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

 

CLT UPDATE
Wednesday, June 12, 2002

Widmer and MTF step in it again


The early rush to streamline this year's process drew complaints from conservative and liberal corners, where some senators were hoping to debate controversial proposals.

"The outcome of every single amendment was orchestrated, preordained, and a conclusion arrived at behind closed doors in a Democratic caucus," said Sen. Robert L. Hedlund (R-Weymouth)....

Today's debate session is expected to be livelier, with Republicans spoiling for a fight over a $1.2 billion tax-hike package.

The Boston Herald
Jun. 12, 2002
Birmingham gavels out budget in closed session


The proposal pointed to a key struggle in this year's budget battle the tension between wanting to do more and having less money to do it.

It's a dilemma that hasn't been seen for years on Beacon Hill, where lawmakers enjoyed booming tax revenues during the late 1990s and wrestled with how much more to spend, not cut.

Associated Press
Jun. 12, 2002
Senate launches budget debate amid dwindling resources


Democratic Party panjandrums say we don't need Mitt Romney on the ballot.

Meanwhile, on Beacon Hill, legislative Democrats daily demonstrate just why we do.

To see why, compare this year's budget process with that of 1991. Back then, the state also faced a serious problem. The Democratic establishment's preferred solution was to raise taxes (for what would have been the third time in three years) rather than take a hard look at the state budget.

But Governor William Weld had been elected on a "no new taxes" pledge - and the 16 GOP members in the Senate meant his veto could be upheld. Weld insisted that the budget be balanced without another round of taxes, successfully pushed to repeal a new sales tax on services, and, later, rejected efforts to keep the income tax at its temporary level of 6.25 percent. Forced to live within their means, Beacon Hill budgeteers went to work scrutinizing state spending. Some real reforms were done, some real cuts were made.

The result: The fiscal year 1992 budget Weld finally signed was actually 1.5 percent, or $205 million, less than the previous year's. And despite loud and frequent predictions to the contrary, the world didn't end....

This year ... Instead, Speaker Thomas Finneran has ushered a $1.1 billion tax hike through the House, and Senate leadership has proposed a $1.2 billion package as part of a Senate budget that, amazingly, calls for spending $300 million more than in the current budget.

The Boston Globe
Jun. 12, 2002
Democrats show why we need Romney
By Scot Lehigh


Chip Ford's CLT Commentary

Yesterday I blasted the Boston Globe's editorial writers, with good cause. But the Globe does have a couple of good columnists, who apparently are aware of reality and honor, who call events as they are, instead of how they want them to seem.

On Sunday, Jeff Jacoby wrote "A bloated fish of a state budget," and today Globe columnist Scot Lehigh gives us "Democrats show why we need Romney," in which he lays bare the tyranny of one-party rule.

Lehigh even points out the naivete of the so-called Mass. Taxpayers Foundation:

"Neither the House nor the Senate has used the opportunity of this fiscal crisis to make significant reforms in state government," says Michael Widmer, president of the Massachusetts Taxpayers Foundation. "It is a great disappointment."

The MTF has consistently called for higher taxes to "balance the budget," then they supposedly wonder why the tax-and-spend Legislature keeps taxing and spending -- $300 million more than even last year's budget!

Hey Michael, enable them to tax us without limit -- pave the way for them -- and they'll always spend more, always. But what can we expect from a former-Dukakoid like Widmer?

Michael Widmer is miffed. Both the House and Senate propose increasing funding for the Quinn Bill against his sage advice that it instead be, good grief, cut -- even, my goodness, after Michael Widmer and his Fat Cat lemmings that fund the MTF marched over the cliff for the pols by supporting increased taxes on everyone but themselves.

"Highly-respected"? Hardly. Highly exploited by pols when advantageous, then tossed aside like a used Kleenex.

"A great disappointment" pretty much sums up the MTF and its effectiveness.

Today we don't need to ask a question; we've long known this answer: Widmer and MTF are greedy and stupid. In the days and months ahead, when more is never enough, MTF's members are also ... next. If the Legislature pulls off this round of tax increases and grows the budget yet again, theirs are the only pockets the pols will have left to pick, and those pockets are deep.

But, thanks to MTF, the Fat Cats should resign themselves to it. As Scot Lehigh observed, "It's a return to that place called Taxachusetts."

When the Fat Cat business community begins to wake up and "feel our pain," high-rolling MTF members might eventually figure out who to thank. Michael Widmer could at last show some alleged wisdom by preparing for their inevitable bouquets of appreciation. Résumé preparation come to mind.

Chip Ford

FIND AND CALL YOUR STATE SENATOR


The Boston Herald
Wednesday, June 12, 2002

Birmingham gavels out budget in closed session
by Elisabeth J. Beardsley

Senate budget debate kicked off behind closed doors yesterday, with President Thomas F. Birmingham enforcing a strict regimen of conflict-free, no-new-spending deliberations.

By the dinner hour last night, senators had cranked through 300 of the 612 amendments - adding virtually no money to the $23.2 billion spending plan.

The 40 lawmakers spent much of the day in a private huddle, where they worked on "bundling" amendments - sifting dead-on-arrival proposals into a "no" pile, so they could be gaveled down en masse.

The early rush to streamline this year's process drew complaints from conservative and liberal corners, where some senators were hoping to debate controversial proposals.

"The outcome of every single amendment was orchestrated, preordained, and a conclusion arrived at behind closed doors in a Democratic caucus," said Sen. Robert L. Hedlund (R-Weymouth).

In recent years, bundling hadn't begun until the very end of debate, when lawmakers were rushing to wrap up and go home.

But Birmingham, a gubernatorial candidate, sent orders down the pipeline early yesterday that any amendment adding money to the bottom line would be rejected out of hand.

Birmingham aides pointed out that with the state facing a deficit exceeding $2 billion, the Senate Ways and Means Committee was forced to direct all new spending proposals into the "no" pile.

"To the degree that (a) senator wanted to debate any amendment in the 'no' pile, it could be pulled out," said Birmingham spokesman Alison Franklin.

Senators had filed amendments to add more money to the court system, zoos, environmental programs, youth programs, health care, disabilities, libraries and public safety.

But with virtually no debate, Birmingham and his leadership team gaveled down amendment after amendment, most on "voice votes."

The few amendments that were adopted involved money-free studies - such as the work done by the state Sentencing Commission.

Today's debate session is expected to be livelier, with Republicans spoiling for a fight over a $1.2 billion tax-hike package.

Senate Minority Leader Brian P. Lees (R-East Longmeadow) pledged to force separate votes on the five tax hikes, and complained that the tiny band of GOP senators isn't getting a fair airing for its proposals to raise money through casino gambling and reducing Lottery payouts.

"It's just ludicrous," Lees said. "I just don't think the arrogance of 'we're right and everyone else is wrong' is good."

Clean Elections supporters, meanwhile, were girding for an assault on the voter-approved law that dishes tax dollars to political candidates who adhere to fund-raising and spending limits.

An amendment filed by Senate Taxation Committee Chairman Marian Walsh (D-West Roxbury) would place a referendum on the November ballot, asking voters if they support spending "taxpayer money" on campaigns.

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Associated Press
Wednesday, June 12, 2002

Senate launches budget debate amid dwindling resources
By Steve Leblanc

BOSTON (AP) The Massachusetts Senate launched their budget debate Tuesday with a discussion about whether to add more funding for investigators looking into allegations of welfare fraud.

In any other recent budget debate, the proposal to spend $600,000 to rehire 30 investigators for the Department of Transitional Assistance might have sailed through.

But with lawmakers anticipating a $2.6 billion spending gap for the fiscal year starting July 1, the plea for extra money, like dozens of others, fell on deaf ears.

"We don't have the money for it. It will put the budget out of balance," said Ways and Means Chairman Mark Montigny, D-New Bedford. "We have funded as much as we can."

The proposal pointed to a key struggle in this year's budget battle the tension between wanting to do more and having less money to do it.

It's a dilemma that hasn't been seen for years on Beacon Hill, where lawmakers enjoyed booming tax revenues during the late 1990s and wrestled with how much more to spend, not cut.

Any proposal to increase the budget's bottom line would require an equal cut somewhere else in the $23.2 billion spending plan, Montigny said. Even with an extra $1.2 billion in proposed higher taxes, he said, the budget must still cut about $800 million in anticipated spending.

Throughout the day, the Senate rejected other funding proposals, including plans to restore money stripped from the state Film Office and zoos and to boost spending on human service workers and the state's school building assistance fund.

The Senate did approve amendments to target funds without adding to the bottom line, including plans to set aside $2.7 million for early intervention literacy programs and give high school students who fail the MCAS priority access to tutoring funds.

A plan to study privatizing the Massachusetts Water Resources Authority was shot down while an amendment to clamp down on pricey marketing efforts for the new convention center was approved.

Republican leader Sen. Brian Lees, R-East Longmeadow, pushed a plan to do away with the Metco voluntary school desegregation program, calling it outdated. The plan failed.

Debate was scheduled to resume Wednesday.

One controversial proposal that could come up is a plan by opponents of the voter-approved Clean Elections law to put the public campaign financing law back on the November ballot.

Republicans have also promised to fight several tax proposals including a plan to cut the personal exemption and to end a tax deduction for charitable gifts.

Lees has pledged to lobby for a proposal to allow the state to take up to 30 percent of the money it is expected to collect from its tobacco settlement and sell it on the bond market.

Lees said the plan could reap about $1.26 billion. Montigny said the proposal would end up costing the state hundreds of millions of dollars.

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The Boston Globe
Wednesday, June 12, 2002

Democrats show why we need Romney
By Scot Lehigh

Democratic Party panjandrums say we don't need Mitt Romney on the ballot.

Meanwhile, on Beacon Hill, legislative Democrats daily demonstrate just why we do.

To see why, compare this year's budget process with that of 1991. Back then, the state also faced a serious problem. The Democratic establishment's preferred solution was to raise taxes (for what would have been the third time in three years) rather than take a hard look at the state budget.

But Governor William Weld had been elected on a "no new taxes" pledge - and the 16 GOP members in the Senate meant his veto could be upheld. Weld insisted that the budget be balanced without another round of taxes, successfully pushed to repeal a new sales tax on services, and, later, rejected efforts to keep the income tax at its temporary level of 6.25 percent. Forced to live within their means, Beacon Hill budgeteers went to work scrutinizing state spending. Some real reforms were done, some real cuts were made.

The result: The fiscal year 1992 budget Weld finally signed was actually 1.5 percent, or $205 million, less than the previous year's. And despite loud and frequent predictions to the contrary, the world didn't end.

This year, the state once again faces a fiscal shortfall, on a budget that has grown more than $9.5 billion in 11 years. But with Acting Governor Jane Swift lacking both the votes to uphold a veto and the public clout an electoral victory earns, the Democratic Legislature has largely ignored her budgetary alternatives to more taxes.

Instead, Speaker Thomas Finneran has ushered a $1.1 billion tax hike through the House, and Senate leadership has proposed a $1.2 billion package as part of a Senate budget that, amazingly, calls for spending $300 million more than in the current budget.

As for meaningful reforms of the sort that are only politically possible during tough times?

"Neither the House nor the Senate has used the opportunity of this fiscal crisis to make significant reforms in state government," says Michael Widmer, president of the Massachusetts Taxpayers Foundation. "It is a great disappointment."

How bad was it? Incredibly, both the House and Senate budgets now call for increasing funding for the Quinn Bill, which grants police officers raises for degrees of questionable value. Police details are still with us, of course. Nor have state employees been asked to contribute the private-sector average toward their health-care coverage.

Leadership simply brushed aside Swift's reasonable plan to reduce Lottery scratch-ticket prize payouts, a proposal that could garner $150 million to $275 million a year. Casino gambling, which could net an estimated $200 million to $300 million annually? Paternalistic Democrats would rather see Massachusetts gamblers flock to Foxwoods and the Mohegan Sun.

Meanwhile, budgeteers have insisted on socking away for the future between 20 percent (the Senate) and 50 percent (the House) of the state's annual tobacco-settlement money - even though each such dollar held in reserve effectively means a dollar that must be raised in taxes. In crafting their budget, legislators have also ignored voter sentiment from 2000, repealing the deduction for charitable contributions and, at least in the House's case, thumbing its nose at the Clean Elections law.

In short, without a strong opposition party to force a real debate on reform - and a real look at alternatives - Beacon Hill Democrats have reverted to the stale and static approach that comes of one-party dominance. It's a return to that place called Taxachusetts.

It would be one thing, after making real reforms, to freeze the last year of the income tax rollback and to tax capital gains at the regular income tax rate. It's quite another to make only a token gesture at good-government changes - then shove through an omnibus tax and fee package that takes back, in various ways, virtually the entire amount of the tax cut voters approved at the ballot two years ago.

As the Globe's Rick Klein has reported, other states are doing a much better job of balancing their budgets without turning principally to new taxes. This state can do better, too.

But to do so, Massachusetts needs the ideas, alternatives, debate, and choice that a strong, reenergized Republican Party can provide.

And that's why it's vitally important that Mitt Romney remain on the ballot.

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