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

 

CLT UPDATE
Thursday, June 20, 2002

House leaders caught red-handed;
Feeding frenzy postponed


An environmental bond bill laden with House leadership pork derailed yesterday, collapsing under a deluge of spending requests from rank-and-file lawmakers outraged over their leaders' nest-feathering.

Speaker Thomas M. Finneran had hoped to whisk the bill through the House without debate, shooting the bill out of committee late Tuesday night and rushing it to the floor yesterday morning....

Without denying his lieutenants treated themselves to a pork-fest, Finneran insisted the House's $424 million bond bill is a mere shadow of the Senate's $945 million package....

Despite the self-congratulations, Finneran - who has beat the drum relentlessly about the state's $2.5 billion deficit - expressed open alarm at the prospect of a runaway spending train....

Lawmakers were furious they weren't given any time to examine the bill - and then learned of the leadership goodies in the paper.

The Boston Herald
Jun. 20, 2002
Bill collapses under request$:
Pols outraged by pork pile on amendments


About the only good thing you can say about that pork-loaded, $400 million-plus "environmental" bond issue bill in the House is that it could have been worse - the Senate passed one twice as large.

A Boston Herald editorial
Jun. 20, 2002
The realities of pork


Even though the money won't come from the operating budget, critics said it sends the wrong message for lawmakers to tout "pork projects" while also warning that state government is facing a fiscal crisis.

"From a credibility point of view, it can be problematic because it suggests to the citizens we have all this money to spend when in fact we don't," said Michael J. Widmer, president of the Massachusetts Taxpayers Association.

The Springfield Union-News
Jun. 20, 2002
WMass lawmakers join pork parade


Two months after the state's tax-filing deadline, officials at the Massachusetts Revenue Department say 650,000 taxpayers are still owed refunds totaling an estimated $325 million....

To make matters worse, the state isn't paying interest on the taxpayer money it is holding. The law covering refunds was changed on April 17 to give the state 120 days after April 15 before it must pay interest at a rate of 7 percent on a refund. Previously, the limit was 45 days.

That change is costing taxpayers millions of dollars in lost interest, while allowing the state to continue earning interest on their funds.

The Boston Globe
Jun. 19, 2002
State owes $325M in tax refunds


Chip Ford's CLT Commentary

Welcome again to the one-way street called government. (And some still wonder how we ever got this cynical?) The state is holding on to taxpayer overpayments -- our money even it recognizes must be returned -- and is using that moving state goal post to avoid paying interest whenever they get around to processing the refunds.

That moving goal post is the best investment government has ever made -- whether it's used for the stabilization fund cap, "temporary" tax increases, of for now avoiding interest payments when it screws up.

We're talking simple interest here -- not interest and penalties that the state would impose on you and me if we filed our taxes even one minute after the deadline.

If you're still waiting for your tax refund, maybe you can go to court and put a lien on Finneran's office furniture - that is, if the Clean Elections people don't get to it first!

Congratulations to Boston Herald reporter Elisabeth Beardsley for her initiative in uncovering the incredible Bacon Hill feeding frenzy before it could be quickly gaveled through the House yesterday! That's what the best reporters used to do  in the old days: investigate, not regurgitate the PR spin from hacks' flaks. Her success has been picked up, further investigated, and is today being mimicked and expanded by many other media outlets, a true breaking story.

My goodness, even Michael Widmer of the so-called Mass. Taxpayers Foundation this time could provide no cover, find no wiggle room, and was forced to admit that Finneran's Friends' Feeding Frenzy was at least ... "problematic"! How daring he is.

Among the pork in yesterday's proposed House "environmental" bond bill was $250,000 for restoration of a swamp in Walpole ("Can I interest you in some great swamp property? How about a do-it-yourselfer?"); $7 million for a skating rink in Boston's Jamaica Plain area; and my personal favorite: $12 million to renovate a golf course in Weston. A golf course and in of all places, Weston -- surely a needy community that represents "the most vulnerable among us."

Elisabeth Beardsley's timely report dropped the planned feeding frenzy dead in its tracks yesterday, before it could lunge another step.

But keep your eyes opened: they'll be shouldering up to the trough next week, this time just spreading the slop around more equitably, everybody getting a snoutful ... their "fair share."

Chip Ford


The Boston Herald
Thursday, June 20, 2002

Bill collapses under request$:
Pols outraged by pork pile on amendments

by Elisabeth J. Beardsley

An environmental bond bill laden with House leadership pork derailed yesterday, collapsing under a deluge of spending requests from rank-and-file lawmakers outraged over their leaders' nest-feathering.

Speaker Thomas M. Finneran had hoped to whisk the bill through the House without debate, shooting the bill out of committee late Tuesday night and rushing it to the floor yesterday morning.

But the floodgates opened after the Herald reported Finneran's leaders larded the bill with millions of dollars for their pet projects, while pleading poor mouth to rank-and-file requests.

"What the speaker did wrong is he only took care of his friends," said House Republican Leader Francis L. Marini (R-Hanson). "Chairmen bring their pork back to their districts and the rest of us, we don't even get a 'thanks for coming in.'"

Within hours, 123 amendments had piled up in the House clerk's office, totaling $190 million - nearly half the size of the $424 million bond offering. Riders were still pouring in at closing time.

After spending all day struggling against the tide, Finneran threw in the towel shortly after 4 p.m. - amid vocal complaints from lawmakers that their priorities were being shunted aside.

Canceling all action for the day, Finneran admitted on the House floor that the "sheer volume" of amendments had become unmanageable.

Caving to rank-and-file demands, Finneran offered - and members approved - an extra five days for lawmakers to pore through the 45-page bond bill and file their own amendments. Tuesday has been set aside solely for environmental debate.

Without denying his lieutenants treated themselves to a pork-fest, Finneran insisted the House's $424 million bond bill is a mere shadow of the Senate's $945 million package.

"The journals of our commonwealth have presented this to the citizens as a bond bill out of control," Finneran said. "I disagree with that assertion, but members should think about that - how we have conducted ourselves fiscally and responsibly."

Despite the self-congratulations, Finneran - who has beat the drum relentlessly about the state's $2.5 billion deficit - expressed open alarm at the prospect of a runaway spending train.

"I exhort all members to exhibit appropriate restraint with the filing of amendments," Finneran said.

But Finneran's speech failed to mollify lawmakers. No sooner had he concluded his remarks than Rep. Anne M. Paulsen (D-Belmont) jumped up and pointed to the Herald story, which detailed how the vast majority of the bill's earmarks went to Finneran's chairmen and favorites.

Paulsen demanded the bill be stripped of earmarks, so lawmakers can compete on an even playing field when debate resumes next week.

"I assume my amendment should be on equal footing with the other members," Paulsen said.

Lawmakers were furious they weren't given any time to examine the bill - and then learned of the leadership goodies in the paper.

Lawmakers weren't the only ones digging in yesterday - acting Gov. Jane M. Swift told the Herald she's readying her veto pen to excise any pork that doesn't meet the merit test.

"My No. 1 concern is that critical programs receive funding, and that no programs that are not justifiable survive," Swift said.

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The Boston Herald
Thursday, June 20, 2002

A Boston Herald editorial
The realities of pork

About the only good thing you can say about that pork-loaded, $400 million-plus "environmental" bond issue bill in the House is that it could have been worse - the Senate passed one twice as large.

Bills like these reinforce the worst instincts of the politicians, who at election time can parade as worthy accomplishments whatever pork they manage to stuff into the bill in backroom favor trading. Yet they can rationalize this activity as harmless because the governor, whoever it is, may simply refuse to issue the authorized bonds.

House Ways and Means Committee Chairman John Rogers (D-Norwood) showered benefits on his district, and on the districts of favored colleagues even as he held the total below the Senate version.

Herald reporter Elisabeth Beardsley found that Rogers set aside $675,000 in the bill for purchase of 6.5 acres in Norwood (by no means his only local project to benefit) and $3 million for open space purchases in the district of Education Committee Chairman Peter Larkin of Pittsfield (by no means the only insider so accommodated), even though Rogers refused another member's request for similar funds on the grounds that it was poor public policy. We agree, such local favoritism is poor policy everywhere, especially when needs are so great in housing, transportation, construction and renovation of existing infrastructure. It is especially poor policy to allocate scarce funds for river cleanups, dam repair, trail construction and similar work according to the number of brownie points a member wins from the leadership.

There's nothing wrong with carefully borrowing money for good projects that benefit the entire state. But the state's debt already is the highest per capita in the nation, and governors are unlikely to risk the state's hard-won double-A credit rating by exceeding the promised limit of $1.3 billion in annual new obligations. Only a fraction of the "environmental" projects approved by the eventual House-Senate conference committee are likely to get funds. For that we are thankful.

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The Springfield Union-News
Thursday, June 20, 2002

WMass lawmakers join pork parade
By Dan Ring

BOSTON House members from Western Massachusetts yesterday moved to insert their own pet projects into $424 million environmental bond bill already stuffed with election-year spending.

House Speaker Thomas M. Finneran, D-Boston, yesterday postponed debate on the bill until Tuesday and set a 5 p.m. Monday deadline for members to file amendments.

Finneran agreed to delay debate after some members said he and other House leaders were using the bill for "pork projects" while shutting out rank and file members.

Rep. Cheryl Rivera, D-Springfield, yesterday filed several amendments including $100,000 for drainage and other improvements to the LaBroad section of Springfield; $50,000 to improve Emily Bill Park in the city and $200,000 to restore and clean up the Mill River.

Local lawmakers said they decided to seek money for important projects in Western Massachusetts when they arrived on Beacon Hill yesterday and discovered the bill was packed with money for communities represented by Finneran and other House leaders.

"I have to do my job and fight for my area as well," Rivera said.

The bill allows the governor to borrow about $130 million a year to pay for projects. The bill does not take money from the state's annual operating budget. The governor can also pick and choose which projects to fund.

Even though the money won't come from the operating budget, critics said it sends the wrong message for lawmakers to tout "pork projects" while also warning that state government is facing a fiscal crisis.

"From a credibility point of view, it can be problematic because it suggests to the citizens we have all this money to spend when in fact we don't," said Michael J. Widmer, president of the Massachusetts Taxpayers Association.

Charles R. Rasmussen, a spokesman for Finneran, said yesterday that people received plenty of notice about the bill. He said there was no attempt to use the bill only for the projects of House leaders.

The House Ways and Means Committee approved the bill on Tuesday and the bill moved to the full House of Representatives yesterday. The committee's version contained virtually no projects for Western Massachusetts, angering some local House members.

Rep. Ellen Story, D-Amherst, said she and some other members were "very annoyed" with the committee's bill. She filed amendments yesterday for $175,000 to resurface the Norwottock rail trail between Northampton and Amherst, $400,000 for a composting machine at the capped landfill in Amherst and $600,000 to build soccer fields in Amherst.

Rep. Michael F. Kane, D-Holyoke, proposed amendments for $250,000 to improve the access road to the Mt. Tom State Reservation in Holyoke; $700,000 for the Holyoke Canal Walk and $80,000 to repair rail cars and a platform for a tourist railroad in Holyoke Heritage State Park.

Rep. Stephen Kulik, D-Worthington, wants to amend the bill to include $1 million in grants for improving agricultural fairs in small towns in Western Massachusetts. Kulik also filed an amendment to create a loan fund for local farmers to promote their products and another to keep forever as open space a farm in South Deerfield owned by the University of Massachusetts at Amherst.

In April, the Senate approved $918 million version of the bill. The Senate's version included an array of projects for Western Massachusetts.

Lawmakers are aiming to approve a compromise bill before the end of the legislative session on July 31. Material from the Associated Press was used in this report.

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The Boston Globe
Wednesday, June 19, 2002

State owes $325M in tax refunds
Cutbacks stall processing of 650,000 returns

By Bruce Mohl
Globe Staff

Two months after the state's tax-filing deadline, officials at the Massachusetts Revenue Department say 650,000 taxpayers are still owed refunds totaling an estimated $325 million.

Staff cutbacks at the department mean some taxpayers are not likely to see their refund money until the end of August, or later.

To make matters worse, the state isn't paying interest on the taxpayer money it is holding. The law covering refunds was changed on April 17 to give the state 120 days after April 15 before it must pay interest at a rate of 7 percent on a refund. Previously, the limit was 45 days.

That change is costing taxpayers millions of dollars in lost interest, while allowing the state to continue earning interest on their funds.

"Somehow the whole thing seems unfair," said Peter Bertschmann of Sherborn, who filed his return early in March and still hasn't received his refund. "It seems to me that those who are owed refunds are taking a disproportionate hit because of the budget problems of the Commonwealth."

Ed Moore of South Boston, who says his wife's refund was stalled until he threatened the state with a lawsuit, says he can't believe the state's nerve. The state is asking taxpayers to pay an additional $1.2 billion in taxes while asking many to wait longer for their refunds.

Moore is convinced Acting Governor Jane Swift and the Legislature cut the funding of the Revenue Department by $13 million last year so the agency would have fewer hands to process tax refunds this year.

"I think there's something rotten in Denmark," he said.

Another frustration for taxpayers is the system set up by the Revenue Department to tell them the status of their refunds. The system, accessed by phone or via www.Massdor.com, doesn't provide any detailed information.

If a return hasn't been processed yet, the system doesn't say when it will be processed. It just gives a canned response: "We are currently working on returns that were mailed to us 10 to 12 weeks ago. We appreciate your patience and ask that you not check back for at least seven days."

Bertschmann and Moore say the message hasn't changed in the last two months.

Alan LeBovidge, the Revenue Department commissioner, said his staff is doing the best it can with the equivalent of 300 fewer full-time workers this year.

"There is no slowdown here," he said. "When you don't have the people to process the returns, you can only do so much."

The situation would have been even worse had Swift and the Legislature not appropriated an additional $1 million for the Revenue Department in April to help deal with the backlog. Without that money, LeBovidge said, some taxpayers wouldn't have received their refunds until December.

The problem could be just as bad or worse next year. The Revenue Department's budget was cut $13 million this year, from $128 million to $115 million, and is unlikely to grow in the fiscal year starting July 1.

The House, in its budget proposal, kept funding for the department at $115 million, while the Senate cut it another $5 million to $110 million. The two branches are now trying to reconcile their numbers.

Acknowledging his staffing levels are unlikely to rise much, LeBovidge said he is hoping a bond proposal will be approved that would enable the department to purchase sophisticated bar code technology that could rapidly read the 1 million paper returns filed by such major tax preparers as H&R Block.

"Technology could save us yet," LeBovidge said.

He stressed that the best way for taxpayers to get their refunds quickly is to file electronically. The approximately 1 million taxpayers who filed their returns electronically this year received their refunds in three to four days, he said.

LeBovidge said those taxpayers still waiting for their refunds may fare better financially if the department doesn't get around to processing them until later this summer.

Any taxpayer with a refund processed after Aug. 16 - the end of the state's 120-day window - would receive their refund plus 7 percent interest dating back to April 16.

Of course, if the state extends the no-interest period again the taxpayer would be out of luck.

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