CITIZENS   FOR  LIMITED  TAXATION  &  GOVERNMENT

 

CLT Update
Thursday, November 22, 2001
Thanksgiving Day

Late state budget fallout


Transcript of the House debate:
A proposal to resurrect the Tax Rollback "freeze"


While overall spending will rise over last year's levels, many agencies and programs will be level-funded or see their budgets decline slightly.

The Boston Globe
Nov. 22, 2001
Lawmakers OK $22.6b budget at the wire


"Let's talk about the tax freeze for a second -- I know everyone has made up their mind. But believe me it won't be the last time it comes up. When you see House 1 [FY '03 budget proposal] a month from now. You think the cuts are bad now, wait until you see that budget. And wait 'til you see the House budget. And then let's talk about pain. We won't be talking about freezing the revenues. We will then be talking about a tax increase. We'll say we gave you the money. It's in your pocket. But we need it back now."

State Sen. Marc Pacheco (D-Taunton)
Senate debate on conference committee budget
Nov. 21, 2001
State House News Service


"I would like to point out that when I started here nine years ago, the budget was $13 billion. It's almost doubled. We've had good times. All of a sudden we have one year where we are only fattening the budget by 2 percent. And all I hear is doom and gloom. It's unfortunate but things aren't that bad. And to think people are talking about raising taxes. Everyone here is caving and crying. My God. I am listening to the crying and moaning. Tighten your belts a little -- please. This is more money than we have ever spent in the budget. No one's going out into the street. Your communities are getting plenty of money."

State Rep. Arthur Broadhurst (D-Methuen)
House debate on conference committee budget
Nov. 21, 2001
State House News Service


The legislature should be commended for continuing its commitment to local school districts by fully funding Chapter 70 local education aid. In addition, several other education accounts, including kindergarten expansion grants, early literacy and MCAS remediation grants have been increased. These are important programs and we appreciate the legislature's acknowledgement of their longterm effectiveness.

Despite these increases, several crucial education programs were cut dramatically, or even eliminated....

These cuts were absolutely unnecessary. The legislature had the option of postponing Question 4 in order to avoid these unconscionable and harmful budget cuts to public education.

Stephen Gorrie
Mass. Teachers Association
Statement regarding public education budget cuts
Nov. 21, 2001


Swift also attacked the Legislature for raiding the Tax Reduction Fund for $34 million to cover operating expenses. That fund is supposed to be strictly for tax cuts....

Legislative perks abound through the newly minted $22.25 billion budget, even as $650 million was whacked from programs for kids, the elderly, HIV patients, local road projects and other programs.

The Boston Herald
Nov. 22, 2001
'Outrageous': Finneran draws fire for doling out promotions, raises


Sometime today, or more likely late tonight, the Massachusetts Legislature will adopt a budget and bring down the curtain on what has been by any measure a dismal performance....

Whenever they walk out the Statehouse doors, lawmakers should hang their heads in shame.

A MetroWest Daily News editorial
Wed., Nov. 21, 2001
A wasted year for the Legislature


The budget process is a disgrace. Democracy on Beacon Hill is dead. The leadership is scrambling to address its appalling assault on both the budget process and democracy. None of this is the taxpayers' fault.... We would appreciate your support of her veto(es) of the Tax Reduction Fund theft (and income tax rollback repeal if it somehow comes before you).

CLT hand-delivered memo to all Legislators
Nov. 21, 2001


-- CLT MEMO --

To: Members of the General Court
Re: 2002 Budget
November 21, 2001

Like you, we are trying to read the budget before the vote: as nearly as we can tell, the income tax rollback is not repealed. This is good.

However, roughly $34 million of the taxpayers' money is stolen from the Tax Reduction Fund and moved into the General Fund. This is the surplus that was intended to eventually increase the personal exemption. But with the Stabilization Fund being spent that won't happen anyhow, so we support Governor Swift's alternate proposal to use it for a Sales Tax Holiday.

The conference committee budget only does the "taking" part, not the tax holiday "giving" part; the Legislature should take up the governor's bill today and use it to get the economy moving again.

The budget process is a disgrace. Democracy on Beacon Hill is dead. The leadership is scrambling to address its appalling assault on both the budget process and democracy. None of this is the taxpayers' fault. We appreciate the governor's threatened veto of any attempt to make us pay for the irresponsibly late budget. We would appreciate your support of her veto(es) of the Tax Reduction Fund theft (and income tax rollback repeal if it somehow comes before you).

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The Boston Globe
Thursday, November 22, 2001

Lawmakers OK $22.6b budget at the wire
By Rick Klein
Globe Staff

After almost five months of waiting, lawmakers took barely four hours last night to approve a $22.6 billion budget, ending years of expansion in government by enacting a plan that increases spending by just 2 percent.

The House and Senate overwhelmingly approved the plan, which trims about $650 million from preliminary spending plans to help meet a $1.4 billion deficit. The cuts drew fire on the House floor from Democratic lawmakers, who said it was unfair to balance the budget on the backs of the most vulnerable members of society.

"These cuts were not necessary," said Representative Ruth B. Balser, a Newton Democrat. "I have been hearing for months that we will have to make cuts. But why do those cuts have to be to the mentally ill, the mentally retarded, and the caregivers who help them?"

The budget will probably force the elimination of thousands of jobs in the 72,000-member state government work force, though lawmakers did not dictate where all the job cuts will occur.

While overall spending will rise over last year's levels, many agencies and programs will be level-funded or see their budgets decline slightly. The budget scales back funding for higher education, human services, aid to cities and towns, and a range of public health programs.

House Republicans complained that the budget process excluded all but a few members from major decisions. Almost all the final decisions on cuts were made by House Speaker Thomas M. Finneran, Senate President Thomas F. Birmingham, and their chief budget-writers.

The 22 GOP members voted against the budget, joined by liberal Democrats upset over program cuts. The final tally in the House was 115-41.

The Senate approved the budget 29-8 shortly thereafter, after Senate minority leader Brian P. Lees chastised Democratic leaders for releasing their budget agreement less than a day before it came to a vote.

The spending plan will now be reviewed by Acting Governor Jane Swift. Yesterday, she called it a "mess" and said she would offer numerous vetoes of line items within 10 days.

"Shame on them for not giving their members enough time to read the budget," Swift said. "This is not the way government is supposed to work."

Representative John H. Rogers, chairman of the House Ways and Means Committee, defended the budget process. In a speech on the House floor, he said he kept members fully briefed on changes.

"I don't think people have been shut out of the process," said Rogers, a Norwood Democrat. "I know personally that I've answered all your calls. My door has been open all the time."

There was little that legislators could do to adjust the proposed cuts yesterday, because lawmakers could not offer amendments to the plan released just before midnight Tuesday. Nevertheless, lobbyists and advocacy groups took to Beacon Hill yesterday to make their case to save programs that were on the chopping block.

A $15 million cut in proposed spending on adult education could kill all the state-sponsored adult programs, including GED preparation, literacy classes, and training in English as a second language, said Stephen Reuys, staff development coordinator for the Adult Literacy Resource Institute in Boston.

The money for most such classes will probably run out by Jan. 1, meaning that about 25,000 adults could be locked out of their classes, he said.

"Massachusetts will have the distinction of being the only state in the country with no adult basic education," Reuys predicted.

The decision to eliminate $22 million that would have placed mentally disabled adults in group homes may prompt legal action. That money was mandated by a legal settlement reached between the state and 2,400 families in January.

"To say the least, it's a little frustrating," said Neil McKittrick, lead lawyer for the plaintiffs. "If the money's not there, there will be no services. If the services aren't provided, we're going to end up back in court."

Advocates said a $27 million spending reduction in the budget of the Department of Mental Health could cause 354 patients to lose their beds, giving them few options beyond homeless shelters. And a $12 million cut in spending on AIDS treatment and prevention will mean that fewer patients get proper care.

"Some patients will not have access to all the drugs they will need," said Dr. Stephen Boswell, executive director of the Fenway Community Health Center, which treats 1,200 HIV and AIDS patients. "It's disappointing to say the least. It's just shocking."

A $32 million cut in the budget of the state courts could force up to 1,600 layoffs, a 20 percent reduction in the judiciary workforce, said Augusto F. Grace, government relations coordinator for the trial courts. Assistant clerks, clerical workers, and probation officers could lose their jobs, he said.

Senator Mark C. Montigny, chairman of the Senate Ways and Means Committee, said the cuts were fashioned to affect as few people as possible.

Some pain was unavoidable to cope with the plummeting revenues that have widened the budget deficit, Montigny said. He said legislative leaders will try to find money for programs such as adult education and AIDS if more cash becomes available.

"There will be things that we discover that just can't sustain these cuts," said Montigny, a New Bedford Democrat. "We're going to do everything in our power to recognize that, if there are any supplemental funds."

Michael J. Widmer, president of the Massachusetts Taxpayers Foundation, said lawmakers dipped too deeply into reserve accounts, using more than the $700 million they have stated publicly they would use.

Widmer's group recommended spending just $550 million of reserves this year, so that the $2.3 billion in reserves can last through an extended recession.

By avoiding deeper cuts, the Legislature's budget could force further spending reductions later this fiscal year and the following year, he said.

"This doesn't begin to deal with the extent of the fiscal problems facing the state," Widmer said. "When we have a multiyear problem, we should be resorting less to the reserve fund and doing more in spending reductions."

The budget reached the House and Senate floor on the last day of the scheduled legislative session, when many lawmakers were anxious to leave town for Thanksgiving. Massachusetts is the only state in the nation operating without a budget. The state budget was due July 1.

Stephanie Ebbert of the Globe Staff contributed to this report.

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The Boston Herald
Thursday, November 22, 2001

'Outrageous': Finneran draws fire
for doling out promotions, raises

by Elisabeth J. Beardsley

House Speaker Thomas M. Finneran showered promotions and giant pay raises on his inner circle yesterday, just hours before ramming through a budget that decimates meager wage hikes for human service workers.

In a closed-door caucus with House Democrats, Majority Whip Salvatore DiMasi (D-Boston) was handed a long-sought promotion to majority leader, which adds $22,500 to his base salary of $50,122.

Meanwhile, 18,000 human service workers making less than $20,000 a year will be denied a 30-cent-per-hour raise, after lawmakers slashed a $25 million salary reserve account down to $5 million.

"It's outrageous," said Human Services Coalition Director Stephen Collins. "It's symbolic of just how far the process has broken down."

But mental health advocates rose to DiMasi's defense. Elizabeth Funk, president of the Mental Health and Substance Abuse Corporations of Massachusetts, said DiMasi has worked hard in their interest.

"I'm not offended at all that he gets more money for being majority leader," Funk said. "I see him as somebody that brings the kind of skills I want to the majority leader role."

Finneran also promoted Rep. Lida Harkins (D-Needham) to assistant majority leader, and Rep. Thomas Petrolati (D-Ludlow) to second assistant. Both saw their base pay rise by $15,000.

Acting Gov. Jane M. Swift, in a prelude to probable vetoes, attacked the Legislature's budget and the process by which it was conceived. The budget fails to provide money for snow and ice removal, as well as homeless shelter beds for 315 families, Swift noted.

The acting governor said she finds it "disturbing" that rank-and-file lawmakers had virtually no time to absorb the massive spending plan - which was filed two minutes before midnight Tuesday night - before being required to cast an up-or-down vote. Swift also attacked the Legislature for raiding the Tax Reduction Fund for $34 million to cover operating expenses. That fund is supposed to be strictly for tax cuts.

"It's not only a flawed process and a budget that's a mess, it's a little extra poke in the eye to the taxpayers," Swift said.

Senate President Thomas F. Birmingham fired back that the Legislature didn't want to put money toward unpredictable things like snow removal.

The budget sets aside $350 million from the "rainy day fund," to be used to fund deficiencies as they arise, Birmingham said. Shortfalls are expected in other accounts such as Medicaid.

"(Swift) doesn't know what she's talking about," Birmingham said. "This is really rich, coming from someone who produced a budget based on gimmicks and show games and underfunding the pension accounts."

Legislative perks abound through the newly minted $22.25 billion budget, even as $650 million was whacked from programs for kids, the elderly, HIV patients, local road projects and other programs.

While levying those cuts, lawmakers protected - and even enhanced - their travel budgets, despite Swift's recent move to freeze administration travel in the wake of the fiscal crisis.

House members who want to hit the road will be able to draw on a $1.3 million account, and senators will have a $228,000 travel pool.

Both branches, in their original versions of the budget, shortchanged the other branch's travel stipend, but in the final budget, each agreed to give the other the higher dollar amount.

Lawmakers hung on to $2.2 million worth of state police patrols at beaches and shopping malls, insisting they enhance public safety in crowded areas. But the details are of dubious value in a time of more pressing public safety needs, critics say.

Legislative leaders also engineered a bloodless death for the voter-approved clean elections law, after Finneran and Birmingham were unable to agree on the disposition of the campaign finance law.

Widely despised by incumbents, the law will be left "in conference," which basically means slow fiscal starvation.

Meanwhile, lawmakers kept the doubling of their office expenses, from $300 to $600 per month, which is the carrot legislative leaders used last year in an effort to sell the law to reluctant incumbents.

The move is "completely disingenuous," said Mass. Voters for Clean Elections organizer David Donnelly. "This is ripe for a gubernatorial veto," Donnelly said. "The Legislature should not be allowed to get away with this."

Senators garnered $1.2 million in earmarked perks out of the Metropolitan District Commission budget, largely at the behest of Sen. Michael Morrissey (D-Quincy), who has clashed repeatedly with MDC Commissioner David Balfour.

The MDC earmarks set aside $65,000 for traffic lights in Quincy; $150,000 for the Southwest Corridor park in Sen. Dianne Wilkerson's Boston district; and $250,000 for curb, sidewalk and drainage improvements to Revere Beach, in the district of Sen. Robert Travaglini (D-East Boston.)

But lawmakers saved $3 million by eliminating the Summer Jobs for Youth at Risk program, a move that left Boston Mayor Thomas M. Menino shaking his head. "I don't understand the budget process when you cut something that's already been spent," he said.

This is the second year that the State House has left Boston on the hook for the program, which employs about 3,000 teenagers each summer, including 2,000 in Boston.

Steve Marantz and Ellen J. Silberman contributed to this report.

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The MetroWest Daily News
Wednesday, November 21, 2001

Editorial
A wasted year for the Legislature

Sometime today, or more likely late tonight, the Massachusetts Legislature will adopt a budget and bring down the curtain on what has been by any measure a dismal performance.

The session opened with House Speaker Tom Finneran engineering the repeal of term limits for house speakers and went downhill from there. Finneran did nothing to reward the members' confidence in him. No significant legislation advanced on pressing issues like housing, education and health care. The mandate to redraw Congressional district lines sparked a competition of maps and political agendas, but even that old business has now been postponed until next year. The only time House members dared buck Finneran and engage in hands-on legislating was when it involved redrawing the lines of their own districts.

By the time the Legislature is done, the only significant thing it will have accomplished is to respond to a recessionary economy by shrinking state spending by some $650 million. Those cuts, still secret at this writing, will carry serious consequences for citizens dependent on state services and for institutions in need of state help. These are difficult decisions, which require the best efforts of our elected officials.

Instead, we got the worst of this Legislature's bad habits. The budget is nearly five months overdue, the latest it's been since 1965. It was drafted in secret, by a handful of insiders. While the state waited for a budget, the conference committee charged with reconciling House and Senate versions went for months without meeting, and then met only behind closed doors.

The ruling clique's decisions on a $22 billion state budget will land on the desks of elected representatives and senators with a thud. They likely won't have time to read it, but that doesn't matter since they won't be given the opportunity to debate it or amend it. It will be adopted on a straight up-or-down vote and the members will go home to carve their turkeys.

The legislative session hasn't been without debate. Back in January, Finneran declared that the Clean Elections Law was the first order of business. What he had in mind was killing the campaign finance reforms approved by the voters in 1998, and he may have succeeded, though not on his schedule.

If Clean Elections doesn't survive the last-minute budget negotiations, Finneran and others will argue that Massachusetts just can't afford the $10 million required to implement a system designed to free candidates from dependence on special interests. Yet somehow, in the middle of the budget impasse, the Legislature managed last week to approve a $5 million giveaway to the state's four racetracks, owned by two men who are among the largest individual donors to legislators' campaign accounts.

With the clock running out on a wasted legislative session -- the rules require the Legislature to adjourn at midnight, though the leaders plan to reconvene in a special session in December to override budget vetoes by the governor -- it may be a late night tonight on Beacon Hill. Whenever they walk out the Statehouse doors, lawmakers should hang their heads in shame.

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