CITIZENS   FOR  LIMITED  TAXATION  &  GOVERNMENT
and the
Citizens Economic Research Foundation

 

CLT Update
Monday, February 18, 2002

Selectmen cool on rollback "freeze"


[State Rep. Doug] Petersen said Medicaid remains a colossal problem for state government and admitted that one attempt by the legislature to solve the problem -- Medicaid now costs $6 billion a year, one-quarter of the entire state budget -- has been a failure.

He said legislators raised cigarette taxes to pay for Medicaid for children and seniors, thereby theoretically reducing the need for state money to compensate hospitals for free care. However, free care was not reduced at all, he said, while the cost of Medicaid rose.

The Marblehead Reporter
Feb. 13, 2002
Board decries gloomy news on aid
Selectmen skeptical of delay in income-tax rollback


With that surprising admission, our local state rep., Doug Petersen, perfectly defined the cause for the Legislature's latest "fiscal nightmare."

The Legislature, in its infinite wisdom, raised taxes to solve a problem, then increased spending by expanding the entitlement program that was the problem. This of course caused a bigger problem, which they now hope to address by raising more taxes so they can spend even more, and create an even bigger "fiscal nightmare" down the road.

This clearly demonstrates why an $11 billion state budget wasn't enough in 1989 without a tax increase and -- only thirteen years later -- a $23 billion budget isn't enough without a tax increase.

Nonetheless, Rep. Petersen has the shameless audacity to declare that by rejecting a freeze of the long-overdue tax rollback, "people have a right to run their government into the ground if they so choose."

*    *    *

As we previously reported, the Town of Framingham's board of selectmen on January 30 sent out a letter to the "municipal leaders" of every city and town in the commonwealth. This letter suggested that a pro-rata share of the bounty would result from "freezing" our tax rollback.

Never mind that they inflated this proposed windfall to $500 million if the tax rollback is "delayed" -- a figure nobody has previously predicted -- their letter implied that the proceeds from overturning the will of the voters would be evenly divided, based on their per-capita formula, among the 351 cities and towns: something they have zero control over implementing, zero.

Just as they have zero control over their implication that it would go entirely to local aid, and not instead be devoured by a multitude of Gimme Lobbyists each screaming for their fair share of any booty attained from betraying the voters.

"We have sent the enclosed letter to our representatives, the legislative leadership and the governor. We are hopeful that you will join us and endorse our proposal by sending similar letters in the near future," the Framingham selectmen's entreaty states.

Along with their cover letter and sample letter, they enclosed a 4-page breakdown by municipality of how the ill-gotten gains would be split -- based on their creative per-capita formula that has no basis in reality.

We asked that you closely monitor your own town leaders to ensure that the will of the voters and the tax rollback are respected and defended by calling them and voicing your opinion; we have done likewise here in Marblehead. Below is an example of the local activity that is ongoing in every corner of the commonwealth, including your hometown.

Last week our local paper, The Marblehead Reporter, led the charge with an editorial supporting a "freeze."

The good news here in Marblehead is, we've heard calls to state Rep. Doug Petersen have been coming in 10-1 against a "temporary" freeze, delay, or deferral of the tax rollback, as the below letters in response to that editorial demonstrate. (There were no letters in support of a "freeze" and, believe me, if there had been, they surely would have been printed!)

Chip Ford


The Marblehead Reporter
Week of February 13, 2002

Board decries gloomy news on aid
Selectmen skeptical of delay in income-tax rollback

By George Derringer

Marblehead selectmen reacted with predictable horror at the bad news state Rep. Doug Petersen gave them last week: aid to municipalities from state coffers is not going up and may very well go down.

Petersen told selectmen in both Marblehead and Swampscott, as well as readers of last week's Reporter, that the fiscal 2003 state budget is about $2 billion in the red. And, he said, even if the income tax rollback approved overwhelmingly by voters in a 2000 referendum were to be "deferred" until an economic recovery comes around, the budget will still be more than $1.5 billion out of balance. A total of 67 percent of Marblehead voters supported Question 4, the income tax rollback, which was slightly higher than the 60 percent statewide total.

Petersen said he wants feedback about delaying the income tax rollback, by phone, mail, or e-mail. Bill Woodfin, chairman of selectmen, said Marbleheaders should also make their feelings known to selectmen and School Committee members.

Woodfin thanked Petersen for not "sugar-coating" the situation and noted that "even at the rosiest projection, Marblehead is $326,000 in the red, with no pay increases to (town) employees." He admitted Marblehead, like most cities and towns, "has become more and more dependent on local aid" from the state.

Selectmen Jeff Shribman said he'd like to be sure that if the income tax reduction is delayed, the $459 million in additional revenue the state collects will really go to cities and towns, not somewhere else.

"If we knew the towns would be getting the money, our response (to a delay in income tax rollback) might be different," Shribman said.

Petersen said he thought legislators might be willing to commit themselves to that tactic, but said he could make no guarantees.

Selectman Harry Christensen also seemed reluctant to play with the results of a 2-1 landslide vote in the referendum.

"The referendum results were clear and to ignore the wishes of the voters would be obnoxious and condescending," Christensen said. "However, many who voted in favor might have been unaware there would be a consequence. Nevertheless, the people have spoken."

Petersen, who has been arguing vigorously that the wishes of voters in a separate referendum about "clean elections" must be honored, said he is "very reluctant" to go against the wishes of the voters, but still wants to know if many have changed their minds.

"My feelings would be different if I get a sense the people have a different sentiment today," he said. "But people have a right to run their government into the ground if they so choose."

Petersen said Medicaid remains a colossal problem for state government and admitted that one attempt by the legislature to solve the problem -- Medicaid now costs $6 billion a year, one-quarter of the entire state budget -- has been a failure.

He said legislators raised cigarette taxes to pay for Medicaid for children and seniors, thereby theoretically reducing the need for state money to compensate hospitals for free care. However, free care was not reduced at all, he said, while the cost of Medicaid rose.

Woodfin said selectmen should not shy away from the local budget crisis and leave the Finance Committee to wrestle with the problem alone.

"Good leadership is shown not in good times, but in troubled times," Woodfin said. "And we are going to have a difficult time. We like to say the Board of Selectmen makes policy decisions, so we should be sending signals to the Finance Committee. We need to decide sometime in the next two weeks what areas (of the town budget) we're going to cut.

"Make no mistake: we're going to have to make cuts. Call the selectmen and the School Committee and make your feelings known," he advised the audience and local TV viewers.

Selectmen delayed a decision on a request by Framingham selectmen to endorse a "freeze" in the income tax rollback, awaiting input from citizens. Framingham officials calculated that if the freeze is adopted and all of the additional income tax is returned to municipalities on a strict per-capita basis, Marblehead would get $1.6 million.

Legislators rarely distribute funds on a per-capita basis, however, usually preferring to give large amounts to urban areas through various formulas.


The Marblehead Reporter
February 13, 2002
LETTERS TO THE EDITOR

No need for a poll

To the editor:

Why is Representative Petersen asking the selectmen to poll the citizens of Marblehead on our support for a "temporary" tax increase by denying the will of the people on Question 4? And why is the Marblehead Reporter editorializing in support of such a move?

I don't recall a request for a poll before either of them came out in support of funding Clean Elections. In fact, the primary stated reason for funding Clean Elections is that the people have spoken and that the Legislature should honor the outcome of the vote. Why is Question 4 different?

The answer is that it's not different. This is an issue of principle and consistency. During their respective elections, I was opposed to welfare for politicians (a/k/a Clean Elections) and supported Question 4. However, now that they're both the law of the land, I believe the Legislature should honor the will of the people on both ballot initiatives. My mother taught me that to do anything else would make me a hypocrite.

Maybe the selectmen would do better to take a poll of Marbleheaders to find out how we feel about hypocrisy from our local newspaper and elected officials.

Dave Rizzo
Marblehead


A call for consistency

To the editor:

Last week's Reporter carried an article in which Rep. Doug Petersen said he wants a reading from his electorate about "suspending" the income tax rollback. Hi, Doug, read this: More of your constituents voted for the income tax rollback than voted for your Clean Elections initiative.

I voted "no" on Clean Elections because I didn't think taxpayer dollars should be used to fund candidates, but after the voters spoke I defended their right to be obeyed on both issues. The same consistency from you would be nice. After all, Clean Elections will cost the state money that could also be used for local aid.

The income tax rollback phases out a 13-year-old "temporary" tax hike, which could have been repealed easily in the mid-90s. You chose to wait until you were forced by the voters to finally give it up. Surely you don't think that we are foolish enough to believe that freezing the rate would be "temporary"!

We support local aid, too; but if you don't get state spending under control now, you never will until there is a real fiscal crisis, leading to serious local aid cuts. Stop reading and get to work!

Barbara Anderson
Citizens for Limited Taxation
Marblehead


State needs to be more business-like

To the editor:

I was disappointed and surprised to read about Rep. Petersen's "considerations" of his solutions to balance FY 2003's budget. It appears that his only answer is to increase taxes all kinds of taxes! Apparently, he might even favor negating the strong mandate from his electorate to roll back the state income tax to 5.0 percent.

It's quite certain that some extra source of money will be required. Some tax increases are probably inevitable, but to balance the scales, how about an equal amount of budget cuts? When a business is in financial trouble, it cuts costs and reduces people. Although the state is not a business, there is no reason it cant's act business-like.

Talking about rollbacks, perhaps to show some good faith Rep. Petersen should recommend a rollback of the last pay increase the House voted themselves.

Irving G. Block
Marblehead


Time to jettison legislators

To the editor:

Your encouragement to support the suspension of the "income tax rollback" has been duly noted. Alas, I cannot support your viewpoint, hence I have let Rep. Petersen know where I stand on that issue.

The road to solve the problem of "tax shortfalls" is for the Commonwealth to exercise good fiscal responsibility. The best solution is by cutting all the massive waste, pork and ridding itself of the political "hackarama" that infests the State House and budget.

Getting indigent people off the welfare rolls and making them productive members of society and contributing to the tax base will be of great benefit to the Commonwealths tax problems.

It's time the citizens of the Commonwealth woke up to the fact that their freedoms and liberties are slowly being eroded and taxed to death by the "sociocrats" in the State House. Instead of throwing tea in the harbor, as they did in 1773, we should "jettison" the lot of them from the State House and start anew.

James C. Full
Marblehead


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