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

 

CLT Update
Friday, March 1, 2002

Cut pols' "Clean Elections Compensation Slush Fund" first!


[State Rep. Thomas M. Petrolati, D-Ludlow] said he favors freezing the state income tax at its current 5.3 percent, a move that could save about $250 million.

"There's no other alternative," Petrolati said. "There's no way we can cut $2 billion without letting blood run on the streets."

The Springfield Union-News
Mar. 1, 2002
Swift vows to veto any tax increase


I guess this is why they call CLT a "watchdog." We pay attention ... and we remember.

Yesterday -- the same day 16 new tax hikes were proposed, to raise an additional $2 billion in state revenue -- House Speaker Tom Finneran was going to "feel our pain" by asking legislators to take an 8-day unpaid "furlough." (After their near-year-long paid furlough, we'll never miss them anyway.)

Total savings for taxpayers: "about $300,000 if all 160 House members agree" to the voluntary furlough. "Legislators' base pay is just over $50,000, with eight days pay being about $1,800. Lawmakers with leadership positions such as committee chairmanships earn more," it's reported.

Reflect back only two years ago, to March of 2000 when House members gave themselves a "backdoor pay raise" of $3,600, doubling their expense accounts. Their justification then was that it was necessary to level the playing field now that Clean Elections was the law of the land.

Total additional cost to taxpayers: $720,000.

Yesterday's proposed "feel-your-pain furlough" will save taxpayers perhaps $300,000.

Legislators are still up on us taxpayers by $420,000 -- and in the meantime, they've killed the alleged excuse for their money-grab: Clean Elections!

Not a bad deal if you can slip it past taxpayers and convince voters that you "feel their pain"!

Hey Beacon Hill, besides the $300,000 feel-good "unpaid furlough" PR gimmick ... give back the $720,000-a-year "Clean Elections Compensation Slush Fund" you ripped-off from us taxpayers!

Just think how many of "the most vulnerable among us" that $1.2 million from their pockets could comfort, during this time of "gargantuan and ghastly" revenue losses.

Either start cutting the budget right there, or don't even think about laying that time-worn "blood on the streets" tripe on taxpayers ... especially not on us watchdogs.

Chip Ford


The MetroWest Daily News
Friday, March 1, 2002

Legislators feel your pain with furloughs
By Jon Brodkin

You won't find Many state representatives in the region jumping for joy over a voluntary eight-day pay cut, but the lawmakers do see slashing their own salaries as a necessary evil.

"The legislators should feel the same kind of pain as other state workers," said Rep. Paul Loscocco, R-Holliston.

The cut, similar to one undertaken by court employees, was proposed by House Speaker Thomas Finneran Wednesday, one day after state Rep. Peter Koutoujian, D-Newton, and a group of lawmakers pitched the idea. It could save the state about $300,000 if all 160 House members agree to forfeit eight days of pay.

With estimated budget shortfalls of $1 billion this year and $2 billion next year, the savings is "a drop in the bucket," said Rep. Patricia Walrath, D-Stow.

But a voluntary pay cut sends a good message to constituents and gives lawmakers a little more credibility when they cut other budgets, said Charles Euchner, executive director of the Rappaport Institute for Greater Boston, part of Harvard University's Kennedy School of Government.

"It's a good public relations move," he said. "Even more than that, it's a way of saying everybody's in this together."

The gesture won't give them an "inoculation from criticism," however. If lawmakers want to make a real sacrifice they would get rid of patronage and unnecessary programs, he said. Losing those "threatens not just a couple thousand dollars but their very position in state government," Euchner said....

Finneran, who urged House members to take the eight-day cut, told them it could go up to three weeks, according to Rep. Cory Atkins, D-Acton, who will also accept a smaller paycheck....

Legislators' base pay is just over $50,000, with eight days pay being about $1,800. Lawmakers with leadership positions such as committee chairmanships earn more.

"No one likes it (the pay cut) but we're asking many people to take pay cuts and many people will lose their jobs," Pope said. "These are very difficult times, I think we're very lucky to have jobs."

While some lawmakers see the belt-tightening as more symbolic than a real solution to the state's budget crisis, Pope said, "Every little bit adds up. I would like to think by doing this I am letting a home-care worker work, because I really hated to see those cuts in the home-care services."

Atkins is one who sees it as more symbolic, because legislative salaries aren't that high. "A golf pro gets more than a legislator," she said.

While it appears most legislators are heeding Finneran's call to forfeit salary, some may decide they can't afford to, legislators said.

"Some live literally paycheck to paycheck," Spilka said. For herself, losing the money will make paying expenses a little tougher, but she thinks it's necessary to show good faith on the part of lawmakers.

But she recognizes that a lawmakers' pay cut won't make life better for those who are laid off. She was a layoff victim in 1989 when she was a labor relations attorney for the state, she said.

"I'll never forget the feeling of getting notice and having to come home and tell my family," she said. "Hopefully, we can save some jobs or save some services to vulnerable populations."

Linsky also expressed hope the gesture will help the state keep layoffs to a minimum. But he's not fooling himself that this is a cure-all.

"Obviously not a great deal of money is going to be saved by the 160 members taking these furloughs," he said. But "We need to feel the same type of impact that the other state employees feel."


A CLT BLAST FROM THE PAST

The Boston Herald
Friday, March 31, 2000

Pols pack budget with pork
by Ellen J. Silberman and Joe Battenfeld

House lawmakers have fattened their $21.7 billion budget with more than $4 million in pet spending projects -- including another bailout for the Sail Boston extravaganza -- and a $3,600 back door raise for each legislator.

The new details emerging from the budget plan yesterday infuriated Cellucci administration officials as well as campaign finance reform advocates and tax cut proponents....

As the Herald reported yesterday, the House budget would double members' "per diem" travel allowances and office expense accounts.

The move to double office expenses, which will cost taxpayers $720,000 a year, is particularly controversial because lawmakers collect the allowances in monthly checks and aren't required to account for how they spend the cash. "It might as well be handed over to them in a brown bag, Barbara Anderson of Citizens for Limited Taxation and Government said.

In fact, the state reports the office expenses to the Internal Revenue Service on 1099 forms and lawmakers are free to pocket whatever they don't spend on paper clips and phone calls. And sources say many lawmakers don't like to part with a dime -- even when the stationery runs out.

"Some of them treat it like their salary," one State House source said.

Lawmakers -- particularly those who live more than 50 miles from the State House - also add thousands to their salaries with "per diem" allowances meant to offset those travel costs.

House Ways and Means Chairman Paul Haley (D-Weymouth) defended the increases, saying the office expense money would allow lawmakers to abide by the "Clean Elections" campaign finance reform law by absorbing some of the "constituent service" expenses they currently pay out of their campaign funds. The voter-approved law offers candidates public funds if they agree to limit their campaign spending.

But the lack of accounting is raising concerns among campaign finance advocates who pushed to get office expenses covered.

"There's no reporting whatsoever," said David Donnelly, director of Mass Voters for Clean Elections.

The stipend increases come less than two years after voters approved a Constitutional amendment that automatically increases lawmakers' salaries every two years. If the economy continues to grow at the current rate, rank and file members will see their pay jump in January mor than $3,000 to $49,000 a year. House Speaker Thomas M. Finneran (D-Mattapan) and Senate President Thomas F. Birmingham (D-Chelsea) could see their salaries soar to $85,000 a year....

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ANOTHER CLT BLAST FROM THE PAST

The Lawrence Eagle-Tribune
Wednesday, April 12, 2000

Sows at the public trough

OUR VIEW:
Legislators are seeking to line their own pockets at our expense

On any given morning, Interstate 93 is packed with people from the Merrimack Valley driving to their jobs in Boston.

Most of them are not being paid for the miles they drive to get to work -- most, that is, except for state legislators.

You see, in the real world that you and we inhabit, getting to work is our own responsibility.

But state legislators from the Valley and the rest of the state see things differently. They feel getting them to work is the responsibility of the taxpayers of Massachusetts.

Legislators get a "per diem" travel allowance for their commutes to Boston that varies with the distance they live from the Statehouse. Legislators from Lawrence, Methuen and Haverhill get $13 a day. Those from towns closer to Boston  like Andover and North Reading -- get $9 a day.

But that's no longer enough.

There is a provision in the state budget currently working its way through the House to double the per diem travel reimbursements.

The proposal also includes a doubling -- to $7,200 a year -- of the money legislators receive to run their offices and provide "constituent service." That's a fancy term for the slush fund legislators use to be seen as great guys or gals. When you or we feel a need to donate to a charitable cause, we make sacrifices and take the money from our personal funds. Not so legislators. They get to be generous by handing out public money to their favorite causes.

And there's also a plan to give "key" Beacon Hill legislators an extra $7,500 a year in pay in addition to their base salaries of $46,410 and the $7,500 bonuses received by committee chairmen.

All this is on top of the automatic pay raises legislators voted themselves last year.

Enough!

These latest outrages come as legislators are telling us common folk we have to tighten our belts because of cost overruns at the Big Dig. "Lifetime" driver's licenses and auto registration are gone and there's just no money to reduce the state income tax to its "permanent" level of 5 percent, they say.

Legislators say their increases are necessary because a new campaign finance law passed by voters limits their ability to spend and raise money.

Tough.

If public service is too much of a sacrifice for these money-grubbers, let them find gainful employment in the private sector.

We've had enough of them lining their own pockets at our expense.

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The Boston Herald
Friday, March 1, 2002

Proposed tax cuts err on ugly side
by Cosmo Macero Jr.

So John Rogers is not off his rocker.

That is, the Democratic House Ways and Means chairman is well aware that his full $2 billion menu of tax hikes won't fly any sooner than a lead balloon.

"The idea was just to make an illustration, not to endorse any one (tax increase)," Rogers said yesterday - 24 hours after releasing a sobering message on taxes to his colleagues. "You can't honestly balance the budget (now) without talking about the dreadful and odious T word."

Fair enough. After all, state lawmakers are girding for a $3 billion revenue gap in next year's budget.

The problem is, there are precious few a la carte selections on Rogers' list of mostly morbid income seizures and punishing revenue enhancements.

Figure the food and beverage industry will fight Rogers' proposal to finally lift the sales-tax exemption on alcohol. But as public policy goes, and for $60 million in projected annual revenue, it probably has legs.

Smokers have become sitting ducks. But a $1 increase on every pack? So much for Democratic aversion to "regressive" tax policy. There's $280 million to be had.

"Sin taxes are the easiest sell," Rogers says.

Cele Hahn, the Republican state rep from Westfield, has to be thinking her pet sales-tax exemption for private planes and corporate jets is at risk. It's the most recent tax break. And who's going to shed tears for David Wetherell or the executives at Raytheon?

And I'll give you that nickel increase on the gas tax ($150 million in annual revenue) if you pledge a freeze on Turnpike tolls after the recession clouds lift.

But then it's all downhill.

In fact, you could re-package half the Rogers Tax Roster as the Anti-Middle Class Act:

Slashing the personal exemption and killing deductions for dependent seniors and disabled kin.

Blowing up the earned-income tax credit.

Gutting deductions for tuition and halting a rent-deduction hike.

And of course, scoffing at the electorate and ratcheting the income tax rate back to 5.6 percent.

Try to make sense, while you're at it, of eliminating the tax credit for Title 5 septic repairs at a time when any barrier to fortifying the state's housing stock makes no sense.

And then there's elimination of the charitable deduction - good for $180 million, anyway.

Exactly what the Catholic Church ordered: punishment from above (as in Beacon Hill) just when Catholics across Eastern Massachusetts could use a good incentive to help bail out the Archdiocese.

Rogers called the prospect of massive tax hikes the "brutal truth" in his letter to House colleagues yesterday.

But the truth is, what taxpayers need in this time of crisis is a little creative thinking.

Steve Grossman might be lagging in the delegate race, but he gets big points for being innovative.

I'm still deciding whether Grossman's sudden embrace of the tax rollback he tried so hard to stop was a flip-flop.

But tucked away in his dark-horse candidacy for the Democratic gubernatorial nod are the kind of ideas that deserve attention.

Grossman's not buying the notion that "either we are going to cut programs in a Draconian way or raise taxes.

"That to me represents a false choice," he says. "Leaders have to ... find a different set of choices."

One simple choice is to make state government more efficient - something on which the Legislature and acting Gov. Jane Swift have been painfully silent.

Among Grossman's more promising ideas:

Get a long-stalled bulk prescription-drug buying program under way. Early results from Maine, New Hampshire and Vermont suggest Massachusetts could save between $100 million and $180 million.

Implement a preferred-drug list under Medicaid to encourage the use of generic drugs. Doctors would still be able to prescribe brand-name drugs for patients in special circumstances. Projected savings: $70 million.

Re-examine state purchasing programs across the board. Putting electricity contracts for state facilities out to bid could save more than $25 million annually alone.

Implement a tax amnesty program. The fear of huge penalties is the lone factor keeping many tax delinquents from settling up. A similar program 20 years ago brought in $86 million, Grossman says.

Sin taxes are an easy sell? Grossman's lone tax hike would be 50 cents on every pack of cigarettes, with the $150 million in revenues earmarked for health care programs - defined broadly.

"This is an approach. It's not cast in stone," Grossman says. "When you're in a crisis, you have to look at all the options."

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The Springfield Union-News
Friday, March 1, 2002

Swift vows to veto any tax increase
By Dan Ring

BOSTON -- State tax collections plummeted again this month, but acting Gov. Jane M. Swift yesterday insisted she would veto any tax increase passed by lawmakers....

During a Statehouse press conference, Swift ripped the Democratic-controlled Legislature for considering 16 possible tax increases such as raising the state cigarette tax by $1 each pack and the gas tax from 21 cents per gallon to 26 cents, and imposing a sales tax on alcohol.

"You're taking money out of the pockets of the poor and middle class," Swift said. "That's what I reject."

Rep. John H. Rogers, D-Norwood, the chairman of the House Ways and Means Committee, rocked Beacon Hill on Wednesday when he sent a letter to House members proposing 16 different tax increases that could raise $1.98 billion, or possibly enough to close the projected deficit for next year. Rogers said he wasn't advocating any specific tax.

Rogers wrote that declining tax collections are going to "croak" state government with "gargantuan and ghastly losses" this fiscal year and next. Deep spending cuts are not enough to balance the budget, he wrote.

"The brutal truth is this: we cannot tax and spend; we must tax and cut," Rogers wrote.

But Swift yesterday made it clear that lawmakers will need a two-thirds vote to override her veto of any tax hike. Swift said the state suffered 400,000 job losses when Beacon Hill raised taxes in 1989 and 1990 during a prior recession.

"I thought it was the 1980s all over again," the Republican acting governor said of the tax increases floated by Rogers. "It was wrong then. It's wrong now."

Rep. Thomas M. Petrolati, D-Ludlow, said yesterday that the House is unlikely to approve all 16 proposed taxes, but they all must be considered. Petrolati said he favors freezing the state income tax at its current 5.3 percent, a move that could save about $250 million.

"There's no other alternative," Petrolati said. "There's no way we can cut $2 billion without letting blood run on the streets."

The income tax is scheduled to fall to 5 percent in January 2003 under a phased reduction approved by voters in November 2000....

Attempting to stop the misery, the Massachusetts Mayors Association voted to support increasing the state income tax from 5.3 to 5.95 percent, a move that would save about $1.2 billion a year. Springfield Mayor Michael J. Albano said it would be easier for lawmakers to vote once on a tax jump instead of passing multiple tax increases.

Albano said the current fiscal crisis in state government is far worse than the early 1990s....

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