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CLT UPDATE
Sunday, February 13, 2022

Gov's Tax Relief Clashes With Legislature's New Taxes Schemes


Jump directly to CLT's Commentary on the News


Most Relevant News Excerpts
(Full news reports follow Commentary)

Taxpayers need a break. Massachusetts couples shell out the highest percentage of their income on taxes in the nation, a new study shows.

Massachusetts took the top spot for couples filing jointly, with couples paying 23.51% of their income in taxes. Close behind is Oregon, at 23.24%, Hawaii, at 23.05%, and Connecticut, at 22.99%. The lowest rate was in Tennessee, with taxpaying couples owing just 15.54% of their income to taxes.

This comes as the state Department of Revenue collected $4.026 billion in tax revenue from people and businesses last month. That was 27% more than expected.

Plus, it places Massachusetfs nearly $1.5 billion ahead of its end-of-fiscal-year target.

Gov. Charlie Baker is pushing tax-relief proposals that would give breaks for housing and child care costs and eliminate the income tax for hundreds of thousands. Keep on going. The pandemic and President Biden’s policies have driven up the cost of just about everything.

Inflation is a hidden tax that hits everyone. The government needs to put the needs of taxpayers first as we climb out of this mandate-heavy moment in history. We back Baker’s train of thought, but urge he add more coal to the engine.

The Boston Herald
Sunday, February 6, 2022
A Boston Herald editorial
Give us a break! On taxes


There are many people and businesses in Massachusetts struggling during these pandemic times. The commonwealth is not among them. The Massachusetts state government is awash in money. According to the state comptroller’s office, FY2021 revenues ($57 billion) were 30% ($13 billion) higher than the original budget estimate. Income tax revenue was 25% ($20 billion) above the budget estimate.

The Massachusetts Lottery produced a record $1.1 billion in profit. In fact, the last week of 2021 was highest on record for Lottery sales. So far, FY2022 is trending ahead of FY2021 for both revenues and the Lottery. So, the State House politicians got more than they expected or planned for.

Idea: They should give some of it, at least the “excess,” back to the people who earned it and from whom they took it i.e., the Massachusetts taxpayers. An across-the-board tax refund and cut for next year. But that’s not on the radar for the Democrat-controlled legislature. Quite the opposite.

The Democrats on Beacon Hill are proposing still more taxes. As Chip Ford of Citizens for Limited Taxation headlined it, “Record-Shattering Revenue Haul Still Not Enough.” The current scheme to raise taxes is a proposed amendment to the state constitution that would impose a 4% surtax on people and businesses with income over $1 million. It will be on the ballot this November. The Democrats tout this as just going after “millionaires.” But it’s not only about money. Democrats believe they can get votes and political benefit from fomenting resentment of the “rich.” ...

To promote the tax, Democrat proponents say the revenue generated would go to education and transportation. But the actual proposal does not require that. In fact, there’s a legal challenge over misleading wording in the summary to be circulated to voters before the November vote. So, Democrat legislators (with a few exceptions, such as Rep. Colleen Garry of Dracut) expect us to simply trust them about how the new tax money will be spent.

But legislators don’t keep their tax promises. Remember the “temporary” income tax hike of 1989? It was promised to be for 18 months. But that tax remained even after CLT’s successful 2000 ballot initiative to repeal it. The tax finally went back to 5% in 2020 — 30 years later. So much for legislative trustworthiness.

We can trust Democrat legislators to have an insatiable desire for more taxes. But this surtax proposal, for the largest ever tax increase, is ill-conceived and ill-timed. Instead, implement a tax cut. It’s time to refund the hard-working people of Massachusetts their tax dollars.

The Boston Herald
Wednesday, February 9, 2022
Awash in cash, Mass. should cut, not raise taxes
By Avi Nelson


Cities and towns run the risk of being "permanently left behind" in their ability to fund key local services without a change in the way state revenue growth is calculated, the head of the Massachusetts Municipal Association warned Tuesday.

Speaking at a meeting of the Local Government Advisory Commission, MMA Executive Director Geoff Beckwith asked that state officials look for another way to gauge annual revenue growth to make sure that communities are able to share in the upswings.

"We fear what will happen to communities if local aid does not keep pace, not just for this year, but for many years," Beckwith said....

Beckwith said state revenues and unrestricted local aid were "generally growing at the same rate" until 2020, when the COVID-19 pandemic knocked the global economy askew. Since then, he said, the growth estimates used to set local aid levels have been "extraordinarily low and missed the mark in fiscal 2021 and fiscal 2022."

"If this method of calculating revenue growth isn't corrected, cities and towns will be permanently left behind and their capacity to fund key, core services at the municipal level will be hindered on a long-term basis for many, many years," Beckwith said. "And local services are the building blocks for our state's economy," he said.

He said that while state revenue growth has averaged about 5 percent each year, local aid will have risen about 3 percent, resulting in an approximately "40 percent difference in terms of revenue sharing for unrestricted general government aid." ...

On school funding, the MMA wants the minimum aid funding -- the increase districts receive when funding formulas mean their school aid would not otherwise go up -- to rise from $30 per student in Baker's plan to $100 per student.

Baker's budget recommends a $485 million hike in Chapter 70 aid to local schools, bringing that account up to $5.989 billion.

Sandwich Town Manager George "Bud" Dunham said that despite the 8 percent increase in Chapter 70 over this year, 136 of 318 school districts would receive just the minimum aid increase, for a combined increase of just over $9 million at those districts.

Sandwich is a minimum-aid community and stands to receive a 1 percent aid increase, he said.

State House News Service
Tuesday, February 8, 2022
Muni Officials Say State Not Sharing Enough Revenue
Collections Have Far Exceeded Conservative Projections


The biennial bill-reporting deadline came and went last week, but an 11-month legislative disagreement means the public may never know how their representatives and senators voted in deliberations over whether proposals should advance or fall short.

The House and Senate each supported some form of pulling back the curtain on how panels vote, but Democrats couldn't agree on a reform plan and existing legislative rules do not require joint committees to publish any breakdown of where members stand on bills they report.

Some joint committees could still volunteer that information, but the failure of House and Senate Democrats to find consensus on the transparency measures means that the individual preference of each panel's chairs determines whether a vote breakdown becomes public.

At the start of the 2021-2022 lawmaking session, the Legislature adopted joint rules that governed the 2019-2020 session -- which do not require disclosure of joint committee votes -- as a temporary placeholder....

Today, more than halfway through the session and with only a bit more than five months remaining until the end of formal sessions where the most substantial bills are considered, last session's rules remain in place on a temporary basis, modified only in a few sections outlined in the conference committee's partial report....

A section of the Legislature's rules known as Joint Rule 10 sets the first Wednesday in February in even years as the date by which most committees must give up-or-down recommendations to all bills under their purview.

While joint committees have made decisions on scores of bills - giving them favorable or adverse reports, or sending them to dead-end studies - committees are also able to easily hold on to bills with extension orders.

Even after Joint Rule 10 Day has passed, determining the fate of a bill can be tricky. For many bills, the online bill history still does not list if the committee pushed back its reporting deadline, and the only way to deduce that information is to study the bill numbers listed in an extension order.

The bill history is also slow to update for legislation on which committees act. Last week, for example, the Consumer Protection and Professional Licensure Committee sent to a study a Rep. Mike Connolly bill (H 4135) that would create a commission to review and evaluate happy-hour policies, effectively killing it.

That information is only apparent on the "reported out of committee" tab on the committee's website. As of midday Monday, the bill history for H 4135 still listed the most recent step as a Nov. 8 hearing.

State House News Service
Tuesday, February 8, 2022
Transparency Measures Disappear In Conference Darkness
Democrats Can't Agree On Joint Committee Votes


Top Democrats said Tuesday that Gov. Charlie Baker's plan to offer tax relief to hundreds of thousands of parents, renters, seniors and other middle-income taxpayers will get its "due diligence," but were non-committal on the centerpiece of the Republican governor's final state spending plan as he prepares to leave office next year.

Baker has proposed close to $700 million in tax cuts as multiple governors around the country are eyeing tax relief this year. State revenues in Massachusetts continue to soar as they have throughout the COVID-19 pandemic, creating surpluses and pools of money that have been used to boost spending and state reserves.

Illinois Gov. JB Pritzker offered $1 billion in tax cuts as part of his budget this year, and Connecticut Gov. Ned Lamont has proposed $336 million in tax relief. Both are Democrats.

Legislative leaders on Beacon Hill, however, cautioned that the state's fortunes could turn on a dime as federal support dries up and factors like inflation and tight supply chains hold the potential to slow economic growth. House Ways and Means Chairman Aaron Michlewitz also cited the need to fully fund the Student Opportunity Act, protect vulnerable residents from a "housing crisis" and invest in transportation.

"I'm absolutely open minded," Senate Ways and Means Chairman Michael Rodrigues said after the hearing.

Michlewitz said it was "a little too early to make any real determinations," noting that Baker's plan contains multiple changes to the tax code that each have their own costs associated....

The Legislature kicked off its annual budget process on Tuesday when Administration and Finance Secretary Michael Heffernan, along with other statewide elected officials, testified before the House and Senate Ways and Means committees on Baker's $48.5 billion budget proposal for fiscal 2023.

Heffernan, who was presenting his fifth budget on behalf of the administration, described the state's economy as "resilient" in the face of an ongoing public health crisis, and highlighted how Baker's budget would boost an already healthy $4.6 billion "rainy day" fund to $6.6 billion by the end of the next fiscal year.

"The state's strong fiscal standing has also positioned us to be able to offer relief to Massachusetts taxpayers. This is especially important at this moment, as people face continued economic instability and rising costs due to inflation, supply-chain issues, and other factors," Heffernan said.

The tax relief push from the administration comes as the state is witnessing continued strong tax collections. After raising its expected fiscal 2022 tax collection target by $1.5 billion in January, the Department of Revenue reported earlier this month that collections are running $1.45 billion above the revised targets....

Heffernan called the short-term capital gains rate "markedly uncompetitive" with other states, and something important to consider as opportunities for remote work give employees and businesses the option of relocating outside of Massachusetts.

He also said that because of inflation the current estate tax would "trip" a lot of middle-income families as close to 9 percent of single-family homes in Massachusetts approach the $1 million valuation mark.

"Because of inflation, many many more people are paying the estate tax," said Heffernan, telling lawmakers that the full impact of the $231 million tax cut would not be realized until fiscal year 2024.

Asked by Rep. Ann-Margaret Ferrante how Baker's spending and tax plan fit into the context of the November vote on a plan to add a 4 percent surtax on household income over $1 million, Heffernan called the so-called millionaires tax "dangerous policy" and unnecessary given the way Baker's budget would simultaneously build state reserves, invest in long-term liabilities like the pension system and offer tax relief at the same time.

"If you look at the way our tax systems work right now, it's working much to the benefit of all our residents," he said.

State House News Service
Tuesday, February 8, 2022
Tax Cuts Force Look At Stability Of Government, Taxpayers
Sharing State's Tax Haul Shaping Up As Election-Year Issue


Raising taxes on income over $1 million would be a “dangerous policy,” given how well the state is doing financially under the current tax system, Secretary of Administration and Finance Michael Heffernan said Tuesday....

Heffernan said wealthy residents already pay the biggest portion of state taxes. The state tax rate is a flat 5 percent, so residents with more money pay more in absolute dollars. Heffernan said millionaires make up half a percent of the population but pay 24 to 25 percent of state income taxes. The wealthiest 10 percent of taxpayers pay 50 percent of taxes. “We have a very progressive income tax system because of the way it’s been set up in statute,” he said.

CommonWealth Magazine
Tuesday, February 8, 2021
A&F Secretary Heffernan calls millionaire’s tax ‘dangerous’


Masks. Wear 'em if you want to.

Massachusetts joined a growing number of states around the country this week that began to relax masking requirements as the omicron surge fades and imaginations drift to what it would be like to see people's full faces again.

Stepping back into what has become an increasingly polarized, and political, debate over the continued necessity of masking, Gov. Charlie Baker made the decision to allow masking requirements in public schools to lapse at the end of the month when his order is set to expire.

And Baker was not alone.

Governors in about a dozen states took similar actions, from California and Illinois to Connecticut. But the herd could not fully protect Baker from the blowback that was to be expected, as some Democrats and teachers unions questioned whether it was too soon, or if he should at least wait a few more weeks until after the upcoming school vacation....

But if it's good for the goose, what about the ... Legislature?

Still shuttered to the public after 703 days, Baker said he believes the State House should reopen to visitors and anyone with business before their elected representatives, but legislative leaders continue to slow walk that decision-making process.

As Baker made his school masking announcement in the third-floor library of the State House, protesters in the basement pushed past security demanding access to the "People's House," among other gripes they chose to air.

"It's their building, it's their call," Baker said, referring to the House and Senate.

Technically, it seems the governor might have a point. While the Bureau of the State House sits within the executive branch, Massachusetts General Laws stipulate that the building superintendent should operate and maintain the building "subject to such rules as the committee on rules of the 2 branches, acting concurrently, may adopt..."

There was nothing concurrent about Senate President Karen Spilka's declaration that she intends to open Senate sessions to the public on Feb. 22, but it remains to be seen how exactly that would work....

House Speaker Ron Mariano, who supports proof of vaccination to enter the building, wouldn't say if he supports a Feb. 22 reopening....

Mariano may not be ready to hang the welcome sign above the General Hooker entrance, but after years (decades?) of debating whether undocumented immigrants should be able to get a driver's license the speaker is ready to try to answer that question. And the answer is, "Yes."

Mariano signaled plans to put the license bill on the floor next week for a vote, the first time it has progressed that far in either branch. Baker has long suggested opposition to the idea, but House leaders say they're hopeful once he sees the public safety protections included in the legislation he can be persuaded.

State House News Service
Friday, February 11, 2022
Weekly Roundup - Chains of Command


For the second straight session, a legislative committee advanced legislation with 14 votes in favor that would allow undocumented immigrants to acquire driver's licenses.

This time, the bill appears certain to proceed beyond the committee stage to a vote in at least one chamber.

A day after House Speaker Ronald Mariano announced that he planned to bring the immigrant licensing bill to the floor next week, the Joint Transportation Committee favorably reported the bill with a 14-3 vote along party lines.

The three votes against pushing the bill forward came from the panel's only House Republicans: Rep. David DeCoste of Norwell, Rep. Steven Howitt of Seekonk and Rep. Norman Orrall of Lakeville....

The Transportation Committee's redrafted bill would allow residents without proof of lawful presence in the United States, including individuals ineligible for a Social Security number, to obtain a license if they have sufficient alternative documentation that proves their identity, date of birth and residency in the Bay State....

A majority of representatives and senators co-sponsored the original versions of the bill (H 3456 / S 2289), referred to as the Work and Family Mobility Act, though it remains unclear if Mariano will be able to line up enough votes to constitute the two-thirds majority needed to override a potential gubernatorial veto.

Baker has said he opposes the push to make driver's licenses available to undocumented immigrants, but has not publicly threatened to veto the bill.

Democrats wield supermajority margins in both chambers. The House -- currently down to a total of 158 members due to two vacancies -- has 128 Democrats, 29 Republicans and one independent, while the Senate has 37 Democrats and three Republicans.

State House News Service
Friday, February 11, 2022
License Access Bill Advances On Party Line Vote
Redraft Could Hit House Floor For Vote Next Week


Maura Healey is an astute politician.

That’s why she’s ripping a page out of Ed Markey’s re-election playbook by quickly letting everyone know she’s as progressive as any rival.

Sen. Markey outmaneuvered Joe Kennedy III with a deft political reinvention that had him morph into the Bernie Sanders of Massachusetts. AOC and other younger progressives rallied to Markey’s side and he blew past JoeKIII winning re-election. (55.3% to 44.6%)

Maura Healey, it appears, took note.

This past week she announced for all to hear that she’s “a proud progressive and I am incredibly proud of my record.” That’s textbook primary calculus. She first needs to defeat gubernatorial rivals state Sen. Sonia Chang-Diaz and Harvard professor Danielle Allen....

The primary is Sept. 20 with the general election set for Nov. 8. Republicans Geoff Diehl, a former Whitman state representative who is endorsed by former President Donald Trump, and Wrentham businessman Chris Doughty, we’re sure, will remember this pivot by Healey.

But what will voters say?

As of this weekend, Massachusetts has roughly 4.7 million voters. A majority — 57.4% — are independent-minded and register as “unenrolled.” The rest are 31.6% Democrat, 9.7% Republican and 1.3% “other.”

A Boston Herald editorial
Sunday, February 6, 2022
Healey’s left turn out of woke playbook


As more reps leave office early for new jobs, state election officials on Tuesday are poised to make nomination papers available to candidates who plan on running in the 200 newly configured legislative districts this fall.

In addition to the churn caused by incumbent lawmakers running for new elected posts, the next session will feature more new faces to replace some of the reps who are jumping ship midway through this session. Rep. Carolyn Dykema of Holliston departed Friday for a job in the solar energy sector, and former Reps. Claire Cronin of Easton and Lori Ehrlich of Marblehead recently resigned to join the Biden administration.

The departures are leaving key posts unfilled, including House majority leader (Cronin), the House chair of the Environment, Natural Resources and Agriculture Committee (Dykema), and the House chair of the Municipalities and Regional Government Committee (Ehrlich).

Groton Rep. Sheila Harrington could be confirmed on Wednesday for a clerk magistrate post, which would mean another resignation and an opening for Minority Leader Brad Jones to slot in a new ranking minority member of the Judiciary Committee.

Over in the Senate, the co-chairmanship of the Joint Committee on Transportation, most recently held by former Sen. Joseph Boncore, has remained vacant since last September. Sen. Lydia Edwards won a special election to fill the seat Boncore held, but House leaders have signaled no plans to hold special elections to fill the growing number of vacant House seats, which would leave scores of residents without representation. Edwards, who remains on the Boston City Council, joined the Senate on Jan. 20 and has yet to be assigned to committees.

State House News Service
Friday, February 11, 2022
Advances - Week of Feb. 13, 2022


Chip Ford's CLT Commentary

A Boston Herald editorial ("Give us a break! On taxes") last Sunday stated an observation that's become obvious to most relatively cognizant citizens and especially those who pay the state's heavy tax burden:

Taxpayers need a break. Massachusetts couples shell out the highest percentage of their income on taxes in the nation, a new study shows.

Massachusetts took the top spot for couples filing jointly, with couples paying 23.51% of their income in taxes. Close behind is Oregon, at 23.24%, Hawaii, at 23.05%, and Connecticut, at 22.99%. The lowest rate was in Tennessee, with taxpaying couples owing just 15.54% of their income to taxes.

This comes as the state Department of Revenue collected $4.026 billion in tax revenue from people and businesses last month. That was 27% more than expected.

Plus, it places Massachusetts nearly $1.5 billion ahead of its end-of-fiscal-year target.

Gov. Charlie Baker is pushing tax-relief proposals that would give breaks for housing and child care costs and eliminate the income tax for hundreds of thousands. Keep on going. The pandemic and President Biden’s policies have driven up the cost of just about everything.

Inflation is a hidden tax that hits everyone. The government needs to put the needs of taxpayers first as we climb out of this mandate-heavy moment in history. We back Baker’s train of thought, but urge he add more coal to the engine.

The Herald followed up on Wednesday publishing a column by Avi Nelson who wrote "Awash in cash, Mass. should cut, not raise taxes"), which in part pointed out:

There are many people and businesses in Massachusetts struggling during these pandemic times. The commonwealth is not among them. The Massachusetts state government is awash in money. According to the state comptroller’s office, FY2021 revenues ($57 billion) were 30% ($13 billion) higher than the original budget estimate. Income tax revenue was 25% ($20 billion) above the budget estimate.

The Massachusetts Lottery produced a record $1.1 billion in profit. In fact, the last week of 2021 was highest on record for Lottery sales. So far, FY2022 is trending ahead of FY2021 for both revenues and the Lottery. So, the State House politicians got more than they expected or planned for.

Idea: They should give some of it, at least the “excess,” back to the people who earned it and from whom they took it i.e., the Massachusetts taxpayers. An across-the-board tax refund and cut for next year. But that’s not on the radar for the Democrat-controlled legislature. Quite the opposite.

The Democrats on Beacon Hill are proposing still more taxes. As Chip Ford of Citizens for Limited Taxation headlined it, “Record-Shattering Revenue Haul Still Not Enough.” The current scheme to raise taxes is a proposed amendment to the state constitution that would impose a 4% surtax on people and businesses with income over $1 million. It will be on the ballot this November. The Democrats tout this as just going after “millionaires.” But it’s not only about money. Democrats believe they can get votes and political benefit from fomenting resentment of the “rich.” ...

To promote the tax, Democrat proponents say the revenue generated would go to education and transportation. But the actual proposal does not require that. In fact, there’s a legal challenge over misleading wording in the summary to be circulated to voters before the November vote. So, Democrat legislators (with a few exceptions, such as Rep. Colleen Garry of Dracut) expect us to simply trust them about how the new tax money will be spent.

But legislators don’t keep their tax promises. Remember the “temporary” income tax hike of 1989? It was promised to be for 18 months. But that tax remained even after CLT’s successful 2000 ballot initiative to repeal it. The tax finally went back to 5% in 2020 — 30 years later. So much for legislative trustworthiness.

We can trust Democrat legislators to have an insatiable desire for more taxes. But this surtax proposal, for the largest ever tax increase, is ill-conceived and ill-timed. Instead, implement a tax cut. It’s time to refund the hard-working people of Massachusetts their tax dollars.


Here comes the push by cities and towns for more taxpayers' cash.  At this moment it appears the Massachusetts Municipal Association — the statewide lobbying group for municipal governments — is focused on trying to convince the Legislature to share some of the state's over-abundance of tax revenue with cities and towns.

But the Legislature never likes to share what it considers its private bounty with anyone, so what we have is the opening salvo of Beacon Hill's idea of "revenue sharing":  Empowering and encouraging cities and towns to raise more revenue locally, on their own.

The State House News Service reported on Tuesday ("Muni Officials Say State Not Sharing Enough RevenueCollections Have Far Exceeded Conservative Projections"):

Cities and towns run the risk of being "permanently left behind" in their ability to fund key local services without a change in the way state revenue growth is calculated, the head of the Massachusetts Municipal Association warned Tuesday.

Speaking at a meeting of the Local Government Advisory Commission, MMA Executive Director Geoff Beckwith asked that state officials look for another way to gauge annual revenue growth to make sure that communities are able to share in the upswings.

"We fear what will happen to communities if local aid does not keep pace, not just for this year, but for many years," Beckwith said....

Beckwith said state revenues and unrestricted local aid were "generally growing at the same rate" until 2020, when the COVID-19 pandemic knocked the global economy askew. Since then, he said, the growth estimates used to set local aid levels have been "extraordinarily low and missed the mark in fiscal 2021 and fiscal 2022."

"If this method of calculating revenue growth isn't corrected, cities and towns will be permanently left behind and their capacity to fund key, core services at the municipal level will be hindered on a long-term basis for many, many years," Beckwith said. "And local services are the building blocks for our state's economy," he said.

He said that while state revenue growth has averaged about 5 percent each year, local aid will have risen about 3 percent, resulting in an approximately "40 percent difference in terms of revenue sharing for unrestricted general government aid." ...

Now follow me for a minute this will become self-explanatory ahead.

The State House News Service on Tuesday reported ("Transparency Measures Disappear In Conference DarknessDemocrats Can't Agree On Joint Committee Votes

The biennial bill-reporting deadline came and went last week, but an 11-month legislative disagreement means the public may never know how their representatives and senators voted in deliberations over whether proposals should advance or fall short.

The House and Senate each supported some form of pulling back the curtain on how panels vote, but Democrats couldn't agree on a reform plan and existing legislative rules do not require joint committees to publish any breakdown of where members stand on bills they report....

Today, more than halfway through the session and with only a bit more than five months remaining until the end of formal sessions where the most substantial bills are considered, last session's rules remain in place on a temporary basis, modified only in a few sections outlined in the conference committee's partial report....

While joint committees have made decisions on scores of bills - giving them favorable or adverse reports, or sending them to dead-end studies - committees are also able to easily hold on to bills with extension orders.

Even after Joint Rule 10 Day has passed, determining the fate of a bill can be tricky. For many bills, the online bill history still does not list if the committee pushed back its reporting deadline, and the only way to deduce that information is to study the bill numbers listed in an extension order.

The bill history is also slow to update for legislation on which committees act. Last week, for example, the Consumer Protection and Professional Licensure Committee sent to a study a Rep. Mike Connolly bill (H 4135) that would create a commission to review and evaluate happy-hour policies, effectively killing it.

That information is only apparent on the "reported out of committee" tab on the committee's website. As of midday Monday, the bill history for H 4135 still listed the most recent step as a Nov. 8 hearing.

I reported on Rule 10 last week, that I had found no movement on the five bills CLT is watching which attempt to stealthily attack our Proposition 2½.  I wrote:

The legislative History for each of the following bills indicates that they remain in the secretive Joint Committee on Revenue — have not been rejected for this session, not been reported out favorably, not been condemned to the graveyard of "further study." 

A tip of my hat to Chris Lisinski at the News Service who investigated then mapped out a path through the maze and revealed where the status of bills still in committee or those quietly reported out can be found.  Now knowing where to look for the hidden results didn't make finding them easy and, as Chris noted, some bill histories still haven't been updated since their public hearings months ago.

Plowing through page after page of the Joint Committee on Revenue's reports I was eventually able to locate the bills we've been following and trying to track since July.  All five of the stealth attacks on Proposition 2½ were passed out of the committee favorably so each of them is now ready to take the next step into becoming law.

The Joint Committee on Revenue
Assaults on Proposition 2½
Reported out of Committee Favorably

S.1804 - An Act authorizing a local affordable housing surcharge
Sponsor:  Sen. William N. Brownsberger
Reported out "Favorable"

S.1899 - An Act relative to regional transportation ballot initiatives
Sponsor:  Sen. Eric P. Lesser
Reported out "Favorable"

H.3086 - An Act relative to regional ballot initiatives
Sponsor:  Rep. Andres X. Vargas
Reported out "Favorable"
accompanied H.2978 [which follows below]

H.2978 - An Act relative to regional transportation ballot initiatives
Sponsor:  Rep. Jack Patrick Lewis
This bill is pending in the House Clerk's Office. Accompanied H.3086 [directly above]

H.3039 - An Act establishing a local option gas tax
Sponsors:  Reps. Smitty Pignatelli and Tommy Vitolo
Reported out "Favorable"

Now we must vigilantly watch for them to pop up somewhere, discretely buried in some enormous "must-pass" bill with little if any connection to expanding municipal taxation.  Based on usual past legislative machinations, I expect in the weeks and months ahead one or more of these stealth attacks will (hopefully) be uncovered in time within some unrelated package of legislation where it's not expected and doesn't belong and be excised or defeated.  It's been done before.


On Tuesday the State House News Service reported on Gov. Baker's proposed tax relief and reforms ("Tax Cuts Force Look At Stability Of Government, TaxpayersSharing State's Tax Haul Shaping Up As Election-Year Issue"):

Top Democrats said Tuesday that Gov. Charlie Baker's plan to offer tax relief to hundreds of thousands of parents, renters, seniors and other middle-income taxpayers will get its "due diligence," but were non-committal on the centerpiece of the Republican governor's final state spending plan as he prepares to leave office next year.

Baker has proposed close to $700 million in tax cuts as multiple governors around the country are eyeing tax relief this year. State revenues in Massachusetts continue to soar as they have throughout the COVID-19 pandemic, creating surpluses and pools of money that have been used to boost spending and state reserves....

Legislative leaders on Beacon Hill, however, cautioned that the state's fortunes could turn on a dime as federal support dries up and factors like inflation and tight supply chains hold the potential to slow economic growth....

[Administration and Finance Secretary Michael] Heffernan, who was presenting his fifth budget on behalf of the administration, described the state's economy as "resilient" in the face of an ongoing public health crisis, and highlighted how Baker's budget would boost an already healthy $4.6 billion "rainy day" fund to $6.6 billion by the end of the next fiscal year.

"The state's strong fiscal standing has also positioned us to be able to offer relief to Massachusetts taxpayers. This is especially important at this moment, as people face continued economic instability and rising costs due to inflation, supply-chain issues, and other factors," Heffernan said.

The tax relief push from the administration comes as the state is witnessing continued strong tax collections. After raising its expected fiscal 2022 tax collection target by $1.5 billion in January, the Department of Revenue reported earlier this month that collections are running $1.45 billion above the revised targets....

Heffernan called the short-term capital gains rate "markedly uncompetitive" with other states, and something important to consider as opportunities for remote work give employees and businesses the option of relocating outside of Massachusetts.

He also said that because of inflation the current estate tax would "trip" a lot of middle-income families as close to 9 percent of single-family homes in Massachusetts approach the $1 million valuation mark.

"Because of inflation, many many more people are paying the estate tax," said Heffernan, telling lawmakers that the full impact of the $231 million tax cut would not be realized until fiscal year 2024.

Asked by Rep. Ann-Margaret Ferrante how Baker's spending and tax plan fit into the context of the November vote on a plan to add a 4 percent surtax on household income over $1 million, Heffernan called the so-called millionaires tax "dangerous policy" and unnecessary given the way Baker's budget would simultaneously build state reserves, invest in long-term liabilities like the pension system and offer tax relief at the same time.

"If you look at the way our tax systems work right now, it's working much to the benefit of all our residents," he said.

Note that "Legislative leaders on Beacon Hill, however, cautioned that the state's fortunes could turn on a dime as federal support dries up and factors like inflation and tight supply chains hold the potential to slow economic growth."

The Legislature always has, or can fabricate, an abundance of "reasons" to avoid any manner or amount of tax reductions.

House Ways and Means Chairman Aaron Michlewitz responded to any tax relief that "it was 'a little too early to make any real determinations,' noting that Baker's plan contains multiple changes to the tax code that each have their own costs associated."

Clearly once again, more is never enough and never will be for insatiable legislators convinced they can spend your money better than you.  Once extracted from taxpayers it's never to be returned — it becomes theirs to spend however they like forevermore.  What's theirs is theirs and what remains yours for now is theirs too, for plundering down the road.

Chip Ford
Executive Director


Full News Reports
(excerpted above)

The Boston Herald
Wednesday, February 9, 2022
Awash in cash, Mass. should cut, not raise taxes
By Avi Nelson


There are many people and businesses in Massachusetts struggling during these pandemic times. The commonwealth is not among them. The Massachusetts state government is awash in money. According to the state comptroller’s office, FY2021 revenues ($57 billion) were 30% ($13 billion) higher than the original budget estimate. Income tax revenue was 25% ($20 billion) above the budget estimate.

The Massachusetts Lottery produced a record $1.1 billion in profit. In fact, the last week of 2021 was highest on record for Lottery sales. So far, FY2022 is trending ahead of FY2021 for both revenues and the Lottery. So, the State House politicians got more than they expected or planned for.

Idea: They should give some of it, at least the “excess,” back to the people who earned it and from whom they took it i.e., the Massachusetts taxpayers. An across-the-board tax refund and cut for next year. But that’s not on the radar for the Democrat-controlled legislature. Quite the opposite.

The Democrats on Beacon Hill are proposing still more taxes. As Chip Ford of Citizens for Limited Taxation headlined it, “Record-Shattering Revenue Haul Still Not Enough.” The current scheme to raise taxes is a proposed amendment to the state constitution that would impose a 4% surtax on people and businesses with income over $1 million. It will be on the ballot this November. The Democrats tout this as just going after “millionaires.” But it’s not only about money. Democrats believe they can get votes and political benefit from fomenting resentment of the “rich.”

Class warfare has become a central theme in the Democrats’ political playbook. They strive to pit one group against another for political gain. This proposed tax is an example. The 10th Commandment says, “Thou shalt not covet thy neighbor’s house … or anything that is thy neighbor’s.” But the Democrats have found a loophole. The commandment prohibits coveting, but it’s silent about outright taking. So, the Democrats are contriving an 11th commandment: “Resent and envy thy wealthier neighbor — and taketh all thou can from him.” One can’t covet that which one has already taken.

The Bible aside, the surtax isn’t the “free ride” on other people’s money that the politicians claim. The Beacon Hill Institute has calculated that the new tax would cause people and businesses to leave Massachusetts for other lower tax states, with a resulting loss of some 9,000 jobs next year and an associated loss of investment and workers’ disposable income. The Pioneer Institute has published numerous analyses showing the detrimental effects of the tax. Not the least would be the 80% tax increase on one-time sales of homes and small businesses – the “nest eggs” many people are counting on for their retirement. So, the surtax would hit many thousands more people than the “annual” millionaires Democrat legislators claim are the targets.

To promote the tax, Democrat proponents say the revenue generated would go to education and transportation. But the actual proposal does not require that. In fact, there’s a legal challenge over misleading wording in the summary to be circulated to voters before the November vote. So, Democrat legislators (with a few exceptions, such as Rep. Colleen Garry of Dracut) expect us to simply trust them about how the new tax money will be spent.

But legislators don’t keep their tax promises. Remember the “temporary” income tax hike of 1989? It was promised to be for 18 months. But that tax remained even after CLT’s successful 2000 ballot initiative to repeal it. The tax finally went back to 5% in 2020 — 30 years later. So much for legislative trustworthiness.

We can trust Democrat legislators to have an insatiable desire for more taxes. But this surtax proposal, for the largest ever tax increase, is ill-conceived and ill-timed. Instead, implement a tax cut. It’s time to refund the hard-working people of Massachusetts their tax dollars.

Avi Nelson is a Boston-based political analyst and talk-show host.


State House News Service
Tuesday, February 8, 2022
Muni Officials Say State Not Sharing Enough Revenue
Collections Have Far Exceeded Conservative Projections
By Katie Lannan


Cities and towns run the risk of being "permanently left behind" in their ability to fund key local services without a change in the way state revenue growth is calculated, the head of the Massachusetts Municipal Association warned Tuesday.

Speaking at a meeting of the Local Government Advisory Commission, MMA Executive Director Geoff Beckwith asked that state officials look for another way to gauge annual revenue growth to make sure that communities are able to share in the upswings.

"We fear what will happen to communities if local aid does not keep pace, not just for this year, but for many years," Beckwith said.

Gov. Charlie Baker's fiscal 2023 budget includes $1.2 billion in unrestricted general government aid for the state's 351 cities and towns, an increase of $31.5 million or 2.7 percent over this year's budget. Baker and Lt. Gov. Polito ran for office on a pledge to match the state's estimated revenue growth with similar increases in local aid, and budget-writers have projected tax collections will rise 2.7 percent next year.

The 2.7 percent figure is based on a revised revenue forecast for this year of $35.9 billion, which was recently upgraded by more than $1.5 billion. Massachusetts ended fiscal 2021 with a sizeable surplus and so far this year actual collections have been running well above benchmarks, a dynamic that has been prompting municipal officials to call for additional unrestricted aid next year.

Beckwith said state revenues and unrestricted local aid were "generally growing at the same rate" until 2020, when the COVID-19 pandemic knocked the global economy askew. Since then, he said, the growth estimates used to set local aid levels have been "extraordinarily low and missed the mark in fiscal 2021 and fiscal 2022."

"If this method of calculating revenue growth isn't corrected, cities and towns will be permanently left behind and their capacity to fund key, core services at the municipal level will be hindered on a long-term basis for many, many years," Beckwith said. "And local services are the building blocks for our state's economy," he said.

He said that while state revenue growth has averaged about 5 percent each year, local aid will have risen about 3 percent, resulting in an approximately "40 percent difference in terms of revenue sharing for unrestricted general government aid."

The House and the Senate will draft and pass their own spending plans in April and May, and Beckwith said the MMA is asking lawmakers to use the tax revenue prediction baked into this year's budget as their benchmark for growth, which would raise unrestricted local government aid by $85.3 million.

On school funding, the MMA wants the minimum aid funding -- the increase districts receive when funding formulas mean their school aid would not otherwise go up -- to rise from $30 per student in Baker's plan to $100 per student.

Baker's budget recommends a $485 million hike in Chapter 70 aid to local schools, bringing that account up to $5.989 billion.

Sandwich Town Manager George "Bud" Dunham said that despite the 8 percent increase in Chapter 70 over this year, 136 of 318 school districts would receive just the minimum aid increase, for a combined increase of just over $9 million at those districts.

Sandwich is a minimum-aid community and stands to receive a 1 percent aid increase, he said.

"A 1 percent increase in Chapter 70 funding really doesn't come close to keeping up with our rising internal costs for things like employee benefits and school operational needs," Dunham said.

Lt. Gov. Karyn Polito said the points around school funding were "well-taken" and that the administration would look more specifically at the minimum-aid districts.

She told the local officials that the administration had "tried hard in the revenue sharing to hold you harmless during those tough years" when state tax collections landed below projections.

"We all know that in 2020, everything changed, so a formula that would have run, I think, in a good way had the pandemic not occurred, probably would have continued on that track," she said.


State House News Service
Tuesday, February 8, 2022
Transparency Measures Disappear In Conference Darkness
Democrats Can't Agree On Joint Committee Votes
By Chris Lisinski


The biennial bill-reporting deadline came and went last week, but an 11-month legislative disagreement means the public may never know how their representatives and senators voted in deliberations over whether proposals should advance or fall short.

The House and Senate each supported some form of pulling back the curtain on how panels vote, but Democrats couldn't agree on a reform plan and existing legislative rules do not require joint committees to publish any breakdown of where members stand on bills they report.

Some joint committees could still volunteer that information, but the failure of House and Senate Democrats to find consensus on the transparency measures means that the individual preference of each panel's chairs determines whether a vote breakdown becomes public.

At the start of the 2021-2022 lawmaking session, the Legislature adopted joint rules that governed the 2019-2020 session -- which do not require disclosure of joint committee votes -- as a temporary placeholder.

The Senate's version of a joint rules package for the 2021-2022 session (S.14) would have made "any recorded votes on a favorable or adverse report on an individual bill" publicly available online. The House's version (H.68) was more limited, calling for a committee to post names only for committee members who vote against a bill alongside "an aggregate tally of members voting in the affirmative, members not voting and members reserving their rights."

Both branches insisted on their own approach to the joint rules, with differences including other sections covering public notice of hearings and access to testimony submitted by the public, and legislative leaders on March 22, 2021 tasked a six-member conference committee with finding compromise.

That panel quickly produced a limited agreement (S.39) that formalized the joint committee structure, but it left the remainder of the proposed joint rules packages -- which total 31 pages in the Senate and 45 pages in the House -- untouched.

Today, more than halfway through the session and with only a bit more than five months remaining until the end of formal sessions where the most substantial bills are considered, last session's rules remain in place on a temporary basis, modified only in a few sections outlined in the conference committee's partial report.

The conference committee's membership has been depleted. One of the three Senate conferees, former Sen. Joe Boncore, resigned in September for a job leading the Massachusetts Biotechnology Council. The lead House negotiator, former Majority Leader Claire Cronin, left in January to become U.S. ambassador to Ireland.

Neither chamber has appointed successors to fill those positions, according to the Senate clerk's office.

House-only and Senate-only committees, including each branch's Ways and Means Committee, must provide some information about how they vote under chamber-specific rules in place. Mirroring each branch's proposal for joint committees, House panels must publish names of members who vote against bills and aggregate numbers of supporters and abstainers, while Senate panels must post each member's recorded vote.

A section of the Legislature's rules known as Joint Rule 10 sets the first Wednesday in February in even years as the date by which most committees must give up-or-down recommendations to all bills under their purview.

While joint committees have made decisions on scores of bills - giving them favorable or adverse reports, or sending them to dead-end studies - committees are also able to easily hold on to bills with extension orders.

Even after Joint Rule 10 Day has passed, determining the fate of a bill can be tricky. For many bills, the online bill history still does not list if the committee pushed back its reporting deadline, and the only way to deduce that information is to study the bill numbers listed in an extension order.

The bill history is also slow to update for legislation on which committees act. Last week, for example, the Consumer Protection and Professional Licensure Committee sent to a study a Rep. Mike Connolly bill (H 4135) that would create a commission to review and evaluate happy-hour policies, effectively killing it.

That information is only apparent on the "reported out of committee" tab on the committee's website. As of midday Monday, the bill history for H 4135 still listed the most recent step as a Nov. 8 hearing.


State House News Service
Tuesday, February 8, 2022
Tax Cuts Force Look At Stability Of Government, Taxpayers
Sharing State's Tax Haul Shaping Up As Election-Year Issue
By Matt Murphy


Top Democrats said Tuesday that Gov. Charlie Baker's plan to offer tax relief to hundreds of thousands of parents, renters, seniors and other middle-income taxpayers will get its "due diligence," but were non-committal on the centerpiece of the Republican governor's final state spending plan as he prepares to leave office next year.

Baker has proposed close to $700 million in tax cuts as multiple governors around the country are eyeing tax relief this year. State revenues in Massachusetts continue to soar as they have throughout the COVID-19 pandemic, creating surpluses and pools of money that have been used to boost spending and state reserves.

Illinois Gov. JB Pritzker offered $1 billion in tax cuts as part of his budget this year, and Connecticut Gov. Ned Lamont has proposed $336 million in tax relief. Both are Democrats.

Legislative leaders on Beacon Hill, however, cautioned that the state's fortunes could turn on a dime as federal support dries up and factors like inflation and tight supply chains hold the potential to slow economic growth. House Ways and Means Chairman Aaron Michlewitz also cited the need to fully fund the Student Opportunity Act, protect vulnerable residents from a "housing crisis" and invest in transportation.

"I'm absolutely open minded," Senate Ways and Means Chairman Michael Rodrigues said after the hearing.

Michlewitz said it was "a little too early to make any real determinations," noting that Baker's plan contains multiple changes to the tax code that each have their own costs associated.

"Obviously the governor put significant efforts making this a part of his budget. I think we want to give him the due respect of at least analyzing it and making sure that it's getting its full due diligence, and so that's something were working on together now," Michlewitz said.

The Legislature kicked off its annual budget process on Tuesday when Administration and Finance Secretary Michael Heffernan, along with other statewide elected officials, testified before the House and Senate Ways and Means committees on Baker's $48.5 billion budget proposal for fiscal 2023.

Heffernan, who was presenting his fifth budget on behalf of the administration, described the state's economy as "resilient" in the face of an ongoing public health crisis, and highlighted how Baker's budget would boost an already healthy $4.6 billion "rainy day" fund to $6.6 billion by the end of the next fiscal year.

"The state's strong fiscal standing has also positioned us to be able to offer relief to Massachusetts taxpayers. This is especially important at this moment, as people face continued economic instability and rising costs due to inflation, supply-chain issues, and other factors," Heffernan said.

The tax relief push from the administration comes as the state is witnessing continued strong tax collections. After raising its expected fiscal 2022 tax collection target by $1.5 billion in January, the Department of Revenue reported earlier this month that collections are running $1.45 billion above the revised targets.

The administration attributed some growth to tax law changes that produced a temporary bump, but even after backing out those revenues, they say the state is running $794 million, or 4 percent, ahead of benchmarks.

Michlewitz said it was important after two years of budgeting in a pandemic that legislators "find stability and predictability in our budget system, something that has been nearly impossible during this COVID-19 era."

"Throughout these unprecedented times, the commonwealth has seen historic highs in terms of our revenue numbers. We have made some difficult decisions along the way to make that happen. However, without the assistance from the federal government it is safe to say that we would be dealing with an entirely different budgetary situation than we are right now," the Boston Democrat said.

"Unfortunately, this level of support is not permanent and going forward we must keep that in mind as we plan this budget cycle and the ones that follow it," Michlewitz continued.

Baker has proposed to double tax credits for dependents and child care, double the allowable maximum for the senior circuit breaker property tax credit and increase the cap on deductions for rent payments from $3,000 to $5,000.

He is also looking to raise the income level at which people are required to file taxes to $12,400 for single filers, $18,650 for heads of households, and $24,800 for joint filers in a move that would save about 234,000 low-income taxpayers $41 million annually.

The rest of Baker's tax plan calls for cutting the tax rate on short-term capital gains from 12 percent to 5 percent and doubling the threshold at which the estate tax kicks in to $2 million, with the tax only applying to the value of estate above $2 million rather than the whole amount.

Heffernan called the short-term capital gains rate "markedly uncompetitive" with other states, and something important to consider as opportunities for remote work give employees and businesses the option of relocating outside of Massachusetts.

He also said that because of inflation the current estate tax would "trip" a lot of middle-income families as close to 9 percent of single-family homes in Massachusetts approach the $1 million valuation mark.

"Because of inflation, many many more people are paying the estate tax," said Heffernan, telling lawmakers that the full impact of the $231 million tax cut would not be realized until fiscal year 2024.

Asked by Rep. Ann-Margaret Ferrante how Baker's spending and tax plan fit into the context of the November vote on a plan to add a 4 percent surtax on household income over $1 million, Heffernan called the so-called millionaires tax "dangerous policy" and unnecessary given the way Baker's budget would simultaneously build state reserves, invest in long-term liabilities like the pension system and offer tax relief at the same time.

"If you look at the way our tax systems work right now, it's working much to the benefit of all our residents," he said.

While members of the committee spent very little time delving into Baker's tax cut plans, both Michlewitz and Rodrigues focused much of their questioning on the state's MassHealth program, which at $17.8 billion gross is the largest single part of the budget.

Heffernan said the overall size of the MassHealth, or state Medicaid, program is projected to decrease by $1.8 billion in fiscal 2023 due to the end of enhanced federal reimbursements tied to the COVID-19 public health emergency and the ability for the state to resume the eligibility redetermination process later this year.

The cost to the state for administering the health benefits program, however, is projected to climb $293 million, or 4 percent, including a $115 million investment in behavioral health services and a fully-staffed help-line to connect individuals to mental health and addiction treatment at any time of day.

Both Rodrigues and Michlewitz said they were concerned that individuals and families might not be prepared to transition off MassHealth as the state begins to redetermine eligibility, a process that has been frozen during the federal COVID-19 health emergency set to expire on April 11.

"We don't want to surprise anyone going forward," Heffernan said, explaining that the state must give 45 days notice and benefits won't begin to expire until mid-July at the earliest.

The secretary said the administration expects the MassHealth rolls to be trimmed from about 2.16 million during the pandemic to 1.9 million, which is still above the 1.75 million pre-pandemic enrollment, but Heffernan said most of those people would become eligible for employer-sponsored coverage or a subsidized plan through the Health Connector.

Another highlight of Baker's budget is a proposed $591.4 million increase in public education spending to fund the Student Opportunity Act, including a $485 million increase Chapter 70 funding. Heffernan said low-income school districts will receive the biggest boost after the state recorded an increase of 26,000 students in October qualifying as low-income.

The budget calls for the quadrupling of the Residential Assistance for Families in Transition program to $80 million to fund a permanent increase of the benefit limit to $7,000 over 12 months, up from $4,000 before the COVID-19 pandemic. And Heffernan told the committee that Baker will soon file a supplemental budget for fiscal 2022 that would include more funding for rental assistance to build on the $620 million in state and federal funding deployed to prevent housing instability during the COVID-19 pandemic.

Baker's budget would also put an additional $250 million into the state's pension reserve to lower future annual pension obligations, funds the implementation of the 2020 policing reform law and increases spending on reentry and diversion programs to $78.3 million, along with a proposal to eliminate all parole and probation fees.

The committees on Tuesday also heard from Secretary of State William Galvin, Treasurer Deb Goldberg, Auditor Suzanne Bump, Inspector General Glenn Cunha and Secretary of Technology Services and Security Curt Wood.

Galvin told lawmakers that Baker's budget has "dramatically underfunded" elections, and Bump requested $500,000 to help her office launch an information technology audit initiative in the new year.

"It's essential that an organization's IT infrastructure and data are secure as the number of and level of sophistication in cyber threats continue to increase," Bump said.

Attorney General Maura Healey did not testify Tuesday due to a scheduling conflict, but her office said it was working with legislators to find a future date when she could do so.

The House and Senate Ways and Means Committee plan seven more hearings over the coming weeks to dig into more specific areas of the governor's budget, according to Michlewitz, before the House releases and debates its version of the budget in April.

Sam Doran contributed reporting.


CommonWealth Magazine
Tuesday, February 8, 2021
A&F Secretary Heffernan calls millionaire’s tax ‘dangerous’
MassHealth, cybersecurity, alcohol, and other budget hearing takeaways
By Shira Schoenberg


Raising taxes on income over $1 million would be a “dangerous policy,” given how well the state is doing financially under the current tax system, Secretary of Administration and Finance Michael Heffernan said Tuesday.

“I think that if you look at the way our tax system works rights now, it’s working much to the benefit of all our residents,” Heffernan told the House and Senate Ways and Means Committees.

Gov. Charlie Baker has long opposed the “millionaire’s tax,” a constitutional amendment headed toward the November ballot that would raise the tax rate on income over $1 million by 4 percentage points. Heffernan was asked about the proposal during the committee’s first fiscal 2023 budget hearing. His comments reflect what is becoming a primary argument by opponents of the tax increase: The state is awash in cash, so more money is unnecessary.

Heffernan said wealthy residents already pay the biggest portion of state taxes. The state tax rate is a flat 5 percent, so residents with more money pay more in absolute dollars. Heffernan said millionaires make up half a percent of the population but pay 24 to 25 percent of state income taxes. The wealthiest 10 percent of taxpayers pay 50 percent of taxes. “We have a very progressive income tax system because of the way it’s been set up in statute,” he said.
Heffernan said within current revenues, which have been incredibly strong due to an influx in federal recovery money, Massachusetts has added to its “rainy day” reserve fund, fully funded state services, paid more toward its pension liability, and Baker is proposing $700 million in tax breaks. Heffernan said Massachusetts previously lowered its income and corporate tax rates and “enjoyed robust tax revenue because we’ve been very consistent on our tax policy.”

The hearing was held mostly virtually and gave lawmakers who write the state budget their first opportunity to publicly delve into Baker’s $48.5 billion budget proposal. The committees also heard from Secretary of State William Galvin, Treasurer Deborah Goldberg, Auditor Suzanne Bump, Inspector General Glenn Cunha, and Executive Office of Technology Services and Security Secretary Curtis Wood. Attorney General Maura Healey was unable to attend. Her office said she is working with the committee to find another date to testify.

Here are some takeaways from the multi-hour hearing.

Tax policy

Lawmakers gave little indication where they stand on the governor’s proposed $700 million tax cut package. Heffernan said the package “will reduce taxes for hundreds of thousands of hardworking families and low-income residents, and it will align the Commonwealth with most other states to support our competitiveness and encourage our citizens to continue calling Massachusetts home.”

The only question a committee member asked on the specifics of the proposal came from House Ways and Means chair Aaron Michlewitz, who asked about savings estimates from raising the threshold and changing the structure of the estate tax. Heffernan said both the estate tax and a tax on short-term capital gains, which Baker wants to lower, are catching increasing numbers of middle-income residents. Heffernan said around 9 percent of single-family homes in Massachusetts are approaching a million-dollar valuation. “Because of inflation, many more people are paying the estate tax,” Heffernan said.

Education enrollment

State education funding is based on enrollment numbers as of the prior October. During the first year of the pandemic, enrollment in public schools dropped by around 37,000 and many of those students did not return in 2021. But Heffernan said there has been one change in enrollment: an additional 26,000 students now qualify as low-income.
“There is a not insignificant shift in need inside public education,” Heffernan said.

Districts get more money for teaching poorer students because those students tend to need more services.

MassHealth

During the pandemic, MassHealth, the state’s Medicaid program, expanded from covering 1.75 million low-income individuals to covering more than 2.1 million people. Part of the reason was the federal government barred states from redetermining eligibility for Medicaid and kicking people off their health plan during the state of emergency. (The federal government provided higher reimbursements to pay for these individuals.)

With the federal state of emergency set to end April 11, state health officials are planning to begin the redetermination process, so they can stop providing MassHealth insurance to people who are no longer eligible. This could be, for example, someone who lost a job, then found a new one, and can now obtain employer-based insurance.

Heffernan said he estimates MassHealth will level out around 1.9 million people – a loss of about 200,000 individuals.

Senate Ways and Means chair Michael Rodrigues pressed Heffernan about how MassHealth will tell people they are losing coverage. “It will be our legislative offices that will hear from constituents as they’re redetermined,” Rodrigues said.

Heffernan said there are federal guidelines for conducting redeterminations, including a 45-day notice period, and the earliest people could start losing coverage would be June. He said there will be “plenty of notice and communication.”

Rental assistance

Advocates for low-income tenants have been worrying about what will happen as federal housing assistance money runs out. Already, state housing officials began cutting back some housing assistance benefits to preserve funding. Advocates had asked lawmakers to find more money to save the benefits.

Heffernan announced Tuesday that Baker plans to file a supplemental budget in the coming weeks that will seek additional money for rental assistance as the state’s Emergency Rental Assistance Program exhausts its funding. Lawmakers would still have to act on the supplemental budget, but the idea presumably would be to fill the gap between the time the money runs out and the July start of the next fiscal year.

Alcohol

One change in people’s living patterns during the pandemic was in how they consume alcohol. More people are drinking at home, and fewer are drinking out.

Testifying about the Alcoholic Beverage Control Commission’s performance last year, Treasurer Deborah Goldberg said 8 percent of state licensees (wholesalers, manufacturers, and shipping companies) did not renew their licenses, and 5 percent of retailers with municipal licensees did not renew. At the same time, there was a surge in direct-to-consumer alcohol deliveries, which were up a whopping 300 percent.

Redistricting and re-precincting

The decennial redrawing of district and voting precinct lines will create headaches for local and state election officials, Secretary of the Commonwealth Bill Galvin said.

Galvin said normally, about 10 percent of precincts are divided into “sub precincts,” where voters who vote at the same polling place must receive different ballots. This year, there is a “much higher percentage” of precincts requiring multiple ballots.

This happens because of differences in where the lines are drawn for legislative races compared to municipal races. Typically, local communities draw their boundary lines first, followed by the Legislature. This year, due to census delays, the process was reversed.

Galvin said there will be higher costs because more ballots and personnel are needed in those precincts. Galvin also said he will need to print more ballots because the Legislature is moving toward approving early voting by mail.

Galvin said the budget Baker proposed for the 2022 election is “dramatically underfunded” and “inadequate to conduct the election as we’re all planning and expecting it to be.”

Cybersecurity

Maintaining cybersecurity is becoming increasingly important as sophisticated hackers have tried to target government at all levels. Auditor Suzanne Bump said audits she has conducted related to internal controls and cybersecurity training have found imperfect compliance with agency protocols. She asked lawmakers to give her $500,000 to launch an audit initiative related to information technology.

“This office needs to become more expert and aggressive in auditing the performance of IT systems and ensuring compliance with national and international security standards,” Bump said. “We need a team of well-trained IT professionals to be able to probe more deeply and test for system vulnerabilities.”

Executive Office of Technology Services and Security Secretary Curtis Wood also asked for a budget increase, primarily to address cybersecurity. Wood said there has been a “dramatic increase” in threats as governments transitioned to more remote work. “It is critical for the Commonwealth to remain in a state of readiness and preparedness to best position itself to mitigate potential cyber threats and maintain continuity of government services for the customers and constituents we serve,” Wood said.


State House News Service
Friday, February 11, 2022
Weekly Roundup - Chains of Command
Recap and analysis of the week in state government
By Matt Murphy


Masks. Wear 'em if you want to.

Massachusetts joined a growing number of states around the country this week that began to relax masking requirements as the omicron surge fades and imaginations drift to what it would be like to see people's full faces again.

Stepping back into what has become an increasingly polarized, and political, debate over the continued necessity of masking, Gov. Charlie Baker made the decision to allow masking requirements in public schools to lapse at the end of the month when his order is set to expire.

And Baker was not alone.

Governors in about a dozen states took similar actions, from California and Illinois to Connecticut. But the herd could not fully protect Baker from the blowback that was to be expected, as some Democrats and teachers unions questioned whether it was too soon, or if he should at least wait a few more weeks until after the upcoming school vacation.

"Our kids have had to put up with a lot of disruption, a lot of time alone, and have suffered a real learning loss over the past two years," Baker said. "Given the extremely low risk for young people, the widespread availability and the proven effectiveness of vaccines, and the distribution of accurate test protocols and tests, it's time to give our kids a sense of normalcy."

The Department of Elementary and Secondary Education on Thursday reported 6,723 cases of COVID-19 among students and staff over the previous week, an 86.8 percent decrease in school-reported cases over the last five weeks.

Baker, of course, said local school districts are free to keep mask mandates in place if they wish, and that's exactly what Boston Mayor Michelle Wu said she intends to do.

Wu said Boston would wait to drop masks in the classroom until transmission and hospitalization rates support such a decision, the same metrics the mayor is using to determine when to lift the city's indoor vaccination mandate for businesses. Other cities and towns will be making similar calls before the end of the month.

But if it's good for the goose, what about the ... Legislature?

Still shuttered to the public after 703 days, Baker said he believes the State House should reopen to visitors and anyone with business before their elected representatives, but legislative leaders continue to slow walk that decision-making process.

As Baker made his school masking announcement in the third-floor library of the State House, protesters in the basement pushed past security demanding access to the "People's House," among other gripes they chose to air.

"It's their building, it's their call," Baker said, referring to the House and Senate.

Technically, it seems the governor might have a point. While the Bureau of the State House sits within the executive branch, Massachusetts General Laws stipulate that the building superintendent should operate and maintain the building "subject to such rules as the committee on rules of the 2 branches, acting concurrently, may adopt..."

There was nothing concurrent about Senate President Karen Spilka's declaration that she intends to open Senate sessions to the public on Feb. 22, but it remains to be seen how exactly that would work.

Spilka said the reopening of the State House must be contingent on visitors being vaccinated for COVID-19 and wearing masks, but her office had nothing to say about how that would be enforced, or what would happen once a visitor entered the building and was free to roam.

Perhaps she was just trying to use a deadline to spur the House to get on board with a reopening plan, but only time will tell.

House Speaker Ron Mariano, who supports proof of vaccination to enter the building, wouldn't say if he supports a Feb. 22 reopening.

"The Speaker is eager to safely reopen to the public," Mariano spokeswoman Ana Vivas said on Friday afternoon. "Understanding it's a public building, the Speaker is prioritizing safety while also ensuring everyone has equal access when open to the public. The House is in active conversations with the Administration and the Senate to finalize the plan and work through logistics."

Mariano may not be ready to hang the welcome sign above the General Hooker entrance, but after years (decades?) of debating whether undocumented immigrants should be able to get a driver's license the speaker is ready to try to answer that question. And the answer is, "Yes."

Mariano signaled plans to put the license bill on the floor next week for a vote, the first time it has progressed that far in either branch. Baker has long suggested opposition to the idea, but House leaders say they're hopeful once he sees the public safety protections included in the legislation he can be persuaded.

Like dropping its school mask mandate, Massachusetts wouldn't be alone in this either. Sixteen states and the District of Columbia already have laws allowing residents who can't prove legal status in the United States to show other documentation to prove their identity and qualify for a license.

Mariano's vote-whipping skills will be put to the test next week, and it's likely he'll find more opposition than he did Thursday to legislation reforming oversight of the Holyoke and Chelsea soldiers' homes.

The bill spawned from multiple investigations into a early-pandemic COVID-19 outbreak at the Holyoke long-term care facilities won near unanimous support in the House, but one vote that wasn't immediately evident from the 156-1 tally was that of Rep. Linda Dean Campbell.

The retiring Methuen Democrat and veteran voted present, despite helping to lead the Legislature's investigation into the Holyoke tragedy and writing a comprehensive reform bill with Sen. Michael Rush.

Campbell said the bill she and Rush wrote was "much more comprehensive" than the one leadership presented on Thursday. Among other changes, the House bill did not elevate the secretary of veterans affairs to full Cabinet status or give the governor direct authority to hire, and fire, the superintendent of the facilities.

Both reforms, Campbell and others said, would help establish a clear chain of command after so much was made in the aftermath of Holyoke of how much Baker knew and when.

The Senate will get its chance at the soldiers' home bill soon, Spilka said, but first up was Sen. Cindy Friedman's bill to rein in high pharmaceutical costs, putting the drug manufacturers and pharmacy benefit manager under greater state scrutiny and capping out-of-pocket patient costs for insulin at $25 a month.

While the Legislature made progress on some of the priorities of its leaders this week, the chairs of the House and Senate Ways and Means committees were more circumspect when it came to one of Gov. Baker's top budgetary initiatives - tax relief.

Administration and Finance Secretary Mike Heffernan kicked off the annual budget hearing process by making the case for Baker's package of nearly $700 million in tax cuts for renters, seniors, low-income households, middle-class investors and anyone who pays the estate tax.

Heffernan said it was time to give back and make Massachusetts more competitive at a time when employees and businesses have more freedom than ever before to live and work where they want, or can afford.

Rep. Aaron Michlewitz and Sen. Michael Rodrigues both said they'd give Baker's proposal its due respect, but neither appeared to be drooling over the prospect of tax cuts, even in an election year.

Speaking of which, Secretary of State William Galvin is running for reelection this fall and warning that Baker's budget proposal deeply underfunds elections, especially if the Legislature expects to authorize voting-by-mail.

Rep. Carolyn Dykema won't be on the ballot, working her last day in the Legislature this week as she leaves for a job in the solar energy industry, and Rep. Sheila Harrington could be next to depart after her confirmation hearing before the Governor's Council this week to become the next clerk magistrate in Gardner District Court.

Unlike those two colleagues, Republican Rep. Shawn Dooley hopes to be on the ballot in November, but he'll be running for the Senate instead of his House seat after deciding to take on incumbent Democrat Sen. Becca Rausch in a district historically favorable to Republicans.

Remember when President Donald Trump was running for reelection and a controversy ignited over Trump's name being included on the memo line of stimulus checks being mailed out to millions of Americans?

Well, we're not sure if Baker's name will be on the checks when they start going out next month (and he's not running for reelection), but the governor finalized plans this week to send $500 to about 500,000 low-income workers.

The money was included as part of the $4 billion American Rescue Plan Act spending law and intended to be a bonus for low-income, frontline workers who stayed on the job during the early days of the pandemic, though the only criteria Baker is using for eligibility in this round is income.

The checks to be mailed in March allocate about $250 million of the $460 million bonus-pay fund.

STORY OF THE WEEK: Masks are coming off, but the State House's doors remain locked, for now.


State House News Service
Friday, February 11, 2022
License Access Bill Advances On Party Line Vote
Redraft Could Hit House Floor For Vote Next Week
By Chris Lisinski


For the second straight session, a legislative committee advanced legislation with 14 votes in favor that would allow undocumented immigrants to acquire driver's licenses.

This time, the bill appears certain to proceed beyond the committee stage to a vote in at least one chamber.

A day after House Speaker Ronald Mariano announced that he planned to bring the immigrant licensing bill to the floor next week, the Joint Transportation Committee favorably reported the bill with a 14-3 vote along party lines.

The three votes against pushing the bill forward came from the panel's only House Republicans: Rep. David DeCoste of Norwell, Rep. Steven Howitt of Seekonk and Rep. Norman Orrall of Lakeville.

A Mariano spokesperson, who provided the breakdown to the News Service, said 14 members of the panel voted in favor of advancing the bill while two others reserved their rights.

The spokesperson declined to identify the two members who opted against taking a position, citing House rules that call for House-specific panels to release only the names of lawmakers who vote in the negative alongside an aggregate total of how many voted in the affirmative or withheld their votes.

Sen. Patrick O'Connor of Weymouth, the committee's only Senate Republican, confirmed to the News Service he was one of the two lawmakers who reserved their rights.

O'Connor said he has "serious concerns with this policy in particular" and thinks it constitutes "weighing in on things that should be done at the federal level." He said he often declines to take a position during committee polls on controversial bills.

"I wanted to continue to see the debate transpire," O'Connor said. "The real vote that matters is what's going to happen on the floor of the House or the floor of the Senate."

The same trio of House Republicans and former Republican Sen. Dean Tran voted in the negative two years ago, when the Transportation Committee first advanced a similar version of the bill with a 14-4 vote. However, the legislation never emerged for a vote in either chamber in the 2019-2020 lawmaking session.

The Transportation Committee's redrafted bill would allow residents without proof of lawful presence in the United States, including individuals ineligible for a Social Security number, to obtain a license if they have sufficient alternative documentation that proves their identity, date of birth and residency in the Bay State.

Sixteen other states and the District of Columbia allow undocumented immigrants to receive driver's licenses, according to the National Conference of State Legislatures. Supporters say the measure will improve public safety by ensuring that undocumented immigrants -- many of whom might choose to drive today without a license -- undergo proper road testing and education before getting behind the wheel.

Senate President Karen Spilka has previously voiced support for the proposal.

"I believe that for public safety reasons, even just if you look at it alone, we should pass it," Spilka said in a September 2019 radio interview. "We have people that are driving -- they're going to keep driving -- that don't know the rules of the road. They have accidents. They run from them because they don't have insurance. They don't have a license, they're afraid of being deported."

"There's like 14 other states that have done this and the sky hasn't fallen," Spilka added in that interview.

A majority of representatives and senators co-sponsored the original versions of the bill (H 3456 / S 2289), referred to as the Work and Family Mobility Act, though it remains unclear if Mariano will be able to line up enough votes to constitute the two-thirds majority needed to override a potential gubernatorial veto.

Baker has said he opposes the push to make driver's licenses available to undocumented immigrants, but has not publicly threatened to veto the bill.

Democrats wield supermajority margins in both chambers. The House -- currently down to a total of 158 members due to two vacancies -- has 128 Democrats, 29 Republicans and one independent, while the Senate has 37 Democrats and three Republicans.


The Boston Herald
Sunday, February 6, 2022
A Boston Herald editorial
Healey’s left turn out of woke playbook


Maura Healey is an astute politician.

That’s why she’s ripping a page out of Ed Markey’s re-election playbook by quickly letting everyone know she’s as progressive as any rival.

Sen. Markey outmaneuvered Joe Kennedy III with a deft political reinvention that had him morph into the Bernie Sanders of Massachusetts. AOC and other younger progressives rallied to Markey’s side and he blew past JoeKIII winning re-election. (55.3% to 44.6%)

Maura Healey, it appears, took note.

This past week she announced for all to hear that she’s “a proud progressive and I am incredibly proud of my record.” That’s textbook primary calculus. She first needs to defeat gubernatorial rivals state Sen. Sonia Chang-Diaz and Harvard professor Danielle Allen.

The primary is Sept. 20 with the general election set for Nov. 8. Republicans Geoff Diehl, a former Whitman state representative who is endorsed by former President Donald Trump, and Wrentham businessman Chris Doughty, we’re sure, will remember this pivot by Healey.

But what will voters say?

As of this weekend, Massachusetts has roughly 4.7 million voters. A majority — 57.4% — are independent-minded and register as “unenrolled.” The rest are 31.6% Democrat, 9.7% Republican and 1.3% “other.” That’s all rounded out by the secretary of state’s office.

It’s clear, Healey is taking a calculated risk. People will soak in all she says in the coming months on the campaign trail. There’s also a huge difference between running for U.S. Senate and governor.

Massachusetts voters are wary of a state Legislature weighed down by Democrats. The only check sits in the corner office, but Charlie Baker isn’t seeking re-election. So, your tax dollars could fall victim to a rubber-stamping if Healey, Chang-Diaz and Allen — or whomever else jumps in on the left — win. Diehl and or Doughty are all that stand in the way.


State House News Service
Friday, February 11, 2022
Advances - Week of Feb. 13, 2022


Two rare commutation votes, debate on a bill to make undocumented immigrants eligible for state-issued driver's licenses, and preparations for the possible reopening of the State House are among the marquee items on the agenda for the week ahead.

The word endemic keeps popping up as the next phase for COVID-19 but given the collective lack of experience with pandemics and the relative novelty of vaccines and boosters for this potentially deadly virus, the shift from one phase to the next has ratcheted up the debate over mask-wearing and the wisdom of requiring people to be vaccinated in order to be allowed entry into public spaces. For instance, Senate President Karen Spilka and House Speaker Ron Mariano want to only allow those who can prove they are vaccinated into the State House, but Gov. Charlie Baker opposes that type of requirement and legislative leaders appear to be wrestling with a plan that offers equal access to all.

House and Senate leaders are running out of time to announce guidelines if they wish to open this month, as Spilka desires. The Senate president said she wants to open Senate sessions to in-person visitors on Feb. 22, but talks are ongoing with the House on a broader reopening plan.

As more reps leave office early for new jobs, state election officials on Tuesday are poised to make nomination papers available to candidates who plan on running in the 200 newly configured legislative districts this fall.

In addition to the churn caused by incumbent lawmakers running for new elected posts, the next session will feature more new faces to replace some of the reps who are jumping ship midway through this session. Rep. Carolyn Dykema of Holliston departed Friday for a job in the solar energy sector, and former Reps. Claire Cronin of Easton and Lori Ehrlich of Marblehead recently resigned to join the Biden administration.

The departures are leaving key posts unfilled, including House majority leader (Cronin), the House chair of the Environment, Natural Resources and Agriculture Committee (Dykema), and the House chair of the Municipalities and Regional Government Committee (Ehrlich).

Groton Rep. Sheila Harrington could be confirmed on Wednesday for a clerk magistrate post, which would mean another resignation and an opening for Minority Leader Brad Jones to slot in a new ranking minority member of the Judiciary Committee.

Over in the Senate, the co-chairmanship of the Joint Committee on Transportation, most recently held by former Sen. Joseph Boncore, has remained vacant since last September. Sen. Lydia Edwards won a special election to fill the seat Boncore held, but House leaders have signaled no plans to hold special elections to fill the growing number of vacant House seats, which would leave scores of residents without representation. Edwards, who remains on the Boston City Council, joined the Senate on Jan. 20 and has yet to be assigned to committees.

Storylines In Progress

... Having already passed bills dealing with hospital sector consolidation (House) and mental health care access (Senate), the Senate moved the health care debate further downfield this week with approval of a prescription drug access and pricing bill. Meantime, the wait continues for the sweeping health care bill that Gov. Charlie Baker has promised to offer

... Spilka this week suggested the Senate will act soon after the House on reforms to improve oversight and accountability at the state's two long-term care homes for veterans. The House approved its proposal on Thursday

... Progressive activists frustrated that their priorities are hung up in the Democrat-controlled Legislature plan to speak out on Monday

... The fiscal 2023 state budget season continues on Tuesday with another Joint Ways and Means Committee hearing about Baker's $48.5 billion bill, this time focusing on health and human services spending

... A Senate committee will get an update from the energy and environment secretary as the Baker administration works to implement the 2021 climate roadmap law, which includes significant July 1 deadlines.


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