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CLT UPDATE
Saturday, September 16, 2017

"The Best Legislature Money Can Buy" eases back into the job


In the first eight months of the 2017 session, only 79 bills out of more than 6,000 filed have been approved by the House and Senate and signed into law by Gov. Charlie Baker.

Thirty-five of those were local bills dealing with an individual city or town and 29 were on sick leave banks for individual state workers. Sick leave banks allow employees to voluntarily donate sick, personal or vacation days to a pool for use by ill fellow state workers so they can get paid while on medical leave.

Of the 15 remaining, 10 ranged from supplemental budgets and extending simulcast racing to designating May as Seatbelt Awareness Month and the first week in August as Ice Bucket Challenge week.

The remaining five are five major key issues that came to a roll call vote in both branches and were signed into law by Baker.

Here they are:

$18 MILLION IN PAY HIKES (S 16) —On Feb. 2, the House 116-43, Senate 31-9, overrode Gov. Charlie Baker’s veto of an $18 million pay raise package including hikes for senators, representatives, judges, court clerks, the governor and the other five statewide constitutional office holders....

Chip Ford, executive director of Citizens for Limited Taxation, said, “These cynical actions demonstrate that when the leadership and enough beholden members in the Legislature want something badly enough ― they just take it. Disguising it as something at all legitimate required a whole two days.” Ford continued, “There was little if any trickery and manipulation that didn’t go into this shameless effort on behalf of legislative leadership and others with much to gain.” ...

Beacon Hill Roll Call
Week Ending Sept. 8, 2017
By Bob Katzen


House leaders are weighing the prospects of packing vetoed spending back into the state budget when they return to Beacon Hill next week, but the ongoing slump in state tax collections that resumed in August is not making for easy decisions.

House Ways and Means Chairman Jeffrey Sánchez told the News Service Thursday that he and his office are still reviewing revenue reports for July and August, but he expects the House to take up at least some budget veto overrides when it returns to formal sessions on Wednesday.

"We're working with the conference report and reviewing the things we could be taking up, but we are going to take some things up," Sánchez said.

Gov. Charlie Baker signed a $39.4 billion fiscal 2018 budget in July and vetoed nine of the budget's outside sections and $320.3 million across 169 line items, including $202 million related to the MassHealth changes he proposed in June. The net impact of the vetoes, after accounting for federal revenues, is $193 million, according to a Massachusetts Taxpayers Foundation analysis.

Before breaking for the August recess, legislators said they planned to monitor summer tax collections before deciding whether to override any of Baker's $320 million in budget vetoes. Formal sessions are expected to occur over the next ten weeks....

The revenue reports, though, have not revealed a glut of unexpected revenue to support spending that would be added back into the budget through overrides. The Department of Revenue on Wednesday reported collecting $1.712 billion in taxes in August, which was $16 million or 0.9 percent below the monthly benchmark. Two months into fiscal year 2018, tax collections are up 1.9 percent but $11 million below the year-to-date benchmark, the department said.

"Total revenues are slightly below actual collections from the same period last year, and are also below the monthly benchmark," Revenue Commissioner Christopher Harding said in a statement.

State House News Service
Thursday, September 7, 2017
Tax collections under benchmark as veto overrides are weighed


Undeterred by tax collections that are trailing benchmarks two months into the fiscal year, the Legislature is half way toward restoring $275 million in spending that Gov. Charlie Baker vetoed from the annual budget.

Without debate, the House on Wednesday voted to put back funding for the Tufts School of Veterinary Medicine, a big data fund, and rental assistance among dozens of other priorities.

House Democrats needed just a few hours to speed through votes overriding a majority of the $320 million that Baker excised in July, when he signed a fiscal 2018 budget that he said had a $39.4 billion bottom line. The spending will be restored if Senate Democrats also agree to the overrides.

House Republicans who voted to uphold Baker's vetoes lacked the numbers to stop the overrides and did not seek to persuade Democrats with floor speeches....

In fiscal 2016, Baker vetoed $163 million, the Legislature restored $98 million and revenues came in $481 million below the state's final revised benchmark. It was a similar situation in fiscal 2017, when revenues missed the revised benchmark by $431 million after the Legislature restored $229 million of the $264 million vetoed by Baker, who has also faulted the Legislature's budgets for funding accounts at levels that are likely insufficient.

House Ways and Means Chairman Jeffrey Sánchez contended that the budget lawmakers sent the governor in July was balanced, Baker's vetoes "cut too deeply," and Wednesday's overrides were only "first steps" towards restoring funding. The funding restorations are sustainable, Sánchez said....

While Baker's vetoes have been public since July, information about which ones would be targeted for overrides was tightly held before House leaders in the early afternoon revealed they planned to take up 61 line-item vetoes for override votes totaling $274.7 million in spending. On Wednesday morning, House lawmakers told the News Service they did not know what overrides would be taken up that day or how much added spending would be in play....

For the past few years, the budgets that have passed into law have tipped out of balance partway through the year, requiring spending cuts and other actions to shore them up. Two months into the fiscal year, tax revenues are running $11 million behind benchmarks....

The Senate, where Democrats also hold a veto-proof majority, is not planning to meet until late in September and it is unclear whether veto overrides will be the chamber's first order of business.

Citing the Democrat-backed state law that hiked pay for lawmakers and other public officials at the beginning of this year, the Massachusetts Republican Party said Wednesday's actions showed Democrats to be irresponsible money managers.

"Democrats just can't be trusted as responsible stewards of our tax dollars. Now, having cancelled tax relief for consumers, and raising their own pay, their latest act of fiscal irresponsibility will place taxpayers in further jeopardy. If they really cared about their constituents, they would support the Governor's efforts to balance the budget, while apologizing for their votes to fatten their own paychecks," MassGOP spokesman Terry MacCormack said in a statement.

State House News Service
Wednesday, September 13, 2017
House rebuffs Baker, insists on $275 million in spending


The Legislature continued the budget process for Fiscal year Two Thousand Infinity this week - well, half the Legislature.

A budget document unveiled when President Trump's approval rating exceeded his disapproval sauntered through its eighth month, still not truly final, as the House replaced $275 million of the $360 million in vetoes Gov. Baker made in July. The next step in the saga must be taken by the Senate.

The hangup for now is that there's a rhythm to legislation and, as fortune would have it, that rhythm is the same as a Viennese waltz: ONE-two-three, one-two-three ... And the third step of the override process was paused for the moment, as senators awaited the return of their leader from Austria and the Czech Republic.

Senate President Stanley Rosenberg was in Europe - a development that first surfaced publicly when his staff said he wouldn't be at the weekly leadership meeting Monday with Gov. Charlie Baker and House Speaker Robert DeLeo, and would phone in for the session. He did.

The president, normally quite eager to share the details of his public schedule, made no mentions of his planned sojourn in the weeks and months leading up to his departure. His travels through Vienna, Graz and Prague were underwritten by the United Nations Association of Austria, the City of Graz and the Senate Presidents Forum, which collects money from corporations like Coca-Cola, Pzifer and Reynolds tobacco and passes it on to presidents in the form of grants for such policy and cultural forays. Thomas Finneran, late of the Massachusetts House speakership, is on staff as moderator of Forum discussions - a role he filled during the Central Europe sessions, said Rosenberg's spokesman.

And so the Senate, eager as it may be to restore spending after senators decried vetoes as severe and unnecessary, extended its six-week summer formal-session hiatus. The vetoes may be taken up the last week of the month, after the Autumnal equinox.

The 62 overrides processed in the House chamber covered statewide programs and accounts, and Ways and Means Chairman Jeffrey Sanchez said another batch, addressing local needs and services, will be forthcoming....

For their part, the Baker administration said there was "no basis" to restore spending now, given revenue performance so far.

But Sanchez, speaking for the Democrats, said a conservative approach was already baked into the budget that landed on Baker's desk in July - that $400 million had been removed from the bottom line before Baker saw it. The spending restorations are sustainable, he assured.

By way more than the necessary two thirds, Sanchez and his boss Speaker DeLeo had the votes.

For much of Wednesday, House members sat chattering and nattering and fiddling with their devices, punctuated by the sonorous reading of one veto after another from the podium. Which items would come up and receive a "yes" vote had been decided in secret over the past eight weeks, so there was no debate. One by one, with nary a decrease in din, representatives added money back to the Commonwealth's fiscal 2018 bottom line - the scoreboard glowing green on its leftward Democratic side, and more or solid red on the Republican.

State House News Dervice
Friday, September 15, 2017
Weekly Roundup: Vienna Sausage Making


After speeding through budget override votes Wednesday during their first formal session in weeks, the House met for less than 30 minutes Thursday before gaveling out for the weekend. The House advanced bills dealing with local affairs in Ashland, Brockton and Whately and introduced a Rep. Dylan Fernandes bill calling for a law addressing first-time homebuyer savings accounts.

State House News Service
Thursday, September 14, 2017
HOUSE SESSION


They say “close” only counts in horseshoes and hand grenades and so while the commonwealth may be, as House Ways and Means Chairman Jeffrey Sanchez put it Wednesday, “very close” to collecting as much tax revenue as it expected through the first two months of the fiscal year, it’s still behind.

But unless forced, Beacon Hill is generally reluctant to take its belt in a notch — if anything it’s more comfortable with a belt expander. And so the House on Wednesday began the process of overriding Gov. Charlie Baker’s budget vetoes....

This is all part of a fiscally irresponsible pattern. Each year Baker vetoes spending in the final budget to ensure it will remain in balance for the full year. Each year the House and Senate reverse most of those vetoes — leaving it to Baker to make mid-year cuts if revenues fall short, which they have for two years running.

The House could have waited a few weeks to review a full three months of tax collections before it reversed Baker’s cuts. Instead it made clear that has no interest in breaking bad habits.

A Boston Herald editorial
Friday, September 15, 2017
Another spending rush


Chip Ford's CLT Commentary

"In the first eight months of the 2017 session, only 79 bills out of more than 6,000 filed have been approved by the House and Senate and signed into law by Gov. Charlie Baker. Thirty-five of those were local bills dealing with an individual city or town and 29 were on sick leave banks for individual state workers," reported Beacon Hill Roll Call.  "Of the 15 remaining, 10 ranged from supplemental budgets and extending simulcast racing to designating May as Seatbelt Awareness Month and the first week in August as Ice Bucket Challenge week.  The remaining five are five major key issues that came to a roll call vote in both branches and were signed into law by Baker."

"After speeding through budget override votes Wednesday during their first formal session in weeks, the House met for less than 30 minutes Thursday before gaveling out for the weekend," the State House News Service reported.

"Senate President Stanley Rosenberg was in Europe," the State House News Service further observed, "so the Senate, eager as it may be to restore spending after senators decried vetoes as severe and unnecessary, extended its six-week summer formal-session hiatus. The vetoes may be taken up the last week of the month, after the Autumnal equinox."

This is "THE BEST LEGISLATURE MONEY CAN BUY" exposed at its finest.  This is the same cabal of haughty potentates who voted themselves a 35-40 percent pay hike just last February complaining that they were underappreciated, underpaid, and overworked. After their six-week vacation some of them are back.  Others not.  Senate President Stanley Rosenberg is still away on a vacation junket, paid for by the United Nations Association of Austria, Coca Cola, "Big Pharma" and "Big Tobacco."

For this part-time-at-best performance we were paying every one of them way too much even before their obscene pay grab.

For legislators who managed to find their way back to the State House after six weeks away, their first order of business was a smooth return to spending more than even the discredited "anticipated revenue projections." This time-worn tradition is apparently on automatic pilot, built into Democrat legislators' genes, or just the stupid rising to their level of competence as usual.  At least this time their priority wasn't driving another suicidal bullet train to self-enrichment.

Hide your wallets and purses, they're baaaaaaack!  Well, many were, for a mere one day and 30 minutes of another this week, before taking off again on Thursday for a long weekend.  Bad habits are hard to break call it "legislative tradition."  Some legislators haven't returned yet, are still vacationing in foreign lands.  They'll get around to it, eventually.  No concern for them, their fattened pay checks keep rolling in.

After so much time away, you've gotta to ease back into the daily grind slowly, don'cha you know?

Chip Ford
Executive Director


 
Beacon Hill Roll Call
Week Ending Sept. 8, 2017
By Bob Katzen


THE HOUSE AND SENATE

There were no roll calls in the House or Senate last week.

This week, Beacon Hill Roll Call looks at the handful of major legislation that was approved by the Legislature and signed into law so far by Gov. Charlie Baker in 2017.

In the first eight months of the 2017 session, only 79 bills out of more than 6,000 filed have been approved by the House and Senate and signed into law by Gov. Charlie Baker.

Thirty-five of those were local bills dealing with an individual city or town and 29 were on sick leave banks for individual state workers. Sick leave banks allow employees to voluntarily donate sick, personal or vacation days to a pool for use by ill fellow state workers so they can get paid while on medical leave.

Of the 15 remaining, 10 ranged from supplemental budgets and extending simulcast racing to designating May as Seatbelt Awareness Month and the first week in August as Ice Bucket Challenge week.

The remaining five are five major key issues that came to a roll call vote in both branches and were signed into law by Baker.

Here they are:

$18 MILLION IN PAY HIKES (S 16) —On Feb. 2, the House 116-43, Senate 31-9, overrode Gov. Charlie Baker’s veto of an $18 million pay raise package including hikes for senators, representatives, judges, court clerks, the governor and the other five statewide constitutional office holders.

The measure increases the salaries of the two leaders who filed the bill, House Speaker Robert DeLeo, D-Winthrop, and Senate President Stan Rosenberg, D-Amherst, by $45,000 from $97,547 to $142,547. The measure also hikes the pay of the Legislature’s two Republican leaders, Sen. Bruce Tarr, R-Gloucester, and Rep. Bradley Jones, R-North Reading, by $37,500 from $85,047 to $122,547. Another provision hikes the salaries of the state’s judges by $25,000 and of court clerks over an 18-month period.

The proposal raises the governor’s salary by $33,200, from $151,800 to $185,000; the lieutenant governor by $30,068, from $134,932 to $165,000; secretary of state by $34,738 from $130,262 to $165,000; treasurer by $47,083 from $127,917 to $175,000; auditor by $30,048 from $134,952 to $165,000; and the attorney general by $44,418 from $130,582 to $175,000. It also bans the six constitutional officers and the House speaker and Senate president from earning outside income, other than passive income from investments.

“Given the current fiscal outlook for the state, now is not the time to expend additional funds on elected officials’ salaries,” Baker said. “This bill is the result of a hasty process that included little substantive debate or time for public comment.”

Supporters said that only $1.4 million is for the legislative pay raises while the remainder is for hikes for constitutional officers, judges and court clerks. They said that the hikes will be entirely paid for from existing funds with no net new cost to taxpayers. They noted many of these legislative salaries are still lower than the average salary of school superintendents and town managers in most communities.

The pay raise package made it through the Legislature at lightning speed. It was only Thursday, Jan. 18, when the temporary Joint Committee on Ways and Means held a brief one-hour hearing on a December 2014 report of the Special Advisory Commission on the Compensation of Public Officials. At that point, DeLeo and Rosenberg had not yet appointed members of any committees so a temporary Ways and Means Committee was hastily appointed and assembled for the hearing. The hearing was convened with less than 72 hours notice to the public. Then just a week later on Jan. 25, a pay raise package was approved.

Rosenberg defended the bill. “We followed overall the recommendations of the independent commission, that was appointed two years ago,” he said. “They came back and said that the constitutional officers’ salaries are out of line with national salaries and ought to be increased ... Fair minded people will consider the fact that the stipends for the presiding officers have not changed for 33 years. Who works for the same amount 33 years later?”

The commission was chaired by Ira Jackson, Dean of the John W. McCormack Graduate School of Policy and Global Studies at UMass Boston. Other members were from the League of Women Voters, Mass. Taxpayers Foundation, Massachusetts Business Roundtable, University of Massachusetts President’s Office and the Simmons College of Management.

“The Advisory Commission conducted a transparent, open, data-driven review of the current compensation of public officials and developed a series of major reforms and recommendations based on its research, as well as input from the public,” said Jackson.

An excerpt from the report sums up the commission’s findings. “After extensive analysis and fact finding, the Special Commission concludes that the compensation of the commonwealth’s constitutional officers and legislative leadership is generally outdated and inadequate.”

The report continued, “Massachusetts state government is the instrument through which we govern ourselves as a commonwealth. It is a large and complex organization that provides vital services that affect every citizen, and as such it needs to attract talented, publicly spirited and honest individuals from diverse socio-economic and geographic backgrounds to fulfill its mission of serving every citizen. In recent years, state government has increasingly been asked and expected to provide more and better services with fewer resources. A greater premium is placed on efficiency and effectiveness in government today than in the past, and there is a greater need for modern management practices in all of its aspects.”

“The Beacon Hill power brokers robbed the taxpayers,” said Rep. Jim Lyons, R-Andover. “They voted to increase their salaries by over 50 percent. The Republican caucus voted unanimously against this thievery and abuse of power. We must end one-party rule on Beacon Hill.”

“This wasn’t myself just thinking during the Christmas holiday that this would be a good thing to do,” said DeLeo. “This is something which I’ve been hearing about for years from constitutional officers. I’ve been hearing from House members and Senate members and an awful lot of folks.”

Chip Ford, executive director of Citizens for Limited Taxation, said, “These cynical actions demonstrate that when the leadership and enough beholden members in the Legislature want something badly enough ― they just take it. Disguising it as something at all legitimate required a whole two days.” Ford continued, “There was little if any trickery and manipulation that didn’t go into this shameless effort on behalf of legislative leadership and others with much to gain.”

“Strange — no one’s talking about the effect these raises will have on bringing out more candidates against incumbents,” said Sen. Michael Barrett, D-Lexington, who supported the raises. “It’s going to happen. These are the first salary adjustments in recent memory big enough to draw the interest of potential competitors employed in the private sector today.”

Paul Craney, executive director of the Massachusetts Fiscal Alliance said, “The move sends the worst type of message. Good work should be rewarded but there’s no good in this. Salaries and pensions will go up for these lawmakers and they’ll be quick to call for more tax hikes.”

“These are serious jobs,” said Sen. Will Brownsberger, D-Belmont. “And you want people to compete for these jobs and you don’t want these guys under financial strain. You’re talking about the legislative leaders, you don’t want them under financial strain any more than you want a police officer walking the beat under financial strain.”

“I don’t think anyone that works in the Legislature as a representative or senator is struggling to put food on their table or get health care for their families,” responded Rep. Shauna O’Connell, R-Taunton. “And we have people in Massachusetts that are struggling. We have a budget deficit right now. And the first thing that we go in and do, the very first session we have, is to vote on a substantial pay raise.”

In 1998, voters approved by a 2-to-1 margin a constitutional amendment requiring governors to calculate and announce an increase or decrease in legislative salaries every two years. The specific language requires legislative salaries to be “increased or decreased at the same rate as increases or decreases in the median household income for the commonwealth for the preceding two-year period, as ascertained by the governor.”

Under that formula, legislators’ salaries were increased by $2,515 for the 2017-2018 legislative session. The current base pay for legislators is now $62,547. That hike came on the heels of a salary freeze for the 2015-2016 legislative session, a $1,100 pay cut for the 2013-2014 session and a $306 pay cut for the 2011-2012 session. Prior to 2011, legislators’ salaries had been raised every two years since the $46,410 base pay was first raised under the constitutional amendment in 2001.

The new $62,547 salary means legislative salaries have been raised $16,137, or 34.8 percent, since the mandated salary adjustment became part of the state constitution.

$200 MILLION FOR LOCAL ROADS AND BRIDGES (H 3648)

$40.2 BILLION FISCAL 2018 STATE BUDGET (H 3800) — House 140-9, Senate 36-2, approved and on July 11 Gov. Baker signed into law a conference committee version of a $40.2 billion fiscal 2018 state budget to cover state spending from July 1, 2017 to June 30, 2018. The governor vetoed $320.3 million in spending. The Legislature has yet to override any of the vetoes.

FAIRNESS FOR PREGNANT WORKERS (H 3816)

REGULATE MARIJUANA (H 3818)
 

State House News Service
Thursday, September 7, 2017

Tax collections under benchmark as veto overrides are weighed
By Colin A. Young


House leaders are weighing the prospects of packing vetoed spending back into the state budget when they return to Beacon Hill next week, but the ongoing slump in state tax collections that resumed in August is not making for easy decisions.

House Ways and Means Chairman Jeffrey Sánchez told the News Service Thursday that he and his office are still reviewing revenue reports for July and August, but he expects the House to take up at least some budget veto overrides when it returns to formal sessions on Wednesday.

"We're working with the conference report and reviewing the things we could be taking up, but we are going to take some things up," Sánchez said.

Gov. Charlie Baker signed a $39.4 billion fiscal 2018 budget in July and vetoed nine of the budget's outside sections and $320.3 million across 169 line items, including $202 million related to the MassHealth changes he proposed in June. The net impact of the vetoes, after accounting for federal revenues, is $193 million, according to a Massachusetts Taxpayers Foundation analysis.

Before breaking for the August recess, legislators said they planned to monitor summer tax collections before deciding whether to override any of Baker's $320 million in budget vetoes. Formal sessions are expected to occur over the next ten weeks.

The revenue reports, though, have not revealed a glut of unexpected revenue to support spending that would be added back into the budget through overrides. The Department of Revenue on Wednesday reported collecting $1.712 billion in taxes in August, which was $16 million or 0.9 percent below the monthly benchmark. Two months into fiscal year 2018, tax collections are up 1.9 percent but $11 million below the year-to-date benchmark, the department said.

"Total revenues are slightly below actual collections from the same period last year, and are also below the monthly benchmark," Revenue Commissioner Christopher Harding said in a statement. "The small shortfall in August collections reflects mostly lower than expected income withholding payments, partially offset by slightly better than expected performance in regular sales tax and estate tax."

DOR cautioned that July and August, the first two months of the fiscal year, are not significant months for collections and that "it is not advisable at this time to use year-to-date collections to formulate trends or patterns for the full fiscal year."

Sánchez said he's been reviewing the revenue reports and characterized them as "at or around benchmark." He also said that representatives have been contacting his office throughout the August recess to keep their budget priorities atop the chairman's list.

"The members have been talking to us continually through the summer and at the same time we're reviewing the numbers," he said. "They're all concerned about all the vetoes and given everything we did before we went out for summer recess there is a sense we can move forward on some of the priorities they have established either for their local districts or bigger issues they're concerned about."

The chairman said his priorities when it comes to determining which of the governor's vetoes the House might override include having "an understanding of the actual numbers of where we're at with revenue," and understanding how representatives feel about the budget as signed by the governor. Then, he said, Ways and Means will "take them all under consideration and we'll see which ones end up making it through."

If the Legislature is to override the governor's vetoes, the process must begin in the House and must be completed during this calendar year. Overrides require a two thirds vote in each branch. The Legislature cannot hold formal sessions this year later than Nov. 15, per its own rules.

Asked if the House might consider overriding some vetoes next week and waiting to see September or October revenues before preparing a second batch of overrides, Sánchez said, "I think everything's possible."

The revenue commissioner, in his statement, put more weight on September tax collections. "While most economic indicators remain generally positive about the Massachusetts economy, we will continue to monitor revenue collections closely, especially for September, which is traditionally one of the largest collection months," Harding said.

The Democrat-controlled Legislature typically restores the vast amount of vetoed spending each year, although veto overrides in July 2016 contributed to a rocky budget year that was marked by repeated rounds of mid-year adjustments and that ended with a revenue gap of $431 million.

"If history is any guide, many of these vetoes will be overridden in the months ahead, as since FY 2012 almost 90 percent of all spending vetoes have been overridden by the Legislature," the Mass. Taxpayers' Foundation wrote in a summary of the governor's vetoes. "The more spending overrides, however, the greater the midyear budget cuts."


State House News Service
Wednesday, September 13, 2017

House rebuffs Baker, insists on $275 million in spending
By Andy Metzger

Undeterred by tax collections that are trailing benchmarks two months into the fiscal year, the Legislature is half way toward restoring $275 million in spending that Gov. Charlie Baker vetoed from the annual budget.

Without debate, the House on Wednesday voted to put back funding for the Tufts School of Veterinary Medicine, a big data fund, and rental assistance among dozens of other priorities.

House Democrats needed just a few hours to speed through votes overriding a majority of the $320 million that Baker excised in July, when he signed a fiscal 2018 budget that he said had a $39.4 billion bottom line. The spending will be restored if Senate Democrats also agree to the overrides.

House Republicans who voted to uphold Baker's vetoes lacked the numbers to stop the overrides and did not seek to persuade Democrats with floor speeches.

Before the votes began, House Minority Leader Brad Jones, a North Reading Republican, urged his colleagues to hold off on addressing the spending vetoes until a clearer picture has formed about first quarter tax revenues and the impact of Hurricane Harvey on fuel prices. Jones said Democrats may be setting up Baker to again need to make midyear budget cuts, known as 9Cs.

"By restoring such a significant amount of spending at this time, my fear is that we may see a repeat of what happened last year, when the governor was forced to make a series of 9C cuts to bring the budget back into balance," he said in a statement after Wednesday's session.

Baker, a Republican who is expected to seek re-election next year, is ultimately responsible for balancing the budget.

"The current fiscal environment, specifically soft revenue collection reports to date, indicates there is no basis to support the decision to increase spending by $275 million," Baker spokesman Brendan Moss said in a statement.

Baker and the Legislature have been forced to revisit annual budgets midyear to account for slow-growing tax receipts that fell short of estimates, with imbalances compounded by the Legislature's insistence on spending more than revenues allowed.

In fiscal 2016, Baker vetoed $163 million, the Legislature restored $98 million and revenues came in $481 million below the state's final revised benchmark. It was a similar situation in fiscal 2017, when revenues missed the revised benchmark by $431 million after the Legislature restored $229 million of the $264 million vetoed by Baker, who has also faulted the Legislature's budgets for funding accounts at levels that are likely insufficient.

House Ways and Means Chairman Jeffrey Sánchez contended that the budget lawmakers sent the governor in July was balanced, Baker's vetoes "cut too deeply," and Wednesday's overrides were only "first steps" towards restoring funding. The funding restorations are sustainable, Sánchez said.

"We're going to start with vetoes that have a statewide impact and consider regional items in the upcoming weeks, and we're continuing to monitor our fiscal trends and weigh our options as well," Sánchez told his colleagues on the floor.

The bulk of the money targeted for restoration, or $220 million, will go back to MassHealth to cover caseload costs, Sánchez said.

MassHealth, the massive public insurance program, was targeted this year by Baker with cost-cutting reforms, which the Legislature rejected.

While Baker's vetoes have been public since July, information about which ones would be targeted for overrides was tightly held before House leaders in the early afternoon revealed they planned to take up 61 line-item vetoes for override votes totaling $274.7 million in spending. On Wednesday morning, House lawmakers told the News Service they did not know what overrides would be taken up that day or how much added spending would be in play.

House Speaker Robert DeLeo on Monday indicated that the overrides scheduled for this week would be somewhat modest.

"It's not going to be a great amount of them," DeLeo told reporters after meeting with the governor and others.

For the past few years, the budgets that have passed into law have tipped out of balance partway through the year, requiring spending cuts and other actions to shore them up. Two months into the fiscal year, tax revenues are running $11 million behind benchmarks.

"I decided to vote to sustain all of Governor Baker’s vetoes, even though it meant voting against restoring funding for many worthwhile programs I otherwise would have supported," Jones said in a statement. "In my opinion, it would have been more prudent to wait and see what revenues look like in September and perhaps even October before moving forward with overrides."

The Senate, where Democrats also hold a veto-proof majority, is not planning to meet until late in September and it is unclear whether veto overrides will be the chamber's first order of business.

Citing the Democrat-backed state law that hiked pay for lawmakers and other public officials at the beginning of this year, the Massachusetts Republican Party said Wednesday's actions showed Democrats to be irresponsible money managers.

"Democrats just can't be trusted as responsible stewards of our tax dollars. Now, having cancelled tax relief for consumers, and raising their own pay, their latest act of fiscal irresponsibility will place taxpayers in further jeopardy. If they really cared about their constituents, they would support the Governor's efforts to balance the budget, while apologizing for their votes to fatten their own paychecks," MassGOP spokesman Terry MacCormack said in a statement.

Michael Norton contributed reporting


State House News Service
Friday, September 15, 2017

Weekly Roundup: Vienna Sausage Making
By Craig Sandler


The Legislature continued the budget process for Fiscal year Two Thousand Infinity this week - well, half the Legislature.

A budget document unveiled when President Trump's approval rating exceeded his disapproval sauntered through its eighth month, still not truly final, as the House replaced $275 million of the $360 million in vetoes Gov. Baker made in July. The next step in the saga must be taken by the Senate.

The hangup for now is that there's a rhythm to legislation and, as fortune would have it, that rhythm is the same as a Viennese waltz: ONE-two-three, one-two-three ... And the third step of the override process was paused for the moment, as senators awaited the return of their leader from Austria and the Czech Republic.

Senate President Stanley Rosenberg was in Europe - a development that first surfaced publicly when his staff said he wouldn't be at the weekly leadership meeting Monday with Gov. Charlie Baker and House Speaker Robert DeLeo, and would phone in for the session. He did.

The president, normally quite eager to share the details of his public schedule, made no mentions of his planned sojourn in the weeks and months leading up to his departure. His travels through Vienna, Graz and Prague were underwritten by the United Nations Association of Austria, the City of Graz and the Senate Presidents Forum, which collects money from corporations like Coca-Cola, Pzifer and Reynolds tobacco and passes it on to presidents in the form of grants for such policy and cultural forays. Thomas Finneran, late of the Massachusetts House speakership, is on staff as moderator of Forum discussions - a role he filled during the Central Europe sessions, said Rosenberg's spokesman.

And so the Senate, eager as it may be to restore spending after senators decried vetoes as severe and unnecessary, extended its six-week summer formal-session hiatus. The vetoes may be taken up the last week of the month, after the Autumnal equinox.

The 62 overrides processed in the House chamber covered statewide programs and accounts, and Ways and Means Chairman Jeffrey Sanchez said another batch, addressing local needs and services, will be forthcoming.

Republicans said the Senate should in fact be in no rush to follow the House's lead. With state leaders mired in a years-long inability to accurately project tax revenues and then keep spending within actual receipts, GOP representatives said both branches should wait at least another month, preferably two, to see if the overrides are affordable.

For their part, the Baker administration said there was "no basis" to restore spending now, given revenue performance so far.

But Sanchez, speaking for the Democrats, said a conservative approach was already baked into the budget that landed on Baker's desk in July - that $400 million had been removed from the bottom line before Baker saw it. The spending restorations are sustainable, he assured.

By way more than the necessary two thirds, Sanchez and his boss Speaker DeLeo had the votes.

For much of Wednesday, House members sat chattering and nattering and fiddling with their devices, punctuated by the sonorous reading of one veto after another from the podium. Which items would come up and receive a "yes" vote had been decided in secret over the past eight weeks, so there was no debate. One by one, with nary a decrease in din, representatives added money back to the Commonwealth's fiscal 2018 bottom line - the scoreboard glowing green on its leftward Democratic side, and more or solid red on the Republican.

And while wiseguys needed both eyebrows this week - one to raise over Rosenberg's trip, and the other over the prudence of budget regrowth - the people actually affected by the line items - people hoping to keep their apartments or their jobs - likely breathed a sigh of relief. Or half a sigh, anyhow, if that's possible. And by the way? If those real people avoid the hit, they won't begrudge Rosenberg some late-summer Transatlantic meandering.


The Boston Herald
Friday, September 15, 2017

A Boston Herald editorial
Another spending rush


They say “close” only counts in horseshoes and hand grenades and so while the commonwealth may be, as House Ways and Means Chairman Jeffrey Sanchez put it Wednesday, “very close” to collecting as much tax revenue as it expected through the first two months of the fiscal year, it’s still behind.

But unless forced, Beacon Hill is generally reluctant to take its belt in a notch — if anything it’s more comfortable with a belt expander. And so the House on Wednesday began the process of overriding Gov. Charlie Baker’s budget vetoes.

In his speech to the House Sanchez emphasized the many worthy programs that would benefit from this first round of overrides — special emphasis given to HIV/AIDS treatment, MassHealth and pediatric palliative care programs.

Less-well publicized were must-haves such as the $1.9 million restored to the Massachusetts Cultural Council, which funds grants to such desperately needy nonprofits as the (private) Wang Theater and the Boston Symphony Orchestra.

And heaven forbid the state archives take a haircut; it got the $100,000 back that Baker had cut from its $666,000 budget. Saved for another day will be the reversal of Baker’s vetoes of spending on “tourism” priorities, no doubt.

This is all part of a fiscally irresponsible pattern. Each year Baker vetoes spending in the final budget to ensure it will remain in balance for the full year. Each year the House and Senate reverse most of those vetoes — leaving it to Baker to make mid-year cuts if revenues fall short, which they have for two years running.

The House could have waited a few weeks to review a full three months of tax collections before it reversed Baker’s cuts. Instead it made clear that has no interest in breaking bad habits.

 

NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


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