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CLT UPDATE
Thursday, January 5, 2017

Enter 2017


For the first time in eight years, legislators on Beacon Hill will see an increase in their base salaries after Gov. Charlie Baker on Thursday certified a pay raise of $2,515 for the 200 members of the House and Senate, bringing their base pay up to $62,547.

Governors are required by the constitution every two years to consider pay increases for lawmakers based on changes in median household income. Baker's team determined that median household income in Massachusetts climbed by 4.19 percent between 2013 and 2015....

Many legislators earn more than the base salary, with extra income authorized based on leadership duties, including committee chairmanships. Additional stipend pay can range from $7,500 for a committee chairman to $25,000 for the Ways and Means chairs and $35,000 for the speaker and Senate president.

The Legislature most weeks holds one formal session and for about seven months of the two-year session only informal sessions are held, which most lawmakers do not attend. Lawmakers also stay busy with committee work, their own legislative priorities, constituent services, and meetings in their districts.

Many lawmakers also hold outside jobs in the private sector to supplement their incomes.

State House News Service
Thursday, December 29, 2016
Baker signs off on 4.2 percent bump in legislative base pay


But under the law, Baker and other constitutional officers’ pay are also tied to the adjustment, which would have meant a roughly $6,300 bump to the Republican’s $151,000-a-year salary. His office, however, said he won’t take one himself weeks after making $98 million in cuts and overseeing the voluntary buyouts of 900 state workers.

“The governor and the lieutenant governor (Karyn Polito) will not be accepting a pay increase,” spokeswoman Lizzy Guyton said.

It’s unclear if other constitutional officers will do the same. Aides to Attorney General Maura Healey, state Auditor Suzanne Bump, Secretary of State William Galvin and state Treasurer Deb Goldberg either said their bosses weren’t available or did not immediately respond to questions last night.

The Boston Herald
Friday, December 30, 2016
Charlie Baker gives lawmakers $2,500 pay boost


But unlike the increases proposed by the advisory commission in 2014, those announced Thursday are enshrined in the state Constitution and the law.

Citizens for Limited Taxation, a tax watchdog group based in Marblehead, opposed that amendment when it was put before voters in 1998, said Chip Faulkner, the group’s communications director.

The constitutional amendment, he said, allows legislators to see their pay boosted without forcing them to cast politically challenging votes in favor of their own compensation.

“It’s a terrible system,” Faulkner said. “If you want a pay raise, at least have the decency and the honesty to take a roll call vote.”

The Boston Globe
Friday, December 30, 2016
Mass. lawmakers getting 4 percent raise


This week we get a new state Legislature. Unfortunately, the national GOP trend missed Massachusetts, so it’s going to look a lot like the old one.

Republicans added one House member in November, which only makes up for the loss of the Peabody special election in 2016.

As President Donald Trump works to provide tax relief at the federal level to grow the economy, it’s going to be a bumpy year for us in the Bay State.

For the past several months, state revenue has not reached the expected levels. Of course, this gives Bacon Hill Democrats every reason to pass tax increases.

Reducing spending goes against their grain and the special interest groups they are obligated to....

Not only will the new Legislature easily pass the language for the 2018 ballot question to create a graduated income tax — which voters have rejected — they will also pass new tax increases. It’s not a matter of if. It’s a matter of which one....

Gov. Charlie Baker cannot stop them with a veto because they have enough votes to override. That’s why we need more Republicans!

Our only other alternative is a ballot question. And though Democrats think it’s clever to raise taxes during a non-election year to avoid the wrath of voters, it still gives us time to collect signatures for a repeal effort.

The Boston Herald
Monday, January 2, 2017
Taxes on state menu as the House (and Senate) special
By Holly Robichaud


Senate President Stanley Rosenberg on Wednesday embarked on his second term as the top Democrat in the upper chamber, outlining an ambitious, if challenging, agenda for the coming two years that could bump up against the priorities of a more moderate and business-friendly House and a governor focused on controlling growth in government....

In remarks to members as the new legislative session got underway, the 67-year-old laid out a series of goals, many of which would require significant new spending at a time when officials on Beacon Hill have been trying to match soft revenue growth with persistent spending demands. Gov. Charlie Baker recently slashed $98 million from the budget that Democrats have threatened to restore, and Rosenberg said "cutting is not our best strategy."...

"I believe we need to invest our way to success," Rosenberg said.

Foreshadowing a vote required in the next two years to put a question on the ballot to raise taxes on household incomes over $1 million per year, Rosenberg urged voters to pass what he called a "fair share tax" in 2018 to generate revenue for education and transportation.

Until then, Rosenberg said the Senate will look for new revenues "where we can find them," including taxing new services like AirBnb and closing unspecified "loopholes." He did not mention any broad-based tax increases, which Gov. Baker opposes and which must originate in the House.

State House News Service
Wednesday, January 4, 2017
Rosenberg is first of "Big Three" to tip policy preferences


House Democrats on Wednesday morning unsurprisingly selected Speaker Robert DeLeo to again lead the House, but the party's nominating caucus also offered clues as to which members may be in line for a promotion into DeLeo's inner circle.

State House News Service
Wednesday, January 4, 2017
Reps fete DeLeo at caucus before his reelection as speaker


Elected by his fellow Democrats to a fifth term as speaker on Wednesday, Rep. Robert DeLeo said he would focus on leveraging the state's strengths in the upcoming session and predicted lawmakers would face "some very challenging issues."

If the 66-year-old Winthrop Democrat finishes the 2017-2018 term in his post, he will become the longest-serving speaker under the state constitution, surpassing former Speaker Thomas McGee's record nine-and-a-half-year run from 1975 until 1985....

DeLeo, now in his 14th term as a representative, was elected speaker with 120 votes, and House members cheered as he cast his vote in his own name. Minority Leader Brad Jones of North Reading received 35 votes from Republicans, for a total of 155 votes cast out of the 160 members of the House.

State House News Service
Wednesday, January 4, 2017
In new term, DeLeo will focus on leveraging state's strengths


After administering the oath of office to the new Legislature split 159-41 against members of the party he leads Gov. Charlie Baker struck an optimistic tone Wednesday about boosting the Republican ranks in the Legislature.

Since taking office in 2015, Baker has worked to elect more Republicans to the House and Senate, focusing on state elections and largely staying out of a national fray that has carried a decidedly more combative tone. After November's elections, the GOP started the 2017-2018 legislative session Wednesday with one more member than it had two years ago when Baker first took office....

Democrats control the House with a 125 to 35 advantage and the Senate with 34 members to the GOP's six. Democrats voting in unison are able to easily override gubernatorial vetoes, as they exhibited with budget vetoes in July....

As is often the case, taxes are percolating as a divisive issue. In the face of opposition from Republicans, Democrats last session advanced an amendment to the constitution imposing a 4 percent surtax in household incomes above $1 million, a measure that will likely appear on the 2018 ballot. Democratic legislative leaders in recent weeks have also refused to rule out tax increases in the coming session. During remarks following his reelection as House Minority Leader Wednesday, Rep. Brad Jones urged Speaker Robert DeLeo to refrain from any broad-based statewide tax increase.

State House News Service
Wednesday, January 4, 2017
Baker sticking with recipe, but Dems have the numbers


Bay State residents earned about 75 cents on every dollar the state gave out in tax credits to film and Hollywood productions, according to new state data, reigniting criticism of the controversial tax incentive.

The latest figures, covering 2014 and released yesterday by the Department of Revenue, show the state’s film tax credit generated $49 million in personal income for Bay Staters that year, but only after paying out $64.5 million in credits to companies making films, TV shows and documentaries in the state.

“The $49 million is key. If I come to you and say, ‘Give me a dollar and I’ll give you 75 cents back,’ do you take the deal?” said Bob Tannenwald, a former economist at the Boston Fed who’s now at the Heller School at Brandeis University.

“Bottom line, all effects taken into account, the film tax credit is a bum deal for the people of Massachusetts. It robs from Peter to pay Paul.” ...

But while lawmakers have long protected it from reform, saying it helps support local businesses, critics have said it’s a poor use of state money, noting that for every job it’s created, the state has spent about $106,000....

Gov. Charlie Baker has sought to scrap or scale back the credit in each of his first two years in office, only to face opposition from Democratic leadership in the Legislature.

The Boston Herald
Wednesday, January 4, 2017
Film tax credit’s bottom line: ‘A bum deal’


Chip Ford's CLT Commentary

Welcome to the new year; 2017 has arrived with all its promise and challenges.
 
Nationally there's a world of change ahead.  It's already begun and is about to accelerate.  There will be the same old obstructionism served up by the status quo establishment with self-interests at stake.  Those intentions already have been vowed by the intransigent, entrenched, yet rejected minority party in Washington.  Across the nation Democrats have been turned out, crushed.  Here in Massachusetts little if anything has changed.
 
The new year brought a nice pay raise for "The Best Legislature Money Can Buy," a boost of $2,515 per year bringing legislator's annual base salary to $62,500.
 
You may recall that the Legislature put a constitutional amendment on the 1998 ballot with the claim that passage would prevent legislators from ever voting on another pay raise for themselves.  CLT opposed the ballot question, noting that its passage would create the only constitutionally mandated pay raise for legislators in the world.  Nonetheless, a majority of our fellow citizens voted to prevent legislators from ever voting on another pay raise for themselves.
 
The following excerpt is from an Associated Press report on January 3, 2001:
Lawmakers received an 8 percent pay raise on Wednesday, the first day of the 2001-2002 session.

The raise was approved by the Legislature and by voters in 1998, in a change to the state constitution that ties lawmakers' salaries to state residents' income.

The base pay for a state lawmaker is now $50,123, up from $46,410, although they earn more for appointed leadership positions.

Lawmakers defended the pay raise and the innovative method of calculating it, but critics said linking the pay adjustments to the economy unfairly takes the power of determining lawmakers' salaries away from voters.

"We can never ever cut their pay no matter how badly they act," said Barbara Anderson, executive director of Citizens for Limited Taxation. "It cuts off one more option to control our representatives."

Repealing the provision would require legislative approval, since any constitutional change must be approved by two successive legislative sessions and by voter referendum.

The lawmakers' salary provision calls for salaries to change automatically every two years. That means residents no longer have the option of venting their anger by voting out lawmakers who approve pay raises, Anderson said. . . .

In fact, lawmakers were criticized in July for increasing their compensation in another manner. In the annual budget process, lawmakers raised their office expense accounts from $3,600 to $7,200, and doubled their per diem accounts, which vary by lawmaker.

Anderson said the pay adjustment was just another example of lawmakers giving themselves special privileges that their employers the voters are denied.

"Most of us find it humiliating to go to our employers to ask for a pay raise," she said. "It's just one of those things you have to do when you're an employee."
Ah, such fun of being "The taxpayers' institutional memory" we never forget and are only too happy to remind everyone!
 
As noted by Mark Twain, "No man's life, liberty, or property are safe while the legislature is in session," and ours is back after a five-month taxpayer-paid hiatus.  As we've warned in recent weeks, tax hike appetites have been whetted among many on Bacon Hill.  Past reluctance if not resistance by House Speaker-for-Life Robert DeLeo seems to have waned.  The pols need more money our money.  No specific targets have yet been designated, beyond imposing a long-desired graduated income tax just a growing appetite.  That's always dangerous for taxpayers.
 
We'll be watching, as always.
 

Chip Ford
Executive Director


 
State House News Service
Thursday, December 29, 2016

Baker signs off on 4.2 percent bump in legislative base pay
By Matt Murphy


For the first time in eight years, legislators on Beacon Hill will see an increase in their base salaries after Gov. Charlie Baker on Thursday certified a pay raise of $2,515 for the 200 members of the House and Senate, bringing their base pay up to $62,547.

Governors are required by the constitution every two years to consider pay increases for lawmakers based on changes in median household income. Baker's team determined that median household income in Massachusetts climbed by 4.19 percent between 2013 and 2015.

The governor, in a letter to Treasurer Deborah Goldberg, indicated that he used the American Community Survey, which is produced by the U.S. Census Bureau, to review changes in income across the state. Data from 2015 was the most recent available through the ACS, officials said.

Median household income in Massachusetts grew from $67,789 in 2013 to $70,628 in 2015, an increase of 4.19 percent.

Returning lawmakers getting sworn into office for a new term next week will see their base salaries climb from $60,032. The last time the biennial review led to a base pay increase for lawmakers was 2009.

Noting that lawmaker salaries had not gone up in eight years, Sen. Harriette Chandler said earlier this week it was "not a secret that people are hoping" Baker would authorize raises.

"Even a small increase would be very nice," the Worcester Democrat said Tuesday.

Earlier this month, Senate President Stanley Rosenberg said it "would only be fair" for lawmakers to get a raise as family median income has risen over the past two years. Referring to some backlash directed at House Speaker Robert DeLeo for handing out staff pay raises before Thanksgiving, Rosenberg said of the expected pay raises for lawmakers he believed there would "be an outcry about that, too."

Many legislators earn more than the base salary, with extra income authorized based on leadership duties, including committee chairmanships. Additional stipend pay can range from $7,500 for a committee chairman to $25,000 for the Ways and Means chairs and $35,000 for the speaker and Senate president.

The Legislature most weeks holds one formal session and for about seven months of the two-year session only informal sessions are held, which most lawmakers do not attend. Lawmakers also stay busy with committee work, their own legislative priorities, constituent services, and meetings in their districts.

Many lawmakers also hold outside jobs in the private sector to supplement their incomes.

Baker had until next week to finalize any adjustments in pay, but his team announced the decision Thursday afternoon.

The raises come as Baker and the Legislature grapple with continuing state budget problems. Baker this month slashed $98 million from the budget, drawing an outcry from lawmakers who claim the state can afford the spending.

Rep. Paul Donato, in a brief interview upon exiting the House Chamber after presiding over an hours-long informal session Thursday, said he's "very satisfied" with the governor's decisions to bump legislators pay. Asked if it was a fair increase, Donato said, "Don't look a gift horse in the mouth. The governor gave us a raise. We'll take what the governor gave us."

Michael Norton, Katie Lannan and Antonio Caban contributed reporting
 

The Boston Herald
Friday, December 30, 2016

Charlie Baker gives lawmakers $2,500 pay boost
By Matt Stout


Fresh from making budget cuts and offering buyouts, Gov. Charlie Baker is giving lawmakers their first raise in eight years in the form of a 4.2-percent bump — but he said he’ll forgo his own pay hike.

Baker, who is constitutionally required to adjust lawmakers’ pay every two years based on household median income, announced the pay raises yesterday, which will nudge their salaries up roughly $2,500 to $62,500.

It comes after their pay was cut in 2011 and 2013, and then-Gov. Deval Patrick chose not to change it two years ago.

Baker had to make the adjustment by next Wednesday.

But under the law, Baker and other constitutional officers’ pay are also tied to the adjustment, which would have meant a roughly $6,300 bump to the Republican’s $151,000-a-year salary. His office, however, said he won’t take one himself weeks after making $98 million in cuts and overseeing the voluntary buyouts of 900 state workers.

“The governor and the lieutenant governor (Karyn Polito) will not be accepting a pay increase,” spokeswoman Lizzy Guyton said.

It’s unclear if other constitutional officers will do the same. Aides to Attorney General Maura Healey, state Auditor Suzanne Bump, Secretary of State William Galvin and state Treasurer Deb Goldberg either said their bosses weren’t available or did not immediately respond to questions last night.

Senate President Stanley C. Rosenberg and Speaker of the House Robert A. DeLeo, who also make $35,000 stipends on top of their base salaries, said they will take the pay raise. DeLeo spokesman Seth Gitell said: “The speaker will accept the pay increase just as he participated in the pay cut in 2011.”


The Boston Globe
Friday, December 30, 2016

Mass. lawmakers getting 4 percent raise
By Nestor Ramos and Joshua Miller


After eight years without a raise, some Massachusetts elected officials will find a little something extra in their paychecks come January, thanks to a 1998 constitutional amendment and Governor Charlie Baker.

In a Thursday letter to Treasurer Deborah B. Goldberg, Baker ordered a 4.19 percent raise in base pay for legislators, from $60,032 to $62,547 — the first increase since 2009 under an amendment that ties legislators’ salaries to changes in the state’s median household income.

But though the raise also applies to the state’s constitutional officers, Baker and Lieutenant Governor Karyn Polito would not accept the additional pay, a spokeswoman said.

Lawmakers’ salaries are reviewed every two years, per the amendment, which leaves the decision on how to measure the change in household income to the governor.

In his letter to Treasurer Deborah B. Goldberg, Baker said he used median household income data from the US Census Bureau to determine the change.

State law ties the salaries of the governor, lieutenant governor, attorney general, secretary of state, and auditor to the constitutional provision for lawmakers. Spokespeople for the remaining constitutional officers either could not be reached or indicated that they were still considering whether to accept the extra money.

The raise also applies only to the base pay portion of each lawmaker’s salary, and not stipends for leadership posts that add tens of thousands of dollars to some high-ranking legislators’ pay or per diem pay for travel.

At $2,515 a year for each of Massachusetts’ 200 lawmakers, and between $5,000 and $6,000 for six statewide elected officials, the total cost to taxpayers would be just over $535,000 if every official accepted the pay hike — a tiny fraction of the state’s roughly $39 billion budget.

Legislative leaders on Thursday presented the raises — and Baker’s action — as constitutional requirements rather than magnanimity.

“He acted in a fair and timely fashion,” Senate President Stanley C. Rosenberg said in a statement e-mailed to the Globe that thanked Baker “for fulfilling his constitutional duty.”

Speaker Robert A. DeLeo described the constitutional amendment that led to the raises and said he was “grateful the governor performed his constitutional duty.”

Representative Paul Heroux, a Democrat from Attleboro, said the raise was welcome.

“I personally live paycheck to paycheck, and I’ve got bills and mortgages and student loans like any other person. So of course I welcome it,” Heroux said.

Like many legislators, he works a second job to earn extra income. He noted that the raise amounts to about $50 a week — “It’s little bit of extra grocery money,” he said — and still leaves lawmakers well below the median household income of over $70,000 to which their salaries are tied.

“It’s nothing I was asking for,” Heroux said. “I would continue to do the job I was doing with or without this. But it is nice because the cost of living is going up.”

Salaries for legislators and other top officials in Massachusetts have been controversial in recent years. In December 2014, just before Baker took office, an advisory commission recommended big bumps for the governor, attorney general, and top lawmakers. But facing a major budget shortfall, Baker announced that he would likely have vetoed such a measure, and the issue has not reemerged.

Before Governor Deval Patrick left office at the beginning of 2015, he left legislators’ base salaries unchanged, leaving many lawmakers quietly fuming. In a letter sent the day before Baker’s inauguration, Patrick wrote that he had hoped to be able to increase salaries, but the methodology he’d used in prior years to determine the change in median household income provided for no raise. In 2013 and 2011, Patrick cut senators’ and representatives’ base pay.

Lawmakers last got a raise eight years ago, when Patrick ordered a 5.6 percent increase. Some lawmakers at the time — including Karyn Polito, now Baker’s lieutenant governor — declined the raises, citing ongoing state budget problems where they said the money might be more useful.

The raises announced Thursday also come as the state grapples with another budget shortfall. Earlier this month, Baker said he planned to slash nearly $100 million from the budget, cutting from programs including health care for the poor, suicide preventions, and the State Police crime laboratory.

But unlike the increases proposed by the advisory commission in 2014, those announced Thursday are enshrined in the state Constitution and the law.

Citizens for Limited Taxation, a tax watchdog group based in Marblehead, opposed that amendment when it was put before voters in 1998, said Chip Faulkner, the group’s communications director.

The constitutional amendment, he said, allows legislators to see their pay boosted without forcing them to cast politically challenging votes in favor of their own compensation.

“It’s a terrible system,” Faulkner said. “If you want a pay raise, at least have the decency and the honesty to take a roll call vote.”


The Boston Herald
Monday, January 2, 2017

Taxes on state menu as the House (and Senate) special
By Holly Robichaud


Here we go again.

This week we get a new state Legislature. Unfortunately, the national GOP trend missed Massachusetts, so it’s going to look a lot like the old one.

Republicans added one House member in November, which only makes up for the loss of the Peabody special election in 2016.

As President Donald Trump works to provide tax relief at the federal level to grow the economy, it’s going to be a bumpy year for us in the Bay State.

For the past several months, state revenue has not reached the expected levels. Of course, this gives Bacon Hill Democrats every reason to pass tax increases.

Reducing spending goes against their grain and the special interest groups they are obligated to.

Why else do Democrat leaders like Pat Haddad (D-Somerset) have so much money in their war chest when they haven’t had an opponent in years?

Not only will the new Legislature easily pass the language for the 2018 ballot question to create a graduated income tax — which voters have rejected — they will also pass new tax increases. It’s not a matter of if. It’s a matter of which one.

There will be additional taxes on pot, but that’s the least of our worries. They’ll most likely consider new taxes on services, a mileage tax or closing so-called tax loopholes. Knowing them, they might do all of the above.

During the Patrick administration, the Department of Revenue estimated $27 billion in tax expenditures or loopholes. What’s a tax expenditure? It’s any items or services that are not taxed. Democrats consider that a state expenditure for not taking more of our money. That’s how entitled they feel to our wallets. Their biggest loophole is the exemption on food and clothing — which amounts to billions in uncollected tax revenue.

You probably believe they would never tax food because it’s essential. Never say never in Taxachusetts.

They will disguise it as a sugar tax to help us weak-minded people make wiser choices and our children stop eating lollipops.

In their world, it’s for the greater good. If they close the tax loophole on sugar, we will eventually get a salt tax.

Gov. Charlie Baker cannot stop them with a veto because they have enough votes to override. That’s why we need more Republicans!

Our only other alternative is a ballot question. And though Democrats think it’s clever to raise taxes during a non-election year to avoid the wrath of voters, it still gives us time to collect signatures for a repeal effort.


State House News Service
Wednesday, January 4, 2017

Rosenberg is first of "Big Three" to tip policy preferences
By Matt Murphy


Senate President Stanley Rosenberg on Wednesday embarked on his second term as the top Democrat in the upper chamber, outlining an ambitious, if challenging, agenda for the coming two years that could bump up against the priorities of a more moderate and business-friendly House and a governor focused on controlling growth in government.

Rosenberg, a liberal Amherst Democrat and the chamber's first openly gay leader, won re-election as Senate president and together with House Speaker Robert DeLeo will lead the Legislature into a two-year cycle that will culminate in the midst of gubernatorial election.

In remarks to members as the new legislative session got underway, the 67-year-old laid out a series of goals, many of which would require significant new spending at a time when officials on Beacon Hill have been trying to match soft revenue growth with persistent spending demands. Gov. Charlie Baker recently slashed $98 million from the budget that Democrats have threatened to restore, and Rosenberg said "cutting is not our best strategy."

"If we do need to trim expenses, we need to do so not by slicing programs but by fnding real reforms that yield real savings," he said.

Rosenberg called for a redoubling of efforts to lower public college tuition and fees by increasing state funding to reduce student debt, expanding access to early education and developing a vision for a transportation system that can meet the needs of a modern workforce.

"I believe we need to invest our way to success," Rosenberg said.

Foreshadowing a vote required in the next two years to put a question on the ballot to raise taxes on household incomes over $1 million per year, Rosenberg urged voters to pass what he called a "fair share tax" in 2018 to generate revenue for education and transportation.

Until then, Rosenberg said the Senate will look for new revenues "where we can find them," including taxing new services like AirBnb and closing unspecified "loopholes." He did not mention any broad-based tax increases, which Gov. Baker opposes and which must originate in the House.

The new session begins with many wondering whether the cozy relationship between Democratic legislative leaders and Republican Gov. Baker will continue. Before long, Baker will begin gearing up for a likely re-election campaign, and some Democrats would like to see their party's elected officials more forcefully challenge the executive.

Rosenberg preached the continuation of collegiality on Beacon Hill as a remedy to the partisanship in national politics.

"We cannot afford for the country to slip into even deeper gridlock or for us in Massachusetts to be tempted to do so ourselves. The eyes of the voters are upon us," Rosenberg said.

DeLeo, following his reelection to a fifth term as speaker, renewed his commitment to protecting all Massachusetts citizens. Without delving into much detail, he said the state would leverage its strengths in the new session and said House speakers from other states "invariably" look to him for information about "how we're able to do things in Massachusetts that people, or other states can't get done."

DeLeo touted the state's work on health care, preventing gun violence, marriage equality, education and veterans services. He called the Massachusetts House "the greatest political body in this country."

Though the House, Senate and governor largely worked well together over the past two years, there were also points of friction. The debate over charter schools and public investment in K-12 education that led to a stalement highlighted those differences.

Rosenberg said that Sen. Sal DiDomenico will "soon" release a plan born out of the Senate's "Kids First" initiative that will include a "bold blueprint" to make sure children from infancy through pre-school get the access to the educational opportunities they need to set them up for success in school later in life. DeLeo has also spoken about the importance of early education, a goal that has long presented fiscal challenges for families and state government.

Many of the other issues touched on by Rosenberg in his speech will not come as a surprise to watchers of Beacon Hill, who have seen the subjects that will likely dominate debate from now until the summer of 2018 bubbling up for years.

Rosenberg said the Senate will work with the Barr Foundation to develop a "multi-year 21st Century transportation vision," and said policymakers must continue to address climate change and its impact on Massachusetts communities.

"Progress in all other areas of public interest is rendered moot if we do not successfully tame the carbon beast that threatens humankind," he said, calling carbon pricing a "potentially effective" policy solution.

With final recommendations due out in January from the Council of State Government Justice Center on how Massachusetts could remake its criminal justice system, Rosenberg said the Legislature must address both recidivism and sentencing.

"We've been tough on crime. Now we need to get smart on crime," Rosenberg said. "We need to scale up successful diversion and restorative justice programs, end mandatory minimums for non-violent drug offenses, address the needs of those who otherwise languish in our jails suffering from mental illness and substance abuse."

He also foreshadowed a potential debate over the minimum wage after the last of three increases took effect on Jan. 1 raising the state's minimum wage to $11 an hour. While technology has created opportunities, Rosenberg said it has also pushed down wages and eliminated jobs that have been replaced by mobile apps.

"We need again to take up a family leave act to allow people to care for their families without losing the wages they need to put food on the table," Rosenberg said. "And we need to continue the movement forward to make the minimum wage a liveable wage."

Advocates have been pushing the Legislature to adopt a gradual increase in the minimum wage to $15 an hour and have threatened to go to the ballot if they are unsuccessful in moving lawmakers. Business groups, however, have warned that a rush to increase wages could stymie hiring and job creation and discourage new businesses from locating in Massachusetts.

The Legislature had to study the burgeoning new ride-booking industry dominated by players like Uber and Lyft so that it could be regulated, and Rosenberg said lawmakers will "need to move quickly and deftly" again to address self-driving cars, the newest "disruptive" technology in the transportation industry.

Rosenberg also said the Senate will continue with a program launched in 2015 called "Commonwealth Conversations" to bring senators to communities outside of Boston and their home districts to discuss issues directly with voters over the course of a nine-day tour starting at the end of the month.

Rosenberg did not touch on marijuana policy, which is expected to demand the attention of lawmakers over the first half 2017. Lawmakers plan to rewrite and amend the voter-approved law legalizing marijuana for general adult use.

Michael Norton contributed reporting


State House News Service
Wednesday, January 4, 2017

Reps fete DeLeo at caucus before his reelection as speaker
By Colin A. Young


House Democrats on Wednesday morning unsurprisingly selected Speaker Robert DeLeo to again lead the House, but the party's nominating caucus also offered clues as to which members may be in line for a promotion into DeLeo's inner circle.

A string of retirements, a resignation and electoral defeats in the last session have opened up two positions on DeLeo's leadership team, two committee chairmanships and seven committee vice chairmanships in the new biennial legislative term.

In addition to clout and greater access to the speaker, members chosen for leadership positions earn extra income on top of the $62,547 annual base pay for lawmakers. Additional stipend pay can range from $7,500 for a committee chair to $25,000 for the Ways and Means chairs and $35,000 for the speaker. Many lawmakers also hold outside jobs in the private sector to supplement their incomes.

Of the open positions, the highest atop the House leadership totem pole is second assistant majority leader, a position that ranks fourth in the House leadership structure. Former Rep. Garrett Bradley vacated the position when he resigned from the House in July.

In what may be a clue about his future, Rep. Joseph Wagner of Chicopee nominated DeLeo to his fifth term as speaker and spoke of DeLeo's leadership abilities and his evolution as speaker since taking the gavel in 2009.

Wagner, who entered the House alongside DeLeo in 1991, has chaired a committee since 2001 and last session led the Joint Committee on Economic Development and Emerging Technologies.

Rep. Claire Cronin of Easton made a speech seconding the nomination of DeLeo, in which she refuted another rep's suggestion that DeLeo is the coach Bill Belichick of the House by comparing him instead to quarterback Tom Brady.

"Which chairmanship are you getting this year?" Rep. Angelo Scaccia, the dean of the House who presided over the caucus, asked Cronin as House members chuckled at the comparison.

Legislative leaders almost always close their caucus meetings, but the House traditionally allows press to attend the speaker's nominating caucus.

Cronin, who also spoke of getting to know DeLeo as a man, father and grandfather, last session was the House vice chair to the important Judiciary Committee. DeLeo this session will need to appoint a new chairman to that committee, and Cronin's prominent role in the speaker's nomination could be an indication that the third-term Democrat is under consideration for the post.

The other seconding speech was delivered by Rep. Paul McMurtry, who owns a theater in Dedham and spoke of DeLeo's understanding of small businesses, and his work to motivate the House to do its best work.

McMurtry is one of a handful of representatives whom DeLeo has asked to preside over informal sessions of the House. On Tuesday, as bills ping-ponged between branches amid 13-hour marathon sessions, McMurtry took shifts with the gavel and appeared to be taking pointers from Second Assistant Majority Leader Paul Donato.

DeLeo will also have to select a member to replace retired Rep. Ellen Story as division chair, a job that carries the responsibility of providing advance notice to about a quarter of the House on issues leadership expects to debate and other matters of business before the House.

Though the exact makeup of House leadership and committee assignments will not be known for a few weeks, Wednesday's caucus also provided signs that much of the current DeLeo leadership team will remain in place when the work of legislating begins in earnest again.

While others spoke about him, DeLeo stood at the side of the room and chatted with many of his top lieutenants. Donato, Majority Leader Ronald Mariano and Ways and Means Chairman Brian Dempsey surrounded DeLeo. McMurtry, Boston Rep. Jeffrey Sanchez and West Springfield Rep. Michael Finn hovered around the speaker in a secondary orbit.

If Wednesday's nominating caucus could have harmed any member's chances of being elevated into leadership, the most afflicted would have been Quincy Rep. Tackey Chan, whose parliamentary blunder quickly became the butt of jokes.

After it was clear DeLeo was the only member who would be nominated as speaker, Scaccia opened the floor to a procedural motion to postpone the nomination by 10 minutes.

Chan, standing at the rear of the room, immediately called out, "motion to postpone." When the members standing around him elbowed him and whispered, "no, no, no," Chan quickly recanted, drawing loud laughter from the caucus and a shout of "Tackey!" from the man whose nomination Chan almost delayed.

"The smarter they get, the dumber they get," Scaccia said, an apparent reference to Chan's advanced academic degrees.


State House News Service
Wednesday, January 4, 2017

In new term, DeLeo will focus on leveraging state's strengths
By Katie Lannan


Elected by his fellow Democrats to a fifth term as speaker on Wednesday, Rep. Robert DeLeo said he would focus on leveraging the state's strengths in the upcoming session and predicted lawmakers would face "some very challenging issues."

If the 66-year-old Winthrop Democrat finishes the 2017-2018 term in his post, he will become the longest-serving speaker under the state constitution, surpassing former Speaker Thomas McGee's record nine-and-a-half-year run from 1975 until 1985.

"To break records or terms of longest speaker is not foremost in my mind quite frankly," DeLeo told reporters after he was nominated in a Democratic caucus. "Foremost in my mind is talking about some of the issues I just spoke about earlier and making sure that we resolve them in the best interest of the people of Massachusetts."

DeLeo is expected to deliver an annual [speech] to the House in late January or early February laying out policy focus areas for the year -- a tradition started by former Speaker Thomas Finneran -- but pointed on Wednesday to some issues he anticipates the House will take on, including education, health care costs, opiate abuse and economic development.

The fiscal 2018 budget and regulations around legal marijuana will be "two of the more immediate concerns," DeLeo said, predicting an "extremely busy session" with "a lot of discussion on a lot of important issues."

DeLeo said he will also be keeping an eye on President-elect Donald Trump, saying he believes in giving the New York Republican or any new commander-in-chief "an opportunity."

"Having said that, one of the biggest things that I feel I have to do as speaker of the House, especially with the new administration is when they seem to -- when he or some of the members of his administration seems to go astray, shall we say, in terms of what's best for the people of Massachusetts, then he'd better be damn sure that he's going to hear from me, I'm sure and a lot of other electeds from Massachusetts, because I look at one of my primary jobs, again, as to protect the people from Massachusetts from any other major difficulties that may occur in Washington."

DeLeo, now in his 14th term as a representative, was elected speaker with 120 votes, and House members cheered as he cast his vote in his own name. Minority Leader Brad Jones of North Reading received 35 votes from Republicans, for a total of 155 votes cast out of the 160 members of the House.

After his re-election, DeLeo thanked his fellow representatives for "allowing me to be the leader and the speaker of what I consider to be the greatest political body in this country" and said the House over the next two years will "focus on leveraging our strengths into newfound success."

Rep. Joseph Wagner of Chicopee nominated DeLeo for the speakership at the Wednesday morning caucus, with Reps. Paul McMurtry of Dedham and Claire Cronin of Easton seconding the nomination. No other lawmaker's name was put forward for the post.

McMurtry said DeLeo offered a "proven track record of success" and a "sincere belief in consensus, compromise and collaboration." Cronin praised his work on issues including pay equity, ethics and campaign finance reform, domestic violence prevention and veterans services.

"Bob DeLeo is not the same speaker that he was in 2009," Wagner said. "I think he's evolved as a speaker over the period of time for which he's served, and that evolution, I think, has been beneficial to this House of Representatives and to the citizens of the commonwealth."

DeLeo's fifth term was made possible by a vote of the Democratic caucus two years ago to abolish the term limit for the speaker, a limit DeLeo himself had originally championed.

When he rose to power under former Speaker Salvatore DiMasi and took control of the House after DiMasi's resignation, DeLeo pushed to implement term limits on the House speakership as a way to restore public trust in government. When he asked his caucus to eliminate the limit in 2015, DeLeo said his position over the previous six years had "evolved" and that steady leadership of the House was critical.

Colin A. Young contributed reporting


State House News Service
Wednesday, January 4, 2017

Baker sticking with recipe, but Dems have the numbers
By Colin A. Young


After administering the oath of office to the new Legislature -- split 159-41 against members of the party he leads -- Gov. Charlie Baker struck an optimistic tone Wednesday about boosting the Republican ranks in the Legislature.

Since taking office in 2015, Baker has worked to elect more Republicans to the House and Senate, focusing on state elections and largely staying out of a national fray that has carried a decidedly more combative tone. After November's elections, the GOP started the 2017-2018 legislative session Wednesday with one more member than it had two years ago when Baker first took office.

"The fact that we held serve in the Legislature and gained a seat is the first time since 1984 that the Republican Party in Massachusetts has actually not lost seats during a presidential election," Baker said Wednesday outside the House chamber. "I think that's in part because people are pretty pleased with the work that folks on our side of the aisle are doing in conjunction with our colleagues on the other side."

Democrats control the House with a 125 to 35 advantage and the Senate with 34 members to the GOP's six. Democrats voting in unison are able to easily override gubernatorial vetoes, as they exhibited with budget vetoes in July.

Since arriving on Beacon Hill, Baker has cultivated working relationships, if not friendships, with many of the leading Democrats in the Legislature. Baker frequently makes reference to "disagreeing without being disagreeable."

"I would argue that the constructive friction, the competing ideas, which has been the way we've chosen to work together with our colleagues on the other side of the aisle over the course of the past couple of years, has served people well in Massachusetts," he said. "I think it's reflected in the fact that when I talk to people, generally they feel pretty good about the focus we've brought to the work and to governing, and to finding ways to work together on what we can agree on. I think we're just going to keep doing that."

Republicans nationally are trumping their growing successes in winning seats in Congress and state Legislatures. In 2018, when Baker's own name could be on the ballot if he seeks reelection as expected, Republicans will have another shot at picking up seats. The GOP's last veto-proof minority at the State House was in the Senate in 1991-1992.

As is often the case, taxes are percolating as a divisive issue. In the face of opposition from Republicans, Democrats last session advanced an amendment to the constitution imposing a 4 percent surtax in household incomes above $1 million, a measure that will likely appear on the 2018 ballot. Democratic legislative leaders in recent weeks have also refused to rule out tax increases in the coming session. During remarks following his reelection as House Minority Leader Wednesday, Rep. Brad Jones urged Speaker Robert DeLeo to refrain from any broad-based statewide tax increase.

Michael Norton contributed reporting


The Boston Herald
Wednesday, January 4, 2017

Film tax credit’s bottom line: ‘A bum deal’
By Matt Stout


Bay State residents earned about 75 cents on every dollar the state gave out in tax credits to film and Hollywood productions, according to new state data, reigniting criticism of the controversial tax incentive.

The latest figures, covering 2014 and released yesterday by the Department of Revenue, show the state’s film tax credit generated $49 million in personal income for Bay Staters that year, but only after paying out $64.5 million in credits to companies making films, TV shows and documentaries in the state.

“The $49 million is key. If I come to you and say, ‘Give me a dollar and I’ll give you 75 cents back,’ do you take the deal?” said Bob Tannenwald, a former economist at the Boston Fed who’s now at the Heller School at Brandeis University.

“Bottom line, all effects taken into account, the film tax credit is a bum deal for the people of Massachusetts. It robs from Peter to pay Paul.”

In all, the tax credit generated about $254 million in new spending in 2014, but the majority of that, roughly $138 million, went to pay out-of-state workers and vendors, according to the state’s 23-page report.

Direct in-state spending in 2014 ultimately was $75.5 million, a high-water mark for the nine-year program, but that doesn’t include other “multiplying” factors, such as cuts made to cover the costs of the credit.

“After taking into account the full impacts,” the report reads, “the film incentive program generated ... $49.0 million in personal income.”

Established in 2006 to help draw film projects, the tax credit is a 25 percent transferable rebate filmmakers can earn if they spend at least $50,000 in Massachusetts. It’s helped draw a slew of projects, including in 2015: “Manchester by the Sea,” which got a $1.38 million credit; “Black Mass,” given $12 million; and “Unfinished Business,” a Vince Vaughn-led comedy, granted $5 million, according to a separate state report.

But while lawmakers have long protected it from reform, saying it helps support local businesses, critics have said it’s a poor use of state money, noting that for every job it’s created, the state has spent about $106,000.

“It’s very costly, if that’s what we’re paying per new net job,” said Eileen McAnneny of the Mass. Taxpayers Foundation.

“Certainly, it will be a tight budget (this session), so it might cause folks to look again at it,” McAnneny said.

Gov. Charlie Baker has sought to scrap or scale back the credit in each of his first two years in office, only to face opposition from Democratic leadership in the Legislature.

 

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