and the
Citizens Economic Research Foundation
Post Office Box 1147  ●  Marblehead, Massachusetts 01945  ●  (781) 990-1251
“Every Tax is a Pay Cut ... A Tax Cut is a Pay Raise”

44 years as “The Voice of Massachusetts Taxpayers”
and their Institutional Memory

Help save yourself join CLT today!


CLT introduction  and membership  application

What CLT saves you from the auto excise tax alone

Make a contribution to support CLT's work by clicking the button above

Ask your friends to join too

Visit CLT on Facebook

Barbara Anderson's Great Moments

Follow CLT on Twitter

CLT UPDATE
Monday, September 10, 2018

Maybe 5% before more of us are gone?


For the first time in three years, Massachusetts taxpayers may be in line for another slight income tax cut in January 2019 after tax revenue growth in fiscal 2018 exceeded the threshold needed to meet the first trigger for a reduction.

Department of Revenue Commissioner Christopher Harding wrote to Baker administration budget chief Mike Heffernan on Thursday informing him that baseline tax revenue growth in fiscal 2018, adjusted for inflation, grew by 5.485 percent, well in excess of the 2.5 percent growth needed to meet the first of five triggers that must be met to reduce the rate from 5.1 percent to 5.05 percent in 2019.

Tax revenues of $25.9 billion in fiscal 2018 were up more than $2.1 billion from the prior year, according to a copy of the letter obtained by the News Service. For the income tax cut to go into effect, tax revenues must exceed the prior year's collection for the next four consecutive, three-month periods from Sept. 15 through Dec. 15.

Gov. Charlie Baker and legislative leaders anticipated the income tax in January when they built the state's fiscal 2019 budget, assuming a reduction of $83 million in income tax revenue from the cut, which would be the second-to-last before the income tax reaches its destination of 5 percent.

Voters in 2000 approved a ballot question to roll back the state’s income tax from 5.75 percent, but two years later legislators froze the income tax at 5.3 percent and imposed triggers to continue incremental reductions until it reaches 5 percent. Tax revenues in fiscal 2016 and fiscal 2017 were insufficient to trigger a cut.

State House News Service
Friday, August 31, 2018
First trigger met for 2019 income tax cut
By Matt Murphy
 


While lawmakers still haven't decided how to allocate the fiscal 2018 surplus, Massachusetts taxpayers continue to deliver revenue to Beacon Hill at levels higher than state government leaders forecast.

The Department of Revenue released August data on Thursday showing that tax collections over the first two months of fiscal 2019 are running $233 million, or 6.6 percent over the same period in fiscal 2018.

The $3.74 billion in tax collections during July and August are also running $53 million ahead of the benchmarks that Gov. Charlie Baker and the Legislature used to assemble the fiscal 2019 budget.

August tax collections of $1.843 billion were $131 million, or 7.6 percent, above August 2017 collections, and $46 million above benchmark.

In all, tax collections for fiscal 2018 exceeded original expectations by about $1.1 billion. Most of the unexpected revenue was used to cover unbudgeted expenses or deposited into the rainy day fund, but a substantial surplus of $150 million to $200 million remains unallocated.

State House News Service
Friday, September 7, 2018
Tax $$$ flow continues to outpace estimates
By Michael P. Norton


Democratic legislative leaders, who this year were the last in the nation to deliver an annual budget bill, have given no indication that they are taking seriously Comptroller Thomas Shack's warnings that they're ignoring fiscal best practices by failing for so long to tie up loose ends on a fiscal year that ended more than two months ago. Instead, judging by the level of activity on Beacon Hill since late July, lawmakers who voted themselves large pay raises at the outset of the current two-year session appear focused on their own re-election efforts, if they have challengers, or outside pursuits including side jobs.

State House News Service
Friday, September 7, 2018
Advances - Week of Sept 9, 2018


The future of our communities and the state relies on the quality of our public education. Which is why it’s so troubling that the Massachusetts Legislature failed to produce long-needed reform in how it funds our communities’ public schools.

A state legislative session that began two years ago with parliamentary hocus-pocus to ram through hefty pay and fee increases for elected officials, all hatched in secret and executed in a flash, ended in midsummer this year with the ignominious collapse of negotiations between the state House and Senate over much-needed reforms in funding public education. More money for our Statehouse solons, no money when it’s clearly needed for our kids. Not a good look....

Facing a need to make hard budgeting decisions of where to add and where to trim, even taking years if necessary to attain its goals, it appears the Legislature was counting too heavily on what appeared to be the easy way out: the “Millionaires Tax” ballot question this fall.... It would have raised an estimated $2 billion more in tax revenues, slotted for education and transportation. That is, until large numbers moved over the state line into the welcoming arms of New Hampshire or suffered the kind of setbacks in earnings that we see from time to time.

We were spared when the State Supreme Judicial Court ruled just in June that the referendum was unconstitutional and should never have been approved for the ballot to begin with. And the Legislature, prematurely counting its revenue chickens before they were hatched, was forced into a short drill in hard budgeting decisions that it had two years to make....

It’s imperative that this issue be resolved in the new session starting in January, not by pinning hopes on another misbegotten referendum question that would let the Legislature off the hook, but in setting priorities and making the kind of difficult budgeting decisions that go on in nearly every household. The future of our children, of Massachusetts and our communities is at stake. We can’t afford another failure like this one.

A Telegram & Gazette editorial
Sunday, September 2, 2018
Funding for public education in Massachusetts must be reformed


The shocking upsets of two prominent House Democrats Tuesday night is being called a strong rebuke of House Speaker Robert DeLeo's leadership, but the veteran House leader dismissed that narrative Wednesday as one that overlooks the success of House Democrats across the state.

DeLeo appeared at a Democratic Party event Wednesday morning where he did not mention Sanchez or Rushing in his remarks, but defended the House's record of the past two years. "We have taken the lead," DeLeo said.

While critics say too many urgent progressive policies are dying in the House, the speaker mentioned the House's role in helping to pass laws promoting gun safety, fighting substance abuse, raising the minimum wage, defending reproductive rights and reforming the criminal justice system. He also urged Democrats to defeat a ballot question that would roll back protections for transgender people in public facilities.

The defeat of his Ways and Means Chairman Jeff Sanchez and Majority Whip Byron Rushing in two Boston House districts, however, produced audible gasps on Tuesday night at the headquarters of Democratic gubernatorial nominee Jay Gonzalez when U.S. Rep. Michael Capuano, in a concession speech of his own on live television, confirmed the upsets.

State House News Service
Wednesday, September 5, 2018
DeLeo: "Good night" for House Dems despite Sanchez, Rushing losses


Popular incumbent Gov. Charlie Baker will face former state budget chief and health insurance executive Jay Gonzalez in a general election matchup pitting two candidates against each other with competing visions for how the state should pay for education, housing and transportation now and into the future.

Baker, who cruised to a primary victory Tuesday over conservative Springfield pastor Scott Lively, highlighted his opposition to higher taxes in a victory speech at a restaurant in Dorchester, also touting 180,000 new jobs since he took office and a record low high school dropout rate.

Gonzalez, meanwhile, launched his general election campaign promising to deliver affordable child care and pre-school in his first term, to "fully fund" public education and to move Massachusetts to a single-payer health care system.

"I get it. It is a relief to have a governor who seems nice and isn't a crazy right wing extremist. With Donald Trump setting the bar so low, nice and not crazy seems pretty good. But it's not good enough. Not for us," Gonzalez said.

State House News Service
Wednesday, September 5, 2018
Gonzalez prevails, promises "clear choice" in race against Gov. Baker


What's the difference between a Democrat and Republican Gov. Charlie Baker?

Nothing, according to Mary Lou Daxland, president of the Massachusetts Republican Assembly — a group that calls itself the "Republican wing of the Republican Party."

As expected, though, incumbent Baker won the GOP's gubernatorial primary Tuesday. But what some may not have expected was that his far-right opponent Scott Lively would nab 36 percent of the vote.

"Charlie Baker has been running under the Democrat[ic] platform for the last few years more than the Republican platform," Daxland said....

Vote Totals:

Charlie Baker:  173,776 / 63.9%
Scott Lively:       98,214 / 36.1%

WBUR 90.9 FM News
Thursday, September 6, 2018
Scott Lively's 'Surprising' Vote Totals Signal
Some Mass. GOPers Will Align With The Far-Right To Ditch Baker


As he runs at the top of the Republican party ticket in Massachusetts, Gov. Charlie Baker is supporting the rest of the GOP's statewide slate, he said Friday.

"I've endorsed the ticket, which I said I was going to do months ago, yeah," Baker told reporters when asked if he backed the party's Senate nominee, state Rep. Geoff Diehl.

Baker defeated conservative Springfield pastor Scott Lively in Tuesday's primary, in which Diehl and attorney general hopeful Jay McMahon also beat their opponents. Lt. Gov. Karyn Polito, treasurer candidate Rep. Keiko Orrall, secretary of state candidate Anthony Amore and auditor candidate Helen Brady each ran unopposed.

While Baker has touted his bipartisan credentials, including endorsements by Democratic lawmakers and mayors, and did not vote in the 2016 presidential election, McMahon and Diehl have more closely tied themselves to President Donald Trump.

State House News Service
Friday, September 7, 2018
Baker backing full GOP slate, but says he's focused on his race


The state's high court on Thursday upheld a ban on corporate donations to political candidates, a decision one plaintiff said he hopes to appeal to the United States Supreme Court.

The Massachusetts Supreme Judicial Court, in an opinion written by Chief Justice Ralph Gants, sided against plaintiffs 126 Self Storage Inc. and 1A Auto Inc. The court said the ban does not violate free speech rights and can help prevent actual and perceived corruption.

Allowing corporate contributions would create "a serious threat of quid pro quo corruption," Gants wrote.

"In just the last decade, several Massachusetts politicians have been convicted of crimes stemming from bribery schemes intended to benefit corporations," Gants wrote, going on to say that it would be "unrealistic for a court to require the Legislature to wait for evidence of widespread quid pro quo corruption resulting from corporate contributions before taking steps to prevent such corruption." ...

Massachusetts law prohibits corporations from contributing directly to candidates or establishing political action committees but allows them to make unlimited independent expenditures, with certain disclosure requirements, that are used to advocate for or against candidates but do not go directly to their campaigns. The plaintiffs argued the ban violates their First Amendment rights and unfairly applies to corporations but not other entities like unions and nonprofits....

Unions and non-profits that are not corporate-funded can give up to $15,000 to a single candidate in a year, which is 15 times the limit on an individual contribution.

The Supreme Judicial Court found there was no record of evidence showing lawmakers, in establishing the ban, acted with the "impermissible intent" of silencing the political speech of corporations "while favoring the political viewpoints of those entities that fall outside its scope."

Gants wrote that if lawmakers had intended to "accomplish viewpoint discrimination against businesses, one would certainly have expected it to include trade associations within its prohibitions," instead of leaving them excluded along with nonprofit corporations....

[Justice Scott] Kafker's opinion said the majority did not adequately address the issue of the law failing to prohibit contributions by other entities. He said it's difficult to determine if the ban's "differential treatment of business corporations rests on grounds considered legitimate, illegitimate or both."

"The ultimate issue, however, is not simply whether contributions by business corporations may be limited due to concerns about quid pro quo corruption or the appearance of such corruption, but whether a statutory scheme that bans such contributions while simultaneously permitting contributions by other organizations, including well-endowed nonprofit corporations and unions, is closely drawn to the State's interest in preventing corruption and its appearance," Kafker wrote, noting that there are examples of nonprofits and unions violating campaign finance law as well as corporations.

State House News Service
Thursday, September 6, 2018
Plaintiffs may take SJC campaign finance ruling to Supreme Court


Chip Ford's CLT Commentary

Next year will mark thirty years since the Massachusetts income tax was "temporarily" increased from its historic 5 to 5.95 percent, only "for 18 months," don'cha know.  It was "temporary" only in that the following year it was again "temporarily" hiked, to 6.25 percent. [see "The Promise" here and here.]

Twice CLT did petition drives to put the promised rollback on the ballot.  The first attempt, in 1997, saw every signature we turned in challenged by the Massachusetts Teachers Association.  After an arduous months-long challenge and defense of every signature then a long court process the teachers union, spending $2 million on its effort to defeat us, managed to get the question knocked off the 1998 ballot for being 26 certified signatures short of the 64,928 required.

With the support of then-Gov. Paul Cellucci, CLT came roaring back and did it all over again in 1999, this time collecting far more signatures than could be successfully challenged.  Our rollback went onto the 2000 ballot, where it won handily with 59 percent of the vote.

When our rollback had in steps reduced the income tax rate from 5.85 to 5.3 percent, in 2002 the Legislature unilaterally "froze" it, created a "trigger" mechanism for our rollback to continue.  The Boston Globe at that time reported ("More tax hikes next year called possible House votes override of Swift's $1.14b veto"):

"The Legislature's package freezes the income tax at 5.3 percent, despite a voter-approved ballot question that called for rolling it back to its previous level of 5 percent. [Barbara] Anderson predicted that Democrats early next year will attempt to boost the income tax to 5.6 percent, and could seek to increase the sales tax and dismantle Proposition 2½, which limits the amount communities can increase property taxes in a given year."

Barbara died before ever seeing the "temporary" income tax rate rolled all the way back to its historic 5 percent, and I'm moving on out-of-state before I ever will.  Thirty years is a long time to prosecute a campaign to roll back a "temporary" tax increase and it's still not complete.  Persistence seems to be bringing it a little closer.  Maybe it'll finally return to 5 percent before more of us are gone?


Meanwhile, the Massachusetts primary election came and went last week.  Most of the results were unremarkable, typical for our liberal-dominated Bay State.  Most of the incumbents in "The Best Legislature Money Can Buy," on taxpayer-paid leave since last month and not due back to work until early January, had plenty of free time to campaign against any challengers.  But there were a few surprises.

Democrat House Ways and Means Chairman Jeff Sanchez and Majority Whip Byron Rushing were defeated by their party's progressive wave, and Rep. Robert Koczera of New Bedford also lost his primary to political newcomer Christopher Hendricks.  The longest-serving Massachusetts Speaker of the House, Robert DeLeo, summed it up:  "... out of approximately 130 members we only had 16 or 17 members that had any primary challenges and out of those 16 I think it was 13 who were victorious so I think it was a good night for the Democratic House."

Ten-term uber-liberal U.S. Congressman Michael Capuano was defeated by the "Resistance's" darling, progressive Ayanna Pressley, who, without a Republican opponent in November, will become the 7th Congressional District's new congresswoman.

The only noticeable change is that Massachusetts became a bit more liberal.

One outcome that surprised many, and didn't surprise some was the Republican primary for governor.  "The Most Popular Governor in The Nation," Charlie Baker, won against challenger Scott Lively, an unknown, vastly under-funded pastor from Springfield.  That Baker won surprises few of us but the impressive 36% vote margin won by Lively said a whole lot about Baker's support among conservatives.

Like Baker did in the presidential election, I did not vote for him.  I had two winners:  Republicans Geoff Diehl for U.S. Senate, now running against U.S. Senator and presumed 2020 presidential candidate Elizabeth Warren in November, and Jay McMahon for Attorney General, now running against gun-grabbing anti-Trump AG Maura Healey.

Charlie Baker is now running for re-election against the Democratic Party's preferred nominee, Jay Gonzalez Deval Patrick's Secretary of Administration and Finance.  We taxpayers now have a choice between Democrat Lite and Democrat Left.

As I've said before, Charlie Baker is the best Democrat we taxpayers can hope to elect as governor in Massachusetts.  While he's not as conservative as Democrat Edward J. King was as governor, he's definitely head and shoulders and then some above Michael Stanley Dukakis.

Like many more than expected, I cast my protest vote for Scott Lively.  Come November assuming I'm still here and not already in Kentucky I'll hold my nose and vote for the lesser of two evils.  Then I'll run like hell for the border!

Chip Ford
Executive Director


 

The Worcester Telegram & Gazette
Sunday, September 2, 2018

A Telegram & Gazette editorial
Funding for public education in Massachusetts must be reformed


The future of our communities and the state relies on the quality of our public education. Which is why it’s so troubling that the Massachusetts Legislature failed to produce long-needed reform in how it funds our communities’ public schools.

A state legislative session that began two years ago with parliamentary hocus-pocus to ram through hefty pay and fee increases for elected officials, all hatched in secret and executed in a flash, ended in midsummer this year with the ignominious collapse of negotiations between the state House and Senate over much-needed reforms in funding public education. More money for our Statehouse solons, no money when it’s clearly needed for our kids. Not a good look.

Any self-congratulation over the session’s accomplishments – and there were several, such as in criminal justice reform and in addiction treatment – ignores that one of the prime directives of state and local government is the education of its children, its new generations of leaders, innovators and residents who will shape what our state becomes.

Twenty-five years ago, Massachusetts passed the Education Reform Act, a “grand bargain” forced on the state by legal action over the inequities in the state’s public education funding. In exchange for a Foundation Budget that set expectation for local funding by each community, it established a formula for state funding based on community needs, and developed standards and testing, and further empowered state education officials to take over failing school systems if need be, as they’ve done in Southbridge and two other communities. The changes helped propel the state’s education system to the top of the nation, one in which Massachusetts children can compete with the world. But after a quarter century, it’s become painfully clear that the formulas are in need of adjustment.

In fact, by some estimates, the shortfall in state funding amounts to $1.5 billion to $2 billion annually – those are numbers in the 30 to 40 percent range of the state’s total $4.6 billion allocation and represent up to 5 percent of the state’s total budget.

Facing a need to make hard budgeting decisions of where to add and where to trim, even taking years if necessary to attain its goals, it appears the Legislature was counting too heavily on what appeared to be the easy way out: the “Millionaires Tax” ballot question this fall. It would have nearly doubled the tax on earnings over $1 million, adding a 4 percent surtax on income over $1 million to the state’s flat 5.1 percent income tax. This easy way out would have enabled millions of Massachusetts voters to hit the pocketbooks of roughly 16,000 to 20,000 people here making more than $1 million a year. It would have raised an estimated $2 billion more in tax revenues, slotted for education and transportation. That is, until large numbers moved over the state line into the welcoming arms of New Hampshire or suffered the kind of setbacks in earnings that we see from time to time.

We were spared when the State Supreme Judicial Court ruled just in June that the referendum was unconstitutional and should never have been approved for the ballot to begin with. And the Legislature, prematurely counting its revenue chickens before they were hatched, was forced into a short drill in hard budgeting decisions that it had two years to make.

What’s painful is that this issue didn’t happen overnight - it’s been building for years. Any excuses that the Legislature “ran out of time” during this two-year session ignores warnings going back a decade. The 1993 Education Reform Act, with foresight, includes a mechanism for a periodic review of the formula. A foundation budget review commission, headed by legislative and state education leaders, and incorporating a wide variety of participants that included teacher unions, began meeting in 2014 and issued a report in 2015, more than a year before the just-ended legislative term began in 2017. And if that weren’t enough, there were the threats of new suits against the state emanating from cities such as Worcester and Brockton.

The commission findings and recommendations included addressing the two areas in which costs were far outrunning funding: health insurance, including retiree health insurance; and special education, including the growing cost of as well as an increased number of students requiring special ed. Other factors include the growth in population of English language learners, especially on the high school level and including students arriving here with “limited or interrupted formal education,” typically with high needs in coming from war-torn or otherwise devastated nations. Also, an increase in the number of students living in poverty.

These issues hit urban school systems hard, especially Gateway Cities such as Worcester. And it’s an accomplishment that despite this, the Worcester Public Schools in general have performed notably better than other similarly situated communities. Kudos to them, but the system still has a way to go and more equitable funding would help. The festering funding issues, however, go beyond cities – rural school systems, including here in Central Massachusetts, have been hit by the outdated funding formula as well.

The state Senate version of the now-dead legislation hewed more closely to the 2015 commission’s recommendations. The House balked at provisions addressing the growth of ELL students and low-income students, precisely the issues affecting Worcester. It’s imperative that this issue be resolved in the new session starting in January, not by pinning hopes on another misbegotten referendum question that would let the Legislature off the hook, but in setting priorities and making the kind of difficult budgeting decisions that go on in nearly every household. The future of our children, of Massachusetts and our communities is at stake. We can’t afford another failure like this one.


State House News Service
Wednesday, September 5, 2018

DeLeo: "Good night" for House Dems despite Sanchez, Rushing losses
By Matt Murphy

The shocking upsets of two prominent House Democrats Tuesday night is being called a strong rebuke of House Speaker Robert DeLeo's leadership, but the veteran House leader dismissed that narrative Wednesday as one that overlooks the success of House Democrats across the state.

DeLeo appeared at a Democratic Party event Wednesday morning where he did not mention Sanchez or Rushing in his remarks, but defended the House's record of the past two years. "We have taken the lead," DeLeo said.

While critics say too many urgent progressive policies are dying in the House, the speaker mentioned the House's role in helping to pass laws promoting gun safety, fighting substance abuse, raising the minimum wage, defending reproductive rights and reforming the criminal justice system. He also urged Democrats to defeat a ballot question that would roll back protections for transgender people in public facilities.

The defeat of his Ways and Means Chairman Jeff Sanchez and Majority Whip Byron Rushing in two Boston House districts, however, produced audible gasps on Tuesday night at the headquarters of Democratic gubernatorial nominee Jay Gonzalez when U.S. Rep. Michael Capuano, in a concession speech of his own on live television, confirmed the upsets.

DeLeo on Wednesday tried to shake off the blame for Sanchez and Rushing losing their seats.

"If one were to take a look at the elections on the statewide basis, first of all you'll see that out of approximately 130 members we only had 16 or 17 members that had any primary challenges and out of those 16 I think it was 13 who were victorious so I think it was a good night for the Democratic House and I'm proud of our results and, again, I'm looking forward to doing all I can to make sure we bring back as many Democratic members as we can," DeLeo said.

The House currently has 117 Democrats, of which 16 faced primary challenges on Tuesday. Rep. Robert Koczera of New Bedford also lost his primary to political newcomer Christopher Hendricks.

Sanchez lost to Nika Elugardo, who has worked for a number of state and local advocacy organizations, while Rushing, the co-chair of the House Progressives Caucus, lost in a three-way primary to Jon Santiago, a Boston Medical Center emergency medicine resident.

"It's a clear rebuke to the speaker and it's clear that you need to be more aligned with the district than with the building," said Rep. Russell Holmes, a Mattapan Democrat.

Holmes knows the risks of challenging DeLeo. He lost a committee vice-chairmanship after trying to initiate a discussion about new leadership in the House after speaker-in-waiting Brian Dempsey left the Legislature last summer.

DeLeo denied that Holmes was demoted as retaliation for his comments, but failed to offer any detailed explanation for his decision.

"I'm sad that I lost both of my colleagues, but I think it sends a message that what he did with me was the wrong thing to have done," Holmes said.

"What Is Next In The Building"

Elugardo specifically criticized Sanchez for being unable to deliver on immigrant protections that his district favored, but that DeLeo was hesitant to put to a vote. Sanchez, who co-sponsored the legislation, said at the end of the session that he was able to find a consensus among his House colleagues on a path forward this session.

DeLeo said he looked forward to having a discussion with Elugardo, but did not signal any intention to shift the House to the left or alter his management and decision-making approach.

"I can tell you that those folks who do know me they know that I'm a consensus builder," DeLeo said. "I work on compromise. It's not very uncommon that I would have anywhere from two people to twenty people in my office to try to work consensus out, so I would respectfully say whether it's myself as speaker or working with the chairs or the members that's the way I operate."

Holmes said he will be watching to see how DeLeo responds after being unable to protect two members of his leadership team who also happen to be the highest ranking black and Latino lawmakers in the Legislature.

"What I think is going to be interesting next is what is next in the building," Holmes told the News Service at the Dorchester unity event. "My thought is how does the speaker receive this?"

DeLeo expects to remain as speaker in 2019 after becoming the longest continuously serving House speaker in state history this summer, but it remains to be seen how the Democratic membership will react to the loss of Sanchez, Rushing and Koczera and whether they will bring any pressure to bear on the speaker to shake things up.

Sanchez, in a statement released overnight, called his 16 years in the House a "privilege."

"From the moment I took office, I have enjoyed getting up every morning to fight together with my neighbors for the liberal values that we hold dear. I am so proud of everything we have accomplished," he said.


State House News Service
Wednesday, September 5, 2018

Gonzalez prevails, promises "clear choice" in race against Gov. Baker
By Matt Murphy


Popular incumbent Gov. Charlie Baker will face former state budget chief and health insurance executive Jay Gonzalez in a general election matchup pitting two candidates against each other with competing visions for how the state should pay for education, housing and transportation now and into the future.

Baker, who cruised to a primary victory Tuesday over conservative Springfield pastor Scott Lively, highlighted his opposition to higher taxes in a victory speech at a restaurant in Dorchester, also touting 180,000 new jobs since he took office and a record low high school dropout rate.

Gonzalez, meanwhile, launched his general election campaign promising to deliver affordable child care and pre-school in his first term, to "fully fund" public education and to move Massachusetts to a single-payer health care system.

"I get it. It is a relief to have a governor who seems nice and isn't a crazy right wing extremist. With Donald Trump setting the bar so low, nice and not crazy seems pretty good. But it's not good enough. Not for us," Gonzalez said.

Both Baker and Gonzalez looked poised to win by similar margins, each with roughly 65 percent of the vote in their respective party primaries with more than two-thirds of the votes counted, though the number of Democratic ballots cast far exceeded those voting in the GOP primary.

Gonzalez, who served in Gov. Deval Patrick's cabinet before leaving government to run the health insurance company CeltiCare, solidly defeated Bob Massie, a Somerville environmental activist and entrepreneur, in a primary contest that came to be seen as the classic insider-versus-outsider contest.

The first-time candidate sold himself as a leader with the experience on Beacon Hill to deliver on his campaign promises, which include progressive tax reform that will ask the wealthy to pay more to invest in transportation infrastructure and early education.

"There's going to be a very clear choice in this election," Gonzalez told reporters, indicating his hope to harness some of the energy on the Democratic side that helped sweep progressives like Ayanna Pressley into office on Tuesday night.

Gonzalez will run against the GOP ticket of Baker and Lt. Gov. Karyn Polito with former Obama administration official Quentin Palfrey, who defeated political satirist and comedian Jimmy Tingle in the Democratic primary for lieutenant governor.

Baker, who accepted his party's nomination at Venezia restaurant in Dorchester, ticked through many his administration's accomplishments, from partnerships with municipalities to clean energy promotion and moving the homeless out of hotels and motels.

"Today, four years later, our state is on the rise. Our economy is booming. Our schools are the best in the nation. And hope and possibility is blooming in every corner of the commonwealth," Baker said.

The governor also said that despite passing two bills to combat the opioid epidemic, there was more to do on that front. He also mentioned housing production legislation that stalled in the Legislature this year.

"Finally, we need to respect the taxpayer by continuing to make state government work smarter and better --- and by standing up to the urge by many on Beacon Hill to just raise taxes," Baker said.

Baker remains one of the most popular governors in the country, which worked to scare off many Democrat donors during the primary cycle as Gonzalez and Massie both struggled to raise money.

With the party coalescing behind Gonzalez and the campaign moving into its next phase, Gonzalez will look to consolidate the party and assure liberal-minded independent voters that he has a chance to topple Baker.

In addition to his strong standing with voters, Baker holds a sizable advantage over Gonzalez in fundraising with $6.3 million in the bank at the end of August compared to Gonzalez's $366,000. The Republican Governors Association has also poured $2.8 million so far into the Commonwealth Future super PAC to support Baker.

While it remains to be seen if the Democratic Governors Association will invest in the Gonzalez-Palfrey ticket, the organization headed by Washington Gov. Jay Inslee congratulated Gonzalez on his win.

"As the son of an immigrant, Jay joins the most diverse class of Democratic nominees ever. Jay Gonzalez has served the people of Massachusetts, helping to expand access to health care, invest in early education and manage the state's budget under Gov. Deval Patrick. Jay will be a leader for all Massachusetts families, and will push back against President Trump's policies that are harming Massachusetts," said Jared Leopold, a spokesman for the Democratic Governors Association. "

Neither Baker nor Gonzalez targeted each other directly on Tuesday night in their speeches, but the battle line being drawn were clear.

Gonzalez spoke about building a transportation system that commuters can count on to get to work on time, while Baker said his administration will invest $8 billion over the next five years, or $5 billion more than the last five years of Deval Patrick's administration.

"This will be an honest, positive campaign," Gonzalez said. His campaign said they would have more to say soon about how many debates with Baker they will be requesting. Baker did not debate Lively.

Attorney General Maura Healey came to the Boston Teachers Union Hall in Dorchester to introduce Gonzalez to the small crowd of volunteers and supporters.

"I'm ready for a governor who knows that in the time that we are in, especially, that failing to lead means falling behind," said Healey, who was critical of Baker when Democrats gathered for their part convention in June. "I'm ready for Jay Gonzalez."

Auditor Suzanne Bump, who faces her own re-election challenge this fall against Republican Helen Brady, also joined Gonzalez on stage. Bump had endorsed Gonzalez before the party's convention in June.

"Jay actually has vision. He's willing to take positions on difficult issues. He's willing to take some risks in order to move the state forward," Bump said about Gonzalez's chances against Baker, who she called a "play-it-safe governor."


State House News Service
Friday, September 7, 2018

Baker backing full GOP slate, but says he's focused on his race
By Katie Lannan


As he runs at the top of the Republican party ticket in Massachusetts, Gov. Charlie Baker is supporting the rest of the GOP's statewide slate, he said Friday.

"I've endorsed the ticket, which I said I was going to do months ago, yeah," Baker told reporters when asked if he backed the party's Senate nominee, state Rep. Geoff Diehl.

Baker defeated conservative Springfield pastor Scott Lively in Tuesday's primary, in which Diehl and attorney general hopeful Jay McMahon also beat their opponents. Lt. Gov. Karyn Polito, treasurer candidate Rep. Keiko Orrall, secretary of state candidate Anthony Amore and auditor candidate Helen Brady each ran unopposed.

While Baker has touted his bipartisan credentials, including endorsements by Democratic lawmakers and mayors, and did not vote in the 2016 presidential election, McMahon and Diehl have more closely tied themselves to President Donald Trump.

Diehl helped lead Trump's state campaign operation and told reporters a year and a half ago that he would "absolutely" ask the preisdent to stump for him against U.S. Sen. Elizabeth Warren. McMahon, in a WATD radio debate last month, said he thought his support for Trump would help him with voters.

Baker said he and Polito also "typically support a lot of" the Republican lawmakers seeking re-election. On Friday night, he will be a guest at an event for Rep. Donald Wong at the Kowloon Restaurant in Saugus.

"I think in some respects those are people we know, those are people we've worked with, and those are folks who can help us pursue our agenda up here on Beacon Hill," Baker said.

Democrats hold a supermajority in both the House and Senate. With 200 legislative seats on the ballot Nov. 6, 37 GOP lawmakers are seeking reelection, while another 13 are running for open seats and 23 are challenging incumbent Democrats.

Baker said whether he gets involved in any races where Republicans are looking to unseat Beacon Hill Democrats "depends to some extent on time."

"We have a race, and we plan to spend most of the next 58 days focused on ours," he said.

The general election is Nov. 6 and will pit Baker and Polito against the Democratic ticket of Jay Gonzalez and Quentin Palfrey.


State House News Service
Thursday, September 6, 2018

Plaintiffs may take SJC campaign finance ruling to Supreme Court
By Katie Lannan


The state's high court on Thursday upheld a ban on corporate donations to political candidates, a decision one plaintiff said he hopes to appeal to the United States Supreme Court.

The Massachusetts Supreme Judicial Court, in an opinion written by Chief Justice Ralph Gants, sided against plaintiffs 126 Self Storage Inc. and 1A Auto Inc. The court said the ban does not violate free speech rights and can help prevent actual and perceived corruption.

Allowing corporate contributions would create "a serious threat of quid pro quo corruption," Gants wrote.

"In just the last decade, several Massachusetts politicians have been convicted of crimes stemming from bribery schemes intended to benefit corporations," Gants wrote, going on to say that it would be "unrealistic for a court to require the Legislature to wait for evidence of widespread quid pro quo corruption resulting from corporate contributions before taking steps to prevent such corruption."

Massachusetts law prohibits corporations from contributing directly to candidates or establishing political action committees but allows them to make unlimited independent expenditures, with certain disclosure requirements, that are used to advocate for or against candidates but do not go directly to their campaigns. The plaintiffs argued the ban violates their First Amendment rights and unfairly applies to corporations but not other entities like unions and nonprofits.

Michael Kane, the owner of the Ashland-based 126 Self Storage, said on a conference call with reporters Thursday that he would like to take the case to the Supreme Court. The attorney representing the plaintiffs, Goldwater Institute senior fellow Jim Manley, said he would be "more than happy to ask the court to resolve this dispute."

"You can't treat people differently just because someone thinks that's the way it should be," Kane said. "You have to treat us all the same. Corporations, businesses and unions aren't all that different. We all have officers and boards of directors and employees, or represent employees, et cetera. There's not that big a difference."

Manley said he still needed to discuss it with the plaintiffs, but he was "anticipating" they would request the Supreme Court hear their case. If they do, they would file a petition for the beginning of December, he said.

"The same rules should apply all across the board, to both sides of the bargaining table, and what the SJC said today was that the U.S. Constitution and the Massachusetts Constitution allows the state to discriminate against groups based on their viewpoints and ban certain viewpoints from contributing to candidates," Manley said. "That, we think is unconstitutional. We think the U.S. Supreme Court has actually said the opposite, has said that that is unconstitutional, and it's my hope that the U.S. Supreme Court will weigh in and change the outcome in this case."

Kane is a member of the board of the Massachusetts Fiscal Alliance, which was founded by 1A Auto President and CEO Rick Green. Green is the Republican nominee in the Third Congressional District.

Paul Craney, a Mass Fiscal board member and spokesman, called the ruling a "major disappointment that only further upholds the country's most unfair state campaign finance law."

"Since it was first enacted decades ago, the union loophole has tainted countless elections across our state, even giving a louder voice to out of state union bosses than Massachusetts residents and employers," Craney said in a statement.

Though they cannot give directly to a candidate, corporations are allowed to give unlimited sums toward ballot question campaigns and they can set up outside groups to influence the political process. Unions and non-profits that are not corporate-funded can give up to $15,000 to a single candidate in a year, which is 15 times the limit on an individual contribution.

The Supreme Judicial Court found there was no record of evidence showing lawmakers, in establishing the ban, acted with the "impermissible intent" of silencing the political speech of corporations "while favoring the political viewpoints of those entities that fall outside its scope."

Gants wrote that if lawmakers had intended to "accomplish viewpoint discrimination against businesses, one would certainly have expected it to include trade associations within its prohibitions," instead of leaving them excluded along with nonprofit corporations.

Judges Kimberly Budd and Scott Kafker, appointees of Gov. Charlie Baker, each penned separate concurring opinions. There was no dissent.

Kafker's opinion said the majority did not adequately address the issue of the law failing to prohibit contributions by other entities. He said it's difficult to determine if the ban's "differential treatment of business corporations rests on grounds considered legitimate, illegitimate or both."

"The ultimate issue, however, is not simply whether contributions by business corporations may be limited due to concerns about quid pro quo corruption or the appearance of such corruption, but whether a statutory scheme that bans such contributions while simultaneously permitting contributions by other organizations, including well-endowed nonprofit corporations and unions, is closely drawn to the State's interest in preventing corruption and its appearance," Kafker wrote, noting that there are examples of nonprofits and unions violating campaign finance law as well as corporations.

 

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


Citizens for Limited Taxation    PO Box 1147    Marblehead, MA 01945    (781) 990-1251

BACK TO CLT HOMEPAGE