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
Sunday, October 28, 2018

Last year's budget and CLT almost closed out


“Unlike the federal government, Massachusetts relies on a flat income tax and sales taxes. Those with the least income end up paying the greatest portion of it in state and local taxes. It’s like Robin Hood in reverse.”

Phineas Baxandall, Senior Policy Analyst of Massachusetts Budget and Policy Center and author of the report “Who Pays.”

“In a 1927 U.S. Supreme Court decision, Justice Oliver Wendell Holmes, Jr. said: ‘Taxes are what we pay for civilized society.’ Of course this was only fourteen years after the Sixteenth Amendment was adopted establishing a federal income tax and a tax rate of between one to three percent. Apparently maintaining a civilized society has become far more expensive. But what can possibly be more fair than each member of that society contributing the same percentage of their income — large or small — to remain civilized; in other words, ‘from each according to their ability’”

Chip Ford, Executive Director of Citizens for Limited Taxation responding to Baxandall’s study.

Beacon Hill Roll Call
Week of October 22-26
QUOTABLE QUOTES
By Bob Katzen


Massachusetts Democrats supporting Gov. Charlie Baker, a Republican seeking his second term in the deep blue Bay State, are particularly unprecedented in today’s hyper-partisan political climate.

“It’s rare to see a governor of one party get such strong backing from members of the other party,” former Mitt Romney adviser Ryan Williams said. “Given the state’s Democratic tilt, to be as popular as Gov. Baker and to win convincingly as he likely will on Election Day is nothing short of a miracle. It’s unheard of.”

A number of Democrats have gone against the grain to endorse the Baker-Polito ticket, including Rep. Dave Nangle and Rep. Chris Markey, nine Democratic mayors and seven independent mayors....

Earlier this week, Baker was also endorsed by both the Major City Police Chiefs for the group’s first-ever endorsement, and the political arm of Everytown for Gun Safety, which calls itself the largest gun violence prevention organization in the U.S.

The Service Employees International Union, which historically has backed Democrats for public office in Massachusetts, decided to remain neutral in the contest for governor after meeting with both candidates last month.

The Boston Herald
Sunday, October 21, 2018
Charlie Baker gets nods from Democrats
Governor earns bipartisan support


As he runs for a second term against Democrat Jay Gonzalez, Gov. Charlie Baker is now also facing a different campaign from his right, as a conservative group urges Republicans to blank their ballots in the gubernatorial contest.

The Massachusetts Republican Assembly on Thursday announced its "Blank Baker" campaign, saying the governor has displayed a hesitance "to support fellow Republicans," and alluding to his decision not to vote for either candidate in the 2016 presidential election.

"In an election that offers no actual gubernatorial choice to advance the cause of common sense or conservatism, the Massachusetts Republican Assembly will invoke Baker's own standard: Do not vote for the lesser of two evils," the group said in a press release.

The group is selling "#BlankBaker2018" bumper stickers for $5.

Asked about the Republican Assembly's effort, Baker said his approach to governance is built on bipartisanship and attempts "to listen to everybody." ...

A moderate Republican whose campaign highlights endorsements from Democratic mayors and state representatives, Baker has criticized President Donald Trump's policy proposals on issues including health care, and opposed the nomination of Supreme Court Justice Brett Kavanaugh.

Fifty-five percent of the state's roughly 4.5 million voters were unenrolled as of Aug. 15, according to Secretary of State William Galvin's office. The 465,952 registered Republicans make up just over 10 percent of voters, with nearly 1.5 million Democrats accounting for 33 percent.

State House News Service
Tuesday, October 23, 2018
Republican group urges GOP voters to blank governor's race


Gov. Charlie Baker signed the bulk of a $541 million budget bill approved by the Legislature last week that would push the state's reserves above $2 billion for the first time in a decade and put millions of dollars into school safety, but the governor on Tuesday also proposed several amendment that will keep the state from fully turning the page on fiscal 2018.

Baker's office announced late Tuesday afternoon that the governor had signed off on $70 million in infrastructure spending, including $40 million for roads and bridges and $10 for clean water projects.

The bill also included $33 million to pay for snow and ice removal done last winter, $5 million for transitional housing assistance for hurricane evacuees from Puerto Rico, $10 million for life science investments and $700,000 for tuition and fee waivers for children who turned 18 while in the custody of the state and are headed to college.

"This bill helps close the books on fiscal 2018, and provides targeted funding for important initiatives including improved security and mental health counseling in schools, as well as money for local roads, bridges, and clean drinking water project," Baker said in a letter to House and Senate leaders.

Lawmakers last week finally got around to considering a close-out budget that both paid the state's outstanding bills from fiscal 2018, which ended on July 1, and decided how to allocate a surplus from last year....

"By doing so, we build a cushion we are able to draw on in the event of a future recession, and at the same time we protect the Commonwealth from over-reliance on volatile sources of revenue," Baker wrote.

The "rainy day" fund, according to the administration, will eclipse the $2 billion mark for the first time since 2008, just prior to the Great Recession when state leaders had to lean heavily on the stabilization fund and federal stimulus dollars to avoid even deeper cuts to state services.

The bill also increased the state's contribution to its non-pension, post-employment benefit liability from 10 percent to 30 percent tobacco settlement funds.

State House News Service
Tuesday, October 23, 2018
New budget law pushes state savings account balance past $2 Billion


Fighting a mountain-size deficit in the public polls, Jay Gonzalez has whacked Governor Charlie Baker on the MBTA. He’s attacked the Republican on gas pipelines and the State Police. He’s tried to corner Baker on his support for a conservative Senate candidate.

But what about Baker’s central 2014 campaign promise to voters that he wouldn’t raise taxes? As a debate moderator pressed the governor on the issue last week, Gonzalez, the Democratic challenger, watched, waited his turn, and then . . . changed the subject....

“To start with, it’s hard for a Democrat to criticize someone for raising taxes they think are necessary. Here, he’s already made a point to basically say this guy should be taxing more,” Ray La Raja, a political scientist at the University of Massachusetts Amherst, said of Gonzalez. “That’s a tough one.” ...

Baker’s own nuanced dance with new taxes has weaved through his first term, during which he has defended his support for new revenue when he says it supports new programs or levels a “playing field,” as in the case of new taxes he backs on short-term rentals, such as Airbnb’s. The Republican has reiterated his opposition to broad-based increases on the income or sales tax, repeatedly filing budgets without them. And he’ll continue to oppose them if reelected, said campaign spokesman Terry MacCormack....

In response, the Republican defended the payroll tax, noting it was tied to the so-called grand bargain between activists, business leaders, and legislators to keep several ballot questions from going to voters in a “deal that people can live with,” Baker said.

“It’s an $800 million increase to support that new benefit, yeah,” Baker said, adding that he didn’t raise taxes as he closed what he called a $1 billion structural budget deficit after taking office.

The Boston Globe
Thursday, October 25, 2018
Baker promised not to raise taxes.
Facing a challenger, he rarely has to defend that promise


Advocates pushing to uphold the state's transgender public accommodations law are also now rallying against a potential Trump Administration change to the legal definition of sex, a move Gov. Charlie Baker also said he'd oppose.

The New York Times over the weekend reported that the U.S. Department of Health and Human Services is looking to establish, a uniform definition of sex as either male or female, based on the genitals a person is born with.

"I've said before that I'm opposed to the administration's positions on a variety of issues associated with the LGBTQ community," Baker said after an unrelated event Tuesday. "And this one is something that -- they haven't promulgated anything yet, so far there's news reports on internal memos -- but if they promulgate something for comment, we're obviously going to comment against it and explain why, and do some of the work we've done before, which is to reach out to governors and to other elected officials, Democrats and Republicans, who we believe will have a similar point of view to ours and work hard to get that idea overturned."

Question 3 on the Nov. 6 ballot in Massachusetts asks voters whether to uphold or repeal the state's 2016 public accommodations law, which allows transgender people to access sex-segregated facilities, like locker rooms, that correspond to their gender identity rather than assigned sex at birth.

State House News Service
Wednesday, October 24, 2018
Baker opposed to possible Fed move defining sex at birth


But Senator Marc R. Pacheco didn’t cast a vote that day.

The Senate’s third-highest-ranking member was 4,000 miles away in Austria, delivering a speech on climate change in the picturesque mountain village of Fresach, his travel costs picked up by Austrian groups. He was the only member of the Senate who missed the chance to move the momentous bill forward.

This was just one of nearly 50 trips — all subsidized by outside groups — that the Taunton Democrat has taken since January 2013. And each was made possible by what one watchdog calls a “galactic-sized loophole” in state ethics regulations, one that Pacheco and scores of lawmakers take advantage of, according to a Globe analysis of more than 600 disclosures filed by legislators.

Members of the Massachusetts House and Senate have racked up about 3,000 traveling days and accepted more than $1 million in free or subsidized flights, hotels, meals, and other travel costs since the beginning of 2013, the Globe found....

Legislators emphasize that no taxpayer dollars fund their journeys, which often include weekends and holidays. And they say that any sightseeing is secondary to the policy-heavy aspects of the trips, or that the tourist activities actually benefit the state.

But taking far-flung voyages with few out-of-pocket costs because of the largesse of a foreign government, nonprofit, or company is a practice that raises questions about what the outside group is hoping to get in return for footing the bill, and underscores the indulgent rules lawmakers get to play by.

Nonelected state employees — bureaucrats — must get approval from their appointing authority before accepting a trip, under state ethics regulations. State representatives and senators are empowered to make that call themselves.

The Boston Globe
Sunday, October 21, 2018
Lawmakers make most of travel option
 


Chip Ford's CLT Commentary

On finally closing out the Fiscal Year 2018 state budget, on Tuesday the State House News Service reported:

Gov. Charlie Baker signed the bulk of a $541 million budget bill approved by the Legislature last week that would push the state's reserves above $2 billion for the first time in a decade and put millions of dollars into school safety, but the governor on Tuesday also proposed several amendment that will keep the state from fully turning the page on fiscal 2018. . . .

The bill also increased the state's contribution to its non-pension, post-employment benefit liability from 10 percent to 30 percent tobacco settlement funds.

Misuse and abuse of the so-called "tobacco settlement fund" is being increased, spending from it going from 10 percent to now 30 percent just to bail out government employee benefits.  Back in 1999 CLT fought hard to have the billions of dollars Massachusetts received and continues receiving returned to the taxpayers as was the alleged original intent of the attorney general's lawsuit against the tobacco industry. (See:  The CLT Tobacco Settlement Project)

In my June 1999 testimony before the Joint Committee on Taxation on CLT's bill, S.1635, "To Provide for the Return to the Taxpayers of the Proceeds from the Nationwide Tobacco Settlement," I noted:

In 1989, due to fiscal mismanagement by the Dukakis administration, the state income tax rate was "temporarily" increased from 5 percent to 5.75 percent. The estimated $793 million annual revenue increase was to be used to close a $375 million FY '89 budget gap, to compensate hospitals for $50 million lost through a shortfall in federal Medicare funding -- and to pay $484 million in past Medicaid bills.

A decade later, taxpayers have long ago paid off the state's Medicaid debt but the "temporary" income tax rate is still stuck at 5.95 percent.

In his lawsuit against the tobacco industry, Attorney General Scott Harshbarger argued before the courts: "[E]ach year, the Commonwealth must spend millions of dollars to purchase or provide medical and related services for Massachusetts citizens suffering from diseases caused by cigarette smoking. ... The 'smoking-related costs to the Commonwealth' are said to include, but not be limited to, 'medical assistance provided under Massachusetts' Medicaid program' and 'medical assistance provided under the Common Health Program.' The complaint seeks 'both monetary damages and injunctive relief.'"

He added: "As the Supreme Judicial Court has held, reimbursement is simply 'repaying or making good the amount paid out.'" ...

The taxpayers have paid the cost of health care for uninsured smokers with tobacco-related illnesses; we have paid the same Medicaid bill over and over again a number of times. A decade later and we are still burdened with the promised "temporary" income tax increase, a huge revenue surplus due to continued over-taxation, and now an additional $8.3 billion taxpayer "reimbursement" that some want to spend.

It took 207 years for the state to reach its first $10 billion budget, but only the last dozen to more than double it. When is enough enough?

I hope this Legislature will not be a party to the ongoing bait-and-switch scam, and will insure that taxpayers get their long overdue promised relief, that they finally receive their just reimbursement for their decades of compassion.

As then-Attorney General Harshbarger so aptly pointed out to the court, using the very words of the Supreme Judicial Court itself:

"Reimbursement is simply repaying or making good the amount paid out."

Massachusetts and other states got the settlement with Big Tobacco and for two decades and counting our state continues to rake in the billions.  That was supposed to be our "reimbursement" for taxes we'd already paid and which were even increased on us "temporarily" to bail out the cost of that "tobacco-related" health care.  Instead of reimbursing taxpayers for their cost, those billions of our dollars disappeared into the state's black hole, a new slush fund that's been used for all sorts of unintended, unrelated purposes, including to enrich state employees.

It would be remiss of me if I didn't point out that in 1999, as noted in my testimony above, the state budget had then doubled over the previous dozen years to $20 Billion.  Since that testimony it has more than doubled again, to $42 Billion.  The pols take in more, they spend more, then they need more to keep up the spending.


I've got to get back to packing and hauling heavy boxes down to the PODS container out front.  Whew, I am exhausted; have lost 15 pounds over the past month from all this forced exercise!  My weight surprisingly went up to 190 pounds over the past two years, more than I've ever weighed.  Turned out this was directly due to being shackled to my desk 16-18 hours a day, seven sedentary days a week year 'round since Barbara Anderson passed away and I took over her job as well as doing my own.  All I needed to do to lose that weight gain was to just break away from my desk and move around!

Election Day is Tuesday, November 6th.  The day after will be my final day with a functioning computer for a few weeks.  On November 8th I will break down the entire computer system and all its components, pack it all up for my move.  The moving company truck is scheduled to arrive and load on November 13th then take off for my new home in Kentucky.  Once I close on the sale of my house here, then Gilgamesh (Barbara's and my cat that I inherited) and I will be on the road heading for my new sanctuary state a thousand-mile drive.   I expect to arrive there by the 15th.  It'll be a week or two after that before I'm moved in, my computer system is set up, and we're back on line.

In January keep an eye on your (U.S. Postal) mail for a possible poll from CLT in exile, on whether or not you want it to restart for 2019.

Chip Ford
Executive Director


 
The Boston Herald
Sunday, October 21, 2018

Charlie Baker gets nods from Democrats
Governor earns bipartisan support
By Mary Markos


Massachusetts Democrats supporting Gov. Charlie Baker, a Republican seeking his second term in the deep blue Bay State, are particularly unprecedented in today’s hyper-partisan political climate.

“It’s rare to see a governor of one party get such strong backing from members of the other party,” former Mitt Romney adviser Ryan Williams said. “Given the state’s Democratic tilt, to be as popular as Gov. Baker and to win convincingly as he likely will on Election Day is nothing short of a miracle. It’s unheard of.”

A number of Democrats have gone against the grain to endorse the Baker-Polito ticket, including Rep. Dave Nangle and Rep. Chris Markey, nine Democratic mayors and seven independent mayors.

“One of the things I think is most attractive about his candidacy is, he really has proven he can work in a bipartisan way. Why not have someone from the other party support him,” Markey said. “It’s disheartening that we put party over the people we govern. Obviously I’m a Democrat and he’s a Republican and we disagree on certain things, but overall I think the message is, we can all work together for common goals.”

Chairman of the Democratic Party Gus Bickford, however, said that Democrats supporting Baker instead of his Democratic challenger, Jay Gonzalez, “isn’t unique.”

“It’s frustrating,” Bickford said. “But it also reflects on the fact that Charlie Baker has been in office controlling budgets for four years. Jay Gonzalez is not the incumbent, so I think that it says more about Jay that he’s got so many Democrats behind him challenging Charlie Baker.”

Many local mayors spoke of issues that impacted their local communities — including Nor’easters that caused immense damage, the opioid crisis and, most recently, the explosions across the Merrimack Valley caused by over-pressurization of gas lines — and how the Baker-Polito administration helped.

“I endorsed him before this happened, but the emergency that just happened cemented my belief in the governor’s inherent and instinctual leadership at this level,” Lawrence Mayor Daniel Rivera said. “He’s dealing with my problems and he’s dealing with the problems of other communities at the same time, but you never feel like you’re second in line.”

“This is not about my personal politics as a Democrat but as a mayor and what is in the best interest for my city of Newburyport,” Newburyport Mayor Donna Holaday said. “Both Charlie and Karyn come from leadership positions in their communities and truly understand the key role cities and towns hold across our commonwealth.”

“I’m grateful for Gov. Baker and Lt. Gov. Polito’s bipartisan leadership and support for communities like Revere,” Mayor Brian Arrigo said. “They have made the important investments we need to support our schools and grow our local economy, while taking on the big issues that are important to making Massachusetts, and Revere, a safer and healthier place in which to live, work, start a business and raise a family.”

Earlier this week, Baker was also endorsed by both the Major City Police Chiefs for the group’s first-ever endorsement, and the political arm of Everytown for Gun Safety, which calls itself the largest gun violence prevention organization in the U.S.

The Service Employees International Union, which historically has backed Democrats for public office in Massachusetts, decided to remain neutral in the contest for governor after meeting with both candidates last month.
 

State House News Service
Tuesday, October 23, 2018

Republican group urges GOP voters to blank governor's race
By Katie Lannan


As he runs for a second term against Democrat Jay Gonzalez, Gov. Charlie Baker is now also facing a different campaign from his right, as a conservative group urges Republicans to blank their ballots in the gubernatorial contest.

The Massachusetts Republican Assembly on Thursday announced its "Blank Baker" campaign, saying the governor has displayed a hesitance "to support fellow Republicans," and alluding to his decision not to vote for either candidate in the 2016 presidential election.

"In an election that offers no actual gubernatorial choice to advance the cause of common sense or conservatism, the Massachusetts Republican Assembly will invoke Baker's own standard: Do not vote for the lesser of two evils," the group said in a press release.

The group is selling "#BlankBaker2018" bumper stickers for $5.

Asked about the Republican Assembly's effort, Baker said his approach to governance is built on bipartisanship and attempts "to listen to everybody."

"I'm very proud of the fact that many of the initiatives we've pursued have received bipartisan support, in some cases unanimous support from both branches, and I think that's one of the things people appreciate about the way we operate," Baker said Tuesday. "I also think it's worked for the people of Massachusetts. We have more people working than at any time in state history, and the 215,000 jobs we've added over the last four years is the largest number of jobs created since they started keeping score in 1976, and we do listen and try to listen to everybody as we go about doing our jobs and doing our work, because that's what I think we were elected to do."

A moderate Republican whose campaign highlights endorsements from Democratic mayors and state representatives, Baker has criticized President Donald Trump's policy proposals on issues including health care, and opposed the nomination of Supreme Court Justice Brett Kavanaugh.

Fifty-five percent of the state's roughly 4.5 million voters were unenrolled as of Aug. 15, according to Secretary of State William Galvin's office. The 465,952 registered Republicans make up just over 10 percent of voters, with nearly 1.5 million Democrats accounting for 33 percent.

Baker has led Gonzalez in a series of public opinion polls, and registered strong support from Democrats in those surveys.

Baker has endorsed much of the GOP slate in the Nov. 6 election. In a debate against Gonzalez last week, Baker initially said he had not decided if he would vote for Republican Senate candidate Geoff Diehl despite endorsing him, then later told reporters he misspoke and would vote for Diehl.

The Republican Assembly, in its press release, cited Baker's "failure to immediately support" Diehl during the debate and his status as "the only prominent Republican in the nation to abandon due process and common decency by saying he believed the accusers of now US Supreme Court Justice Brett Kavanaugh."

"Enough is enough, there is no I in TEAM, Charlie," Assembly President Mary Lou Daxland said in a statement. "Our party has a state and national platform. Stop weighing down the candidates who actually run on it."

The Shirley Republican Town Committee is also urging blank votes in the governor's race. The committee makes the ask in a Facebook post referencing the debate and "a damaging bout of indecisiveness from Baker on live television, where he wavered and wobbled over several questions on Diehl."

"Baker, not a Republican in any sense of the word, will win as he has more Democrat support than true Republican support!" the committee wrote.

Baker reiterated his backing of Diehl the day after the debate, saying he had "supported candidates over the years that I didn't agree with on everything, Democrats and Republicans."

Gonzalez and the Massachusetts Democratic Party have also knocked Baker over his handling of the Diehl question.

In WBUR/MassINC poll conducted Sept. 17 through Sept. 21, 55 percent of voters said Baker's endorsement of Diehl against U.S. Sen. Elizabeth Warren made no difference to them, and 28 percent said it made them less likely to vote for the governor.

The same poll found 67 percent of Democrats viewed Baker favorably.

Baker on Tuesday said he is able to bring a "constructive friction of having both teams on the field" to his work with the Democrat-controlled Legislature.

"Many of the initiatives that we've succeeded in have been bipartisan, and we've worked through with our colleagues in the Legislature but there have been a lot of different points of view and a lot of different ideas that have been worked through in the process along the way, and that's as I think it should be," he said. "My hope is that many of the issues we end up wrestling with the Legislature and with our colleagues in local government about, most people could see as just simply things that we should fix and things that we should do to make the commonwealth a better place for people but I definitely believe when you have two teams on the field and there's public accountability for both Democrats and Republicans, you get a better product."

Asked to discuss his "Republican values," Baker brought up "fiscal discipline," saying he came into office with the state facing a structural budget deficit and the most recent fiscal year ended with a surplus.


State House News Service
Tuesday, October 23, 2018

New budget law pushes state savings account balance past $2 Billion
By Matt Murphy


Gov. Charlie Baker signed the bulk of a $541 million budget bill approved by the Legislature last week that would push the state's reserves above $2 billion for the first time in a decade and put millions of dollars into school safety, but the governor on Tuesday also proposed several amendment that will keep the state from fully turning the page on fiscal 2018.

Baker's office announced late Tuesday afternoon that the governor had signed off on $70 million in infrastructure spending, including $40 million for roads and bridges and $10 for clean water projects.

The bill also included $33 million to pay for snow and ice removal done last winter, $5 million for transitional housing assistance for hurricane evacuees from Puerto Rico, $10 million for life science investments and $700,000 for tuition and fee waivers for children who turned 18 while in the custody of the state and are headed to college.

"This bill helps close the books on fiscal 2018, and provides targeted funding for important initiatives including improved security and mental health counseling in schools, as well as money for local roads, bridges, and clean drinking water project," Baker said in a letter to House and Senate leaders.

Lawmakers last week finally got around to considering a close-out budget that both paid the state's outstanding bills from fiscal 2018, which ended on July 1, and decided how to allocate a surplus from last year.

The actions taken by Baker, however, are unlikely to fully satisfy Comptroller Thomas Shack, who had been urging lawmakers to act sooner so that he could meet his legal obligation to file the annual Statutory Basis Financial Report by Oct. 31.

The administration said Baker signed all spending authorizations in the bill and 66 of the 70 outside sections, but Baker did return four sections to the House with proposed amendments that "are necessary to close the FY18 books completely."

The amendments Baker returned include one sought by the attorney general and district attorneys concerning access to prescription monitoring program data from the Department of Public Health, which was part of the opioid abuse prevention bill completed at the end of the session.

Attorney General Maura Healey told the administration, according to Baker, that while personnel in the Medicaid fraud control unit can access prescription monitoring information, she cannot access the same data in conjunction with civil investigations. District attorneys have made similar complaints about not being able to access prescription monitoring information in connection to fatal drug overdose investigations.

The governor's amendment gives law enforcement access in both cases.

The governor also proposed a technical change related to the way a 2018 housing bond bill was written, and is proposing to give the Regional Transit Authority Performance and Funding Task Force until Feb. 15 to complete its work, or an extra two-and-a-half months.

While the Legislature will have to consider each of those four amendments in the coming weeks, the spending authorized in the bill takes effect immediately.

The bulk of the funding was approved to pay bills accrued over the course of fiscal 2018, but it also made tax law changes that Baker described as "necessitated by the federal Tax Cuts and Jobs Act," and made statutory changes needed to implement the new paid family leave and sales tax holiday laws.

The bill also included funding for a new class of state troopers and a class of correction officers, and authorized a transfer of capital gains tax revenues that will push the amount saved in fiscal 2018 to more than $700 million.

"By doing so, we build a cushion we are able to draw on in the event of a future recession, and at the same time we protect the Commonwealth from over-reliance on volatile sources of revenue," Baker wrote.

The "rainy day" fund, according to the administration, will eclipse the $2 billion mark for the first time since 2008, just prior to the Great Recession when state leaders had to lean heavily on the stabilization fund and federal stimulus dollars to avoid even deeper cuts to state services.

The bill also increased the state's contribution to its non-pension, post-employment benefit liability from 10 percent to 30 percent tobacco settlement funds.


The Boston Globe
Thursday, October 25, 2018

Baker promised not to raise taxes.
Facing a challenger, he rarely has to defend that promise
By Matt Stout

Fighting a mountain-size deficit in the public polls, Jay Gonzalez has whacked Governor Charlie Baker on the MBTA. He’s attacked the Republican on gas pipelines and the State Police. He’s tried to corner Baker on his support for a conservative Senate candidate.

But what about Baker’s central 2014 campaign promise to voters that he wouldn’t raise taxes? As a debate moderator pressed the governor on the issue last week, Gonzalez, the Democratic challenger, watched, waited his turn, and then . . . changed the subject.

“But we’ve got to make sure that people understand the choice here on transportation,” Gonzalez stressed.

For a governor who ran on not raising taxes and fees, Baker has rarely had to defend it against Gonzalez, a progressive Democrat who has built his campaign on promising to pursue tax hikes on the wealthy and invest, he says, in ways Baker is unwilling.

On Tuesday, Gonzalez charged in a statement that Baker has “waffled on taxes.” But his own tax-heavy platform has otherwise left the former state budget chief unable — if not unwilling — to scrutinize Baker on whether he honored his pledge, even after Baker signed into a law a $800 million payroll tax and a $2 surcharge on car rental transactions, among other new revenue generators.

Jay Gonzalez, meet box.

“To start with, it’s hard for a Democrat to criticize someone for raising taxes they think are necessary. Here, he’s already made a point to basically say this guy should be taxing more,” Ray La Raja, a political scientist at the University of Massachusetts Amherst, said of Gonzalez. “That’s a tough one.”

With less than two weeks until the Nov. 6 election, Gonzalez is trying to scratch out as much ground as possible against an incumbent who’s led by nearly 30 points in recent polling. And he’s done so by heavily promoting his own tax plans while criticizing Baker for not presenting his own.

Baker’s own nuanced dance with new taxes has weaved through his first term, during which he has defended his support for new revenue when he says it supports new programs or levels a “playing field,” as in the case of new taxes he backs on short-term rentals, such as Airbnb’s. The Republican has reiterated his opposition to broad-based increases on the income or sales tax, repeatedly filing budgets without them. And he’ll continue to oppose them if reelected, said campaign spokesman Terry MacCormack.

“As a general rule, I don’t think balancing the budget should be coming out of the pockets of the taxpayers,” Baker told reporters following a WBZ-hosted debate this month. “That should be left up to us. That’s our job.”

The debate about how closely he’s hewed to that pledge reared its head last week, when Jim Braude posed a not-so-hypothetical situation to Baker about a governor who imposed a quarter-billion-dollar assessment on some employers and new taxes to backstop a paid medical and family leave.

“Would you say that person is a no-new-taxes governor?” Braude asked during Baker and Gonzalez’s second debate, at the WGBH-TV studios in Brighton.

In response, the Republican defended the payroll tax, noting it was tied to the so-called grand bargain between activists, business leaders, and legislators to keep several ballot questions from going to voters in a “deal that people can live with,” Baker said.

“It’s an $800 million increase to support that new benefit, yeah,” Baker said, adding that he didn’t raise taxes as he closed what he called a $1 billion structural budget deficit after taking office.

Largely absent from the back-and-forth was Gonzalez, who in the debate — and elsewhere — has highlighted his plans to tax the endowments of the state’s wealthiest colleges to generate $1 billion in new taxes.

He also said he’d push a constitutional amendment through the Legislature to raise the state income tax on those making $1 million or more, after the Supreme Judicial Court rejected a ballot question that sought to do the same. Gonzalez has acknowledged that passing such a measure would take an entire four-year term under constitutional requirements.

Baker has criticized the plans, questioning whether they’d even pay for all of Gonzalez’s promises on transportation or moving toward a single-payer health care system.

Asked last week if Baker broke his campaign pledge, Gonzalez said: “I don’t know.”

“I’m concerned about the next four years, and the next four years he’s not proposing to do anything in this regard,” Gonzalez said. “I know it’s not easy for a political candidate to say, ‘I’m going to raise taxes.’ But we can’t afford not to.”

In a statement Tuesday, Gonzalez sharpened his rhetoric somewhat, arguing that Baker “has waffled on taxes,” among other topics, including his support for US Senate candidate Geoff Diehl. Baker said during the WGBH debate that he hadn’t decided whether he’d back the conservative Republican, but told reporters afterward that he would.

“What does Governor Baker actually stand for?” Gonzalez said in his statement. “He is constantly trying to have it both ways and basing important decisions on political calculations.”

There’s also the calculation of whether such a tactic would even catch voters’ attention. Lou DiNatale, a veteran Democratic operative, said jumping into the fray about Baker’s record on taxes probably offers the Democrat few victories.

“It’s too much of a reach, in this environment,” he said, arguing races in this election cycle are dominated not by policy but by personality.

There’s another challenge, too: It’s awkward for Gonzalez to attack Baker on his tax pledge, given his own push for more of them, said Jeffrey M. Berry, a political science professor at Tufts University.

“Judging the governor against all his promises is a good talking point,” Berry said.

“But I think what Gonzalez needs to do is grab the imagination of Massachusetts voters and make them understand that the Gonzalez administration is somehow going to make their lives better.

“He’s tried to do that and so far has failed,” he added, “because I don’t think many people have paid attention to him.”

Globe Correspondent Jackson Cote contributed to this report.


State House News Service
Wednesday, October 24, 2018

Baker opposed to possible Fed move defining sex at birth
By Katie Lannan


Advocates pushing to uphold the state's transgender public accommodations law are also now rallying against a potential Trump Administration change to the legal definition of sex, a move Gov. Charlie Baker also said he'd oppose.

The New York Times over the weekend reported that the U.S. Department of Health and Human Services is looking to establish, a uniform definition of sex as either male or female, based on the genitals a person is born with.

"I've said before that I'm opposed to the administration's positions on a variety of issues associated with the LGBTQ community," Baker said after an unrelated event Tuesday. "And this one is something that -- they haven't promulgated anything yet, so far there's news reports on internal memos -- but if they promulgate something for comment, we're obviously going to comment against it and explain why, and do some of the work we've done before, which is to reach out to governors and to other elected officials, Democrats and Republicans, who we believe will have a similar point of view to ours and work hard to get that idea overturned."

Question 3 on the Nov. 6 ballot in Massachusetts asks voters whether to uphold or repeal the state's 2016 public accommodations law, which allows transgender people to access sex-segregated facilities, like locker rooms, that correspond to their gender identity rather than assigned sex at birth.

The Yes on 3 Campaign, which supports keeping the law, plans a Wednesday afternoon press conference "in support of transgender youth and in response to news of the Trump administration legal memo to attempt to undermine federal civil rights protections for transgender people by advocating a restrictive definition of sex under federal law."

Actress Laverne Cox of "Orange is the New Black" and Alexandra Chandler, who ran in the Third District Democratic primary as the state's first openly transgender congressional candidate, are among the scheduled speakers at the 1 p.m. event, which will also feature teachers' union members and transgender youths and their families.


The Boston Globe
Sunday, October 21, 2018

Lawmakers make most of travel option
By Joshua Miller and Matt Stout


In May 2016, Beacon Hill lawmakers gathered inside the Senate chamber to make history: They voted overwhelmingly to bar public discrimination against transgender people in what advocates hailed as a giant leap forward for civil rights.

But Senator Marc R. Pacheco didn’t cast a vote that day.

The Senate’s third-highest-ranking member was 4,000 miles away in Austria, delivering a speech on climate change in the picturesque mountain village of Fresach, his travel costs picked up by Austrian groups. He was the only member of the Senate who missed the chance to move the momentous bill forward.

This was just one of nearly 50 trips — all subsidized by outside groups — that the Taunton Democrat has taken since January 2013. And each was made possible by what one watchdog calls a “galactic-sized loophole” in state ethics regulations, one that Pacheco and scores of lawmakers take advantage of, according to a Globe analysis of more than 600 disclosures filed by legislators.

Members of the Massachusetts House and Senate have racked up about 3,000 traveling days and accepted more than $1 million in free or subsidized flights, hotels, meals, and other travel costs since the beginning of 2013, the Globe found.

Many trips were anchored by distinct public policy goals. A key author of gun control legislation went to a Chicago policy summit about gun violence, for example. Lawmakers considering marijuana regulation visited Colorado, where pot had been legal for years. The education committee House chairwoman went to a Washington, D.C., education conference. (One session she attended: “What is Student-Centered Learning?”)

Then, there are the jackpot junkets — itineraries that include touring the Great Wall and visiting a panda center in China; wandering through the Grand Bazaar in Marrakesh, Morocco; and enjoying an elephant village in Thailand.

Massachusetts legislators can legally accept free or subsidized travel — including from foreign governments — as long they disclose the details and value of the travel and sign a document affirming it serves a legitimate public purpose that “outweighs any special non-work related benefit” to them.

But under the state’s broadly written ethics regulations, it’s up to elected officials to police themselves. Neither the state Ethics Commission, nor the chambers’ lawyers, regularly scrutinize the filed disclosures, whose content can get exotic.

Sightseeing in a volcanic crater and at hot springs in the Azores, a Portuguese archipelago in the Atlantic Ocean? Part of a trip with a legitimate public purpose, lawmakers said. Walking the holy streets of Jerusalem and Bethlehem? Ditto. Taking in an Irish football final where Pharrell Williams was invited to play the halftime show? Same.

Legislators emphasize that no taxpayer dollars fund their journeys, which often include weekends and holidays. And they say that any sightseeing is secondary to the policy-heavy aspects of the trips, or that the tourist activities actually benefit the state.

But taking far-flung voyages with few out-of-pocket costs because of the largesse of a foreign government, nonprofit, or company is a practice that raises questions about what the outside group is hoping to get in return for footing the bill, and underscores the indulgent rules lawmakers get to play by.

Nonelected state employees — bureaucrats — must get approval from their appointing authority before accepting a trip, under state ethics regulations. State representatives and senators are empowered to make that call themselves.

“Somebody other than the elected official should be making the determination. It’s just so obviously absurd because it just creates an enormous vulnerability,” said Greg Sullivan, a former state inspector general. “It’s too big for a loophole. It’s a galactic-sized loophole.”

‘Floor-to-ceiling opulence’

Since January 2013, Pacheco, the state’s longest-serving senator, has spent the equivalent of eight months — at least 240 days — traveling to give speeches, attend conferences, and tour foreign countries, according to his disclosures.

He’s been to Austria 10 times and made nine trips to Portugal. He delivered a talk on a book he co-edited in Ljubljana, Slovenia, and visited Ireland, where an energy co-op paid for his roundtrip airfare. The Czech Republic, Switzerland, the Netherlands, and Cape Verde all dot his proverbial passport. His total costs paid by others were at least $68,000 since the beginning of 2013, according to the Globe analysis. That’s the most for any lawmaker in that timeframe.

The travel, Pacheco said in a statement and lengthy interview, is something he is proud of and is policy driven, with a big focus on climate change and the Portuguese heritage he and many of his constituents share. He chairs the Senate’s Committee on Global Warming and Climate Change, authored Massachusetts’ landmark 2008 Global Warming Solutions Act, and says he is a sought-after voice on climate issues. And he emphasized some of his travel has been tied to leadership roles in well-respected groups like the National Conference of State Legislatures.

He underscored that he very rarely misses votes, the transgender legislation notwithstanding, and when he has, the legislative process has afforded him other opportunities to make his voice heard on those bills. (Pacheco has missed about 3 percent of Senate votes since the beginning of 2013, according to InstaTrac, the Boston-based legislative information service.)

And the senator argued that what he’s learned on international trips has directly affected state policies, such as Massachusetts’ massive wind energy effort that’s underway. Pacheco pointed to a legislative hearing where Governor Charlie Baker testified, and the senator cited his own prodding as having helped move the administration toward a more wind-focused stance. (Baker said Pacheco was “one voice,” but said his energy secretary, Matthew Beaton, and George A. Bachrach, the former president of the Environmental League of Massachusetts, and the Boston company First Wind provided some of “the most important conversations.”)

“You know, you just don’t wake up and just have the knowledge about what’s going on in the offshore wind industry. You have to see it,” said Pacheco, whose Senate pay was $142,500 last year. “You have to be out on a ship and actually see these wind farms.”

But it’s not only turbine gawking that occupies him in his travels. There are also plenty of “special non-work related benefits.”

During one “energy tour” to Portugal, his hotel itinerary included a night in a restored 16th-century convent in Tavira and a stay in an 18th-century baroque palace, that, in addition to being classified as a national monument, touts a riverside infinity pool and “floor-to-ceiling opulence,” according to its website.

On a September 2017 trip to Vienna, where he was slated to give a speech, his itinerary included a day of “cultural and educational tours” in the Austrian capital — a place he had been just three months prior and six times in the previous four years.

Sullivan, the former inspector general who now works at the conservative-leaning Pioneer Institute, which has clashed with Pacheco on other fronts, said, “When I was in the IG’s office, we had a saying: If there were a law against this, he’d be breaking it right now. There should be a law against this.”

There were other benefits. During a return visit to Portugal in 2016, Pacheco asked the director of the foundation paying his way about getting a special deal in case he wanted to extend his time.

“If we do stay longer,” Pacheco wrote in one e-mail attached to his travel disclosure, “it would be good if they would honor the rate you are able to negotiate.”

For the Luso-American legislators conference that ran a day-and-a-half, Pacheco ended up staying four nights for free in a five-star Lisbon hotel — and at the same rate ($220) for two additional nights, according to his disclosure.

In the interview, Pacheco said he paid the “rate that the hotel asked me to pay,” adding that hotels prefer to keep guests from going “down the street” to a competitor. “I think it’s not unusual with conferences at all.”

‘More than just pandas’

During a trip several lawmakers took to China last year, there were three full days of meeting with government officials, according to an itinerary. And at least three filled with the kind of cultural tourism experiences a non-elected official might, well, pay for.

There was a day touring the renown Palace Museum, then the Great Wall; one that included a giant panda center visit; and another traveling to Guangzhou for a “cultural experience.”

The cost of it all, paid for by the Chinese People’s Association for Friendship with Foreign Countries: $8,671, according to disclosures.

“Pandas are fun, but there’s more than just pandas,” state Representative Tackey Chan, a Quincy Democrat who helped organize the trip, said of the lawmakers’ visit to the Chengdu animal center. He said they learned a lot about conservation, development, and the environment.

House majority leader Ronald Mariano, a Quincy Democrat who called the trip “amazing,” said it gave him a broad view of the country, which is one of the state’s top trading partners, and helped him better understand the culture and history of his Chinese-American constituents.

“You realize that the governmental problems that they have are pretty much the same as the ones we have, especially at the local levels,” said Mariano, who, as the trip leader, had frequent meetings with Communist Party officials, and as majority leader made $137,500 in House salary last year. “Philosophically, you begin to realize we’re all in the same nest.”

For that reason and others, good-government watchdogs don’t frown upon all such adventures.

Pam Wilmot, who leads Common Cause Massachusetts, said subsidized travel is positive for lawmakers when there is not a conflict of interest.

“It exposes legislators to new way of doing things. It expands their definition of what’s possible or advisable,” she said. “One of the problems I often see with Massachusetts state government is lack of exposure to new ideas — you know, ‘How we’ll do it is how we’ve always done it.’ ”

Wilmot said if legislators are talking with officials and going to meetings one day, and seeing pandas and the Great Wall on others, “I have a hard time getting exercised about it. A lot of these lawmakers wouldn’t have the opportunity to go any other way.”

The desire for those sorts of subsidized experiences is one many lawmakers appear to share. Since 2013, they have collectively visited at least 31 countries, plus Taiwan and the West Bank, the Globe found.

It’s how they justify the travel that varies.

This summer, Senate President Karen E. Spilka jetted to France for a conference put on by the National Conference of State Legislatures in Normandy to “sharpen the leadership skills I will need to ensure the Senate’s continued legislative success,” she wrote in her filing.

During the six-day event, according to the program, there were a total of 7.5 hours of specific leadership programming, with the rest of the time devoted to meals and visits to top historical sites such as Omaha Beach, the Normandy American Cemetery and Memorial, and a C-47 flight simulator. Spilka aides said, however, the site visits were part of the leadership training, not separate from it.

After the conference, Spilka, who made $147,700 in Senate salary last year, extended her France trip “on personal time using her own personal funds,” according to a spokesman, before heading home on a flight paid for by the NCSL.

House Speaker pro Tempore Patricia A. Haddad has jetted to eight foreign countries and Taiwan in five-plus years. Her disclosures have her walking the streets of Jerusalem in 2013 to help “promote the interests of the Commonwealth” and visiting top tourist sites in Casablanca and Marrakesh to “explore opportunities to increase tourism from Morocco in Massachusetts.”

Haddad, a Somerset Democrat, declined to be interviewed about her subsidized travels, but she spoke briefly to the Globe Tuesday after returning from a trip with more than a dozen other legislators to Lisbon and the Azores — a sojourn that also included spouses of some lawmakers.

“Everything that I have done has been declared and put into the disclosures as we have to do by law,” she said walking outside Logan International Airport.

Asked about scheduled visits to an “elephant village” and “crocodile show” on a 2016 Thailand trip, Haddad said it’s “what you go to see in the country. You go to see part of their culture to put what they do in perspective.”

Pressed on how such excursions benefit her constituents and the state, Haddad said, “When you have people of different cultures who come into your district, you’re aware of what’s important to them.”

In a e-mail on Thursday, Haddad, who made $132,500 in House salary last year, added, “All travel serves a legitimate purpose.”

A brief recess

Few if any House members have accepted more in free travel than Antonio F. D. Cabral, who’s run up a tab of nearly $30,000 — paid by others — to places like Lisbon and the Azores.

But no trip matched his May 2017 trek to East Timor, a former Portuguese colony, paid for by the Atlantic Council, a Washington, D.C., think tank.

At $12,103, it was the most any state lawmaker accepted for a single trip in the years the Globe reviewed. And it meant Cabral, a New Bedford Democrat who made a House salary of $112,500 last year, could spend four days in Southeast Asia to attend the country’s presidential inauguration and, according to his itinerary, enjoy a Dili beach boat cruise and tour a coffee cooperative.

He also was there to accept the country’s highest civilian honor, bestowed by Timorese officials who called him “tireless in advocating” for Timorese people when they were under Indonesian occupation. (Cabral, for example, filed bills in the late 1990s seeking to limit investments in Indonesia.)

Cabral defended the travel, saying in a statement his advocacy for the tiny nation of 1.3 million is followed closely in New Bedford, and that the dialogue the trip opened could bloom into “mutually beneficial” trade and academic relationships.

So, after days in a faraway land hailed for its bountiful coral reefs and marine life, he returned to Boston on a Wednesday — and headed “straight to the State House,” an aide said.

In the House chamber, business was already humming, with lawmakers moving to sew up a supplemental spending bill.

Cabral didn’t vote on that one, according to House records. He also missed the roll call establishing a quorum. Then, just before 3 p.m., formal activity halted, according to a State House News Service report of the session.

“Rep. Mariano called a brief recess,” it read, “while Rep. Cabral returned to the chamber.”

Globe correspondent Jamie Halper contributed to this report.

 

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