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CLT UPDATE
Thursday, December 6, 2018

"Those who fail to learn from history . . ."


Massachusetts drivers rarely see civilian flagmen to direct traffic at road construction projects because state law ensures that they’re not much cheaper than hiring cops, a new Pioneer Institute report says.

A civilian flagman costs $43.44 an hour, far above the national average of $28.89, according to the Pioneer policy brief released Monday. That’s not much less than state and local police officers get, and town and city officials aware that police officers use details to supplement their incomes usually hire police for road projects rather than flagmen.

Why do flagmen command such a high wage?

The state’s prevailing wage law ensures that unions won’t get underbid on public works projects by setting a wage floor for workers. Prevailing-wage laws are common in pro-union states like Massachusetts.

But the way Massachusetts calculates the prevailing wage drives costs up even more than in most prevailing-wage states, according to the Pioneer report. That’s because while most states use market labor rates to help calculate the prevailing wage for various jobs, Massachusetts is one of only five states that only use existing collective bargaining agreements between unions and government. That means that the union contract sets the standard, without being tugged downward by other market forces.

“The intent of prevailing wage laws is to prevent companies engaged in public construction from paying construction workers less than the market wage for similar work performed in the area. This a worthy goal,” the Pioneer report states. “But in Massachusetts, the intent and effect of the prevailing wage law is to require state and municipal taxpayers to pay the highest wage rather than the prevailing wage. The net effect is to artificially and substantially inflate the cost of public construction projects, including transportation projects.”

For years Massachusetts was the only state in the country that required police details on every road construction project, even on dead-end streets with little traffic....

Below is a breakdown of hourly pay for civilian flagmen on federally funded projects in the six New England states, from the Pioneer study. Five of the six are prevailing-wage law states – only New Hampshire isn’t – but economic conditions and how the prevailing wages are calculated account for the disparity.

Rhode Island      $44.50
Massachusetts    $43.44
Connecticut        $35.84
New Hampshire  $15.54
Vermont              $12.63
Maine                   $9.93

The New Boston Post
Monday, November 26, 2018
Why You Don’t See Flagmen in Massachusetts


A government watchdog group said the state’s flagger reform effort is coming up short on savings because of rules that keep wages for non-police traffic direction tied to the rates earned by cops.

The Pioneer Institute released a report today saying the Department of Transportation’s savings have “not been significant” — $23 million over three years — after the law passed allowing for non-cops to wave cars by at construction sites....

Massachusetts was the last state in the country to allow for civilians to work as flaggers on construction sites. The law, passed under former Gov. Deval Patrick over the protests of police unions, has not led to widespread use of civilian flaggers.

That’s at least in part because, the study’s authors claim, the state prevailing-wage law ties civilian-flagger wages to what cops would be getting for the same job — an average of $43.44 an hour for the civilian flaggers, well over the $28.99 nationwide average.

“Gov. Patrick’s reforms were effectively negated in practical application,” the report states.

The Boston Herald
Monday, November 26, 2018
Report: Civilians not widely used as flaggers because wages tied to cops’ rates


After leading the Massachusetts Republican Party for six years, Kirsten Hughes is stepping away as chairwoman and party insiders are looking at least at a trio of possible contenders for the post.

Hughes, a Quincy city councilor who took over as party chairwoman in 2013, emailed members of the Republican State Committee on Nov. 16 to let them know that she would not be seeking a fourth term in January....

After getting wiped out in every statewide race except governor this cycle and losing three seats in the Legislature, the party, with Gov. Charlie Baker at its head, will be looking for someone new to take the reins of its fundraising and candidate recruitment efforts.

Rep. Geoff Diehl, who will be leaving the Legislature in January after losing his long-shot bid to topple U.S. Sen. Elizabeth Warren in November, has already expressed his potential interest in the position should Hughes step down.

"I am reviewing all my options," Diehl told the News Service in an email on Wednesday. "I'm pleased to see that so many people are willing to support me."

Diehl, however, could be joined by his fellow lawmaker Rep. Peter Durant of Spencer.

State House News Service
Wednesday, November 28, 2018
As party chair, Rep. Durant says he'd build "great candidates" for GOP


Mass GOP Chairwoman Kirsten Hughes has decided not to seek a fourth term, and internal politics could determine her successor now that Gov. Charlie Baker, with a lack of ardor for certain Republicans on the campaign trail, has ruffled feathers.

“There is a lot of resentment that’s festering under the surface about the governor’s conduct in the last election cycle,” political consultant Chip Jones said.

Jones noted that while Baker won about 67 percent of the vote, the party experienced a setback in losing three legislative seats, and pointed to his reluctance to voice his support for state Rep. Geoff Diehl in the U.S. Senate race as a breach in party loyalty....

“When you win by that majority and yet you have negative coattails, that’s going to be a hard thing to swallow … There’s going to be a blame game that goes on in people’s minds and people’s voting decisions on who the next chair is.”

The Boston Herald
Thursday, November 29, 2018
Mass GOP chair departs amid Republican turmoil


Democrats will retain their supermajority control of both branches in 2019, with six Republicans in the 40-member Senate and 32 in the 160-seat House.

State House News Service
Thursday, November 29, 2018
Crop of freshwomen lawmakers committed to roll calls


State tax collections five months into fiscal 2019 are running nearly half a billion dollars over benchmarks, fueled by $1.86 billion in November receipts.

Tax revenues eclipsed the November benchmark by $61 million, and have exceeded the fiscal year-to-date benchmark by $423 million, Revenue Commissioner Christopher Harding announced late Tuesday, on the eve of the state's annual revenue estimation hearing at the State House.

"November was a solid month for revenues, which were above benchmark in all major tax categories," Harding said in a statement....

November collections rose $122 million, or 7 percent higher than collections in November 2017.

For the fiscal year-to-date through November, tax revenue collections are up 8.4 above the same five-month period in fiscal 2018.

State House News Service
Tuesday, December 4, 2018
November surge pushes tax receipts $423 Mil over benchmark


Despite a strong economy, last year's $1 billion budget surplus and revenue collections that are outperforming expectations so far this year, the potential for an economic slowdown and future recession loomed as the budget-writing process for next fiscal year kicked off on Wednesday.

At an annual Ways and Means Committee hearing, economic experts offered their financial forecasts for the year ahead, estimating state revenue collections will grow somewhere between 2 percent and 3.4 percent in fiscal 2020. Legislative and administration budget writers will use the predictions to develop a consensus estimate of how much money will be available to spend on state programs and services.

House Ways and Means Chairman Jeffrey Sanchez, who lost his reelection bid this year and will after December turn over his budget work to a successor chosen by Speaker Robert DeLeo, characterized the testimony as "very sobering." ...

Many lawmakers had hoped a proposed surtax on incomes over $1 million would give them more revenue to work with, but that effort was scuttled when the Supreme Judicial Court ruled the ballot question proposing the tax was unconstitutionally drafted.

Unlike the previous two years in which slow growth forced budget negotiators to mark down available revenues during their talks, the conference committee that crafted this year's budget upgraded their projections to add spending beyond levels the House and Senate had approved....

Massachusetts Taxpayers Foundation President Eileen McAnneny, whose prepared testimony was titled "Are the Good Times Already Over?", urged budget-writers to be cautious of "pre-recession warning signs" in labor markets, home sales, the auto industry, business investments and oil prices.

"The MTF suggests a cautious approach to this year's budget," she said. "While the time and severity of the next economic downturn is unknowable, by historic markers, we are on borrowed time. The state's experience with past recessions clearly demonstrates how quickly and harshly fortunes can turn."

McAnneny said preparing for the next recession, through steps including limiting spending growth and increasing the state's stabilization fund balance, "is the only prudent policy."

State House News Service
Wednesday, December 5, 2018
Economists warn state budget writers of slowdown on the horizon


Chip Ford's CLT Commentary

In our CLT Update of September 28, 2017 ("Still not taxed enough?") I noted:

"According to a comprehensive report issued last September by the Reason Foundation ("22nd Annual Highway Report"), this state spends 320 percent more than the national average for every mile of state road infrastructure built or maintained. That puts this state at the 48th most expensive — spending more per state-controlled mile than only Florida and New Jersey."

A month later Chip Faulkner testified before the Joint Committee on Transportation against a bill to impose new tolls on major highways in and around greater-Boston. He reported:

"The second part of my testimony was to demonstrate how wasteful Massachusetts spending is for running its highway system. I relied on a September 2016 policy study from the Reason Foundation, entitled '22nd Annual Highway Report – The Performance of State Highway Systems.'

"For example, maintenance costs per state-controlled mile in Massachusetts totaled $78,313 while the national average was $25,996. Administrative expenses costs per mile was $74,924 in Massachusetts while only $10,051 nationally.

"I asked, 'Why doesn’t the committee look into these exorbitant costs and unconscionable waste and come up with cost savings? Then they wouldn’t have to sock the commuters with this plan for expanded and additional tolls.'

"Needless to say, when it came time for questions from the committee, silence was golden."

The legislators were silent, but Citizens for Limited Taxation wasn't, and now the Pioneer Institute has provided one of the reasons why Massachusetts taxpayers pay so much more for their roads and bridges than other nearby states' taxpayers:  its prevailing wage law.  Even among the six New England states only Rhode Island spends more on those who stand around watching holes being dug, though only by just over a buck an hour:  $44.50 an hour compared to our $43.44 an hour, followed by Connecticut's $35.84.

The other three New England states somehow manage to pay vastly less to those who watch holes being dug:  New Hampshire ― the only non-prevailing wage state  ($15.54/hour), Vermont ($12.63/hour)), and Maine ($9.93/hour).

Does anyone really wonder why Massachusetts taxpayers bear the third-highest cost in the nation to "maintain" our roads and bridges in such exemplary condition?


After losing three seats from its paltry minority presence in the Legislature, and being defeated for every statewide and congressional office except the governorship (which hardly qualifies as a win), state GOP chairwoman Kirsten Hughes is abandoning the sinking ship.  The scramble aboard the lifeboat to replace her would be laughable if the consequences weren't so dire and growing darker for center-right citizens and taxpayers.

Alleged Republican Gov. Charlie Baker aggressively wrested control of the party apparatus in a hostile takeover early in his first term, to make it more in his image, and this is what he has to show for that hubris.  The day after the election the State House News Service reported "By emphasizing his bipartisan leanings, Baker coasted to a second term, but there were no coattails to be found for his fellow Republicans."  Instead, it's given the Bay State even greater Democrat control that's pushed that party even further left.  To use his favorite word, I wonder if Charlie is "disappointed" over this too, or not so much.


Tax revenue is still pouring in hand over fist, still exceeding all expectations.  Five months into this fiscal year already the state has raked in almost half a billion dollars more than it had at this time a year ago and you'll recall that last fiscal year the state surpassed revenue expectations by $1.2 billion, which the Legislature had to find a way to spend over its ongoing-since-August vacation.

So accustomed to spending every cent that comes in and more, the Legislature will find it difficult if not impossible to restrain that urge despite the early warnings of an economic slowdown and a predicted collapse of windfall revenue.  We know how this situation turns out from past experience.  Profligate spending will continue full speed ahead as the Democrats whistle past the graveyard until the economic crash arrives creating the next "fiscal crisis," solvable only by another "temporary" tax increase that never goes away.

"Many lawmakers had hoped a proposed surtax on incomes over $1 million would give them more revenue to work with," the State House News Service reported.  To the Democrat-controlled Legislature, that is the problem not the over-spending in a state budget that has grown by over a billion of our dollars every year.  To keep that "investment" (growth) going in perpetuity will require more "revenue" (taxes), especially if the esteemed economists' predictions are correct.

We'll soon find out if anyone has learned the bitter lesson of over-spending through good times and bad, or if too many have failed to learn from history.

Chip Ford
Executive Director


 
The New Boston Post
Monday, November 26, 2018

Why You Don’t See Flagmen in Massachusetts
By Matt McDonald


Massachusetts drivers rarely see civilian flagmen to direct traffic at road construction projects because state law ensures that they’re not much cheaper than hiring cops, a new Pioneer Institute report says.

A civilian flagman costs $43.44 an hour, far above the national average of $28.89, according to the Pioneer policy brief released Monday. That’s not much less than state and local police officers get, and town and city officials aware that police officers use details to supplement their incomes usually hire police for road projects rather than flagmen.

Why do flagmen command such a high wage?

The state’s prevailing wage law ensures that unions won’t get underbid on public works projects by setting a wage floor for workers. Prevailing-wage laws are common in pro-union states like Massachusetts.

But the way Massachusetts calculates the prevailing wage drives costs up even more than in most prevailing-wage states, according to the Pioneer report. That’s because while most states use market labor rates to help calculate the prevailing wage for various jobs, Massachusetts is one of only five states that only use existing collective bargaining agreements between unions and government. That means that the union contract sets the standard, without being tugged downward by other market forces.

“The intent of prevailing wage laws is to prevent companies engaged in public construction from paying construction workers less than the market wage for similar work performed in the area. This a worthy goal,” the Pioneer report states. “But in Massachusetts, the intent and effect of the prevailing wage law is to require state and municipal taxpayers to pay the highest wage rather than the prevailing wage. The net effect is to artificially and substantially inflate the cost of public construction projects, including transportation projects.”

For years Massachusetts was the only state in the country that required police details on every road construction project, even on dead-end streets with little traffic. In 2008 then-Governor Deval Patrick signed a bill that allowed for civilian flagmen to be used on low-speed roads and low-traffic high-speed roads.

Yet the 2008 law led to little cost savings.

“The 2008 flagger reform was expected to save considerable money, but because the prevailing wage law effectively requires civilian flaggers to be paid about the same as police details, and because cities and towns were not mandated to hire civilian flaggers at low-speed sites, the reform was weakened to the point of becoming [a] historical footnote,” states the policy brief by Gregory Sullivan and Michael Chieppo, titled “Whatever Happened To Flagger Reform?.”

Sullivan, a former state inspector general, is the research director of Pioneer Institute, a conservative Boston think tank. Chieppo worked as a research assistant at Pioneer this past summer.

While limiting police details to lower the costs of road projects was a hot topic 10 years ago, there don’t appear to be attempts on Beacon Hill to change current state policy.

Governor Charlie Baker has focused on trying to increase safety in roadwork areas, not on limiting the costs of promoting safety.

“Governor Baker believes that on any roadway construction project, the focus should be on maintaining the safety of both workers and drivers, and has previously filed legislation to allow MassDOT to set speed limits in work sites and double fines for speeding in these areas. The administration supports the use of a combination of police details and civilian flaggers on projects as directed by law, and would carefully review any legislative proposals that reach the Governor’s desk,” said Sarah Finlaw, deputy communications director in the governor’s press office, in an email message to New Boston Post.

MassDOT is an abbreviation for the Massachusetts Department of Transportation.

Using civilian flagmen on road projects is a hot potato in Massachusetts because many police officers rely on details for a significant portion of their take-home pay.

Twenty-five members of the Massachusetts State Police earned more than $250,000 in gross pay during calendar year 2017. For many of them, special details were a significant portion of their income.

Eighteen members of the Boston Police Department made more than $100,000 in detail pay during calendar year 2017. Among those, the lowest earned a gross total pay that year of $213,889.74; the highest earner among the 18 earned a gross total pay of $366,232.65.

The 13 highest-paid Boston police officers in 2017 were not among the top brass of the department, but rather captains, lieutenants, sergeants, and detectives, who earn both overtime and detail pay on top of their base salaries. Seven of those 13 earned more in details than in overtime. Total gross pay for those 13 officers ranged from about $296,000 to about $366,000.

Spokesman for the unions that represent Massachusetts State Police and Boston police could not immediately be reached for comment Monday afternoon.

Below is a breakdown of hourly pay for civilian flagmen on federally funded projects in the six New England states, from the Pioneer study. Five of the six are prevailing-wage law states – only New Hampshire isn’t – but economic conditions and how the prevailing wages are calculated account for the disparity.

Rhode Island      $44.50
Massachusetts    $43.44
Connecticut        $35.84
New Hampshire  $15.54
Vermont              $12.63
Maine                   $9.93
 

The Boston Herald
Monday, November 26, 2018

Report: Civilians not widely used as flaggers because wages tied to cops’ rates
By Sean Philip Cotter

A government watchdog group said the state’s flagger reform effort is coming up short on savings because of rules that keep wages for non-police traffic direction tied to the rates earned by cops.

The Pioneer Institute released a report today saying the Department of Transportation’s savings have “not been significant” — $23 million over three years — after the law passed allowing for non-cops to wave cars by at construction sites.

“Rates for civilian flaggers are effectively set by the rate paid to police performing flagger duties,” said Pioneer research director Greg Sullivan, a former state inspector general, who wrote the report with research assistant Michael Chieppo.

Massachusetts was the last state in the country to allow for civilians to work as flaggers on construction sites. The law, passed under former Gov. Deval Patrick over the protests of police unions, has not led to widespread use of civilian flaggers.

That’s at least in part because, the study’s authors claim, the state prevailing-wage law ties civilian-flagger wages to what cops would be getting for the same job — an average of $43.44 an hour for the civilian flaggers, well over the $28.99 nationwide average.

“Gov. Patrick’s reforms were effectively negated in practical application,” the report states.

Flagging work less commonly falls to cops in other states, where civilian flaggers are the norm for many projects. The report says only four other states have prevailing-wage laws in this regard as strong as Massachusetts, mandating that the state has to pay at least the going rate negotiated by organized labor for the same job.

The savings the state has seen come from the fact civilian flaggers are only paid for hours worked, whereas police flaggers are paid in four-hour blocks, so they are on the clock often for more hours than they actually work, says Pioneer, a small-government research organization.

The report calls on the state Executive Office of Labor and Workforce Development to determine a prevailing wage for flaggers — one that’s not directly tied to the one negotiated by the cops.

“The state and municipalities would have a far greater incentive to use civilian flaggers,” the report states.

Gov. Charlie Baker’s office left the possibility of proposing a rule change up to the Legislature.

“The administration supports the use of a combination of police details and civilian flaggers on projects as directed by law, and would carefully review any legislative proposals that reach the governor’s desk,” Baker spokeswoman Sarah Finlaw told the Herald.

Neither the State Police Association nor the Boston Police Patrolmen’s Association could be reached for comment.

Previous to 2008, all roadwork in Massachusetts had to have police officers on scene for traffic control. After the law change, projects on many less-traveled roads could use the civilians instead.

About 4.4 percent of MassDOT’s roads budget went to flaggers in the five years before the law. That portion dropped to about 3.4 percent after the change.


State House News Service
Wednesday, November 28, 2018

As party chair, Rep. Durant says he'd build "great candidates" for GOP
By Matt Murphy


After leading the Massachusetts Republican Party for six years, Kirsten Hughes is stepping away as chairwoman and party insiders are looking at least at a trio of possible contenders for the post.

Hughes, a Quincy city councilor who took over as party chairwoman in 2013, emailed members of the Republican State Committee on Nov. 16 to let them know that she would not be seeking a fourth term in January.

"While it has been my honor and privilege to serve our party, I have decided the time is right for me to pass the torch to a new leader," she wrote.

After getting wiped out in every statewide race except governor this cycle and losing three seats in the Legislature, the party, with Gov. Charlie Baker at its head, will be looking for someone new to take the reins of its fundraising and candidate recruitment efforts.

Rep. Geoff Diehl, who will be leaving the Legislature in January after losing his long-shot bid to topple U.S. Sen. Elizabeth Warren in November, has already expressed his potential interest in the position should Hughes step down.

"I am reviewing all my options," Diehl told the News Service in an email on Wednesday. "I'm pleased to see that so many people are willing to support me."

Diehl, however, could be joined by his fellow lawmaker Rep. Peter Durant of Spencer.

Durant sent an email to state committee members the same day that Hughes announced she wouldn't seek another term.

"As we approach a new year and new campaigns, we can chose (sic) to accept that as Republicans this is the best we can do, or we can try and do things differently. I think it's time to do things differently and I believe you do too. We need to prepare for 2020 and it's time to stop making excuses," Durant wrote.

Durant highlighted his own hard-fought, first victory in 2010 over former Democrat Rep. Geraldo Alicea, and his work to help elect his former chief of staff and now Rep. Joseph McKenna, as well as Reps. Donald Berthiaume and Kate Campanale. He also called attention to his work in 2012 to build an election database application that uses a proprietary algorithm to "look at voters in a new way." He said he built it because he was unhappy with what was being offered to candidates by the party and private vendors, and said it's now used by more than 40 candidates and sitting lawmakers.

"I know what it takes to build great candidates and put them in a position to win," Durant wrote. "I believe that I am the only candidate in this race that can accomplish the task of bringing this party together to work in concert to accomplish legislative victories."

MassGOP Treasurer Brent Andersen is also looking to move up the party ranks, and will seek the chairmanship, he confirmed. Andersen has been the party treasurer since 2003, and a member of the state committee since 2000.

"Yes, I'm running," Andersen told the News Service on Wednesday during a brief conversation. In a follow up email, Andersen said, "I am extremely encouraged by the support that I am receiving from my fellow State Committee Members, Republican Elected Officials, and activists. I'm looking forward to the campaign ahead and to discuss my plan to unite Republicans under Ronald Reagan's big tent."

Hughes was travelling and a spokeswoman said she would be unavailable for an interview on Wednesday, but spokeswoman Naysa Woomer confirmed Hughes's decision to step down in January.

Hughes took over as party chairwoman in January 2013 with the support of Scott Brown, who had just lost his re-election bid to Warren.

She had been the senator's deputy finance director, and eked out a win over Pepperell Republican Rick Green, the founder of the Massachusetts Fiscal Alliance who ran unsuccessfully this cycle for Congress in the Third District against Congresswoman-elect Lori Trahan.

In the ensuing years, Hughes was in the chair for two gubernatorial victories by Baker and Lt. Gov. Karyn Polito and as the party fought to maintain its gains in the Legislature from 2010 and get footholds in races for other constitutional offices.

"During the next two years, we will build on our recent successes: growing the grassroots, investing in our data-driven field operation, and electing Republicans up and down the ticket. As we enter a new era of unified GOP leadership, I'm excited about the MassGOP's ability to advance our shared priorities," Hughes said following her re-election in 2017.

Democrats held large super-majorities in the Legislture when Hughes arrived and, despite some GOP wins over the years, they are still a distinct minority on Beacon Hill.

In her email this month, Hughes expressed pride in the two victories of Baker and Polito, and said the MassGOP had added 17 new Republican legislators on Beacon Hill, including six that were slotted into seats previously held by Democrats. She also touted the expansion of the MassVictory program, which helped deploy new technology and field staff to knock on doors and make phone calls for candidates, and the more than $3.5 million the party has spent to support GOP tickets since 2013.

"Those successes have been made possible thanks to a stronger, more enduring campaign infrastructure, which has made a meaningful difference for Republican candidates at all levels of government," Hughes wrote.

"Time for a shuffling up"

Marty Lamb, who won his seat on the state committee despite Baker's backing an opponent two years ago, said he will support Diehl if the Whitman Republican runs. Lamb and Diehl have worked together before on a ballot campaign to repeal a law indexing the gas tax to inflation, and Lamb ran a political action committee that supported Diehl's campaign for U.S. Senate.

"I wish Kirsten all the luck in future endeavors. She's put a lot of work in, but I do think it's time for a shuffling up and realignment," he said.

Lamb said there are two "mindsets" within the state committee on how best to build the party -- from the top down, or the bottom up. Lamb prefers the latter approach.

"New blood is always good," he said.

While the election is not until January, the State Committee does have a meeting planned for Dec. 12 where the chairmanship race figures to be on center stage, and the final slate of candidates could become clearer.

Alan Waters, a Mashpee Republican who opened a committee to run for U.S. Senate this year, but didn't, is urging the committee to make him a salaried co-chair or vice-chair, positions that don't currently exist.

"Candidates run for office, then stop campaigning after the election. I want to run the Mass GOP race 12 months a year all over the state, from 'hood to highland, special projects, traditional projects, grassroots initiatives, free enterprise celebration with small business. Sales, marketing, cheerleader. I am an outsider, conservative by nature, moderate by intent. The Republican Party looks good on paper, we need to look better in the field," Waters wrote in an email of his own.

Waters described himself as "a black man with a plan to help save America from the Progressives, and with a smile."

The wild card in the contest to succeed Hughes is Baker and how directly he chooses to get involved in vote wrangling.

Baker, during his four years in office, has resisted fully immersing himself in party politics after stacking the 80-member state committee with loyalists in early 2016. While he has campaigned and helped raise money for some GOP legislators and candidates seeking open House and Senate seats, he has been less involved in trying to knock off incumbent Democrats.

One person close to Baker said the governor does not yet have a preferred candidate in the race to succeed Hughes. "We'll wait and see," the advisor said.


The Boston Herald
Thursday, November 29, 2018

Mass GOP chair departs amid Republican turmoil
By Mary Markos


Mass GOP Chairwoman Kirsten Hughes has decided not to seek a fourth term, and internal politics could determine her successor now that Gov. Charlie Baker, with a lack of ardor for certain Republicans on the campaign trail, has ruffled feathers.

“There is a lot of resentment that’s festering under the surface about the governor’s conduct in the last election cycle,” political consultant Chip Jones said.

Jones noted that while Baker won about 67 percent of the vote, the party experienced a setback in losing three legislative seats, and pointed to his reluctance to voice his support for state Rep. Geoff Diehl in the U.S. Senate race as a breach in party loyalty.

“Politics makes strange bedfellows. That’s a cliche because it’s true,” Jones said.

“When you win by that majority and yet you have negative coattails, that’s going to be a hard thing to swallow … There’s going to be a blame game that goes on in people’s minds and people’s voting decisions on who the next chair is.”

Diehl has already expressed interest in the position as chairman, but hasn’t given a definitive answer.

“I just want to make sure if I do decide to do this that I’ve got the support of everybody, including my family. That’s always important to me,” Diehl told the Herald. “I don’t have a timeline yet but I certainly will be making the decision soon.”

Mass. GOP Treasurer Brent Andersen gave a resounding, “Yes, I am running.”

A party insider said Rep. Peter Durant of Spencer is also running, according to State House News, but the lawmaker didn’t respond to requests for comment.

Jim Conroy, Baker’s political adviser, said, “The governor endorsed Geoff on countless events, for legislative candidates and for the state party itself. He’s happy to be able to have given that support.”

In an email to the Massachusetts Republican State Committee, Hughes wrote, “At six years, my tenure in Massachusetts makes me one of the longest-serving state GOP chairs in the nation … While it has been my honor and privilege to serve our party, I have decided the time is right for me to pass the torch to a new leader.”


State House News Service
Thursday, November 29, 2018

Crop of freshwomen lawmakers committed to roll calls
By Katie Lannan


Fifteen female Democrats running for seats on Beacon Hill took a "#TransparencyPledge" on social media in August, committing to join, if elected, what are typically Republican-led efforts to put lawmakers' votes on record.

Now, with this year's election cycle complete, four of those candidates are set to join the Legislature in January.

Senator-elect Becca Rausch of Needham and Representatives-elect Tami Gouveia of Acton, Maria Robinson of Framingham and Lindsay Sabadosa of Northampton were among the group that agreed to "stand for roll calls and to advocate for greater transparency and accountability within the Massachusetts Legislature."

Roll call votes, where each lawmaker's position is recorded, are not required for most bills to pass. When not recorded votes happen when they are requested by one representative or senator, and a sufficient number of others stand up with them in support.

House rules require 10 percent of the members to support a roll call. Senate rules require the support of one-fifth of the body, or a number equal to members of the minority party.

House and Senate Democrats often request roll calls on popular legislation that passes overwhelmingly. The minority Republican caucuses often seek to put their colleagues on the record on spending matters and controversial issues, and those attempts sometimes fall short because legislators prefer to be recorded on voice votes.

Recorded votes can turn into campaign issues for lawmakers seeking reelection and facing opponents eager to contrast themselves with incumbents.

Democrats will retain their supermajority control of both branches in 2019, with six Republicans in the 40-member Senate and 32 in the 160-seat House.


State House News Service
Tuesday, December 4, 2018

November surge pushes tax receipts $423 Mil over benchmark
By Michael P. Norton


State tax collections five months into fiscal 2019 are running nearly half a billion dollars over benchmarks, fueled by $1.86 billion in November receipts.

Tax revenues eclipsed the November benchmark by $61 million, and have exceeded the fiscal year-to-date benchmark by $423 million, Revenue Commissioner Christopher Harding announced late Tuesday, on the eve of the state's annual revenue estimation hearing at the State House.

"November was a solid month for revenues, which were above benchmark in all major tax categories," Harding said in a statement. "The main drivers were an increase in consumer spending on taxable goods, and continued strength in corporate payments. Both for the month and on a fiscal year-to-date basis, we continue to see growth in revenues, based on solid economic fundamentals in the state."

November collections rose $122 million, or 7 percent higher than collections in November 2017.

For the fiscal year-to-date through November, tax revenue collections are up 8.4 above the same five-month period in fiscal 2018.


State House News Service
Wednesday, December 5, 2018

Economists warn state budget writers of slowdown on the horizon
By Katie Lannan


Despite a strong economy, last year's $1 billion budget surplus and revenue collections that are outperforming expectations so far this year, the potential for an economic slowdown and future recession loomed as the budget-writing process for next fiscal year kicked off on Wednesday.

At an annual Ways and Means Committee hearing, economic experts offered their financial forecasts for the year ahead, estimating state revenue collections will grow somewhere between 2 percent and 3.4 percent in fiscal 2020. Legislative and administration budget writers will use the predictions to develop a consensus estimate of how much money will be available to spend on state programs and services.

House Ways and Means Chairman Jeffrey Sanchez, who lost his reelection bid this year and will after December turn over his budget work to a successor chosen by Speaker Robert DeLeo, characterized the testimony as "very sobering."

"At the end of the day, there's a lot of good that's happened in this past couple years and it's been fortunate, but it's fragile," Sanchez, who was named Ways and Means chair in July 2017, told the News Service. "And in this upcoming session, the Legislature, the administration and everybody are going to have a lot of hard work to do, especially with the demands of everything that we did in this past session. Everybody's coming back, and the requests are going to be dramatic. We can feel it in the tail end of the session right now."

The fiscal 2020 budget will be among the first major pieces of legislation developed in a new term where lawmakers will have to grapple with the unfinished business of this session, including efforts to shore up financially strapped community hospitals and to increase equity in education by boosting school funding.

Many lawmakers had hoped a proposed surtax on incomes over $1 million would give them more revenue to work with, but that effort was scuttled when the Supreme Judicial Court ruled the ballot question proposing the tax was unconstitutionally drafted.

Unlike the previous two years in which slow growth forced budget negotiators to mark down available revenues during their talks, the conference committee that crafted this year's budget upgraded their projections to add spending beyond levels the House and Senate had approved.

"The past several budget cycles have taught us that we must be prepared for everything," said Sen. Joan Lovely, who co-chaired Wednesday's hearing from the Senate side. Lovely is the vice-chair of the Senate Ways and Means Committee, for which a new chair will also have to be chosen in the new year.

Revenue Commissioner Christopher Harding told the committee that the 8.5 percent growth last year from fiscal 2017 to fiscal 2018 was "exceptionally strong" and had been exceeded only three times in the preceding 30 years. He said that revenue growth was driven by a strong stock market performance, passage of the federal Tax Cuts and Jobs Act in 2017, and an overall strong economy in Massachusetts.

The growth in 2018 and the above-benchmark revenue collections so far this year "reflect one-time events such as tax reform that are exactly that -- one-time events -- and will not be repeated in the future," Harding said.

Harding predicted an actual growth of 2 percent to 2.2 percent in fiscal 2020, with revenue collections ranging from $29.217 billion to $29.384 billion.

Other revenue projections were:
  From the Massachusetts Taxpayers Foundation, 3.6 percent growth in fiscal 2019 to $28.79 billion, followed by 2.4 percent growth to $29.47 billion in fiscal 2020.
  From the Beacon Hill Institute, 6.6 percent growth to $29.6 billion in fiscal 2019, with 2.4 percent growth to $30.3 billion in fiscal 2020.
  From Northeastern University professor Alan Clayton-Matthews, revenue collections of $29.57 billion in fiscal 2019 and $30.58 billion in fiscal 2020, for growth of 3.4 percent from 2019 to 2020

Harding told the committee the national economy is in the second-longest period of growth in its history, but said all expansions must end, and the question is "when the decline will start and how hard the fall will be."

"Based on the analysis and inputs from our sources, we are not projecting a recession to begin during FY20," Harding said. "We are however being realistic in our expectations for growth, and we will be monitoring both revenues and the economic environment carefully."

Massachusetts Taxpayers Foundation President Eileen McAnneny, whose prepared testimony was titled "Are the Good Times Already Over?", urged budget-writers to be cautious of "pre-recession warning signs" in labor markets, home sales, the auto industry, business investments and oil prices.

"The MTF suggests a cautious approach to this year's budget," she said. "While the time and severity of the next economic downturn is unknowable, by historic markers, we are on borrowed time. The state's experience with past recessions clearly demonstrates how quickly and harshly fortunes can turn."

McAnneny said preparing for the next recession, through steps including limiting spending growth and increasing the state's stabilization fund balance, "is the only prudent policy."

After a deposit from last year's budget surplus, the stabilization fund balance is now over $2 billion. Administration and Finance Secretary Michael Heffernan said it is the highest balance in a decade.

Under questioning by Sen. Vinny deMacedo, the ranking minority member on Senate Ways and Means, Treasurer Deborah Goldberg said she thinks the state needs to "keep on marching up," recommending a minimum balance of $4 billion in the so-called rainy day fund.

"It's generally a percentage of your total budget so when we're around forty [billion], we want to be at four [billion], and I would just recommend that we keep putting money into the rainy day fund and not veer from that," she said. "In particular, now that we have begun to advance towards that, to back off from it would then again get the rating agencies concerned."

Colin A. Young contributed reporting

 

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