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

 

CLT UPDATE
Saturday, June 8, 2002

They know where to cut, but won't


Public officials, particularly those on the state level, continue to play with taxpayers' money as if it means nothing.

The latest boondoggle is early retirement....

During the fat years, they overpaid on contracts and benefits. Now, with lean years, public employees - and politicians - are refusing to accept the reality that there is no more gravy train. So they go through all sorts of contortions so public employees - from teachers to cops to DPW workers don't have to lower their standard of living. Meanwhile, the rest of us just have to hand over our paychecks so a well-paid town employee can buy the condo in Florida sooner than he ever could have hoped.

A Brockton Enterprise editorial
Jun. 7, 2002
Early retirement plan is bad for the taxpayers


Efforts to reform the Quinn Bill, which pays police officers about $80 million a year statewide for earning college degrees, were dealt a setback when the Senate Ways and Means Committee released its budget without recommending changes....

The report said the Quinn Bill may be responsible for turning criminal justice into an academic "cash cow" and driving down program quality.

The MetroWest Daily News
Jun. 8, 2002
Senate keeps Quinn Bill


The Massachusetts Senate's budget shows even less consideration for taxpayers than one offered by the House.

A plan by the Massachusetts House of Representatives to increase taxes by about $1 billion to fund its generous spending wasn't enough....

Instead both branches of the Legislature are opting to extract more from taxpayers. That's a bad choice in the midst of a weak economy.

An Eagle Tribune editorial
Jun. 7, 2002
No lean times in the Senate


State Sen. Fred Berry wants to raise the state income tax and use the extra money to replenish the commonwealth's recession-battered reserve accounts.

The move, if approved, would push the tax rate from the current level of 5.3 percent to 5.6 percent, and would add another $126.88 a year to the tax bill of a family of four earning $60,00 a year.

"I realize people don't want to pay more taxes, but we have a fiscal crisis on the horizon," Berry said....

Michael Widmer, executive director of the Massachusetts Taxpayers Foundation, a business-backed watchdog group, favored Berry's plan....

"It's incredibly bizarre to think that they would raise taxes on working people in order to replenish a savings account," said Barbara Anderson, founder of Citizens for Limited Taxation, an anti-tax group.

The Salem Evening News 
Jun. 7, 2002
Berry proposes tax hike


Chip Ford's CLT Commentary

The boondoggles go on untouched, as do the ploys to increase taxes at any cost. The Beacon Hill pols' vendetta after losing the rollback vote in 2000 knows no bounds: they have and will continue spending us into fiscal crisis if that's what it takes to ultimately defeat the voters' mandate. The pols cannot and will not accept no for an answer from all those "ignorant" voters.

Nothing is being done to cut mismanagement, waste, and patronage. Nothing. Even the "highly-respected" Mass. Taxpayers Foundation -- which has provided the tax-and-spenders so much cover over the years -- is being hung out to dry as a joke during this last-ditch feeding frenzy. It's pathetic that Michael Widmer, a former-Dukakoid, is too stupid to yet realize that he and MTF are being so blatantly used. A better explanation is that he is a willing accomplice.

Oh sure, MTF is still expounding its alleged (phony) "fiscal responsibility" ... but all that is being used by the tax-and-spenders is MTF's calls for ever-higher taxes on its usual targets, average taxpayers, Joe Six-Pack.

We know where to cut ... or at least start cutting. The reports, the analyses, have been provided in detail and continue to be put forth. Nothing ... nothing is being acted upon. Only tax increases are presented as a solution.

During debates and interviews, we at CLT are often asked "Well, where would you cut?"

We've given up producing laundry lists, we respond, because it's an exercise in futility. We now provide one obvious expenditure that can be easily cut and wait to see what happens, if even that one is addressed. If Beacon Hill can't cut one, then why should we waste our time providing more suggestions? When and if that one is cut, we'll give them another, and another...

"Where would you cut?" is simply a diversionary question when nothing is going to happen anyway.

They know where to cut. It is no longer a difficult question. They simply will not cut. They will only take more, and more, and more. It's easier, more personally profitable, that way.

Chip Ford

FIND AND CALL YOUR STATE SENATOR


The Brockton Enterprise
Friday, June 7, 2002

Editorial
Early retirement plan is bad for the taxpayers

Public officials, particularly those on the state level, continue to play with taxpayers' money as if it means nothing.

The latest boondoggle is early retirement. The state made a huge mistake when it offered the program to teachers and it compounded the mistake by passing a law that would allow municipalities to offer early retirement. Ostensibly, the program is designed to avoid layoffs during difficult financial times, but it is a law created in the rarified air of "public service," which bears no relation to the real world or the private sector.

The law gives cities and towns until Nov. 1 to decide if they want to offer early retirement. It would allow municipal employees to add five years to their public service time or age when calculating retirement benefits. Not surprisingly, there has been a rush of public employees demanding that their local officials adopt the program.

And why not? Thousands of them will be able to walk off the job early with up to 80 percent of their highest three years average of salary. How does this help cities and towns, which will either have to replace them or eliminate the positions?

It really doesn't. Oh sure, a community may end up with some net savings if it wants to cut the workforce, but why not just lay off some employees if the economics demand it?

Again, the answer is because public employment is not the real world. While thousands of private sector employees have received pink slips in Massachusetts, precious few public employees have lost their jobs. The reaction of the politicians is to protect and enrich them at the expense of taxpayers while refusing to admit that the reason an early retirement program was "needed" was because of mismanagement on their own part.

During the fat years, they overpaid on contracts and benefits. Now, with lean years, public employees and politicians are refusing to accept the reality that there is no more gravy train. So they go through all sorts of contortions so public employees from teachers to cops to DPW workers don't have to lower their standard of living. Meanwhile, the rest of us just have to hand over our paychecks so a well-paid town employee can buy the condo in Florida sooner than he ever could have hoped.

Return to top


The MetroWest Daily News
Saturday, June 8, 2002

Senate keeps Quinn Bill
By Jon Brodkin

Efforts to reform the Quinn Bill, which pays police officers about $80 million a year statewide for earning college degrees, were dealt a setback when the Senate Ways and Means Committee released its budget without recommending changes.

Critics of the Quinn Bill, or Police Career Incentive Pay Program, charge that many of the courses police take to secure raises are of shoddy academic quality.

The bill itself does not require that course quality be considered when granting approval to colleges trying to secure Quinn Bill-eligibility for their degree programs.

But the House of Representatives' version of the 2003 budget passed last month would do away with "life experience" credits, and empower the Board of Higher Education to establish standards.

It also would suspend payments of the state's share of new raises until a thorough investigation of the program is completed and standards are established. The state picks up half the cost of the program.

"It's just like MCAS (the state's elementary and high school assessment test). If we put up all that money, they're going to have to show something for it," said state Rep. Emile Goguen, D-Fitchburg, a member of the House Ways and Means Committee.

That provision may have had something to do with the Senate Ways and Means Committee not adopting any of the House changes to the Quinn Bill, said committee member state Sen. David Magnani, D-Framingham. The committee released its budget recommendations Wednesday.

Magnani said it is appropriate to look at the quality of courses but that he objects to suspending raises. He said he's also not convinced it makes sense to eliminate life experience credits.

But the main reason no changes were recommended, he said, is that constituents haven't been demanding any. Still, Magnani said he wouldn't be surprised if portions of the House Quinn Bill recommendations survive in a House-Senate conference committee.

The 32-year-old Quinn Bill has been drawing criticism for years, but the state only recently began closely examining the criminal justice and law courses police take to get raises.

The first state report on course quality was issued last year by the Board of Higher Education. The report said the Quinn Bill may be responsible for turning criminal justice into an academic "cash cow" and driving down program quality.

Return to top


The Lawrence Eagle Tribune
Friday, June 7, 2002

Editorial
No lean times in the Senate

OUR VIEW
The Massachusetts Senate's budget shows even less consideration for taxpayers than one offered by the House.

A plan by the Massachusetts House of Representatives to increase taxes by about $1 billion to fund its generous spending wasn't enough.

The Senate now proposes $200 million above that in its own version of the budget. That would bring total state spending next year to $22.2 billion. The budget is slated for debate next week.

The Senate plan dedicates $110 million more than the House to K-12 education and $100 million more to health care. Some of the money would preserve Medicaid benefits for 30,000 long-term unemployed, methadone clinics for heroin addicts and add $10 million to a prescription drug plan for the elderly.

To pay for it, the Senate plans to sock taxpayers with $1.2 billion in tax hikes. These include all the ones proposed by the House -- freezing the income tax rollback at 5.3 percent, cutting the personal exemptions, taxing capital gains at 5.3 percent and raising the cigarette tax 75 cents. But the Senate estimates this will bring in $200 million more than the House estimate.

The Senate cut administrative budgets by $130 million  deeper than the House cuts. Still, in a $22.2 billion budget, there ought to be room for more cuts.

Instead both branches of the Legislature are opting to extract more from taxpayers. That's a bad choice in the midst of a weak economy.

Return to top


The Salem Evening News 
Friday, June 7, 2002

Berry proposes tax hike
By David Olson
News staff

State Sen. Fred Berry wants to raise the state income tax and use the extra money to replenish the commonwealth's recession-battered reserve accounts.

The move, if approved, would push the tax rate from the current level of 5.3 percent to 5.6 percent, and would add another $126.88 a year to the tax bill of a family of four earning $60,00 a year.

"I realize people don't want to pay more taxes, but we have a fiscal crisis on the horizon," Berry said.

The state's so-called rainy day fund dropped to around $500 million from $2.3 billion in November 2001 as lawmakers repeatedly dipped into the account to close budget gaps.

The Peabody Democrat said the state will need to rebuild the account to stave off the "twin horrors" of budget cuts and tax increases if the state's economy doesn't rebound within the next few years.

Berry said he's not sure the combination of tax and fee hikes and program cuts lawmakers are considering will be enough to cover a $2.7 billion spending gap for the new fiscal year that begins July 1.

The House has already overwhelmingly approved a $1 billion tax package, including a freeze of the state income tax rollback and a 75 cents hike per pack on cigarettes.

While similar initiatives are being considered in the Senate, Berry feels the state is still on shaky ground.

"I'm gravely concerned we're going to have all kinds of crises" if any of the measures fall short, he said.

If smokers decide they'd rather quit than pay $5.50 for a pack of highly taxed cigarettes, it could be enough to throw the budget out of whack, he said.

Berry is pushing his plan as an amendment to the Senate's version of next year's budget. The Senate is expected to begin debate on the spending plan next week.

Michael Widmer, executive director of the Massachusetts Taxpayers Foundation, a business-backed watchdog group, favored Berry's plan.

"I think it's a creative and constructive idea that addresses a major problem," Widmer said. "We are going through the reserves at much too rapid a rate."

Widmer noted that Berry's amendment would reinstitute the voter-approved tax rollback once the economy rebounds.

"This essentially would allow us to build up reserves to deal with the fiscal crisis over the next two or three years and still implement the will of the voters, albeit on a delayed basis," he said.

Still, the measure is something of a longshot. If accepted by the Senate, it would still need to survive negotiations with the House, which passed its version of the budget last month. Legislative leaders seem willing to accept a tax rate of 5.3 percent for next year, and could be hesitant to raise the rate during election season.

Even if the House goes along with Berry's plan, it would likely be rejected by acting Gov. Jane Swift, and Berry may not have the two-thirds majority needed in the House and Senate to override her election-year veto.

Then there's the likely public outcry.

"It's incredibly bizarre to think that they would raise taxes on working people in order to replenish a savings account," said Barbara Anderson, founder of Citizens for Limited Taxation, an anti-tax group.

In 2000, Anderson's group successfully convinced voters to approve a rollback of the state income tax from 5.95 percent to 5 percent by next year.

Berry's effort shows the Legislature "has lost all respect for the voters," said Anderson, who suggested her group might try to find someone to run a sticker campaign against Berry, who doesn't have an opponent in this year's election.

Return to top


NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


Return to CLT Updates page

Return to CLT home page