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

 

CLT UPDATE
Thursday, December 12, 2002

Senators again file zero-based budget bill


In a move that would affect significant changes in the way state budgets are developed and approved, Senate Minority Whip Bruce Tarr (R-Gloucester) and Senator Steven Baddour (D-Methuen) have filed legislation for the upcoming session to implement a system of zero-based budgeting. The legislation would create a process to evaluate appropriations, address funding priorities and eliminate unnecessary spending....

Barbara Anderson, executive director of Citizens for Limited Taxation, agreed. "Zero-based budgeting is one of those great ideas that go nowhere in this state until there is a fiscal crisis requiring a new, dramatic approach. Let's go for it!"

NEWS RELEASE
Legislators Seek To Transform Budgeting Process
Sens. Bruce Tarr and Steven Baddour
Dec. 11, 2002


Barbara Anderson's CLT Commentary

I first heard the term zero-based budgeting after the Prop. 2½ campaign in 1980, when the state was looking for new local aid to assist communities through the first, property tax cut years of our new law. Lane and Co., the researchers we hired to find $500 million savings in the FY'82 state budget, made that suggestion, and it has been made over and over again in the intervening years.

If this is really the biggest state fiscal crisis since the depression, as incoming A&F Secretary Eric Kriss has stated, then this may be the year that Beacon Hill is ready to give zero-based budgeting a try. Congratulations to Senators Tarr and Badour, and all their co-sponsors, for stepping forth with an actual bill for all of us to support.

Barbara Anderson --


MASSACHUSETTS SENATE
Senator Bruce Tarr * Senator Steven Baddour

December 11, 2002

Contact: Ann Marie Bisaccio - 617-722-1600
Eleni Varitimos - 617-722-1604

Legislators Seek To Transform Budgeting Process

BOSTON In a move that would affect significant changes in the way state budgets are developed and approved, Senate Minority Whip Bruce Tarr (R-Gloucester) and Senator Steven Baddour (D-Methuen) have filed legislation for the upcoming session to implement a system of zero-based budgeting. The legislation would create a process to evaluate appropriations, address funding priorities and eliminate unnecessary spending. Key elements of the bill are as follows:

  • The bill will require that every four years a zero-based budget be developed, providing appropriations not based on those from any prior year.

  • The initial zero-based budget would be developed by the Governor and submitted to the clerks of the House and the Senate, who would refer each component of the budget to the relevant committee of subject matter jurisdiction.

  • Each committee would develop proposals for its components of the budget and hold at least 1 public hearing on those proposals. The committee would then report the proposals to the Committees on Ways and Means.

  • The Ways and Means Committees would produce a final zero-based budget document for approval through the legislative process.

  • The final budget would be used to produce budgets in the succeeding four years.

"Now, more than ever before, we need a system which evaluates spending according to our priorities and our ability to respond to them," said Tarr.

"The Legislature's current budget process is broken and must be fixed. The use of a zero-based budget will force us to prioritize spending and substantively review all state-sponsored programs," said Senator Baddour. "I believe that this type of reform will begin to restore taxpayer confidence in government spending."

"Given that the Commonwealth is currently confronting its worst fiscal crisis since the 1930's, the Romney Administration and the Legislature should consider every available tool in order to systematically determine spending priorities. Implementation of a zero-based budgeting approach as provided for by this bill would introduce much needed discipline into the debate and discussion relative to state spending priorities," said Richard Lord, President & CEO of Associated Industries of Massachusetts.

"The growing reform movement in support of this type of responsible budgeting is critical given the Commonwealth's current budget crisis. Innovative longer-term approaches such as this are a crucial first step in resolving the ongoing cycle of budgetary shortfalls in Massachusetts," said Christopher Anderson, President of the Massachusetts High Tech Council.

Barbara Anderson, executive director of Citizens for Limited Taxation, agreed. "Zero-based budgeting is one of those great ideas that go nowhere in this state until there is a fiscal crisis requiring a new, dramatic approach. Let's go for it!"

Support for the concept of zero-based budgeting is building in Massachusetts; Senator Tarr and Senator Baddour filed similar legislation in January as an outside section to the budget.

The amendment was rejected and did not garner any co-sponsors. As of December 4th, this year's filing deadline, there were sixteen co-sponsors. The lead sponsors on the House side are Representative Tony Verga (D-Gloucester) and Representative-Elect Mike Costello (D-Newburyport). Other sponsors of the bill include: Representative Philip Travis (D-Rehoboth), Representative Susan Pope (D-Wayland), Senator Harriette Chandler (D-Worcester), Senator Michael Knapik (R-Westfield), Representative Bradley Jones (R-North Reading), Senator Richard Moore (D-Uxbridge), Representative Garret Bradley (D-Hingham), Representative Karyn Polito (R-Shrewsbury), Senator David Magnani (D-Framingham), Senator Joanne Sprague (R-Walpole), Senator Guy Glodis (D-Worcester), Representative Vinny deMacedo (R-Plymouth), Senator Marc Pacheco (D-Taunton), Representative Shirley Gomes (R-Harwich).  Both Senators will continue to solicit co-sponsors.

Tarr added, "Through zero based budgeting we can better target scarce resources to achieve effective performance."

"Given the Commonwealth's current fiscal crisis, it is clear that legislators want to explore every possible option to ensure that we don't find ourselves here again in ten years," added Senator Baddour.

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*** CLT BLASTS FROM THE PAST ***

The Boston Globe - Jan. 4, 1999
Cellucci agenda: cut taxes, cap spending

[Excerpt]

The Massachusetts economy is sunny now, but Governor Paul Cellucci is expected to offer plenty of umbrellas when he unveils his administration's agenda following his inauguration this week....

Cellucci is also expected to propose:

  • Eliminating the state's "pay to play" law, which requires businesses to pay disputed tax assessments up front even when an appeal is pending.

  • Lowering the unemployment insurance costs on businesses by adjusting the current legally required rates.

  • Reducing the personal income tax rate from 5.95 percent to 5 percent.

  • Instituting a tough zero-based funding scheme, under which the need for various programs are reexamined each year.

  • Establishing performance criteria for all state-funded programs.


The Boston Globe - Jan. 4, 1999
Budget surplus may spell trouble 
Cellucci's aides brace for demands

[Excerpt]

It should be the best of times on Beacon Hill - if you measure good times by the torrent of tax dollars surging into state coffers, that is.

But in the governor's office, Paul Cellucci's aides are busy piling up the sandbags against the bedlam they fear that flood will bring....

Keenly sensitive to how the Dukakis administration was swept from its moorings in the last fiscal flood, Cellucci thinks the best way to avoid a repeat is to reduce the flow.

For now, there's good reason that Cellucci's fiscal aides are hoping to downplay the situation. Having been through the wrangling that last year's budget surplus created, they know the political struggles and bureaucratic pressures that a bulging treasury creates on Beacon Hill.

Surpluses spur every interest group in the state to seek more funding for pet projects and programs. The bigger the surplus, the greater the expectations - and the harder it is for the Beacon Hill budget writers to keep spending under control.


The Eagle-Tribune - May 10, 2002
Senators want new approach to budget

[Excerpt]

Sens. Steven A. Baddour, D-Methuen, and Bruce E. Tarr, R-Gloucester, want to radically change the way state budgets are assembled and debated, and next week plan to file a bill that will call for zero-based budgeting.

That means departments will have to justify their entire budgets from the ground up -- just as local municipalities must do....

Citizens for Limited Taxation supports the senators' plan and Mass. Inc., a nonpartisan think-tank, said it's intrigued by the idea and supports performance-based budgeting.

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