Since the economic downturn began, millions of Americans have lost their jobs. Last month in Massachusetts alone, employers slashed more than 20,000 jobs. That statistic is daunting and yet a Democrat on Beacon Hill has filed an amendment that would lead to the loss of even more jobs in the struggling manufacturing industry. Representative Peter Kocot of Northampton has proposed removing the single sales tax factor apportionment for manufacturing companies like Raytheon. Currently, Raytheon among others, receive a certain set of tax incentives to help bring new business and keep old ones here in the Commonwealth. While small businesses are certainly a driving force behind Massachusetts’ economy, big manufacturing corporations bring a lot of jobs in to the state in one fell swoop. If the state fails to keep these vital tax incentives for manufacturers, we will lose major industries to nearby states that are willing to grant economic stimulators to large employers.
Massachusetts has been praised for pioneering a universal health care program. While it is important that every citizen has access to affordable health care, there are many areas for improvement in the state’s program that could save the Commonwealth millions of dollars every year. Today, 24% of MassHealth members are in the fee-for-service system, whereas 27% are in PCC (Primary Care Clinician) plans. Moving all of MassHealth members would save Massachusetts between $690 million and $1.05 billion over the next five years and would also result in better medical care for MassHealth members. Fifteen states have already ended their PCC program in order to have MCO plans and we hope making Massachusetts the sixteenth will lead to great cost savings while improving health care for thousands of Bay State residents.
Be sure to stay with www.thecapitolviewlive.com all week as budget debate gets underway first thing on Monday. We'll have updates throughout the day on Monday as the House takes up dozens of tax and revenue proposals. You can also watch your Republican lawmakers debate on the House floor live right here.
Friday, April 24, 2009
Thursday, April 23, 2009
Budget Season Round Three: The Good, The Bad and The Ugly
Over the last two days, we’ve discussed two tax proposals up for debate next Monday, the income tax and the gas tax. The tax du jour however, is the sales tax, perhaps the tax that could have the most immediate and significant damaging effect on the state’s economy, small businesses and families alike.
According to a study recently released by the Beacon Hill Institute a Massachusetts sales tax hike would cost the state 10,000 jobs and more than $40 million in investment. The retail industry currently employs 18% of all workers in Massachusetts. During a bad economy, the last thing we want to do is put more people out of work. We also want to encourage new business to come to the Commonwealth, not dissuade them, which is exactly what a steep increase in the sales tax will most definitely do. The Retailers Association of Massachusetts recently announced that tax free Amazon.com reported an 18% increase in 2008 4th Quarter sales. Furthermore, the same company is expected to report a 15% increase in 2009 1st Quarter sales. Meantime, retailers in Massachusetts are seeing the polar opposite. Small businesses are laying off employees, reducing salaries and even worse closing their doors all together. If small businesses can adapt and adjust to a weakening economy, why can’t the state do the same thing? The Majority party needs to learn to live within its means, cut wasteful spending and tighten its belt. Consumer spending is at an all time low, and until it picks up, the economy will continue to struggle. Increasing the sales tax would be adding a roadblock on the road to economic recovery.
We are always talking about reducing waste and inefficiency in state spending, and we believe the medical waste proposal filed as an amendment to the budget can certainly do just that. The amendment we filed encourages medical facilities to return unused, unexpired medication. This proposal could save the Commonwealth at least $20 million annually, as nursing homes in Massachusetts alone are known to waste millions of dollars in unused prescriptions. This concept will lead to a decrease in overall health care costs in the state. It is important to think outside of the box and come up with innovative ideas that have the potential to lead to savings for the Commonwealth. Instituting a new tax or raising currents ones is the easy way out. However, coming with alternative ideas and solutions to the state’s problems that do not involve asking the taxpayer for more money shows the general public that you understand the hard times we’re all facing.
Check out www.thecapitolviewlive .com tomorrow as we discuss a Democrat proposal that would drive major manufacturers out of Massachusetts and a Republican amendment that will shift all MassHealth members to managed care plans which could save the Commonwealth up to $1 billion over five years.
According to a study recently released by the Beacon Hill Institute a Massachusetts sales tax hike would cost the state 10,000 jobs and more than $40 million in investment. The retail industry currently employs 18% of all workers in Massachusetts. During a bad economy, the last thing we want to do is put more people out of work. We also want to encourage new business to come to the Commonwealth, not dissuade them, which is exactly what a steep increase in the sales tax will most definitely do. The Retailers Association of Massachusetts recently announced that tax free Amazon.com reported an 18% increase in 2008 4th Quarter sales. Furthermore, the same company is expected to report a 15% increase in 2009 1st Quarter sales. Meantime, retailers in Massachusetts are seeing the polar opposite. Small businesses are laying off employees, reducing salaries and even worse closing their doors all together. If small businesses can adapt and adjust to a weakening economy, why can’t the state do the same thing? The Majority party needs to learn to live within its means, cut wasteful spending and tighten its belt. Consumer spending is at an all time low, and until it picks up, the economy will continue to struggle. Increasing the sales tax would be adding a roadblock on the road to economic recovery.
We are always talking about reducing waste and inefficiency in state spending, and we believe the medical waste proposal filed as an amendment to the budget can certainly do just that. The amendment we filed encourages medical facilities to return unused, unexpired medication. This proposal could save the Commonwealth at least $20 million annually, as nursing homes in Massachusetts alone are known to waste millions of dollars in unused prescriptions. This concept will lead to a decrease in overall health care costs in the state. It is important to think outside of the box and come up with innovative ideas that have the potential to lead to savings for the Commonwealth. Instituting a new tax or raising currents ones is the easy way out. However, coming with alternative ideas and solutions to the state’s problems that do not involve asking the taxpayer for more money shows the general public that you understand the hard times we’re all facing.
Check out www.thecapitolviewlive .com tomorrow as we discuss a Democrat proposal that would drive major manufacturers out of Massachusetts and a Republican amendment that will shift all MassHealth members to managed care plans which could save the Commonwealth up to $1 billion over five years.
Wednesday, April 22, 2009
Assistant Minority Leader to Appear on Jordan Levy Show
Assistant Minority Leader George Peterson will be appearing on the Jordan Levy show at 3pm. The House Ways and Means budget, the various tax proposals and the state of the Commonwealth's economy will all be issues discussed today.
Click here to listen to the show live online.
Budget Season Round 2: The Good, The Bad and The Ugly
We’re kicking off round two with an issue that sparked our interest to launch last month’s Hardship Listening Tour, and that is the effort to increase the state’s gas tax. Beacon Hill has long been controlled by tax happy Democrats and here we are in the midst of a long and tough recession and they want to reach into your pocket once again. And for what? To continue pouring your hard earned money into a broken transportation system.
There has been much talk up here at the State House about increasing the gas tax and the legislator who proposed the idea during this budget season is Representative Kay Khan. The Newton Democrat wants to add a new outside section that requires the gasoline tax be no less than 29 cents more than the quarterly tax set for that date. Read that again, and you will see it says no less, which means at least 29 cents! So basically, this opens the door for an even higher gas tax. Increasing any kind of tax in this current economy should not even be an option. The House and Senate recently passed transportation reform bills. Both are now in conference committee and the final version will likely contain many positive reforms, some of which our caucus proposed. After a bill is signed into law, we should give those reforms an opportunity to succeed before telling the taxpayers we need more money. There are provisions in both bills that will likely save the Commonwealth hundreds of millions of dollars. Let’s see those reforms enacted first.
Evacuation Day and Bunker Hill Day are often on the receiving end of much criticism and ridicule, and rightfully so. That is why our caucus is proposing doing away with the observation of these two “hack holidays.” While we understand this is not necessarily a big money saver, it will certainly go a long way in restoring the public’s confidence in its elected officials. Having Suffolk County offices open on these two days will provide greater efficiency and productivity as well. There have been several negative instances that have broken the public’s trust. Ethical improprieties, wasteful spending and continued occurrences of patronage have made it hard for Commonwealth citizens to believe their legislators are looking out for their best interests. We believe eliminating these two holidays will be a positive step in the right direction and hope to continue making strides to regain the public’s confidence.
Tomorrow on www.thecapitolviewlive.com, a sales tax hike vs. an amendment to eliminate prescription drug waste.
There has been much talk up here at the State House about increasing the gas tax and the legislator who proposed the idea during this budget season is Representative Kay Khan. The Newton Democrat wants to add a new outside section that requires the gasoline tax be no less than 29 cents more than the quarterly tax set for that date. Read that again, and you will see it says no less, which means at least 29 cents! So basically, this opens the door for an even higher gas tax. Increasing any kind of tax in this current economy should not even be an option. The House and Senate recently passed transportation reform bills. Both are now in conference committee and the final version will likely contain many positive reforms, some of which our caucus proposed. After a bill is signed into law, we should give those reforms an opportunity to succeed before telling the taxpayers we need more money. There are provisions in both bills that will likely save the Commonwealth hundreds of millions of dollars. Let’s see those reforms enacted first.
Evacuation Day and Bunker Hill Day are often on the receiving end of much criticism and ridicule, and rightfully so. That is why our caucus is proposing doing away with the observation of these two “hack holidays.” While we understand this is not necessarily a big money saver, it will certainly go a long way in restoring the public’s confidence in its elected officials. Having Suffolk County offices open on these two days will provide greater efficiency and productivity as well. There have been several negative instances that have broken the public’s trust. Ethical improprieties, wasteful spending and continued occurrences of patronage have made it hard for Commonwealth citizens to believe their legislators are looking out for their best interests. We believe eliminating these two holidays will be a positive step in the right direction and hope to continue making strides to regain the public’s confidence.
Tomorrow on www.thecapitolviewlive.com, a sales tax hike vs. an amendment to eliminate prescription drug waste.
Tuesday, April 21, 2009
Budget Season: The Good, The Bad and The Ugly
As you know, budget season is upon us and as we dive into the process, we are very quickly finding amendments filled with pet projects, pork and outrageous tax increase proposals. Over the next week or so, we will be highlighting various amendments we disagree with and explain alternative options we have filed. In round one of “The Good, The Bad and The Ugly,” it is Income Tax Hike vs. Employee Furloughs.
The amendment to increase the state’s income tax was filed last week by Representative Matt Patrick. Patrick, a Falmouth Democrat is proposing raising the state’s income tax by 1% which would bring the tax to 6.3%. This is wrong on so many levels. First of all, back in 2000 Massachusetts residents went to the polls and overwhelmingly voted to roll back the income tax to 5%. The will of the voters was ignored then and is clearly being overlooked now with the filing of this amendment. Additionally, we are facing extremely difficult financial times, and taxpayers can truly not afford to pay any more taxes. It is incredibly audacious of supporters of this amendment to think that Bay State residents should continue to foot the bill for mismanaged programs and agencies. Leave the income tax rate where it is and cut the waste instead. Remember, this is just round one of revealing the tax happy ways of Beacon Hill Democrats. More tax increase proposals to come!
Now to the good! The Republican Leadership Office has filed an amendment that will save the Commonwealth millions of dollars. We are facing a fiscal emergency of a magnitude and scope not seen since the Great Depression. The declining economy, the current budget crisis requiring a reduction in funding to essential programs and services and the probability of future budget deficits are all contributing to this current situation. The amendment we filed requires furloughs of all state employees other than judges (who are encouraged to work 10 days without pay) and those subject to collective bargaining. The furloughs would be required as follows: for each employee whose annual compensation is less than $50,000, three days; for each employee whose annual compensation is $50,000 or greater but not more than $79,999, five days; for each employee whose annual compensation is $80,000 or greater but not more than $99,999, seven days; for each employee whose annual compensation is $100,000 or greater, nine days. Employees may choose to take unpaid days off, work and defer pay, or work and collect additional vacation days to be used no earlier than fiscal year 2011. The expression, “Do as I say, not as I do” is not going to cut it given the current state of our economy. It is imperative that the consequences of these financial conditions be mitigated as soon as possible through a shared burden and sacrifice.
Be sure to visit www.thecapitolviewlive.com tomorrow as a massive gas tax increase goes head to head with repealing some well known “hack” holidays.
The amendment to increase the state’s income tax was filed last week by Representative Matt Patrick. Patrick, a Falmouth Democrat is proposing raising the state’s income tax by 1% which would bring the tax to 6.3%. This is wrong on so many levels. First of all, back in 2000 Massachusetts residents went to the polls and overwhelmingly voted to roll back the income tax to 5%. The will of the voters was ignored then and is clearly being overlooked now with the filing of this amendment. Additionally, we are facing extremely difficult financial times, and taxpayers can truly not afford to pay any more taxes. It is incredibly audacious of supporters of this amendment to think that Bay State residents should continue to foot the bill for mismanaged programs and agencies. Leave the income tax rate where it is and cut the waste instead. Remember, this is just round one of revealing the tax happy ways of Beacon Hill Democrats. More tax increase proposals to come!
Now to the good! The Republican Leadership Office has filed an amendment that will save the Commonwealth millions of dollars. We are facing a fiscal emergency of a magnitude and scope not seen since the Great Depression. The declining economy, the current budget crisis requiring a reduction in funding to essential programs and services and the probability of future budget deficits are all contributing to this current situation. The amendment we filed requires furloughs of all state employees other than judges (who are encouraged to work 10 days without pay) and those subject to collective bargaining. The furloughs would be required as follows: for each employee whose annual compensation is less than $50,000, three days; for each employee whose annual compensation is $50,000 or greater but not more than $79,999, five days; for each employee whose annual compensation is $80,000 or greater but not more than $99,999, seven days; for each employee whose annual compensation is $100,000 or greater, nine days. Employees may choose to take unpaid days off, work and defer pay, or work and collect additional vacation days to be used no earlier than fiscal year 2011. The expression, “Do as I say, not as I do” is not going to cut it given the current state of our economy. It is imperative that the consequences of these financial conditions be mitigated as soon as possible through a shared burden and sacrifice.
Be sure to visit www.thecapitolviewlive.com tomorrow as a massive gas tax increase goes head to head with repealing some well known “hack” holidays.
Friday, April 17, 2009
Good Ideas Become Amendments
The House took up pension reform this week and GOP lawmakers were successful in getting several amendments adopted. One of the amendments came as a suggestion from Pepperell Town Treasurer Michael Hartnett.
Currently, law requires that all retirement systems in the Commonwealth be fully funded by 2028, which means that they have an unfunded liability of zero at that date. With the recent downturn in the economy and the steep fall in the value of many investment portfolios, the 2028 deadline may be difficult for many cities and towns to meet They will be forced to increase their allocation to their retirement funds at a time when many municipal budgets are strained. It was for this reason that the state system pushed its fully funded deadline from 2023 to 2025. Therefore, we felt it necessary to give municipalities the same leeway, and so this amendment pushes back the deadline to be fully funded from 2028 to 2030.
This is just one more effort to reduce the burden on already strained municipal budgets.
Currently, law requires that all retirement systems in the Commonwealth be fully funded by 2028, which means that they have an unfunded liability of zero at that date. With the recent downturn in the economy and the steep fall in the value of many investment portfolios, the 2028 deadline may be difficult for many cities and towns to meet They will be forced to increase their allocation to their retirement funds at a time when many municipal budgets are strained. It was for this reason that the state system pushed its fully funded deadline from 2023 to 2025. Therefore, we felt it necessary to give municipalities the same leeway, and so this amendment pushes back the deadline to be fully funded from 2028 to 2030.
This is just one more effort to reduce the burden on already strained municipal budgets.
Forget Milk, We've Got Pork!
A bare bones House budget that accurately reflects the current economic situation, was released only a couple days ago. However, legislators are already rushing to file amendments to add hundreds of millions of dollars into the budget.
Click here to read today's Boston Herald article about the pork rush!
Click here to read today's Boston Herald article about the pork rush!
Thursday, April 16, 2009
Amendment Materializes After Listening Tour
The Hardship Listening Tour was enlightening to say the least. Hundreds of Commonwealth citizens came out and voiced their concerns and had extremely useful suggestions and ideas.
In fact, an amendment being filed from the Republican Leadership Office materialized thanks to one of the tour participants. As you may know, military veterans can obtain specialty plates. The idea was devised so that the proceeds of the plate purchases can go to helping the Soldiers’ Homes. However, little does the public know that some of the proceeds have been recently funneled into the general fund, which is certainly not the intended destination.
Unfortunately, currently reservists are not allowed to get the special license plate if they have not served at least one day in wartime. So, the amendment being filed by the Minority Leader will strike the wartime language so reservists who want a license plate have access to that opportunity. Furthermore, the amendment will say that the proceeds cannot be used for allocation in the general fund and all money must go to its intended cause.
We have a great appreciation and respect for our state’s veterans as they sacrifice their lives to protect our freedom and liberties. The very least we can do is allow all veterans an opportunity to purchase a specialty plate. They’ve earned it!
If you have any legislative ideas, please don’t hesitate to contact our office. We are always open for ideas and suggestions.
In fact, an amendment being filed from the Republican Leadership Office materialized thanks to one of the tour participants. As you may know, military veterans can obtain specialty plates. The idea was devised so that the proceeds of the plate purchases can go to helping the Soldiers’ Homes. However, little does the public know that some of the proceeds have been recently funneled into the general fund, which is certainly not the intended destination.
Unfortunately, currently reservists are not allowed to get the special license plate if they have not served at least one day in wartime. So, the amendment being filed by the Minority Leader will strike the wartime language so reservists who want a license plate have access to that opportunity. Furthermore, the amendment will say that the proceeds cannot be used for allocation in the general fund and all money must go to its intended cause.
We have a great appreciation and respect for our state’s veterans as they sacrifice their lives to protect our freedom and liberties. The very least we can do is allow all veterans an opportunity to purchase a specialty plate. They’ve earned it!
If you have any legislative ideas, please don’t hesitate to contact our office. We are always open for ideas and suggestions.
Jones Commends the Cutting of Commonwealth Corps Funding
House Minority Leader Brad Jones is today commending House Ways and Means Chairman Charley Murphy for cutting the line item for the Commonwealth Corps, a paid volunteer program.
For months, Republican lawmakers have been concerned about the Governor's priorities as he refused to reduce funding to this program. The state cannot afford to pay volunteers for community service when vital human services programs are being cut drastically.
According to www.dictionary.com, volunteer is defined as a person who performs a service willingly and without pay. So, the Commonwealth Corps program, while well intended is certainly not a priority.
Good for Charley Murphy for recognizing this, but why is the funding for the Governor's D.C. office still in the budget?
For months, Republican lawmakers have been concerned about the Governor's priorities as he refused to reduce funding to this program. The state cannot afford to pay volunteers for community service when vital human services programs are being cut drastically.
According to www.dictionary.com, volunteer is defined as a person who performs a service willingly and without pay. So, the Commonwealth Corps program, while well intended is certainly not a priority.
Good for Charley Murphy for recognizing this, but why is the funding for the Governor's D.C. office still in the budget?
Minority Leader Appears on WCVB-TV
House Minority Leader Brad Jones appeared on WCVB-TV last night. The House Ways and Means Committee released its budget yesterday on the same day that the Senate President said casinos will be up for debate this year.
Click here to see what Jones had to say.
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