anytime soon. With a 123-33 vote in the House and a 35-5 vote in the
Senate, they acknowledged that the bill was not perfect, but
maintained that it was a significant step toward putting the state’s
fiscally precarious transportation system on stable financial
footing....
House minority leader Bradley H. Jones said he
was particularly dismayed by the tax on computer software services,
which he predicted will drive away the state’s burgeoning tech
sector.
And though Senator Stephen M. Brewer insisted
last week that legislators will be in regular communication with the
Department of Revenue to ensure that the computer tax’s broad
mandate does not overburden growing businesses, Jones said
legislators should not give the state agency all the decision-making
power.
“That’s pretty loosey-goosey . . . it’s
unpredictable,” Jones said. “It’s a poor policy to say we’re going
to rely on the Department of Revenue.”
The Boston Globe
Wednesday, July 24, 2013
$800m transportation bill passed
The debate has been at the center of a
summer-long standoff between Speaker of the House Robert A. DeLeo,
Senate President Therese Murray, and Patrick, who refused to sign it
because it didn’t include his proposal to up the gas tax more if
Massachusetts Turnpike tolls west of Route 128 are eliminated in
2017.
Despite multiple last-ditch lobbying efforts,
Patrick failed to break support from either of the legislative
leaders’ hold. Both override votes — 123-33 in the House and 35-5 in
the Senate — even eclipsed the overwhelming tallies that sent the
bill back to Patrick’s desk in the first place, cementing a major
defeat for the governor in his now lame-duck era.
The Boston Herald
Thursday, July 25, 2013
Taxes to kick in soon as gov’s veto overruled
The Patrick administration may have to re-order
its transportation priorities and major expansion projects may
stall, given the Legislature’s scaled-back revenue plan and the
possible dismantling of Turnpike tolls west of Route 128 in 2017,
administration officials said this week.
Wait — are taxpayers and motorists supposed to
see any of that as bad news?
Forget for a moment that the odds of the tolls
coming down in 2017 are about the same as the odds of lawmakers
someday paying for their own gas and tolls.
Indeed, in a rare moment of legislative candor
Rep. Antonio Cabral (D-New Bedford) on Tuesday acknowledged reality.
“I believe the $805 million [in new revenue] will
be there in 2017 because I don’t see how those tolls are going to
come down,” he said at a legislative hearing.
Neither does anyone else.
A Boston Herald editorial
Thursday, July 25, 2013
Trim the wish list
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Chip Ford's CLT
Commentary
The deal is done, the newest tax hikes have
become law. Yesterday's vote in both the House and Senate was on
whether to override Gov. Patrick's veto of the Legislature's
transportation funding tax hike bill. The governor vetoed it
because he insisted tax hikes of only $500 Million
weren't big enough. You'll recall
his transportation bill would have increased the income tax from
5.25% to 6.25% among many other tax and fee increases for a total of
$1.9 Billion.
The vote in the House and Senate yesterday was to
hike our taxes — over the governor's
objection because for him it wasn't enough —
by $500 Million more than what the state already extracts from us.
This is quirky legislative finesse, but if the override vote had
failed, there would be no tax hikes today.
Adding insult to injury, as House Minority Leader
Brad Jones (R-North Reading) reminded, "the tax hike was not
necessary in part because state tax collections last fiscal year
surpassed estimates by more than $600 million."
Yesterday Sen. Michael Knapik (R-Westfield) was
the only Republican in the House or Senate to vote in favor of the
tax bill override, which hiked taxes. The State House News Service
reported: "In the House, Democrats James Miceli, Dennis Rosa
and Thomas Stanley joined with all 30 Republicans in voting to
sustain Patick’s veto. Senate Minority Bruce Tarr, Sen. Richard
Ross, Sen. Robert Hedlund, Sen. Mark Montigny and Sen. Marc Pacheco
voted to sustain in the Senate."
Sustaining the governor's veto would have meant
no tax hikes today; neither the governor's nor the Legislature's.
Legislators "hope to collect $161 million by
applying the state's 6.25 percent sales tax to computer system
design services," but to this day nobody knows exactly what the new
sales tax will do or who it will effect —
so they can't possibly know how much it will raise.
"Senator Stephen M. Brewer insisted last week
that legislators will be in regular communication with the
Department of Revenue to ensure that the computer tax’s broad
mandate does not overburden growing businesses." House Minority
Leader Brad Jones told the State House News Service that
'legislators should not give the state agency all the
decision-making power.'
“'That’s pretty loosey-goosey . . . it’s unpredictable,' Jones said.
'It’s a poor policy to say we’re going to rely on the Department of
Revenue.'”
Today we have a $500 Million tax hike. It
will take effect next week. The gas tax increase starts next
week at an additional 3-cents per gallon: it will
automatically increase forever, without another vote needed.
Like the legislators' automatic Perpetual Pay Raises, we now have
our first automatic Eternal Tax Hike.
Barbara wrote on
her Facebook page:
Please don't be grateful because our
Legislature increased taxes by "only" $500 million instead
of the higher amount the governor wanted. Yes, we are
relieved that the income tax rate wasn't hiked to 6.25%, and
the gas tax even higher than 3 cents a gallon; this doesn't
change the fact that our tax burden per capita, presently
4th highest in the nation, will increase, and that the new
tax on computer software services is totally irresponsible
since no one knows what it does. Anyhow, be sure to fill the
tank before the gas tax goes up on August 1st.
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Chip Ford |
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State House News Service
Wednesday, July 24, 2013
Ahead of final votes, GOP heralds birth of a tax increase
By Andy Metzger and Matt Murphy
Heralding the impending $500 million tax bill that he hopes will
fail to become law, Rep. Dan Winslow on Wednesday took a parchment
from British royalty to mock the “birth” of a law that will wed
Massachusetts residents to guaranteed gas tax hikes.
“We think it’s a bastard child because no one’s going to claim
ownership,” Winslow told the News Service outside the House chamber
late Wednesday morning, surrounded by several of his Republican
colleagues and a framed announcement on a sheet proclaiming, “Know
all Persons, that on this the 24th day of July in the year of our
Lord 2013, the Democratic monopoly government in the Commonwealth of
Massachusetts has imposed a permanent increase in the gas tax that
will automatically rise based on the Consumer Price Index without
any further votes or political accountability. Such taxation without
representation would make even King George blush.”
The golden-framed message was a play on the old ritual of the
British royal family's birth announcements, used this week to tell
the world of the birth of a baby boy. A “town crier” Winslow planned
to employ was held up and unable to add a vocal component to the
display.
Winslow said he would be voting to uphold Gov. Deval Patrick’s veto
of the legislation, though the two have extremely different reasons,
as Patrick has insisted on greater assurances for the revenue
increases contained in the bill. The expected votes by the House and
Senate to override Patrick’s veto would put in place a $1 increase
in the per-pack cigarette tax, the new application of the sales tax
to certain software services, and a 3-cent gas tax hike, while also
chaining future gas tax increases to inflation.
Patrick, who in January proposed a $1.9 billion tax increase, aimed
to guarantee the bill would send at least $800 million to
transportation by 2018 with a provision that would raise the gas tax
further if western turnpike tolls are removed. The Legislature last
week rejected Patrick’s amendment.
House Speaker Robert DeLeo said as a result of the tax bill he hopes
drivers and transit users will see more repairs being done, a
short-term end to talk of fare increases at the MBTA, and budgetary
savings by ending the practice of paying highway employees with the
state’s credit card.
Asked specifically about the 3-cent increase in the gas tax, DeLeo
said, “We tried to keep it at a minimum at three cents which I think
is reasonable.” The speaker said he has spoken with Transportation
Secretary Richard Davey about keeping the public informed about how
their new tax dollars are being spent.
Gas prices have been climbing steadily in recent weeks, but DeLeo
said he’s hopeful taxpayers will put a 3-cent gas tax hike in
context. “Hopefully they’ll say Speaker DeLeo and Senate President
Murray didn’t make it as bad as it could have been,” he said.
“They should have their names attached to it, and anything less is
taxation without representation, and that’s why we chose to use the
royal birth announcement format today, to call attention to the fact
that the Democrats are voting for an automatic increase in taxes,”
Winslow said, drawing on some of the language used ahead of the
American colonies’ push for independence from the British Empire.
“Every time your gas goes up, you can thank the Democrats.”
Winslow has not yet decided on a name for the tax bill, though he is
hoping the public will weigh in with some suggestions, and said he
will have a future announcement on a name. He said, “Some people
said George, but I think we can do better than that.”
“I’m thinking Buzz Lightyear, because this is a tax increase ‘to
infinity and beyond,’ ” suggested Rep. Marc Lombardo, a Billerica
Republican, referencing a character in the animated movie series
“Toy Story.”
“How about Andros, after the governor that was asked to leave the
state because of bad management,” said Rep. Geoff Diehl, a Whitman
Republican, name-checking Sir Edmund Andros, the late 17th Century
royal governor of the dominion of New England whose policies
resulted in his being returned to England after a period where he
was imprisoned on Castle Island.
Winslow, a former judge who lost his bid for the Republican
nomination during the special election for U.S. Senate this year,
has used public policy props before, delivering several tubs of
Marshmallow Fluff to then-Secretary of Administration and Finance
Jay Gonzalez with suggestions for how to slim down state government.
Gonzalez rejected the sugary sandwich spread, quipping, “This is
fattening and we're in lean times."
Winslow recently hired a communications director for his state
political committee. Asked whether he is considering a run for a
different office next year, the Norfolk Republican said, “My focus
for now is on my state representative seat, and we’ll make decisions
at some point in the future about what, if anything - you know, I
didn’t exactly play too well in Peoria the last time I ran in a
Republican primary, so, we’ll see.”
In 2009 the Legislature rejected Patrick’s proposed 19-cent gas tax,
opting instead to bump the sales tax up to 6.25 percent, as a means
of raising revenues hampered by the recession. House Republicans
increased their numbers in the following election, though the party
failed to pick up any statewide offices that year or congressional
seats.
“We doubled the caucus in the House in 2010. That was directly
following the sales tax increase. So I think because of that, the
monopoly’s a bit gun shy and they’re trying to find a way to raise
taxes without having the accountability that comes with it,” Winslow
said.
The House at 1:30 p.m. began consideration of the veto override.
State House News Service
Wednesday, July 24, 2013
House votes to put tax-raising bill into law over Patrick's veto
By Michael P. Norton
The House voted 123-33 Wednesday to override Gov. Deval Patrick's
veto of legislation raising taxes by an estimated $500 million to
make investments in transportation and other areas of the state
budget. A Senate vote to override on Wednesday would put the tax
hikes into law.
"The governor has said it's a good bill," Transportation Committee
Co-chairman Rep. William Straus said during brief remarks prior to
the vote. Straus said the governor’s argument that it could be a
better bill is no reason to vote against it. “Frankly, that’s
probably true with every piece of legislation that comes through
this institution, historically,” he said.
The bill raises the gas tax by 3 cents a gallon, tacks one dollar
onto the per-pack cigarette tax and applies the sales tax to certain
software and computer system design services. Patrick vetoed the
bill because he was looking for a more robust tax package.
Straus described the legislation as "carefully crafted," with some
lawmakers favoring a higher gas tax hike and others no gas tax
increase. Straus also called for an override because revenues from
the tax hike are needed to fund this year's budget, which has
already been signed into law.
"It's time to move on," said Straus, noting the bill also delivers
financing for the MBTA, regional transit authorities and other
transportation systems.
Rep. George Peterson (R-Grafton) said it's unclear how much will be
raised by the bill's proposed application of the sales tax to
software services, calling into question the estimate of $500
million in anticipated revenues.
House Minority Leader Brad Jones (R-North Reading) urged his
colleagues to sustain Patrick's veto, noting declining consumer
confidence and rising gas prices. “Your vote today on taxes is the
one that matters most, not the one you took in April. So if you
voted against it in April, don’t think that covers you,” Jones said,
alluding to coming elections next year.
Jones said Democratic leaders had succeeded in framing the debate as
being more about "telling the governor to shove off" than voting to
raise taxes by $500 million. He also said the tax hike was not
necessary in part because state tax collections last fiscal year
surpassed estimates by more than $600 million.
"We could have survived within our means," said Rep. Viriato
deMacedo (R-Plymouth). "We didn't have to go after the taxpayer
again." Citing a rising unemployment rate, deMacedo expressed
concern that mobile innovation economy jobs will move out of state
due to the software tax.
Rep. Dan Winslow said indexing the gas tax to inflation, as the bill
calls for, amounts to taxation without representation. "Today is our
last chance to kill this gas tax, to send it back to the drawing
board," Winslow said.
Rep. Marc Lombardo said tech industry officials are alarmed by the
application of the sales tax to software services. "Folks, we have a
chance today to stop the death of the tech industry in
Massachusetts," Lombardo said.
State House News Service
Wednesday, July 24, 2013
Legislature enacts tax-raising bill over Patrick's veto
By Michael Norton and Matt Murphy
In the face of claims that higher taxes will hurt a slowly
recovering economy, the House and Senate voted Wednesday to override
Gov. Deval Patrick's veto of legislation raising taxes by $500
million to invest in transportation and other areas of the state
budget.
The House voted 123-33 and the Senate 35-5 to override the
governor’s veto with two-thirds majorities in both branches. The tax
increases are scheduled to take effect in seven days.
“We need to do something on transportation and we have to do it
right,” said Sen. Kenneth Donnelly (D-Arlington), who commended
Senate President Therese Murray and others for “having the courage
to say if we need to fix the roads we’re going to pay for it.”
The bill raises the gas tax by 3 cents a gallon, tacks one dollar
onto the per-pack cigarette tax and applies the sales tax to certain
software and computer system design services. Patrick vetoed the
bill because he was looking for a more robust tax package. The
bill’s passage plugs an immediate hole in the MBTA’s budget.
Sen. Patricia Jehlen (D-Somerville) said the massive Assembly Square
development in her community would not have happened without public
transportation investments. “The same will happen with the Green
Line extension,” Jehlen said. “And the Green Line extension will be
built, because we have an obligation to it and because it is the
first claimant on any new revenue that’s made.”
Jehlen continued: “As Republicans should understand, you don’t get
growth without investments and you can’t make investments without a
way to pay them back. So I hope this veto is not sustained. I don’t
think it’s enough money but I think it’s such an important first
step and the Senate President has said before to us, we will revisit
this. We will continue to see if it’s the right amount and whether
there are other revenue sources.”
After the Senate moved immediately to a vote without debate, Sen.
Robert Hedlund, a Weymouth Republican, said the issue deserved more
than the 10 minutes of debate allotted Wednesday to a motion to
reconsider the vote.
Hedlund said the new taxes could “cripple” the tech and software
industry, hurt industries that are most heavily reliant on gas, and
suggested the “revenues are there” in the transportation system but
that the system needs management improvements.
“This is something that is going to set us back and make us much,
much less competitive,” Hedlund said.
Prior to the House vote, Transportation Committee Co-chairman Rep.
William Straus noted that despite his veto, Patrick had described
the legislation as a “good bill.”
Straus said the governor’s argument that it could be a better bill
is no reason to vote against it. “Frankly, that’s probably true with
every piece of legislation that comes through this institution,
historically,” he said.
Straus described the legislation as "carefully crafted," with some
lawmakers favoring a higher gas tax hike and others no gas tax
increase. Straus also called for an override because revenues from
the tax hike are needed to fund this year's budget, which has
already been signed into law.
"It's time to move on," said Straus.
Rep. George Peterson (R-Grafton) said it's unclear how much will be
raised by the bill's proposed application of the sales tax to
software services, calling into question the estimate of $500
million in anticipated revenues.
House Minority Leader Brad Jones (R-North Reading) urged his
colleagues to sustain Patrick's veto, noting declining consumer
confidence and rising gas prices. “Your vote today on taxes is the
one that matters most, not the one you took in April. So if you
voted against it in April, don’t think that covers you,” Jones said,
alluding to coming elections next year.
Jones said Democratic leaders had succeeded in framing the debate as
being more about "telling the governor to shove off" than voting to
raise taxes. He also said the tax hike was not necessary in part
because state tax collections last fiscal year surpassed estimates
by more than $600 million.
"We could have survived within our means," said Rep. Viriato
deMacedo (R-Plymouth). "We didn't have to go after the taxpayer
again." Citing a rising unemployment rate, deMacedo expressed
concern that mobile innovation economy jobs will move out of state
due to the software tax.
Rep. Dan Winslow said indexing the gas tax to inflation, as the bill
calls for, amounts to taxation without representation. "Today is our
last chance to kill this gas tax, to send it back to the drawing
board," Winslow said.
Rep. Marc Lombardo said tech industry officials are alarmed by the
application of the sales tax to software services. "Folks, we have a
chance today to stop the death of the tech industry in
Massachusetts," Lombardo said.
In the House, Democrats James Miceli, Dennis Rosa and Thomas Stanley
joined with all 30 Republicans in voting to sustain Patick’s veto.
Senate Minority Bruce Tarr, Sen. Richard Ross, Sen. Robert Hedlund,
Sen. Mark Montigny and Sen. Marc Pacheco voted to sustain in the
Senate.
State House News Service
Wednesday, July 24, 2013
Lawmakers restore local aid, transpo $$$ after raising taxes
By Andy Metzger
After overriding Gov. Deval Patrick’s veto of a $500 million tax
bill, the House and Senate restored $177 million in local aid
funding, along with $240 million in transportation funding. The
votes by the Upper Chamber completed the Legislature’s plan to put
its tax legislation into law and use the tax revenues to fund budget
priorities over Patrick’s objections.
Patrick vetoed the tax bill because he said it did not guarantee
$800 million in transportation funding by 2018, and vetoed the
spending items because without the tax bill the budget was out of
balance.
The tax bill was overridden on votes of 123-33 in the House and 35-5
in the Senate, while the votes to restore the local aid and
transportation funds were unanimous in both branches.
Some senators broke rank with their party in voting for or against
the tax bill override. Sen. Mark Montigny, the assistant majority
whip from New Bedford, voted against the bill as did Sen. Marc
Pacheco, a Taunton Democrat who said the bill does not ensure
construction of the South Coast Rail.
Sen. Michael Knapik, a Westfield Republican, broke with his three
colleagues and voted in favor of the bill. Knapik was the only
Republican in the House or Senate to vote in favor of the tax bill
override.
The funding restored by the House and Senate Wednesday included
$115.2 million in new funding for the MBTA that will allow the
agency to avoid fare hikes or service cuts this year, as well as
funding to enable the regional transit authorities to receive
forward-funding and move more highway employees off the
borrowed-money-funded capital budget.
The Boston Herald
Wednesday, July 24, 2013
Gas, cigarette taxes on way as transportation bill passes
By Matt Stout
As promised, lawmakers in the House and Senate voted overwhelmingly
to override Gov. Deval Patrick's veto of a massive transportation
bill today, setting the clock at seven days until Bay Staters are
hit with higher taxes on gas and cigarettes.
Acting one after another, both chambers moved quickly to strike down
Patrick's veto of the $500 million tax bill, the House voting,
123-33, and the Senate, 35-5, to put the proposal into law without
Patrick's signature well past the two-thirds vote necessary.
The measures, which takes effect in a week, include raising the gas
tax by 3 cents this year, adding $1 to all cigarette packs and
imposing the state sale tax on computer software services. It also
ties the gas tax to inflation in coming years, a provision that drew
heavy criticism even in the 11th hour from House Republicans.
"We had to find alternative revenues," DeLeo said before the vote
when asked of the gas tax. "We tried to keep it at minimum 3 cents,
which I think is reasonable. I think it's a reasonable price to pay
for transportation."
The bill aims to close a gaping $115 million deficit in the MBTA
budget while financing new transportation projects. But it's been in
the middle of a summer-long tug-of-war between Patrick and his
fellow Democrats in the legislature, who stood in a long standoff
about adding even more taxes.
Patrick had refused to sign the measure, arguing it needed an
additional gas tax to make up for the possible loss of Mass Pike
tolls west of Route 128 in 2017. But Patrick never gained enough
support, and in the following days, recognized an "uphill" battle to
turn the tide.
Patrick said today: “While it is no secret that today’s
transportation finance package shortchanges our transportation
needs, it still represents a step forward. Now, it’s time to put
these resources to work. For that opportunity, and the good that
will come from it, I thank the team at MassDOT and throughout the
Administration, as well as many in legislature and private industry,
who so thoughtfully considered the challenge before us in
transportation and the ways to meet them.”
With DeLeo and Senate President Therese Murray both claiming they
had enough votes to override him, Patrick spent yesterday out of
state state in his hometown Chicago, making good on a Stanley Cup
bet to volunteer sorting food for local soup kitchens.
It stood in stark contrast to the days before lawmakers voted to
eventually slash his amendment, when he welcomed legislators into
his office in a last-ditch lobbying attempt.
As part of the Beacon Hill standoff, Patrick vetoed more than $400
million in local aide and transportation funding, arguing he
couldn't include them in the $34 billion state budget without the
signed tax bill.
Lawmakers in the House also planned to vote on those vetoes today's
session, DeLeo said.
The Boston Globe
Wednesday, July 24, 2013
$800m transportation bill passed
By Martine Powers
The Legislature voted Wednesday to override Governor Deval Patrick’s
veto of an $800 million transportation finance bill, concluding
months of political wrangling and ensuring that drivers see an
increase in the price they pay at the pump starting next week.
Already, groups are crying foul about the process of deciding which
transportation projects will take priority now that the new funds
have been approved.
Seven days from now, the gas tax will increase by three 3 cents,
from 21 cents per gallon to 24 cents. The bill also adds a $1 per
pack charge on cigarettes and institutes a broad tax on computer
software services. It was passed by both House and Senate last
month, but became mired in controversy after Patrick voiced
disapproval, arguing that it failed to address the uncertain future
of tolls on the Massachusetts Turnpike.
Democratic legislators dismissed those concerns, saying that current
law makes it unlikely that tolls would end anytime soon. With a
123-33 vote in the House and a 35-5 vote in the Senate, they
acknowledged that the bill was not perfect, but maintained that it
was a significant step toward putting the state’s fiscally
precarious transportation system on stable financial footing.
In a statement after the two votes, Patrick conveyed mixed feelings
about the legislation that was once anticipated to be one of his
crowning achievements and now becomes law without his signature.
“While it is no secret that today’s transportation finance package
shortchanges our transportation needs, it still represents a step
forward,” Patrick said Wednesday. “Now, it’s time to put these
resources to work.”
The money the bill provides, which is estimated to ramp up to $800
million per year by 2018, will prevent the need for immediate MBTA
fare hikes. In addition to the transportation upgrades, the new tax
will help pay for regional bus services, fund Department of
Transportation personnel costs, and finance some modest
transportation projects.
House minority leader Bradley H. Jones said he was particularly
dismayed by the tax on computer software services, which he
predicted will drive away the state’s burgeoning tech sector.
And though Senator Stephen M. Brewer insisted last week that
legislators will be in regular communication with the Department of
Revenue to ensure that the computer tax’s broad mandate does not
overburden growing businesses, Jones said legislators should not
give the state agency all the decision-making power.
“That’s pretty loosey-goosey . . . it’s unpredictable,” Jones said.
“It’s a poor policy to say we’re going to rely on the Department of
Revenue.”
House Speaker Robert A. DeLeo said he was satisfied that legislators
struck a balance between limiting tax increases and increasing
funding to transportation. He vowed to keep a watchful eye on the
state’s Department of Transportation to ensure that the extra cash
is used efficiently. “I want to see what’s going on with the
people’s money,” DeLeo said.
Already, the process of prioritizing transportation projects is
mired in controversy as community activists around the state realize
that some, but not all, of Patrick’s wish list of big-budget
improvements will come to fruition.
“There’s this big overarching question: What are we, as a state,
going to spend our limited resources to build?” said Seth Kaplan,
vice president for policy and climate advocacy at the Conservation
Law Foundation, an environmental advocacy group. “And when you
decide to do one thing, you’re implicitly deciding to not do another
thing. Unfortunately, it’s a zero-sum game.”
The Boston Region Metropolitan Planning Organization, a committee
that approves large capital projects, is expected to vote Thursday
to approve an overhaul of the Interstate 95 interchange in Canton,
where congestion has plagued commuters for years.
But some are crying foul, saying that the state is pushing that
project to the front of the line without putting it through the
vetting process that is now required as part of the new law. The law
establishes a MassDOT committee responsible for managing a long-term
master plan of which investments should be pursued immediately and
which will be put on the back-burner. Those include projects like
the South Station expansion, the creation of a South Coast railroad,
and the purchase of new Red and Orange line trains.
Activists are concerned that the interchange project will soak up a
significant amount of money from the new law without a proper
assessment.
“It feels a lot like they’re undermining this new system at the
moment that it’s being launched,” Kaplan said.
Transportation Secretary Richard A. Davey said MassDOT cannot put
all projects on hold while terms of the new law are set into motion.
He suggested that advocates’ concerns about the lack of a vetting
process for the interchange had more to do with their distaste for
highway projects. After all, he said, he has heard no one complain
that the Green Line extension recently broke ground.
But advocates maintained that their concerns were about ensuring
that MassDOT uses its new influx of cash wisely.
“One project shouldn’t cut in line before the queue is even formed,”
said Kristina Egan, executive director of Transportation for
Massachusetts, a statewide advocacy organization. “My hope is that
MassDOT takes seriously legislative guidance to develop a thoughtful
plan, and doesn’t jump the gun by spending all this money the day
after the bill becomes law.”
The Boston Herald
Thursday, July 25, 2013
Taxes to kick in soon as gov’s veto overruled
By Matt Stout
A slate of new taxes is poised to hit Bay Staters at the pumps and
elsewhere next week after lawmakers brought a merciful end to the
months-long debate over transportation financing yesterday, voting
to override Gov. Deval Patrick’s veto and kick-start a $500 million
tax bill.
The bill, slated to go into effect within seven days without
Patrick’s signature, will hike the gas tax by 3 cents a gallon, tack
$1 onto each pack of cigarettes and slap computer software services
with the sales tax in an effort that will mean commuters will avoid
MBTA fare hikes — at least for this year. It also ties the gas tax
to inflation in coming years, a provision that drew heavy criticism
even in the eleventh hour from House Republicans.
The debate has been at the center of a summer-long standoff between
Speaker of the House Robert A. DeLeo, Senate President Therese
Murray, and Patrick, who refused to sign it because it didn’t
include his proposal to up the gas tax more if Massachusetts
Turnpike tolls west of Route 128 are eliminated in 2017.
Despite multiple last-ditch lobbying efforts, Patrick failed to
break support from either of the legislative leaders’ hold. Both
override votes — 123-33 in the House and 35-5 in the Senate — even
eclipsed the overwhelming tallies that sent the bill back to
Patrick’s desk in the first place, cementing a major defeat for the
governor in his now lame-duck era.
Patrick, in a brief statement, said the bill “shortchanges our
transportation needs,” but he struck a more conciliatory tone than
when he outright rejected it.
“It still represents a step forward,” he said. “Now, it’s time to
put these resources to work.”
The Boston Herald
Thursday, July 25, 2013
A Boston Herald editorial
Trim the wish list
The Patrick administration may have to re-order its transportation
priorities and major expansion projects may stall, given the
Legislature’s scaled-back revenue plan and the possible dismantling
of Turnpike tolls west of Route 128 in 2017, administration
officials said this week.
Wait — are taxpayers and motorists supposed to see any of that as
bad news?
Forget for a moment that the odds of the tolls coming down in 2017
are about the same as the odds of lawmakers someday paying for their
own gas and tolls.
Indeed, in a rare moment of legislative candor Rep. Antonio Cabral
(D-New Bedford) on Tuesday acknowledged reality.
“I believe the $805 million [in new revenue] will be there in 2017
because I don’t see how those tolls are going to come down,” he said
at a legislative hearing.
Neither does anyone else.
But Gov. Deval Patrick and his team are carrying on with the charade
that the tolls are coming down, because state law says they could,
therefore cutting into the anticipated revenue from new tax hikes.
And that may mean cutbacks in the expansion agenda, now that
lawmakers have officially voted to override Patrick’s veto of the
transportation tax plan.
Administration officials will have to examine their list of
priorities and decide which can move forward and which must be
“tabled,” according to the transportation system’s CFO, who appeared
before Cabral’s committee Tuesday.
Those “priorities” include new rail service to the South Coast at $2
billion and counting, a $1.3 billion expansion of the Green Line to
Medford (a distance of 4.3 miles), a plan to dramatically expand
South Station, new rail service from Boston to Springfield and new
service from the Berkshires to New York City.
The $800 million in new revenue — and given the maddening vagueness
of a new “computer services” tax, it may well be more — will enable
the state to solve the MBTA’s immediate budget crisis, shift highway
workers off the capital budget (borrowed funds), replace aging
subway cars and make some progress on expansion projects.
And if the rest of it is “tabled” for the foreseeable future?
Well, few taxpayers will be crying salty tears.
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