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

 

CLT Update
Thursday, April 4, 2002

"Primary Day Exit Poll"?


Hundreds of immigrants flooded the state capitol today, clogging entrances to the now tightly secured building to make sure lawmakers know they play a key role in the state's economy....

The coalition supports freezing the voter-approved income tax rollback and raising the tax rate on investment gains to preserve services that might be cut to balance the budget in light of revenue gaps.

For many attending today's activities, it was their first chance to learn about the intricacies of democracy and lobbying for priorities....

Immigrants view the programs as necessary to their own fiscal well being....

State House News Service
Apr. 3, 2002
Immigrants tout role in economy,
push for benefits and skills services


An obscure law set up to benefit fired state employees is being used by hundreds of former state workers to obtain early pensions even though they left on their own, according to a review of state records by CommonWealth magazine.

Four former state legislators - House majority leader Richard Voke, Representatives Francis Mara and Angelo Marotta, and Senator Paul Harold - began receiving pensions before age 55 after leaving office voluntarily, the magazine found....

The Boston Globe
Apr. 4, 2002
State pension abuses alleged
Early retirement benefits questioned


"Even by Massachusetts standards this seems extravagant," said Michael Widmer, president of the Massachusetts Taxpayers Foundation, of the lucrative early-pension provisions.... "This is an abuse under the best of circumstances. In the midst of a fiscal crisis it is an absolute absurdity."

A CommonWealth special report:
Special retirement deals abound
for lawmakers and "fired" bureaucrats


But legislative Republicans seem to be peeling away from Swift's unbending opposition, a sign that legislative leaders could be closer to rounding up the two-thirds vote needed to override a Swift veto.

House Minority Leader Francis L. Marini (R-Hanson) said he's willing to consider freezing the income tax cut if the Democratic majority proves it's tried everything else to balance the budget first.

Marini took the same "no new taxes" pledge as Swift, but he said lawmakers have to worry about harm to "real, live human beings."

The Boston Herald
Apr. 4, 2002
House eyes economic cues to trigger tax-cut freeze


Chip Ford's CLT Commentary

What is happening here in the People's Republic? Immigrants storm the State House lobbying for tax hikes and more spending on them, while Republicans complete morphing into Democrats, with not little, but no difference between the two party philosophies. Pledges have been taken when it benefits, but are cavalierly broken when it becomes convenient.

We are at serious risk of becoming a true banana republic.

Back in 1990, Jerry Holbert, the Boston Herald editorial cartoonist then and now, produced the perfect cartoon that summed up the feeling of desperation during the last fiscal crisis. He titled it "Primary Day Exit Poll" and it expressed most taxpayers' frustration. I was so impressed with its simplicity and message that I called Jerry and asked if I could have his original artwork.

I exchanged with him my original art featuring Mike Dukakis in his tank helmet inspired by Holbert's style. From a previous lifestyle incarnation I too am a modest illustrator, schooled at Mass. College of Art many years ago. (I created Norm Paley's Citizen for Limited Taxation "Minuteman pumping gas" award last year.)

Holbert's framed cartoon from 12 years back still hangs on my office wall, and is beginning to sum up for me today's mood as well. How did I know, a dozen years back, that its time would come around again, you might wonder.

As we left our meeting with Mitt Romney last week, Boston Globe reporter Stephanie Ebbert interviewed Mitt, Barbara and me. She asked why we thought his signing the Taxpayer Protection Pledge was so important, since he emphatically stated he supports the tax rollback and opposes tax increases.

I replied: "By signing the pledge, he puts in writing what his definition of 'is' is." I stand by that response, more so today than last week.

Carla Howell's candidacy for governor, and the Libertarian Party in general, while perhaps not immediately (if ever) viable, are starting to look more like at least an alternative vote for abandoned taxpayers. I'm just not sure anymore that simply "winning" is going to make any difference. ("What have we got to lose?") Jerry Holbert's "Primary Day Exit Poll" may become the only poll that eventually matters.

PS.  Mitt Romney's new running-mate, Kelly Murphy Healey, signed the Taxpayer Protection Pledge in 2000 when she last ran for state representative and our PAC endorsed her. If she does not publicly retract her pledge -- as with all signers, her continuing commitment is assumed.


The Boston Herald
Thursday, April 4, 2002

House eyes economic cues to trigger tax-cut freeze
by Elisabeth J. Beardsley

House Speaker Thomas M. Finneran's leadership team made its first public move against the voter-mandated income tax cut yesterday - recommending that it be tied to economic triggers.

If adopted by lawmakers over acting Gov. Jane M. Swift's objections, the trigger plan would freeze the income tax cut at its current 5.3 percent level, blocking the voter-approved drop to 5 percent.

Rep. Marie J. Parente (D-Milford), co-chairwoman of the House panel given the job of examining the state's credit rating, said there's no other way to dig the state out of a budget hole approaching $3 billion.

"I almost sent a letter to myself and said don't freeze it," Parente said. "But what do we do with the problems we face?"

Originally proposed by the Massachusetts Taxpayers Foundation, the economic trigger plan would temporarily halt the phase-in of the tax cut if personal income growth faltered below a certain point.

The House adopted the plan two years ago, in an attempt to head off the looming ballot question. But the Senate dug in its heels and the issue was dropped during budget negotiations.

House debate on tax hikes is scheduled for the week of April 29.

Swift spokesman James Borghesani quickly reiterated the acting governor's vow to veto any bill that tinkers with the voters' tax cut.

"Taking more money out of consumers' pockets would retard the initial rebound in the economy," Borghesani said.

But legislative Republicans seem to be peeling away from Swift's unbending opposition, a sign that legislative leaders could be closer to rounding up the two-thirds vote needed to override a Swift veto.

House Minority Leader Francis L. Marini (R-Hanson) said he's willing to consider freezing the income tax cut if the Democratic majority proves it's tried everything else to balance the budget first.

Marini took the same "no new taxes" pledge as Swift, but he said lawmakers have to worry about harm to "real, live human beings."

"If everybody bears a little of this burden, working together, we can get through this," Marini said. "But any tax increase ought to be the last resort, not the first resort."

The House panel also recommends curtailing the state's reliance on capital gains taxes, and forcing Massport to cough up interest payments for which the state is on the hook when the agency misses a $105 million Big Dig payment due in December.

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The Boston Herald
Thursday, April 4, 2002

Romney leaves Rappaport at altar
by Wayne Woodlief

... And yes, the opposition Democrats are already yelling that this is just one more reason voters can't trust Mitt to keep his word.

You know, as when he said he'd never run against an incumbent governor of his own party but then, when he saw Jane Swift's poll numbers plummeting lower than a snake's belly, decided to take her on after all, forcing Swift from the race.

And how -- after saying all week that any new candidates for lieutenant governor had to "stand on their own two feet" -- he gave Healy some big shoulders, his own, to stand on yesterday....

That's why it's imperative that Romney pledge to serve a full four-year term.


A CLT BLAST FROM THE (VERY RECENT) PAST

The Boston Globe
Mar. 28, 2002
Romney won't sign a pledge of no new tax

"I am not in favor of increasing taxes," Romney said before he met with Republican convention delegates. "At this stage, I am inclined to make that position as clear as I can, but not to enter into a written pledge of some kind, and that's true on this and other issues."

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State House News Service
Wednesday, April 3, 2002

Immigrants tout role in economy,
push for benefits and skills services

State House, Boston, April 3, 2002 ... Hundreds of immigrants flooded the state capitol today, clogging entrances to the now tightly secured building to make sure lawmakers know they play a key role in the state's economy.

"It's going to be a tough year, but I think we're doing well," said Victor DoCouto, director of the Massachusetts Immigrant & Refugee Advocacy Coalition, which leads advocacy efforts on behalf of the state's 763,513 foreign-born residents. Immigrants make up 12.5 percent of the state's citizenry.

The coalition supports freezing the voter-approved income tax rollback and raising the tax rate on investment gains to preserve services that might be cut to balance the budget in light of revenue gaps.

For many attending today's activities, it was their first chance to learn about the intricacies of democracy and lobbying for priorities. Program organizers see such lobby days as an opportunity to expose immigrants to the political process, hoping that some will get more involved and run for office some day.

Attendees at the 6th Annual Immigrants Day at the State House laid out the following legislative priorities:

  • Funding for a law requiring interpreters in emergency rooms and acute care psychiatric units;

  • Funding to address waiting lists and expand adult basic education services that help immigrants learn to speak English;

  • Funding for the Citizen Assistance Program (CAP), which helps immigrants with language skills and to prepare for the federal citizenship exam. The program also qualifies immigrants for state health insurance and food assistance benefits that the federal government reserves for citizens. As immigrants are naturalized, they qualify for federal benefits, easing the fiscal burden on states.

  • Funding for food stamps and other public assistance programs.

All tolled, MIRA is asking lawmakers to support $45.5 million worth of programs and services.

Immigrants view the programs as necessary to their own fiscal well being, but emphasized that they play a key role in the economy of Massachusetts, where employers have difficulty finding qualified workers partly due to the state's relatively stagnant population.

MIRA estimates that workers with less than nine years of schooling and basic literacy skills earn an average of $289 a week. Those with high school diplomas and strong literacy skills earn about $493 per week and employees with two-year college degrees earn as much as $630 per week.

After conducting an interview in Spanish for an electronic media outlet, Rep. Antonio Cabral (D-New Bedford) paused for an interview outside the packed auditorium, where immigrants listened to elected officials and offered welcoming remarks in their native languages. Before heading outside to address 150 immigrants turned away from the overcrowded auditorium, Cabral said, "It's important for folks in this building to see all of the faces that make up Massachusetts. Their issues should be our priorities."

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The Boston Globe
Thursday, April 4, 2002

State pension abuses alleged
Early retirement benefits questioned

By Rick Klein
Globe Staff

An obscure law set up to benefit fired state employees is being used by hundreds of former state workers to obtain early pensions even though they left on their own, according to a review of state records by CommonWealth magazine.

Four former state legislators - House majority leader Richard Voke, Representatives Francis Mara and Angelo Marotta, and Senator Paul Harold - began receiving pensions before age 55 after leaving office voluntarily, the magazine found. The state retirement board approved their applications even though the early-pension laws are only meant to cover lawmakers who are voted out of office.

Other former top state officials, including former governor Paul Cellucci and Ilyas Bhatti, the former head of the Metropolitan District Commission, also qualified for benefits under circumstances that appear "dubious at best," the magazine reported. Many employees and managers appear to have set up paper trails so workers could claim to have been fired or have had their positions eliminated, according to the report.

"It just seems to go on with a nod and a wink," said Ken White, executive director of Common Cause Massachusetts, a government watchdog group. "People try to beat the system."

The review focused on the more than 1,100 state employees who, since 1990, have received pensions before the normal age of 55. Those laws, which are intended to protect veteran public servants caught in major shake-ups, allow employees with 20 years of state service to receive early pensions if their positions are eliminated or if they lose reelection bids.

But Harold, Marotta, Mara, and Voke invoked the 20-year rule even though they chose to leave the Legislature.

In addition, the law allows anyone with 30 years of service to get a state pension, regardless of age. That's the provision that Cellucci, 53, used to tap into $42,573 a year - even as he earns $130,000 as US ambassador to Canada.

Cellucci qualified even though he served only 25 years in state government. But the retirement board allowed him to tack on the six years he spent as a part-time Hudson selectman, a post for which he was paid no more than $1,500 a year.

Bhatti began collecting $37,295 a year at age 53 in 1998 after he left his position as an associate project director at the Big Dig, even though the highway department said he was leaving voluntarily. And Susan Costello, a former Weld administration aide, was given an early pension at age 42 in 1996; a Cabinet secretary wrote that her "function [was] eliminated" just two days after Costello passed the 20-year threshold, CommonWealth reported.

Of the 1,100 early pensions approved by the retirement board since 1990, one-third were given to workers who were within a year of their 20th anniversaries. About 10 percent were less than a month removed from that time, raising questions about the legitimacy of their claims to have been terminated.

The magazine found lax review by the retirement board under both State Treasurer Shannon P. O'Brien and her predecessor, Joseph Malone. O'Brien said new procedures have minimized potential abuse of the pension system. Employees who lie about a worker's termination can now be prosecuted, she said, though none have been in the few months since that policy began.

"You have employers and employees who may be colluding to give benefits to people that they don't deserve," O'Brien said. "I have to do an even better job of making the employers understand that that's illegal."

CommonWealth is published by the Massachusetts Institute for a New Commonwealth, a nonpartisan think tank

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CommonWealth Magazine
April 3, 2002

A CommonWealth special report:
Special retirement deals abound
for lawmakers and "fired" bureaucrats

Former legislators and high-ranking political appointees are among hundreds of state employees who have availed themselves of special early-retirement deals they may not be eligible for, a special report by CommonWealth magazine reveals.

Since 1990, more than 1,000 state employees and officials have taken advantage of a decades-old provision in state law that provides early pensions to public employees with at least 20 years of service whose positions are eliminated, who are terminated, or who fail "of nomination or re-election," a feature tailored to benefit state lawmakers who are voted out of office.

Earlier this year, the Boston Herald reported that four top administration officials and a deputy to Attorney General Thomas Reilly recently sought this lucrative early-retirement benefit, raising questions about whether these officials had been dismissed or left voluntarily, which would have made them ineligible for this special pension.

But a CommonWealth investigation suggests that this handful of questionable cases may be just the tip of a state pension iceberg. Read the CommonWealth Special Report.

CommonWealth associate editor Michael Jonas finds that of the 1,100 pensions approved in the last 12 years under the special retirement statute, fully one-third were granted to state workers who had passed the 20-year qualifying mark by less than a year. In 10 percent of cases, employees cashed in within a month of their 20th anniversary in state service.

The timing of these pension applications raises questions about the validity of claims that the employees were fired. This pattern of conveniently timed dismissals followed by routine granting of early pensions has been consistent under the two state treasurers who have chaired the state retirement board during this period, Republican Joe Malone and Democrat Shannon O'Brien.

In addition, at least four ex-state legislators, including former House majority leader Richard Voke, have been granted early pension benefits they may not have been qualified for. Lawmakers who choose not to seek re-election cannot receive retirement payments until they are 55 years old. But Voke, the former House majority leader, former state representatives Francis Mara and Angelo Marotta, and former state senator Paul Harold all began receiving pensions before they reached 55, after they left office voluntarily in the 1990s.

Even among the early-retirement benefits granted properly under the law, CommonWealth found some surprises. These include the $42,573 a year pension being paid to US ambassador to Canada Paul Cellucci, which supplements his federal salary of at least $130,000. The former governor qualified for an early pension based on 30 years of government service, in which case he need not have been fired nor lost an election. Cellucci had served in state government for only 25 years when he resigned last year to accept his diplomatic appointment but he was able to credit six years of service from the 1970s as a member of the part-time board of the selectmen in his hometown of Hudson in order to qualify for a state pension two years before he turned 55.

"Even by Massachusetts standards this seems extravagant," said Michael Widmer, president of the Massachusetts Taxpayers Foundation, of the lucrative early-pension provisions. "This defies any logic or comprehension." As for the lax scrutiny some applications have received, Widmer said, "This is an abuse under the best of circumstances. In the midst of a fiscal crisis it is an absolute absurdity."

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