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CLT UPDATE
Monday, March 7, 2022

Revenue Windfall Rolls On, But No Tax Relief In Sight


Jump directly to CLT's Commentary on the News


Most Relevant News Excerpts
(Full news reports follow Commentary)

The Department of Revenue reported Thursday that it took in $1.8 billion in tax collections in February, a haul that surpassed expectations for that month by $293 million but represents less than the state collected in February 2021.

Revenue Commissioner Geoffrey Snyder said the primary reason for the decrease from last February to this one was a drop in withholding tax collections related to timing, as "certain payments that were received in February 2021 were captured in January this year." ...

Through February, fiscal 2022 tax collections have totaled about $23.673 billion, more than $4 billion above the same period in fiscal 2021 and more than $1.7 billion above year-to-date benchmarks....

State budget-writers have already raised their revenue expectations for this year by $1.5 billion, to $35.9 billion.

State House News Service
Thursday, March 3, 2022
February Tax Revenues Hum Along With $1.8 Bil Haul


A trio of Gov. Charlie Baker bills are poised to remain in limbo for as long as the next two months.

The House on Thursday adopted extension orders pushing back the deadline for committees to report on Baker's tax relief proposals and his push for omnibus road safety legislation that would strengthen seatbelt use enforcement. The move could mean that House members will go into April budget deliberations, when a push to adopt the proposals is possible, without any guidance on the tax relief plans from the panel that reviewed them.

Under the new orders, the Revenue Committee will have until Wednesday, May 4 to make a decision on the tax relief proposals, which Baker says are needed, affordable, and can make the state more competitive. That gives the panel an additional two months beyond the original reporting deadline of Wednesday, March 2 for Baker's tax bills.

One bill (H 4361) would offer nearly $700 million in breaks by overhauling how the state handles estate and short-term capital gains taxes, increase tax credits for seniors and child care, boost the available tax deduction for renters, and raise the minimum income level above which Bay Staters must file taxes.

State House News Service
Thursday, March 3, 2022
House Kicks Tax Relief Bill Deadline Past Budget Debate


As he waits to see how the Senate will respond to legislation that would allow immigrants unable to prove lawful residence in Massachusetts to obtain drivers' licenses, Gov. Charlie Baker voiced his concern Thursday that the House-passed bill did not adequately protect against someone unlawfully registering to vote.

The House last month passed a bill that would allow so-called undocumented immigrants to apply for a driver's license if they can produce certain papers proving their identity and residence in Massachusetts, such as a foreign passport.

"This license we're talking about is not a privilege-to-drive card, which is what they have in a bunch of other states. It looks exactly like a Massachusetts driver's license. You can't tell the difference between this and a regular one," Baker said during an hour-long appearance on GBH's Boston Public Radio.

Baker has opposed the concept, but said Thursday he did not want to comment on legislation that not yet been finalized. The governor did say he was disappointed the House voted down (31-125) a Minority Leader Brad Jones amendment that would have required the Registry of Motor Vehicles to share information with municipal clerks looking to verify a license holders' eligibility to vote.

"That bothered me a lot," Baker said. "I really think this is an issue we have to make clear. Driver's license is one thing. The right to vote is something else." ... "We got to create a process that somehow separates people who are citizens from people who aren't who are applying for this driver's license," Baker said.

State House News Service
Thursday, March 3, 2022
Baker Comments On License Bill Ahead Of Senate Debate


The handicappers at the Cook Political Report, who survey campaigns and elections across the country, have grown bullish on the prospects of Democrats retaking the governor's office in Massachusetts this year and are calling Attorney General Maura Healey the "clear frontrunner" in the primary and general election.

In switching its rating of the race here from "Lean Democrat" to "Likely Democrat," Cook on Friday described the open seat contest as the "Democrats' best pickup opportunity on the map." ...

In an analysis circulated by the Democratic Governors Association, Taylor continued: "When Baker announced his decision -- and his Lt. Gov. Karen Polito also passed on running -- we initially put this race in the Lean Democrat column to wait and see how both primaries, particularly the GOP one, would shape up. Three months later, it's clear that Republicans are headed toward having an unelectable nominee in Diehl while Democratic Attorney General Maura Healy is the clear frontrunner for both the primary and the general election."

A former state legislator and U.S. Senate candidate, Diehl faces political newcomer and businessman Chris Doughty in the GOP race for governor. Healey is contending with fellow Democrat Sen. Sonia Chang-Diaz.

According to Cook, a "Likely Democrat" designation is attached to races that are "not considered competitive at this point, but have the potential to become engaged."

State House News Service
Friday, March 4, 2022
Cook: Mass Guv’s Race Is Dems' “Best Pickup Opportunity”


If you like Charlie Baker, you will like Chris Doughty.

And if you like Karen Polito, you will like Kate Campanale.

They are the two GOP candidates who would replace Republican Gov. Charlie Baker and Lt. Gov. Karyn Polito, who, after eight years in office, are not seeking re-election.

And while the comparisons to Baker and Polito are inevitable, Doughty and Campanale are determined to reject labels implying that Doughty represents Baker’s third term.

Doughty, a businessman, announced on Tuesday that Campanale, a former state representative, would be his lieutenant governor running mate in the September 2022 Republican primary....

Doughty, 59, and Campanale, 36, both moderates, are very much like the people they would succeed. But they must first win the GOP primary and then the 2022 November election.

That means Doughty must face off against and defeat conservative Republican gubernatorial candidate Geoff Diehl in the GOP primary....

Doughty, of course, if elected would have his own ideas on how best to serve the people of Massachusetts Yet the comparisons with Baker are natural — they are both Republican moderates with business backgrounds.

The comparison of Campanale to Polito is even more so.

Both women served in the Massachusetts House from the Worcester area before running for higher office....

Unlike the doomsayers, Doughty and Campanale are optimistic about the state. “We do not see our Commonwealth as a city burning,” Doughty said. “We see it as a bright city on a hill for our entire nation to admire.”

Campanale said, “This election isn’t about Donald Trump or Joe Biden. It isn’t even about Charlie Baker. It’s about looking forward. … It’s about what Chris and I can do with a state that’s being handed to us and what the future holds.”

Fine. But the governor’s office is not handed to anyone. It is taken. Which is why Geoff Diehl will have something to say about it, as well as Democrat Maura Healey.

The Boston Herald
Saturday, March 5, 2022
Can Doughty & Campanale tag team their way to the corner office?
By Peter Lucas


If Gov. Charlie Baker is living by a mantra for his last year in office, it could be this: Always be closing.

Baker said this week that he's going to do whatever he can over the next 10 months to avoid becoming a "lame duck" even if the odds are admittedly "pretty slim" that he has any sort of future in elected politics.

"I'm not dead yet," Baker told GBH's Jim Braude and Margery Eagan, quoting from Monty Python....

Baker also reacted to the Department of Revenue's monthly report on state tax collections showing a sizable surplus taking shape for the year by urging passage of his tax cuts. "Tax revenues keep exceeding expectations and we should give some of that back to taxpayers," he said....

While lawmakers continue to roll the ball downhill toward the end of the heaviest part of the workload for the two-year session in July, the races that will decide who picks that ball up in 2023 became clearer this week, particularly on the Republican side.

GOP gubernatorial candidate Chris Doughty announced that he would be teaming up with former Rep. Kate Campanale, of Spencer, on what they hope to be a winning ticket in November. Campanale is the first Republican to announce for lieutenant governor this cycle in what has been a more popular contest on the Democratic side, where there are five vying to be number two.

In addition to Campanale, the Republican Party saw conservative Bourne attorney Jay McMahon, who will make a second run for attorney general, and 2018 secretary of state nominee Anthony Amore, who will run for auditor, join the slate.

"I think 2022 is 2010 on steroids," MassGOP Chairman Jim Lyons said, referring to the successful Tea Party wave a dozen years ago that saw the party make strong gains on Beacon Hill. Time will tell if he's right, but first the GOP needs candidates and they got them this week. Lyons expects the last unoccupied statewide slot on the Republican ballot - a candidate for treasurer - to be filled before the May signature filing deadline.

A continent away, Russia's war against Ukraine raged as lawmakers here looked for ways to respond to Russian President Vladimir Putin's military aggression. Or more precisely, looked to others to respond for them....

STORY OF THE WEEK: Republicans begin to step up to at least give Democrats competition in this year's big ticket races.

State House News Service
Friday, March 4, 2022
Weekly Roundup


Chip Ford's CLT Commentary

The State House News Service reported on Thursday ("February Tax Revenues Hum Along With $1.8 Bil Haul"):

The Department of Revenue reported Thursday that it took in $1.8 billion in tax collections in February, a haul that surpassed expectations for that month by $293 million but represents less than the state collected in February 2021.

Revenue Commissioner Geoffrey Snyder said the primary reason for the decrease from last February to this one was a drop in withholding tax collections related to timing, as "certain payments that were received in February 2021 were captured in January this year." ...

Through February, fiscal 2022 tax collections have totaled about $23.673 billion, more than $4 billion above the same period in fiscal 2021 and more than $1.7 billion above year-to-date benchmarks....

State budget-writers have already raised their revenue expectations for this year by $1.5 billion, to $35.9 billion.

"Revenues Hum Along" is a nice way of concurring with my prediction in last week's CLT Update where I wrote:

On Thursday the Department of Revenue will report the latest monthly revenue collections, from February....

Take note of downplayed revenue expectations prior to release. This has been de rigueur for some two years and counting — then everyone is surprised when the next unexpected bonanza of revenue is announced. We shall see if anything changes this time.

In a footnote to its February revenue report on Thursday, the Department of Revenue explained the moving "benchmark's" (expectation's) goal post:

With the enactment of the FY2022 budget, monthly revenue benchmarks were developed for the August 2021 through June 2022 period only.  In December 2021, monthly benchmarks from December 2021 through June 2022 were further modified to reflect the impact of the recently enacted pass-through entity tax and the impact of taxation of non-residents.  On January 14, 2022, the Secretary of Administration and Finance announced a revised tax revenue estimate of $35.9 billion for FY2022, an increase of $1.5 billion from the prior estimate of $34.4 billion.  This revision is based on recent revenue performance and improved economic data.  The revised FY2022 benchmark estimate of $35.9 billion represents July 2021 through December 2021 actual collections, adjusted for PTE excise collections, and forecasted collections for the months of January 2022 through June 2022.

Even persistently moving the goal post for two years can't keep up with the flood of tax revenue pouring into the state's treasury, try as they might.


On Thursday, along with reporting on the continuing revenue bonanza, the State House News Service coincidentally also reported ("House Kicks Tax Relief Bill Deadline Past Budget Debate"):

A trio of Gov. Charlie Baker bills are poised to remain in limbo for as long as the next two months.

The House on Thursday adopted extension orders pushing back the deadline for committees to report on Baker's tax relief proposals and his push for omnibus road safety legislation that would strengthen seatbelt use enforcement. The move could mean that House members will go into April budget deliberations, when a push to adopt the proposals is possible, without any guidance on the tax relief plans from the panel that reviewed them.

Under the new orders, the Revenue Committee will have until Wednesday, May 4 to make a decision on the tax relief proposals, which Baker says are needed, affordable, and can make the state more competitive. That gives the panel an additional two months beyond the original reporting deadline of Wednesday, March 2 for Baker's tax bills.

One bill (H 4361) would offer nearly $700 million in breaks by overhauling how the state handles estate and short-term capital gains taxes, increase tax credits for seniors and child care, boost the available tax deduction for renters, and raise the minimum income level above which Bay Staters must file taxes.

What is the holdup here, the excuse now?  Billions in over-taxation has been piling up in the state's coffers faster than can be counted but a relatively small tax relief proposal by Gov. Baker is stalled in the Legislature until May, maybe, if ever?  Legislators really are repelled by the thought of possibly returning even a cent of the revenue bonanza to its rightful owners the taxpayers who provide it all.

Even in Massachusetts this is perceived by many who bother to pay attention as outrageous, but from an outsider's perspective it's unfathomable.  Unless one is removed from the toxic, internalized, even accepted oppressive political environment, it's hard if not impossible to recognize it doesn't need to be this way.  Massachusetts in this regard (and in a few others) is almost uniquely dysfunctional in so much of its government and what it does.

Sometimes the only way to possibly see and recognize it is from a distance and you can't start recovering until you recognize and accept that you have a problem.

You can immerse yourself in but one glaring comparison below, in "A Tale of Two Commonwealths".


The State House News Service on Friday reported ("Cook: Mass Guv’s Race Is Dems' 'Best Pickup Opportunity'"):

The handicappers at the Cook Political Report, who survey campaigns and elections across the country, have grown bullish on the prospects of Democrats retaking the governor's office in Massachusetts this year and are calling Attorney General Maura Healey the "clear frontrunner" in the primary and general election.

In switching its rating of the race here from "Lean Democrat" to "Likely Democrat," Cook on Friday described the open seat contest as the "Democrats' best pickup opportunity on the map." ...

According to Cook, a "Likely Democrat" designation is attached to races that are "not considered competitive at this point, but have the potential to become engaged."

Then on Saturday Boston Herald veteran reporter and columnist Peter Lucas observed ("Can Doughty & Campanale tag team their way to the corner office?"):

If you like Charlie Baker, you will like Chris Doughty.

And if you like Karen Polito, you will like Kate Campanale.

They are the two GOP candidates who would replace Republican Gov. Charlie Baker and Lt. Gov. Karyn Polito, who, after eight years in office, are not seeking re-election.

And while the comparisons to Baker and Polito are inevitable, Doughty and Campanale are determined to reject labels implying that Doughty represents Baker’s third term.

Doughty, a businessman, announced on Tuesday that Campanale, a former state representative, would be his lieutenant governor running mate in the September 2022 Republican primary....

Doughty, 59, and Campanale, 36, both moderates, are very much like the people they would succeed. But they must first win the GOP primary and then the 2022 November election.

That means Doughty must face off against and defeat conservative Republican gubernatorial candidate Geoff Diehl in the GOP primary....

Unlike the doomsayers, Doughty and Campanale are optimistic about the state. “We do not see our Commonwealth as a city burning,” Doughty said. “We see it as a bright city on a hill for our entire nation to admire.”

Campanale said, “This election isn’t about Donald Trump or Joe Biden. It isn’t even about Charlie Baker. It’s about looking forward. … It’s about what Chris and I can do with a state that’s being handed to us and what the future holds.”

Fine. But the governor’s office is not handed to anyone. It is taken. Which is why Geoff Diehl will have something to say about it, as well as Democrat Maura Healey.

“We do not see our Commonwealth as a city burning.  We see it as a bright city on a hill for our entire nation to admire.”

Chris Doughty needs to get out of Massachusetts and look around more, learn what states throughout "our entire nation" are like, how other states fare in comparison to beleaguered Taxachusetts.  The most liberal and expensive state in the nation is admired by few if any beyond its borders which is why so many who are able are fleeing.

In its Weekly Roundup on Friday the State House News Service noted:

If Gov. Charlie Baker is living by a mantra for his last year in office, it could be this: Always be closing.

Baker said this week that he's going to do whatever he can over the next 10 months to avoid becoming a "lame duck" even if the odds are admittedly "pretty slim" that he has any sort of future in elected politics.

"I'm not dead yet," Baker told GBH's Jim Braude and Margery Eagan, quoting from Monty Python....

Baker also reacted to the Department of Revenue's monthly report on state tax collections showing a sizable surplus taking shape for the year by urging passage of his tax cuts. "Tax revenues keep exceeding expectations and we should give some of that back to taxpayers," he said....

While lawmakers continue to roll the ball downhill toward the end of the heaviest part of the workload for the two-year session in July, the races that will decide who picks that ball up in 2023 became clearer this week, particularly on the Republican side.

GOP gubernatorial candidate Chris Doughty announced that he would be teaming up with former Rep. Kate Campanale, of Spencer, on what they hope to be a winning ticket in November. Campanale is the first Republican to announce for lieutenant governor this cycle in what has been a more popular contest on the Democratic side, where there are five vying to be number two.

In addition to Campanale, the Republican Party saw conservative Bourne attorney Jay McMahon, who will make a second run for attorney general, and 2018 secretary of state nominee Anthony Amore, who will run for auditor, join the slate.

"I think 2022 is 2010 on steroids," MassGOP Chairman Jim Lyons said, referring to the successful Tea Party wave a dozen years ago that saw the party make strong gains on Beacon Hill. Time will tell if he's right, but first the GOP needs candidates and they got them this week. Lyons expects the last unoccupied statewide slot on the Republican ballot - a candidate for treasurer - to be filled before the May signature filing deadline.

A continent away, Russia's war against Ukraine raged as lawmakers here looked for ways to respond to Russian President Vladimir Putin's military aggression. Or more precisely, looked to others to respond for them....

STORY OF THE WEEK: Republicans begin to step up to at least give Democrats competition in this year's big ticket races.

We'll see how it all shakes out come November.  Nuff said.


A Tale of Two Commonwealths
It Doesn't Need to be The Massachusetts Way

Only four U.S. states call themselves commonwealths:  Virginia, Pennsylvania, Massachusetts, and Kentucky.  Beyond 17th-century historic significance, along with the other 46 they are states of equal standing.

While the Commonwealth of Massachusetts's "full-time," year-round, Democrat-controlled "Great and General Court" (legislature) with its tax-insatiable super-majority is repulsed by the thought of parting with even a cent of the state's bonanza of revenue wealth, this is not universal among commonwealth states, or most states.  Currently there are just three Republicans in the Massachusetts state Senate and 29 in the House; a total of 32 Republicans out of 200 legislators.

The Commonwealth of Kentucky's "General Assembly" (legislature) is controlled by a Republican super-majority (Senate 30 Rs vs. 8 Ds; House 75 Rs vs. 25 Ds).  The Kentucky General Assembly convenes in regular session in January for 60 days in even-numbered years, and for 30 days in odd-numbered years.  It can convene in rare special sessions at the call of the governor.  The Kentucky Constitution mandates that a regular session be completed no later than April 15 in even-numbered years, and March 30 in odd-numbered years.

Kentucky has a two-year state budget cycle, proposed, passed, and adopted in even-numbered years during its "long session" of 60 legislative days, which constitutionally must conclude no later than April 15 when legislators return home for the remainder of the year.

This fiscal year's (2021-22) Kentucky state budget was about $12 Billion (compared to Massachusetts' $48 Billion).  The population of Kentucky is 4.5 million residents (compared to the Massachusetts population of 7 million residents).

Kentucky had a $4 Billion surplus at the beginning of this year.  The legislature spent $2 Billion of it and set aside the remaining $2 Billion to provide tax relief in the time remaining for this legislative session.  The debate now is how to best distribute that $2 Billion surplus:  Cutting the income tax from 5% to 4% and phasing out the income tax entirely; giving each taxpayer a one-time $500 rebate check; reducing the 6% sales tax to 5%, or some combination of them.

"Kentucky House Republicans filed their long-awaited tax reform plan on Friday, which would cut the state's individual income tax rate by 1% next year and include the potential to cut it incrementally in following years until it is eliminated," The (Louisville, KY) Courier Journal reported on February 27 ("Kentucky House GOP plan would cut income taxes but add sales taxes to these 18 services"):

The tax rate would also fall by half percent intervals with greater general fund receipt amounts and be eliminated entirely once general fund receipts exceed $20.5 billion.

Kentucky's general fund receipts amounted to $12.8 billion in the 2021 fiscal year, and are currently projected to reach $13.79 in the 2022 fiscal year ending June 30.

The tax reform legislation would not increase the corporate income tax rate or the sales tax rate, though it would expand the sales tax to at least 18 types of services listed in the bill.

“Kentuckians, those here and those who will move here, recognize that what remains in your pocket at the end of a day’s work determines how you live," Petrie said in a statement. "We have been very open about our goal to let people keep more of their hard-earned money rather than collecting it for the government to determine how to spend.”

House Republicans strongly indicated they would roll out a major tax reform package after they unveiled and quickly passed their two-year state budget bill in January.

That budget plan left nearly $2 billion unspent, with House Speaker David Osborne indicating this would leave them room to implement a tax reform package that shifted Kentucky toward a revenue model more dependent on taxing consumption instead of production.

The move to work toward eliminating the income tax would fulfill a longtime wish of many Republicans to emulate the tax system of Tennessee, which has no income tax and higher sales tax rates, which they credit for the state outpacing Kentucky in economic and population growth in the past two decades.

"House Republicans voted Friday to fundamentally revamp Kentucky's tax code, passing legislation aimed at phasing out the individual income tax and extending the state sales tax to more services, The Courier Journal reported on Friday ("GOP-led House advances plan to overhaul Kentucky's tax system, phase out income tax"):

The measure — which cleared the House on a 67-23 vote after a long debate — would shift tax collections increasingly toward consumption and away from personal income. The proposal advances to the GOP-led Senate as tax and budget issues dominate the legislative session's final weeks.

"Kentucky taxpayers could receive a $500 rebate from the state under a new bill that cleared a legislative committee Thursday morning," The Courier Journal reported on February 24 ("GOP lawmakers move to give many Kentuckians a $500 tax rebate"):

Sen. Chris McDaniel, R-Taylor Mill, the chairman of the committee and chief sponsor of SB 194, said the intent of the legislation was to address the recent spike in "crushing" inflation.

"As our nation is experiencing the highest inflation in 40 years, it's important that lawmakers respond in a way that helps ease the burden on tax-paying Kentuckians," McDaniel said.

McDaniel said he expected those rebate checks to go out "by the end of the summer" should the legislation pass into law, with rebates totaling $1.15 billion.

The measure passed the committee unanimously, with all Republican lawmakers voting for it. The two Democrats on the committee were not present for the vote.

“We do not see our Commonwealth (of Massachusetts) as a city burning.  We see it as a bright city on a hill for our entire nation to admire.”

Mr. Chris Doughty, candidate for governor of Taxachusetts:  It doesn't need to be The Massachusetts Way.

Chip Ford
Executive Director


Full News Reports
(excerpted above)

State House News Service
Thursday, March 3, 2022
February Tax Revenues Hum Along With $1.8 Bil Haul
By Katie Lannan


The Department of Revenue reported Thursday that it took in $1.8 billion in tax collections in February, a haul that surpassed expectations for that month by $293 million but represents less than the state collected in February 2021.

Revenue Commissioner Geoffrey Snyder said the primary reason for the decrease from last February to this one was a drop in withholding tax collections related to timing, as "certain payments that were received in February 2021 were captured in January this year."

Massachusetts paid out $405 million in income tax cash refunds last month, $188 million less than was projected, which Snyder said was the "main contributor to the above benchmark performance for the month."

"However, this favorability may be temporary as refund activity will likely increase as the tax season progresses," he said.

With no estimated payments required from individual or business taxpayers, February is typically the state's smallest revenue month, accounting for less than 6 percent of the year's total.

Through February, fiscal 2022 tax collections have totaled about $23.673 billion, more than $4 billion above the same period in fiscal 2021 and more than $1.7 billion above year-to-date benchmarks.

As it has done in each of the prior two months, the Department of Revenue said February collections are affected by a change in state law affecting taxes for pass-through entities, or businesses that pass all income on to owners and investors.

After adjusting for the pass-through payments, DOR said, February collections are $291 million above projections -- and $94 million below February 2021 -- and year-to-date collections are $1.083 billion above benchmark. The department cautioned that its February figures "should not be used as predictors for the remainder of the fiscal year," in part because of the situation with the pass-through payments.

State budget-writers have already raised their revenue expectations for this year by $1.5 billion, to $35.9 billion.


State House News Service
Thursday, March 3, 2022
House Kicks Tax Relief Bill Deadline Past Budget Debate
By Chris Lisinski


A trio of Gov. Charlie Baker bills are poised to remain in limbo for as long as the next two months.

The House on Thursday adopted extension orders pushing back the deadline for committees to report on Baker's tax relief proposals and his push for omnibus road safety legislation that would strengthen seatbelt use enforcement. The move could mean that House members will go into April budget deliberations, when a push to adopt the proposals is possible, without any guidance on the tax relief plans from the panel that reviewed them.

Under the new orders, the Revenue Committee will have until Wednesday, May 4 to make a decision on the tax relief proposals, which Baker says are needed, affordable, and can make the state more competitive. That gives the panel an additional two months beyond the original reporting deadline of Wednesday, March 2 for Baker's tax bills.

One bill (H 4361) would offer nearly $700 million in breaks by overhauling how the state handles estate and short-term capital gains taxes, increase tax credits for seniors and child care, boost the available tax deduction for renters, and raise the minimum income level above which Bay Staters must file taxes. The other tax bill (H 4362) would serve a complementary role aimed at modernizing and streamlining the state tax system.

Baker and his top deputies testified before the committee about their proposals on Feb. 22. Some Democrats expressed skepticism about the need for capital gains tax reforms.

Another extension order the House adopted gives the Transportation Committee until Friday, April 29 to decide the fate of half a dozen bills including Baker's latest push to convert Massachusetts to a primary seatbelt enforcement system (H 3706).

While state law mandates seatbelt use, the existing secondary enforcement law allows police to cite motorists for failing to buckle up only if they stop the vehicle for another primary traffic violation such as speeding.

The Baker administration and some road safety groups have argued that empowering police to pull drivers over solely for not wearing a seatbelt would boost their use in Massachusetts, which has one of the lowest buckling rates in the country, but opponents caution the expanded enforcement could exacerbate racial profiling of drivers.


State House News Service
Thursday, March 3, 2022
Baker Comments On License Bill Ahead Of Senate Debate
By Matt Murphy


As he waits to see how the Senate will respond to legislation that would allow immigrants unable to prove lawful residence in Massachusetts to obtain drivers' licenses, Gov. Charlie Baker voiced his concern Thursday that the House-passed bill did not adequately protect against someone unlawfully registering to vote.

The House last month passed a bill that would allow so-called undocumented immigrants to apply for a driver's license if they can produce certain papers proving their identity and residence in Massachusetts, such as a foreign passport.

"This license we're talking about is not a privilege-to-drive card, which is what they have in a bunch of other states. It looks exactly like a Massachusetts driver's license. You can't tell the difference between this and a regular one," Baker said during an hour-long appearance on GBH's Boston Public Radio.

Baker has opposed the concept, but said Thursday he did not want to comment on legislation that not yet been finalized. The governor did say he was disappointed the House voted down (31-125) a Minority Leader Brad Jones amendment that would have required the Registry of Motor Vehicles to share information with municipal clerks looking to verify a license holders' eligibility to vote.

"That bothered me a lot," Baker said. "I really think this is an issue we have to make clear. Driver's license is one thing. The right to vote is something else."

The House added language to its final bill to clarify that a license or learner's permit applicant who does not provide proof of lawful presence will not be not automatically registered to vote under the state's automatic voter-registration law. Supporters also point out that non-citizens in the country legally with Green Cards or student or work visas can already get a Massachusetts driver's license, but can't register to vote.

But Baker suggested he does not think the House bill goes far enough.

"We got to create a process that somehow separates people who are citizens from people who aren't who are applying for this driver's license," Baker said.

Senate President Karen Spilka supports giving licenses to undocumented immigrants, but said Sen. Brendan Creighton is still taking the temperature of senators on the issue and she hopes to bring it up for a vote "within the coming weeks."

"I don't know exactly how many weeks, if it's going to be several or a few or whatever, but hoping to bring it to the floor," Spilka said. The House passed the bill by a veto-proof majority.


State House News Service
Friday, March 4, 2022
Cook: Mass Guv’s Race Is Dems' “Best Pickup Opportunity”
By Michael P. Norton


The handicappers at the Cook Political Report, who survey campaigns and elections across the country, have grown bullish on the prospects of Democrats retaking the governor's office in Massachusetts this year and are calling Attorney General Maura Healey the "clear frontrunner" in the primary and general election.

In switching its rating of the race here from "Lean Democrat" to "Likely Democrat," Cook on Friday described the open seat contest as the "Democrats' best pickup opportunity on the map."

"Republicans were dealt a huge blow at the beginning of December when Gov. Charlie Baker announced he wouldn't seek a third term," Jessica Taylor wrote in a members-only analysis for Cook. "Although he denied the fact that former President Trump endorsing his far-right primary opponent, former state Rep. Geoff Diehl, factored into his decision, national Republicans still believe that if Trump had not taken aim at yet another GOP governor he disagreed with that Baker would still be running and in the driver's seat to re-election."

In an analysis circulated by the Democratic Governors Association, Taylor continued: "When Baker announced his decision -- and his Lt. Gov. Karen Polito also passed on running -- we initially put this race in the Lean Democrat column to wait and see how both primaries, particularly the GOP one, would shape up. Three months later, it's clear that Republicans are headed toward having an unelectable nominee in Diehl while Democratic Attorney General Maura Healy is the clear frontrunner for both the primary and the general election."

A former state legislator and U.S. Senate candidate, Diehl faces political newcomer and businessman Chris Doughty in the GOP race for governor. Healey is contending with fellow Democrat Sen. Sonia Chang-Diaz.

According to Cook, a "Likely Democrat" designation is attached to races that are "not considered competitive at this point, but have the potential to become engaged."


The Boston Herald
Saturday, March 5, 2022
Can Doughty & Campanale tag team their way to the corner office?
By Peter Lucas


If you like Charlie Baker, you will like Chris Doughty.

And if you like Karen Polito, you will like Kate Campanale.

They are the two GOP candidates who would replace Republican Gov. Charlie Baker and Lt. Gov. Karyn Polito, who, after eight years in office, are not seeking re-election.

And while the comparisons to Baker and Polito are inevitable, Doughty and Campanale are determined to reject labels implying that Doughty represents Baker’s third term.

Doughty, a businessman, announced on Tuesday that Campanale, a former state representative, would be his lieutenant governor running mate in the September 2022 Republican primary.

While candidates for governor and lieutenant governor are elected as a team in the November election, they run individually in the primary.

Over the years, however, it became politically fashionable for candidates to team up in the primary, as Baker and Polito did when first elected in 2014.

Doughty, 59, and Campanale, 36, both moderates, are very much like the people they would succeed. But they must first win the GOP primary and then the 2022 November election.

That means Doughty must face off against and defeat conservative Republican gubernatorial candidate Geoff Diehl in the GOP primary.

Diehl has a head start in the race, having announced his candidacy in July, long before Baker said he would not run for re-election. He has been endorsed by former President Donald Trump. Diehl has yet to decide whether to name a running mate or to let the Republican primary voters decide.

Like Baker, Doughty of Wrentham comes from the private sector with years of management experience. Doughty founded and runs Capstan Atlantic, a manufacturing firm that employees 300 people in two plants.

Baker, when he initially ran for governor in 2010, was the CEO of Harvard Pilgrim Health Care. Before that he served in key position in the Gov. Bill Weld/Paul Cellucci administrations.

Doughty, of course, if elected would have his own ideas on how best to serve the people of Massachusetts Yet the comparisons with Baker are natural — they are both Republican moderates with business backgrounds.

The comparison of Campanale to Polito is even more so.

Both women served in the Massachusetts House from the Worcester area before running for higher office. Polito represented Shrewsbury in the House for 10 years, after which she ran for state treasurer in 2010. She was defeated by Democrat Steve Grossman.

In 2014 she became Baker’s lieutenant governor running mate and has served in the position for two terms.

Campanale served in the House for two terms, representing the town of Leicester and a portion of Worcester. She left the House in 2018 to run unsuccessfully for Worcester County register of deeds.

Campanale most recently worked for Baker as deputy director of communications and digital media in the Executive Office of Labor and Workforce Development.

Unlike the doomsayers, Doughty and Campanale are optimistic about the state. “We do not see our Commonwealth as a city burning,” Doughty said. “We see it as a bright city on a hill for our entire nation to admire.”

Campanale said, “This election isn’t about Donald Trump or Joe Biden. It isn’t even about Charlie Baker. It’s about looking forward. … It’s about what Chris and I can do with a state that’s being handed to us and what the future holds.”

Fine. But the governor’s office is not handed to anyone. It is taken. Which is why Geoff Diehl will have something to say about it, as well as Democrat Maura Healey.

Peter Lucas is a veteran Massachusetts political reporter and columnist.


State House News Service
Friday, March 4, 2022
Weekly Roundup - Priorities Not Always Shared
Recap and analysis of the week in state government
By Matt Murphy


If Gov. Charlie Baker is living by a mantra for his last year in office, it could be this: Always be closing.

Baker said this week that he's going to do whatever he can over the next 10 months to avoid becoming a "lame duck" even if the odds are admittedly "pretty slim" that he has any sort of future in elected politics.

"I'm not dead yet," Baker told GBH's Jim Braude and Margery Eagan, quoting from Monty Python.

Increasingly, that has meant Baker using Twitter to try to engage the public in his policy agenda. Baker tweeted ahead of the Super Bowl about his wish to see sports betting legalized and has more recently been sharing videos of victims of domestic assault and other violent crimes telling their stories about how his bill to expand the ability of judges and police to detain violent criminals would help.

"We are failing victims here in the commonwealth, over and over and over again, and we've been doing it for years," Baker said during a mid-week visit to the Springfield YWCA to hear more survivor stories.

Baker also reacted to the Department of Revenue's monthly report on state tax collections showing a sizable surplus taking shape for the year by urging passage of his tax cuts. "Tax revenues keep exceeding expectations and we should give some of that back to taxpayers," he said.

The governor, of course, isn't the only one with an agenda.

House Speaker Ron Mariano brought forward his priority bill to improve competition for offshore wind development and spark economic and job growth in a sector that after all these years is still getting off the ground. The legislation would soften the cap that requires each wind contract to offer cheaper energy than the last, and take steps to make it easier for developers to connect their renewable energy sources to the grid.

The bill, however, is probably just the first salvo in a process that could end up pushing against the Legislature's end-of-July deadline for major business. Senate President Karen Spilka has talked about a more comprehensive energy bill this session, and Baker this week raised concerns about the House-backed fee on natural gas to finance offshore wind innovation.

Spilka has her own interests as well, so stop asking her about sports betting. (That's what she said.)

"Curious as to why reporters and why people don't ask, 'What about mental health reform?' Where's that? The Senate has done that twice, and that is desperately needed by all residents of Massachusetts and that's not a conflict or controversial," Spilka said.

That was Spilka's way of throwing it back at the House after Mariano went on the radio and expressed his frustration with the "stubborn reluctance" of his Senate counterpart to get on with the gambling bill. State House insiders generally insist that Spilka and Mariano have a fairly good working relationship. There's certainly more direct communication than with Mariano's predecessor Robert DeLeo, sources say.

But everyone can get a little frustrated now and again.

Spilka's comments came after the Senate passed two bills to increase access to disposable menstrual products in prisons, homeless shelters, and public schools, and to expand equitable access to maternal postpartum care. The Senate is also prepared to debate soldiers' home oversight next Thursday.

While lawmakers continue to roll the ball downhill toward the end of the heaviest part of the workload for the two-year session in July, the races that will decide who picks that ball up in 2023 became clearer this week, particularly on the Republican side.

GOP gubernatorial candidate Chris Doughty announced that he would be teaming up with former Rep. Kate Campanale, of Spencer, on what they hope to be a winning ticket in November. Campanale is the first Republican to announce for lieutenant governor this cycle in what has been a more popular contest on the Democratic side, where there are five vying to be number two.

In addition to Campanale, the Republican Party saw conservative Bourne attorney Jay McMahon, who will make a second run for attorney general, and 2018 secretary of state nominee Anthony Amore, who will run for auditor, join the slate.

"I think 2022 is 2010 on steroids," MassGOP Chairman Jim Lyons said, referring to the successful Tea Party wave a dozen years ago that saw the party make strong gains on Beacon Hill. Time will tell if he's right, but first the GOP needs candidates and they got them this week. Lyons expects the last unoccupied statewide slot on the Republican ballot - a candidate for treasurer - to be filled before the May signature filing deadline.

A continent away, Russia's war against Ukraine raged as lawmakers here looked for ways to respond to Russian President Vladimir Putin's military aggression. Or more precisely, looked to others to respond for them.

House Minority Leader Brad Jones spearheaded a letter signed by 58 House and Senate Democrats and Republicans calling on Treasurer Deb Goldberg to review the state's $104 billion pension fund for investments in Russia and immediately divest.

Goldberg responded in turn by telling legislators that while she would support divestment, it would require an act of the Legislature directing the Pension Reserve Investment Management Board to do so.

PRIM Executive Director Michael Trotsky said the pension fund had no investment impacted by U.S. sanctions on Russia, but did have about $140 million in holdings with "exposure" to Russia. Spilka said told the News Service she would continue to talk with senators, Goldberg, Baker and the House about what might be done with regard to Russia, but she was also worried about taking any action that would have "unintended consequences" for small, Russian-owned businesses who are not to blame for Putin's actions.

"I don't think we can have a knee-jerk reaction," she said.

Meanwhile, before he took off Friday for a weeklong vacation in Utah Baker signed an executive order directing all executive branch agencies to review all state contracts and terminate any agreement with Russian state-owned companies.

Baker's trip to Utah brought back an immediate flood of memories from the (last?) time the governor and his family went to Utah where they own property in Park City. It was March of 2020, and Baker left assuring the public he would be taking part in daily briefings with his team and the feds on a novel virus beginning to spread in Massachusetts and elsewhere around the country.

That vacation lasted only a couple of days before the governor got on a flight back home to Boston to declare a state of emergency in Massachusetts as the COVID-19 pandemic had begun.

Fast forward to today and basically all COVID-19 restrictions are being lifted. Boston's public indoor mask mandate lifts on Saturday and the state followed the Centers for Disease Control this week in allowing students to lose their masks on school buses.

Public transportation and health care settings remain among the few places where masks are still required, a list that also includes the State House.

STORY OF THE WEEK: Republicans begin to step up to at least give Democrats competition in this year's big ticket races.


The Courier Journal
Louisville, KY
Sunday, February 27, 2022
Kentucky House GOP plan would cut income taxes but add sales taxes to these 18 services
By Joe Sonka


FRANKFORT — Kentucky House Republicans filed their long-awaited tax reform plan on Friday, which would cut the state's individual income tax rate by 1% next year and include the potential to cut it incrementally in following years until it is eliminated.

Under House Bill 8, sponsored by House budget committee chairman Rep. Jason Petrie, R-Elkton, the individual income tax rate would be lowered from 5% to 4% in 2023, with a triggering mechanism employed in following years to lower it further based on the amount of general fund tax receipts the state receives.

If Kentucky's general fund tax receipts grow to $13.75 billion in a fiscal year, the individual income tax rate would be lowered in the following calendar year to 3.5%.

The tax rate would also fall by half percent intervals with greater general fund receipt amounts and be eliminated entirely once general fund receipts exceed $20.5 billion.

Kentucky's general fund receipts amounted to $12.8 billion in the 2021 fiscal year, and are currently projected to reach $13.79 in the 2022 fiscal year ending June 30.

The tax reform legislation would not increase the corporate income tax rate or the sales tax rate, though it would expand the sales tax to at least 18 types of services listed in the bill.

“Kentuckians, those here and those who will move here, recognize that what remains in your pocket at the end of a day’s work determines how you live," Petrie said in a statement. "We have been very open about our goal to let people keep more of their hard-earned money rather than collecting it for the government to determine how to spend.”

House Republicans strongly indicated they would roll out a major tax reform package after they unveiled and quickly passed their two-year state budget bill in January.

That budget plan left nearly $2 billion unspent, with House Speaker David Osborne indicating this would leave them room to implement a tax reform package that shifted Kentucky toward a revenue model more dependent on taxing consumption instead of production.

The move to work toward eliminating the income tax would fulfill a longtime wish of many Republicans to emulate the tax system of Tennessee, which has no income tax and higher sales tax rates, which they credit for the state outpacing Kentucky in economic and population growth in the past two decades.

On Thursday, Senate Republicans unveiled and passed out of committee another bill that would provide Kentuckians with $1.15 billion of tax rebates from the projected $2 billion surplus expected at the end of this fiscal year.

Under Senate Bill 194, individual tax filers would receive a $500 rebate and joint filers would receive a $1,000 rebate. Those not paying any state income tax would receive no rebate, and those paying less than $500 or $1,000 would receive a rebate of that lesser amount they paid in taxes.

Meanwhile, Gov. Andy Beshear recently proposed temporarily reducing the state sales tax rate from 6% to 5% to help Kentuckians struggling with inflation — the same motive Republicans cited for SB 194.

Beshear's spokeswoman Crystal Staley said Friday the governor "was not consulted by the House on the proposal and has not received a copy of the legislation."

Anticipating Republicans would attempt to push tax reform that increased or expanded the sales tax while lowering the income tax rate, Beshear has criticized this as a regressive tactic that would not stimulate the economy or "provide relief to people in every single income bracket."

Among the services that would no longer be exempt from Kentucky's 6% sales tax rate are:

•  Non-primary residential electric (primary residences would remain exempt)
•  Taxi cabs, car rentals, or transportation services like Uber and Lyft
•  Temporary rental services (AirBnB, VRBO)
•  Advertising, marketing, and graphic design services
•  Residential and nonresidential security systems
•  Bodyguard and self-protection services
•  Process servers
•  Valet and parking services
•  Pleasure watercraft docking
•  Entertainment venues and event space rentals
•  Legislative and executive branch lobbying
•  Cosmetic surgery procedures (non-medically necessary)
•  Personal financial planning
•  Private mail services
•  Road and travel services
•  Executive employee recruitment services
•  Unsolicited telemarketing services
•  Public opinion research

House Bill 8 would also implement a battery reclamation fee on electric and hybrid motor vehicles and an excise tax of 3 cents per kilowatt hour on fee-for-service vehicle charging stations — with such revenue split by the general fund and state road fund.

Jason Bailey, director of the left-leaning think tank Kentucky Center for Economic Policy, panned HB 8 as "devastating" funding for Kentucky’s schools, health, human services and infrastructure, while being a "giveaway to the wealthy."

"HB 8 is a reckless bill that would doom Kentucky’s schools and other public services and create a future of wider inequality, deeper poverty and stagnant economic growth," said Bailey, who noted the income tax makes up 40% of state revenue.


The Courier Journal
Louisville, KY
Friday, March 4, 2022
GOP-led House advances plan to overhaul Kentucky's tax system, phase out income tax
By Bruce Schreiner - Associated Press


FRANKFORT, Ky. — House Republicans voted Friday to fundamentally revamp Kentucky's tax code, passing legislation aimed at phasing out the individual income tax and extending the state sales tax to more services.

The measure — which cleared the House on a 67-23 vote after a long debate — would shift tax collections increasingly toward consumption and away from personal income. The proposal advances to the GOP-led Senate as tax and budget issues dominate the legislative session's final weeks.

The plan's Republican supporters trumpeted its profound changes. They predicted it would encourage job growth and population gains by enabling people to keep more of the money they earn.

“Stop the old thought process — tax it, spend it," Rep. Jason Petrie, R-Elkton, said. "We had a good 100-year history of that here. And our numbers and our results are not appealing at all.”

Democrats opposing the measure said it would disproportionally benefit wealthier Kentuckians and could deprive the state of revenues needed to properly finance schools and other essential services.

“I don’t think the math adds up,” Rep. Rachel Roberts, D-Newport, said. "And I also think that this is regressive. I think it hurts poor people in our state. I think it favors wealthy people in our state.”

Under the bill, the state’s 5% personal income tax rate would be lowered incrementally over a period of years with the goal of eventually eliminating it. The measure calls for the rate to be cut to 4% next year. After that, future income tax rate cuts would hinge on the state meeting revenue targets.

To broaden the tax base, the proposal would extend the sales tax to a number of services.


The Courier Journal
Louisville, KY
Thursday, February 24, 2022
GOP lawmakers move to give many Kentuckians a $500 tax rebate.
By Joe Sonka


FRANKFORT — Kentucky taxpayers could receive a $500 rebate from the state under a new bill that cleared a legislative committee Thursday morning.

The legislation came as a surprise in the Senate budget committee, as what's known as a "shell bill" — a short and non-descript bill filed as a placeholder and then replaced with more substantive provisions — was amended with the tax rebate language.

Under Senate Bill 194, individual tax filers from 2020 would receive a $500 rebate and joint filers would receive a $1,000 rebate — unless those individuals paid less than that amount in state taxes.

If filers paid less than $500 or $1,000, they would receive a rebate of that lower amount; if they paid no state taxes, they would receive no rebate.

Sen. Chris McDaniel, R-Taylor Mill, the chairman of the committee and chief sponsor of SB 194, said the intent of the legislation was to address the recent spike in "crushing" inflation.

"As our nation is experiencing the highest inflation in 40 years, it's important that lawmakers respond in a way that helps ease the burden on tax-paying Kentuckians," McDaniel said.

McDaniel said he expected those rebate checks to go out "by the end of the summer" should the legislation pass into law, with rebates totaling $1.15 billion.

The measure passed the committee unanimously, with all Republican lawmakers voting for it. The two Democrats on the committee were not present for the vote.

With nearly $2 billion of projected surplus in the current fiscal year, leadership of the Republican supermajority had already signaled their intent to leave much of this unspent in their two-year budget proposal, instead directing this toward tax cuts or relief.

The two-year budget bill passed by the House in January left nearly that same amount unspent, with Republican Senate President Robert Stivers saying "with all this tax money that we're sitting here holding, why are we not thinking about giving everybody a pay raise by giving them a tax cut?"

Before his Jan. 13 address to outline his own budget proposal, Gov. Andy Beshear countered that leaving unspent money for tax cuts "is unnecessary and can be destructive" — adding this may throw a wrench in Kentucky's recent success at landing major economic development projects.

House Speaker David Osborne said in January the chamber was moving so quickly to pass a budget so they could work on crafting a comprehensive tax reform proposal to shift towards a consumption-based revenue system, though no specific proposal has been released to lower the income tax rate or alter sales taxes.

Last week, Beshear beat them to the punch with his own tax proposal, calling for a 1% decrease to the state sales tax rate in order to help Kentuckians battling the recent spike in inflation.

Osborne responded to the governor's proposal by stating that "far more can be accomplished for Kentuckians by overhauling the state’s antiquated tax structure."

McDaniel said SB 194 should be viewed as "completely separate" from tax reform, as it deals with current year one-time dollars and he views tax reform as dealing with future year dollars.

The Senate budget committee chairman said he's sure conversations about a more comprehensive tax reform bill will begin soon, saying such a bill would originate in the House.

Senate Minority Leader Morgan McGarvey of Louisville said Democrats are supportive of tax relief like the one proposed by Beshear — noting the total dollar amounts of both plans are similar — but do not have the complete context of what Republicans plan to do on tax reform.

"Is this in lieu of essential worker bonuses?" McGarvey asked. "Is there more coming in a potential tax reform bill? What does this keep out of the budget, potentially? We still don't know."

Labor leaders and House Democrats held a press conference later in the afternoon calling on Republicans to adopt Beshear’s “hero pay” proposal from his budget plan — spending $400 million of federal COVID-19 funds on bonuses for essential workers in the fields of child care, transportation, sanitation, grocery, public health and safety employed through two years of the pandemic.

The Kentucky Center for Economic Policy, a left-leaning think tank, said SB 194 would not provide any tax rebate for many families whose income is below the poverty line and most retirees who do not pay any income tax, calling it "a poor use of $1.15 billion that is needed to reinvest in our schools and other budgetary needs."

Beshear spokeswoman Crystal Staley said the governor "will carefully review any proposal," but had not yet received a copy of SB 194.


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