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CLT UPDATE
Saturday, September 7, 2019

Gov proposes "graduated tax relief"


Republican Gov. Charlie Baker, who has been open to raising taxes, on Friday outlined a new tax relief proposal that his administration says will benefit 1 million taxpayers with dependents.

In a $648 million spending bill that allocated surplus fiscal 2019 revenue, Baker is proposing to double the income tax exemption for dependents from $1,000 to $2,000. The tax break would affect taxpayers who have children or care for dependent relatives who are elderly or have a disability, and is worth about $50 per dependent, according to the administration....

To pay for the tax relief, Baker proposes depositing $175 million in surplus revenues into a tax reduction fund to support two years of deductions at the higher rate without affecting this year's budget or the fiscal 2021 budget. After that, the tax relief would then be incorporated into annual budget assumptions, according to the governor's plans.

The 5.05 percent income tax rate is on track to fall to 5 percent on Jan. 1 and the governor, in his bill, sets the income tax at that rate, bypassing near-term revenue tests. The fiscal 2020 budget already assumes a 5 percent income tax rate, and the governor is not calling for any further changes in the income tax rate.

The governor's tax proposals are expected to be entertained by the Legislature this fall, since lawmakers must close out the books on fiscal 2019 in the coming weeks....

Preliminary tax collections last fiscal year were $1.1 billion above budgeted estimates, according to the administration, and Baker said in May that he anticipated a surplus would "mean more significant deposits" into the state's stabilization fund.

Under statutory requirements around excess capital gains tax revenue, the state has already transferred $848 million into the stabilization fund. Baker wrote in his filing memo to lawmakers that $764 million of that money will stay in the fund, while a total of $84 million will go to reserves for pensions and future retiree health insurance.

The bill filed Friday makes what Baker's office called a "milestone" deposit of an expected $168 million to the rainy day fund, bringing the balance to its highest-ever level at $3 billion.

State House News Service
Friday, September 6, 2019
Baker offers tax relief plan as revenues surge


While most people were returning from a Labor Day weekend retreat or vacation, the Senate's majority leader, Sen. Cindy Creem, was apparently just starting hers. "First day of vacation!!," she tweeted with a selfie on Tuesday, serving as a helpful barometer of when the Senate might get back to work....

To close out the week, Gov. Charlie Baker offered a bill to close out fiscal year 2019 and use some of the surplus funds the state collected from taxpayers last fiscal year to offset new tax relief measures. That could be among the items the Legislature takes up whenever it boots back up later this month.

State House News Service
Friday, September 6, 2019
Weekly Roundup - Labor Day Week [Excerpt]
By Colin A. Young


As pundits ponder the possible fates of both Massachusetts U.S. Senate seats, the state Legislature is trying to squeeze out every last bit of summer sunshine before gaveling back into formal sessions on Beacon Hill.

Five weeks have passed since the House and Senate conducted serious legislative activity, a distracted driving bill has been hung up in conference committee for 80 days, and the wait continues for legislative direction on priority issues like K-12 education funding and reform, transportation investments, and housing production....

The branches are planning to eventually stir back to life this month and committees are poised for an active week ahead, hearing bills pertaining to local option fees for affordable housing and water infrastructure, gender neutral identification proposals, reproductive health, student loans, credit unions, the estate tax, and veteran benefits....

Other loose ends: Gov. Charlie Baker is putting on the table plans to spend the fiscal 2019 surplus.

State House News Service
Friday, September 6, 2019
Advances - Week of Sept. 8, 2019


Potential ballot question campaigns were cleared for takeoff Wednesday, and voters next year could decide the fate of proposals dealing with immigration law enforcement, liability for gun crimes, ranked choice voting, and access to vehicle repair information, among others.

Attorney General Maura Healey announced her certification Wednesday of several initiative petitions as ballot eligible.

Healey also certified proposed constitutional amendments that would restore the voting rights of incarcerated Massachusetts felons and stipulate that there is no requirement for public funding of abortion. Those measures could reach the ballot in 2022 if supporters are able to clear significant hurdles before then. An income surtax on the wealthy, proposed as a legislative amendment to the constitution, is already on track for the 2022 ballot....

Healey declined to certify four proposed laws that would expand the Legislature's ability to limit political spending and contributions by corporations, manage fishing equipment to ensure whale safety, place the top two finishers in a primary election regardless of party on the general election ballot, and create a commission to limit human-rights risks from technology.

Healey's office said her certification decisions were based on constitutional requirements and do not reflect her support or opposition for any of the proposals....

To stay on track for the ballot, supporters of the proposed laws must collect signatures from 80,239 registered voters by Dec. 4, after which the Legislature will get an opportunity to act on the issues. If lawmakers do not address the measures, supporters can gather additional signatures to force a November 2020 ballot question....

The two constitutional amendment proposals must secure approval from at least 25 percent of the House and Senate acting jointly in two separate two-year lawmaking sessions. If that threshold is cleared, they will appear on the November 2022 ballot.

[Details below]

State House News Service
Wednesday, September 4, 2019
Range of topics deemed eligible for 2020 ballot


The Massachusetts Department of Transportation has already paid more than half a million dollars to investigate and explain the botched Registry of Motor Vehicles record keeping linked to a deadly crash in June.

“This is just another example of the long list of consequences due to these oversights,” said Sen. Eric Lesser (D-Longmeadow), who sits on the legislative Transportation Committee investigating the issue.

Transportation officials have issued two payments to Grant Thornton, the independent auditing firm hired to conduct the investigation. The first payment of $244,000 came on Aug. 14, two days before the firm released a preliminary report. The most recent $300,000 payment occurred on Aug. 28.

“This is really just the start. There will be a significant cost to implement whatever is finally recommended,” Lesser said about the scandal.

The Boston Herald
Wednesday, September 4, 2019
RMV crisis costs taxpayers half a million dollars … and counting


Today, on Beacon Hill, a joint hearing will be held on a pair of bills that would clear the way for illegal immigrants in Massachusetts to receive driver’s licenses.

The legislation, filed by two Democratic lawmakers, would green-light licenses for all qualified residents. The thinking behind the bill is that legitimizing drivers would actually make the roads safer for everyone as those drivers would now be on the grid like the rest of us. They would be held to the same standards as anyone else, having to pass tests and get insurance.

This effort is a cynical maneuver that would only go to undermine the rule of law. It will result in an influx of illegal immigrants to the Bay State who will look to use the RMV documentation to begin to obtain legitimacy.

A driver’s license can bridge the gap between undocumented status and the full privileges of citizenship, including voting. It is quite a reward to bestow upon someone who has repeatedly broken the law, in most cases, in establishing an unearned livelihood in this country.

Earlier this year, Gov. Charlie Baker, told the Boston Herald he would “certainly veto” a bill to grant licenses to undocumented immigrants. If it gets that far he must do just that.

A Boston Herald editorial
Wednesday, September 4, 2019
Illegal immigrants should not get driver’s licenses
We must not reward bad behavior


Chip Ford's CLT Commentary

It's hard to fault Gov. Baker for his inclination toward some tax relief after the huge revenue surplus (tax overpayment) last fiscal year, $648 million of which is about to be spent, of course.  But if this overpayment of taxes is to be given back as it should be why does he feel compelled to dole it out to some and not all taxpayers?  All taxpayers paid it without discrimination.  Why are not all eligible for relief without discrimination?  When the state government has taken in far more (almost two billion in excess taxpayer's dollars) who is he or anyone else to pick which taxpayers will be reimbursed and which will not?

To pay for the tax relief, Baker proposes depositing $175 million in surplus revenues into a tax reduction fund to support two years of deductions at the higher rate without affecting this year's budget or the fiscal 2021 budget. After that, the tax relief would then be incorporated into annual budget assumptions, according to the governor's plans.

The 5.05 percent income tax rate is on track to fall to 5 percent on Jan. 1 and the governor, in his bill, sets the income tax at that rate, bypassing near-term revenue tests. The fiscal 2020 budget already assumes a 5 percent income tax rate, and the governor is not calling for any further changes in the income tax rate.

The governor's "tax relief" will benefit 1 million taxpayers but only those with dependents.  Did they pay more taxes than those without dependents?

This is another of Charlie's moves toward Progressivism "graduated tax relief."

"From each according to his ability, to each according to his need."


I was contacted by Rep. Shawn Dooley's (R-Norfolk) office this past week asking for CLT's support of the representative's estate tax reform bill (H-2466).  Rep. Dooley's chief-of-staff reminded me that Shawn Dooley was formerly Chip Faulkner's state rep and that Chipster was backing this bill.  Basically, it updates the Massachusetts estate tax to catch up with inflation and property appreciation, long overdue.  According to excerpts from a summary of the bill:

Currently, estates worth under $1,000,000 are excluded from paying the estate tax, but when it reaches a value of $1,000,000 the tax is triggered and the entire estate is taxed. This bill changes the system to an exclusion-based method where only the value of the estate above a basic exclusion amount is taxed, not the entire estate. This exclusion is amount is set to be indexed with inflation each year.

Currently Massachusetts is an outlier even among the 11 states that have a state estate tax. We are currently tied with Oregon for the lowest exemption of $1,000,000.

The reality is that wealthy people are leaving Massachusetts because of our estate (and other) taxes. This occurs at a much higher rate in retirement. Therefore we are not only losing 100% of their estate tax, but we are also losing 100% of 30-40 years worth of income tax, capital gains tax, property tax, excise tax, sales tax, etc. It is a compounding factor.

There are a multitude of bills coming up before the Joint Committee on Revenue on Tuesday, many addressing just this estate tax situation.  The cleanest, most straightforward are S.1657 and S.1731, both titled "An Act abolishing the death tax."  Now that would take care of the problem once and for all, but they stand little chance of even getting out of the committee.  Not in Massachusetts one of only 11 states across the nation with an estate tax whatsoever.  (If there's a tax or fee invented by Mankind, Taxachusetts has found, adopted, and imposes it.)

I'll begin preparing CLT's testimony for the Revenue Committee tomorrow.


A little aside.  Remember when that committee was called the Taxation Committee not so long ago?

If you control language, you control the argument. If you control the argument, you control information. If you control information, you control history. If you control history, you control the past.

“He who controls the past controls the future.”

– George Orwell’s Big Brother, "1984"

"Control the language and control history" by William Haupt III


One dangerous bill is being proposed on Tuesday by Sen. Julian Cyr (D-Cape and Islands) and Rep. Dylan A. Fernandes (D-Barnstable, Dukes and Nantucket).  It would transform the local municipal property tax into a progressive tax with different tax rates and brackets dependent on some criteria not defined by the bill.  You might be assessed $1.75 per thousand valuation of your property, while your neighbor's tax rate might be only 88 cents per thousand of his property's assessed value.  Of course, if your neighbor's tax rate is lowered, then the tax rates of others would need to be jacked up to make up the difference.

"From each according to his ability, to each according to his need."

S.1634
An Act relative to a bifurcated property tax

By Mr. Cyr, a petition (accompanied by bill, Senate, No. 1634) of Sen. Julian Cyr and Rep. Dylan A. Fernandes for legislation relative to a bifurcated property tax.

SECTION 1. Chapter 59 of the General Laws is hereby amended by inserting after section 5N the following 2 sections:-

Section 5O. In any city or town that accepts this section, the board of selectmen of a town, or in a municipality having a town council form of government, the town council or the mayor, with the approval of the city council in a city, may establish a bifurcated or progressive tax rate on real property.

https://malegislature.gov/Bills/191/S1634

If a "graduated property tax" was ever adopted by the Legislature and signed by the governor, it would likely be found unconstitutional under the Massachusetts Constitution's requirement that all classes of property must be taxed at the same rate — the reason why Progressives and Socialists are attempting to amend the constitution to impose a "millionaire's tax" on income.


The 5.05 percent income tax rate is on track to fall to 5 percent on Jan. 1 and the governor, in his bill, sets the income tax at that rate, bypassing near-term revenue tests. The fiscal 2020 budget already assumes a 5 percent income tax rate, and the governor is not calling for any further changes in the income tax rate.

Finally after thirty years the Dukakis "temporary" income tax increase will be fully rolled back to its once-historic 5 percent.  Nineteen years after the voters, through CLT's ballot question, resoundingly mandated that it be rolled back then the voters' decision was "frozen" by the Legislature it now appears certain that the income tax rate as of 2020 will drop to 5 percent.

It's sad that Barbara Anderson and Chip Faulkner — both relentless, tireless, and critical leaders of the two CLT petition drives and our victorious 2000 ballot campaign — did not live long enough to celebrate the attainment of their long labors.  Many who fought and sacrificed with us over the years, the decades — for over an entire generation to roll it back also aren't around any longer to appreciate the satisfaction of this overdue success, as you and I will at long last.

Another Thirty Years' War has been a long, exhausting battle by any measurement.

Chip Ford
Executive Director


 

State House News Service
Friday, September 6, 2019

Baker offers tax relief plan as revenues surge
By Michael P. Norton and Katie Lannan


Republican Gov. Charlie Baker, who has been open to raising taxes, on Friday outlined a new tax relief proposal that his administration says will benefit 1 million taxpayers with dependents.

In a $648 million spending bill that allocated surplus fiscal 2019 revenue, Baker is proposing to double the income tax exemption for dependents from $1,000 to $2,000. The tax break would affect taxpayers who have children or care for dependent relatives who are elderly or have a disability, and is worth about $50 per dependent, according to the administration.

The supplemental spending bill also includes funding addressing fentanyl trafficking, drinking water contaminants, education for low-income students, and local roads and bridges.

To pay for the tax relief, Baker proposes depositing $175 million in surplus revenues into a tax reduction fund to support two years of deductions at the higher rate without affecting this year's budget or the fiscal 2021 budget. After that, the tax relief would then be incorporated into annual budget assumptions, according to the governor's plans.

The 5.05 percent income tax rate is on track to fall to 5 percent on Jan. 1 and the governor, in his bill, sets the income tax at that rate, bypassing near-term revenue tests. The fiscal 2020 budget already assumes a 5 percent income tax rate, and the governor is not calling for any further changes in the income tax rate.

The governor's tax proposals are expected to be entertained by the Legislature this fall, since lawmakers must close out the books on fiscal 2019 in the coming weeks.

Preliminary tax collections last fiscal year were $1.1 billion above budgeted estimates, according to the administration, and Baker said in May that he anticipated a surplus would "mean more significant deposits" into the state's stabilization fund.

Under statutory requirements around excess capital gains tax revenue, the state has already transferred $848 million into the stabilization fund. Baker wrote in his filing memo to lawmakers that $764 million of that money will stay in the fund, while a total of $84 million will go to reserves for pensions and future retiree health insurance.

The bill filed Friday makes what Baker's office called a "milestone" deposit of an expected $168 million to the rainy day fund, bringing the balance to its highest-ever level at $3 billion.

On the public health front, the bill calls for $5 million to support regional fentanyl interdiction programs, and $3.5 million for additional spraying to reduce the risk of Eastern equine encephalitis. Seven human cases of EEE have now been confirmed in Massachusetts, and fentanyl was found present in 92 percent of all opioid overdose deaths in the first quarter of 2019 where a toxicology screen occurred.

Baker is recommending $100 million in education investments, including $50 million for "targeted assistance" in districts with high concentrations of low-income students, $15 million for school security infrastructure grants, and $15 million to support scholarships for high school students enrolled in early college programs.

The bill, which will be vetted and likely amended by the House Ways and Means Committee before coming before lawmakers for a vote, also proposes $50.5 million in grants to municipalities for local road and bridge improvements; more than $60 million related to clean drinking water; $10 million for mortgage down payment assistance; $6.9 million for fiscal 2019 snow and ice removal costs; $16.4 milion to improve services for men who are civilly committed for substance use treatment; and $1.2 million in grants to address security needs at non-profit institutions.


State House News Service
Friday, September 6, 2019

Advances - Week of Sept. 8, 2019


As pundits ponder the possible fates of both Massachusetts U.S. Senate seats, the state Legislature is trying to squeeze out every last bit of summer sunshine before gaveling back into formal sessions on Beacon Hill.

Five weeks have passed since the House and Senate conducted serious legislative activity, a distracted driving bill has been hung up in conference committee for 80 days, and the wait continues for legislative direction on priority issues like K-12 education funding and reform, transportation investments, and housing production. Lt. Gov. Karyn Polito this week turned up the pressure on lawmakers to act on a housing bill.

The joint committee structure is controlled by the House, and stakeholders are looking to chairs Alice Peisch of Wellesley for direction on education, William Straus of Mattapoisett and Mark Cusack of Braintree on transportation revenues, and Kevin Honan of Brighton, whose Housing Committee needs to make a recommendation on a production bill. Senators are coming back to Beacon Hill for a closed caucus on Thursday, perhaps to brainstorm on a fall agenda.

Like the Senate, the House does not have any formal sessions planned next week. Gov. Charlie Baker and Democratic legislative leaders do plan a Monday afternoon meeting.

The branches are planning to eventually stir back to life this month and committees are poised for an active week ahead, hearing bills pertaining to local option fees for affordable housing and water infrastructure, gender neutral identification proposals, reproductive health, student loans, credit unions, the estate tax, and veteran benefits. U.S....

Other loose ends: Gov. Charlie Baker is putting on the table plans to spend the fiscal 2019 surplus....

Tuesday, Sept. 10, 2019

REVENUE COMMITTEE:
  Bills related to property and estate taxes come before the Revenue Committee for a hearing. Several bills deal with the estate tax, which critics call a "death tax," and some would abolish it entirely. Sen. Julian Cyr of Truro has dubbed his estate tax modification bill (S 1631) "an act to mitigate snowbird relocation." The committee will also solicit testimony on an array of bills dealing with the payments in lieu of taxes, or PILOTs, that tax-exempt non-profits contribute to their host communities. Full Agenda (Tuesday, 1 p.m., Room B-2)


State House News Service
Wednesday, September 4, 2019

Range of topics deemed eligible for 2020 ballot
By Chris Lisinski


Potential ballot question campaigns were cleared for takeoff Wednesday, and voters next year could decide the fate of proposals dealing with immigration law enforcement, liability for gun crimes, ranked choice voting, and access to vehicle repair information, among others.

Attorney General Maura Healey announced her certification Wednesday of several initiative petitions as ballot eligible.

Healey also certified proposed constitutional amendments that would restore the voting rights of incarcerated Massachusetts felons and stipulate that there is no requirement for public funding of abortion. Those measures could reach the ballot in 2022 if supporters are able to clear significant hurdles before then. An income surtax on the wealthy, proposed as a legislative amendment to the constitution, is already on track for the 2022 ballot.

Overall, Healey certified 12 initiative petitions, a hurdle that any potential statewide ballot question must clear. The proposals cover 11 topics, one fewer than the total number of active petitions because a measure related to persons with disabilities was filed and approved twice.

In addition to ballot proposals to cap state employee sick time payouts, boost nursing home funding and create alcohol licenses for food stores, Healey certified two different initiatives that would codify a ban on any state-funded treatment that harms individuals with disabilities. The petition targets hitting, pinching, and electric shock "for the purposes of changing the behavior of the person or punishing the person."

Healey declined to certify four proposed laws that would expand the Legislature's ability to limit political spending and contributions by corporations, manage fishing equipment to ensure whale safety, place the top two finishers in a primary election regardless of party on the general election ballot, and create a commission to limit human-rights risks from technology.

Healey's office said her certification decisions were based on constitutional requirements and do not reflect her support or opposition for any of the proposals.

If backers of the prisoner voting rights amendment are successful, thousands of Massachusetts residents in prison on felony convictions would once again be allowed to vote, a right they had until it was revoked by a constitutional amendment that was approved in 2000.

Austin Frizzell, an organizer with the Mass POWER campaign leading the effort, said the change would likely affect about 9,200 incarcerated residents currently in state prison, citing statistics from the Prison Policy Institute. People who have completed felony sentences, inmates in local jails and parolees can vote in Massachusetts, he said, "though access to ballots is often difficult."

"We know our criminal justice system disproportionately and unjustly targets people of color, especially Black communities, and therefore it is also a system of voter repression," Frizzell said in a press release. "The right to vote is fundamental and removing it does not contribute to healing for our state."

The push comes amid similar efforts elsewhere in the country. In Florida, voters approved a ballot question last year to re-enfranchise about 1.5 million individuals with felony convictions, though the state Legislature then passed a law limiting those rights and was quickly challenged in court.

In April, the Joint Committee on Election Laws in Massachusetts gave an adverse report to a similar proposal looking to restore felon voting rights through a legislative constitutional amendment.

The abortion-related proposal had cleared Healey's review in 2017, but supporters did not secure enough signatures to advance their measure further in the process.

They will renew their efforts now after the call for a constitutional amendment, which would add a line to the state Constitution saying there is no requirement to publicly fund abortion, was certified by Healey.

Proposals for changes to state law cover a range of topics, from allowing police cooperation with federal immigration authorities to capping political donations from non-Massachusetts residents and entities.

One of the petitions would update the 2013 state law on access to diagnostic information for vehicle repairs, requiring manufacturers to make digital repair information accessible. Proponents say that as technology advances, it has grown more complicated for independent repair shops to handle various car needs.

"These shops are increasingly facing the prospect of having limited or no access to diagnostic and repair information now that automakers are restricting access through rapidly expanding wireless technologies in vehicles," said Massachusetts Right to Repair Coalition Director Tommy Hickey in a statement. "We need to update Right to Repair to keep pace (with) the massive growth of digital and wireless technologies cars over the last 6 years."

Automakers plan to oppose the effort, and Conor Yunits, a spokesperson for the Coalition for Safe and Secure Data, said the change would expose personal driving data to third parties and create privacy risks.

"This ballot proposal is not about who can fix your car; it is about how many companies and people have remote access to your driving habits, patterns and location in real-time," Yunits said in a statement. "Automakers already provide all information needed to repair and diagnose a vehicle today and will continue to in the future."

Another proposal Healey certified would implement a ranked-choice voting system for most elections in Massachusetts, a proposal that has drawn attention on Beacon Hill and has been suggested in several separate pieces of legislation.

The version as outlined in the initiative would apply to most statewide or legislative elections, excluding president, with two or more candidates on the ballot.

Voters would rank the candidates in their order of preference, and if no single person receives an outright majority of number-one votes, runoffs would occur in which the lowest-ranked candidate is eliminated and ballots are redistributed to whoever that candidate's voters selected as their next choice. The process would repeat until someone received at least 50 percent of the vote.

A similar system is in place in Maine.

"Massachusetts voters want a stronger voice when we cast our ballots, and it’s just common sense to make sure that our elected leaders are supported by a true majority," said Mac D'Alessandro, campaign manager of the Voter Choice for Massachusetts group pushing for the change. "Ranked Choice Voting would give voters the option to rank candidates in the order they prefer them, empowering and re-energizing Massachusetts voters at a critical time in our democracy."

Other petitions reflect ongoing debates at the State House. While lawmakers again weigh whether to support the Safe Communities Act — which would effectively create a firewall between local law enforcement and federal immigration authorities — one proposed ballot question would explicitly allow police to detain suspects wanted by Immigration and Customs Enforcement in some cases.

Cape and Islands District Attorney Michael O'Keefe was the lead proponent on the immigration initiative. Top signatures backing the idea include Bristol County Sheriff Thomas Hodgson, Worcester County Sheriff Lewis Evangelidis, Barnstable County Sheriff James Cummings, Republican legislators Rep. William Crocker, Rep. Norman Orrall and Sen. Dean Tran, Democratic Rep. Colleen Garry, Gardner Mayor Mark Hawke and others.

Another initiative would change state law so that all gun owners, including Massachusetts residents and out-of-state visitors, would be held "equally responsible for any and all actions and crimes committed" with any weapons they own, regardless of whether they provided the firearms intentionally. It would also require every gun owner to obtain a certified gun safe.

To stay on track for the ballot, supporters of the proposed laws must collect signatures from 80,239 registered voters by Dec. 4, after which the Legislature will get an opportunity to act on the issues. If lawmakers do not address the measures, supporters can gather additional signatures to force a November 2020 ballot question.

Signature-gathering has been an obstacle for many initiatives in the past. In 2017, Healey deemed 20 proposed laws eligible to proceed, but only seven cleared the signature threshold. One related to an income surtax was later tossed by the Supreme Judicial Court, while three dealing with the sales tax, minimum wage, and paid leave were abandoned after lawmakers worked them into last year's so-called "grand bargain" agreement.

The two constitutional amendment proposals must secure approval from at least 25 percent of the House and Senate acting jointly in two separate two-year lawmaking sessions. If that threshold is cleared, they will appear on the November 2022 ballot.


The Boston Herald
Wednesday, September 4, 2019

RMV crisis costs taxpayers half a million dollars … and counting
By Hillary Chabot


The Massachusetts Department of Transportation has already paid more than half a million dollars to investigate and explain the botched Registry of Motor Vehicles record keeping linked to a deadly crash in June.

“This is just another example of the long list of consequences due to these oversights,” said Sen. Eric Lesser (D-Longmeadow), who sits on the legislative Transportation Committee investigating the issue.

Transportation officials have issued two payments to Grant Thornton, the independent auditing firm hired to conduct the investigation. The first payment of $244,000 came on Aug. 14, two days before the firm released a preliminary report. The most recent $300,000 payment occurred on Aug. 28.

“This is really just the start. There will be a significant cost to implement whatever is finally recommended,” Lesser said about the scandal.

Grant Thornton’s preliminary report suggested creating two new positions within the RMV, while Interim Registrar Jamey Tesler promised to hire a deputy registrar for safety and to create a new six-person out-of-state notifications processing unit.

The department-wide scandal also cost the jobs of two transportation bigwigs. The RMV’s former Registrar Erin Devaney resigned when the department’s poor record keeping came to light. Former Merit Rating Board Director Thomas Bowes was fired last month by board members.

Those costs, Lesser pointed out, pale in comparison to the seven lives lost in a June 21 crash following the systemic management failures at the RMV. Registry officials for years failed to suspend driver’s licenses based on out-of-state offenses.

The oversight meant Volodymyr Zhukovskyy, a 23-year-old man accused of causing the fatal crash, kept his driving license despite a May 11 operating under the influence charge in Connecticut that should have prompted an automatic suspension.

Grant Thornton is days away from a two-month deadline to produce its final report. A contract requires Grant Thornton to produce a final report within 60 days of the firm’s July 9 engagement date, according to a copy of the Statement of Work provided to the Herald.

But DOT spokeswoman Jacquelyn Goddard said there is no set date for the report’s release.

“We’re waiting with bated breath for the final issuance of the report, which could be any day now,” said Lesser.

 

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


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