In Memory of a True Public Servant

We were saddened to hear of the passing last week of former State Senator William L. Saltonstall. Please take a moment to remember his distinguished life of public service as described by the Eagle Tribune.

Senate Caucus scores ethics reform victory

While the proposed creation of an independent redistricting commission dominated much of yesterday’s Senate session, the Senate Republican Caucus also used the scheduled rules debate to secure a key piece of ethics reform.

On a unanimous 35-0 vote, the Senate approved a Caucus amendment that allows the Ethics and Rules Committee to remove a sitting Senator from his or her committee chairmanship or leadership position -- on a temporary or a permanent basis -- as punishment for violating Senate rules or committing some other transgression. The change has financial ramifications for Senators who are charged with misconduct, as they would forfeit the additional stipend that accompanies their committee or leadership post.

“We need to restore the public’s trust and our efforts today will go a long way in doing just that,” noted Assistant Minority Whip Scott Brown, the lead sponsor of the amendment, following the vote.

The Caucus has filed a number of ethics reform proposals for consideration during the 2009-2010 session, in response to a series of recent ethics scandals involving members of the Legislature.

Senate Republicans call for independent redistricting commission

Saying the process needs to be de-politicized to avoid disenfranchising any racial, ethnic or minority group, the Senate Republican Caucus today called for the creation of an independent commission to redraw legislative boundaries for members of Congress, the Legislature and the Governor’s Council.

Rather than use the same process that has caused so many problems over the years, the Republicans today attempted to push reforms that have been endorsed by the League of Women Voters, Common Cause, former Governor Romney and Governor Patrick. Senate Minority Leader Richard R. Tisei called the amendment a “good government proposal” that will create a more transparent redistricting process while hopefully avoiding the legal issues that have been raised by prior redistricting decisions.

“A redistricting commission made up of only legislators, no matter how carefully constructed, will always be viewed with suspicion and some degree of skepticism by the public,” said Tisei. “Reducing the number of legislators involved and adding non-elected members to the decision-making process should provide the balance needed to develop a fair and impartial plan that can be embraced by all residents.”

The Senate Republicans’ proposal, which failed on a 7-28 vote, would have created a seven-member redistricting commission consisting of a dean or professor of law, political science or government from a Massachusetts institution of higher learning appointed by the Governor; a retired justice appointed by the Attorney General; and an expert in civil rights law appointed by the Secretary of State.

The commission would also include four legislators, who would be selected by the three non-elected commission members from a list of nominees submitted by the House Speaker, House Minority Leader, Senate President and Senate Minority Leader to ensure bipartisan balance on the commission.

Following the vote, Tisei expressed disappointment at the Senate’s “missed opportunity” to “take politics out of the process.” He also expressed surprise that several Democratic Senators, who had previously co-sponsored the exact same proposal on behalf of the League of Women Voters, would vote against their own proposal when it came up for a vote on the Senate floor today, including Stephen Brewer, Cynthia Creem, James Eldridge, Susan Fargo, Brian Joyce, James Timilty and Steven Tolman.

“The redistricting process should not be about protecting incumbents and preventing competition,” Tisei said. “It should be about maintaining the integrity of the process and ensuring that no individual or group is disenfranchised.”

“Sadly, today we missed the chance that comes once in a decade to infuse the redistricting process with more transparency, expertise and civic engagement,” added Assistant Minority Leader Bruce E. Tarr. “We rejected that chance in favor of the status quo.”

ON THE AIR - BROWN ON 96.9 WTKK WITH MICHELE MCPHEE

Listen to what Senator Brown had to say on Boston’s Talk Evolution with Michelle McPhee regarding eligibility for mortgage foreclosure financing.

Deval's Tax Plan Slammed

The Boston Herald is having a field day with the smorgasbord of new taxes and fee hikes Governor Patrick has proposed to close the FY09 budget gap and help fund the upcoming FY10 budget.

Today’s cover story takes aim at Patrick’s “sweet tooth for new revenues” and his “kid-in-a-candy-store spree to tax everything from bon bons to booze.” The accompanying editorial also slams the Governor for trying to pass off these new taxes as a way to help residents make “healthy choices,” rather than calling it what it really is: “a money grab with some nanny-state window-dressing.”

Meanwhile, the Massachusetts Restaurant Association (MRA) is up in arms over the Governor’s proposal to boost the meals tax by 20 percent statewide. With most consumers already cutting back on expenses and spending less time eating out, the MRA fears the proposed increase will drive away even more customers at a time when many restaurants are struggling to fill tables.

But columnist and talk show host Michael Graham knows not everyone is complaining. In fact, Graham predicts the owners of restaurants, convenience stores and package stores in New Hampshire are practically salivating at the thought of ringing up increased sales from Massachusetts residents who will be crossing the border in droves to avoid the new taxes.

GOP leaders’ statement on Governor’s budget proposal

BOSTON – Senate Minority Leader Richard R. Tisei and House Minority Leader Bradley H. Jones, Jr. today issued the following statement concerning the release of Governor Deval Patrick’s Fiscal Year 2010 budget proposal:

For the last two years, there has been a feeding frenzy of out-of-control spending on Beacon Hill. In order to feed this insatiable appetite for spending beyond our means, the Governor is now resorting to a series of tax increases and a substantial depletion of the state’s Rainy Day Fund to balance the budget, rather than addressing the real problem, which is unchecked spending.

The mantra of “reform before revenues” seems to have been lost in the Patrick Administration’s rush to “tax and spend” its way out of the current fiscal crisis. Not only does the Governor want to increase the meals tax and the hotel tax by 20 percent, but he is also promoting new taxes on everything from alcohol to snack foods, while adding $75 million in new Registry of Motor Vehicles fees. Where does it all end?

While the Governor continues to propose new tax efforts, his administration is simultaneously growing staff levels at an alarming rate. At this time next year, there is projected to be close to 2,000 new employees on the state payroll, far exceeding the historic employment levels.

Obviously, Governor Patrick faced a lot of tough decisions when he put his budget together. Like the rest of the nation, Massachusetts is experiencing one of the worst economic downturns ever. But that should not be used as an excuse to make Massachusetts even more unaffordable by taxing residents at every turn.

We are disappointed with the plan the Governor has put forward because it perpetuates our spending problem by drawing heavily on reserves and relying too much on new taxes and fees. These tax increases will have a chilling effect on our economic recovery, while giving those residents who are already struggling to make ends meet an additional financial burden to bear.

A tale of two Speakers…

The resignation of House Speaker Sal DiMasi has elicited a wide range of reactions from his legislative colleagues. For a look at some of the different perspectives, check out the latest coverage seen on Springfield’s Channel 40.

Herald op-ed highlights Senate GOP plan for pension reform

Is pension reform the “game-changing issue” that could lead to a Republican resurgence in Massachusetts? Boston freelance writer Cornelius Chapman thinks “the answer is an unqualified maybe”. Check out his op-ed from today’s Boston Herald.

Coming soon: The Twinkie Tax?

Hold on to your wallets. With the state in the midst of a serious fiscal crisis, not everyone is heeding the mantra of “reform before revenues”. In fact, some legislators have been working overtime thinking up new and creative ways to tax the hard-working residents of Massachusetts.

Take Representative William Brownsberger. The Belmont Democrat has filed legislation that would tax sugared drinks at 8 percent and impose a 10 percent tax on “non-nutritious” snack foods. Coming on the heels of last year’s trans fats debate, it’s clear the nanny state mentality is alive and well in Massachusetts.

Things were bad enough when all taxpayers had to worry about were toll hikes and possible increases in the sales and gas taxes. Now they have to worry about the “Twinkie Tax” as well?

Senator Hedlund on Turnpike Transponders

Six months and a deepening fiscal crisis later, state leaders are finally seeing the wisdom in a Turnpike reform package offered this past summer by Sen. Robert Hedlund and the Republican Caucus.

The Massachusetts Turnpike Authority today voted to make electronic toll transponders available for free. This move echoes a proposal put forward last July by the Caucus that was rejected in a largely partisan vote.

“I am as supportive of this move now as I was when I proposed it six months ago,” said Sen. Hedlund. “By encouraging more drivers to pay tolls electronically, the Turnpike will be able to cut operating costs by eliminating $70,000 a-year toll collector jobs.”

Drivers are currently charged $29.95 for the transponders, which then allow them use the Fast Lane as Turnpike toll plazas. The caucus amendment did not include the 50-cent-per-month service charge attached by the Turnpike Authority.

A study performed by the Romney Administration back in 2004 found that it costs the Turnpike Authority 33 cents for every manual transaction, but just 7 cents for every electronic collection. Drivers also save 11 seconds per transaction when they pay electronically.

The Caucus last summer also proposed an amendment that would have required the Turnpike Authority to prepare a list estimating the market value of all Turnpike-owned service plazas and other property. Newly-appointed Transportation Secretary James Aloisi, who also serves as chairman of the Turnpike Authority Board of Directors, last week said the cash-strapped authority is considering selling off its service plazas – a move he estimated could generate at least $300 million.

The Caucus is hopeful that Sec. Aloisi will next consider the third part of the rejected Turnpike reform package: switching to one-way tolling along the Turnpike between Boston and Route 128. Doing so could allow the Turnpike Authority to cut at least 30 percent of its toll collectors.

The Turnpike is currently weighing a plan to raise tolls from $1.25 to $2 within Route 128 and double harbor tunnel tolls to $7. The hikes are needed, Turnpike Authority officials argue, in order to remain solvent and preserve its credit rating.

“It’s disappointing to think that it took a crisis such as the one we are facing for our state’s Democratic leadership leaders to seriously consider and adopt common-sense and good government proposals suggested by Republicans,” Sen. Hedlund said.

‘Sacred cows’ on chopping block – but not Governor’s DC Office

With the state facing a $1.1 billion budget deficit, and next year’s shortfall expected to top $4 billion, today’s Lowell Sun is reporting that some of the longtime “sacred cows” on Beacon Hill may not be spared from the next round of cuts. But when it comes right down to it, Governor Patrick seems determined to protect his own pet projects from the chopping block, regardless of how many jobs are being cut and how many programs are being decimated throughout the budget.

One of the most glaring examples – besides the “paid volunteer” boondoggle known as the Commonwealth Corps – is the Governor’s Washington, DC office, which is costing taxpayers $453,292 a year to operate. Aides to Governor Patrick say he is “not likely” to reduce funding for the office in the next round of 9C cuts, despite repeated calls by the Senate Republican Caucus to eliminate the office.

The Patrick Administration claims the office is needed to help Massachusetts secure its share of federal funding assistance, but isn’t that what our Congressional delegation is supposed to be doing? Given Patrick’s well-documented friendship with President Barack Obama, and the fact that he is in “nearly daily communication with the new administration,” is the DC office really needed?

“At a time when we’re laying off mental-health workers and other caregivers, that’s one item that could be eliminated without having a direct impact on people,” Senate Minority Leader Richard R. Tisei noted.

A conflict for Aloisi?

When Governor Patrick selected James Aloisi as the state’s new transportation secretary, he cited Aloisi’s extensive prior experience overseeing the Big Dig, adding that he “knows where the bodies are buried.” But Aloisi’s ability to overhaul the state’s bloated transportation bureaucracy may be hampered by his prior employment at a local law firm.

The Boston Globe is reporting that over the last five years, Goulston & Storrs has been paid a total of $4.4 by the Massachusetts Turnpike Authority and the Massachusetts Bay Transportation Authority, two of the agencies that now fall under Aloisi’s purview. As a result, Aloisi may need to recuse himself from certain key policy-making decisions due to the state’s conflict of interest laws.

Yet another reason why Governor Patrick, the self-proclaimed “agent of change,” should have done his homework before hiring another leftover from the Dukakis era.

Unemployment Rate Jumps Again; Administration Still Has No Plan

There’s more bad news to report on the state’s unemployment front. With another 16,800 jobs lost in December, the jobless rate in Massachusetts is now 6.9 percent. That’s up one full percentage point from November of 2008 and a significant increase over the previous year, when the rate stood at just 4.3 percent.

Rather than devising a comprehensive plan to stop the hemorrhaging of jobs, the Patrick Administration is moving full speed ahead with the distribution of $1 billion in state grants to bolster the favored life sciences industry. In the Fall 2008 issue of Paradigm, published by the Whitehead Institute for Biomedical Research, Senate Minority Leader Richard R. Tisei questions “the wisdom of investing in life sciences over other core industries” and makes the case for pursuing a broad-based plan to assist Massachusetts employers and encourage job creation.

“In his view, the money destined for the life sciences would be better spent to reduce various business costs, from unemployment insurance and health insurance costs to taxes and utility rates. Tisei says that this strategy would still stimulate the economy, would not favor one industry over others and would make the state more enticing to companies shying away from Massachusetts due to its high costs.”

ON THE AIR: Senator Hedlund on NECN

Senate Minority Whip Robert Hedlund will discuss his thoughts on the first days of the Obama Presidency tonight on NewsNight with Jim Braude. The show airs on NECN at 8 p.m.

Ending one-party rule in Massachusetts

In the latest issue of Commonwealth Magazine, Senate Minority Leader Richard R. Tisei shares his thoughts on rebuilding the Republican Party and ending one-party rule in Massachusetts. Reporter Alison Lobron’s cover story points out the disparities between Massachusetts – where only 24 Democratic legislators faced primary challengers last year – and Minnesota, where every single race for the House of Representatives drew candidates from the two major parties. In a pair of accompanying opinion pieces, former Governor Jane Swift and former Senator Warren E. Tolman also weigh in on how the GOP can stage a successful comeback and create a strong two-party system.

Tisei on Obama’s inauguration: ‘Progress past partisanship’

Senate Minority Leader Richard R. Tisei shares his thoughts on President Barack Obama’s historic inauguration in today’s Boston Herald. Tisei is calling on the new President to “lead us past partisan gridlock” and to “use his talents to find common ground and bring the nation through these turbulent times stronger and more secure.”

Senator Hedlund's December Column

Senator Robert Hedlund’s latest monthly column, on the state’s growing debt burden, is now available on the senator’s website.

Senator Tisei's Response to the State of the Commonwealth

Scaling The Hill is pleased to present Senate Minority Leader Richard R. Tisei’s response to Governor Deval Patrick’s Annual State of the Commonwealth Address. Check out the video, which includes the Senator’s thoughts on how Massachusetts can steer its way through the current fiscal crisis and position itself for economic expansion once the recession ends.

Ought there be a law?

In a turn of the familiar phrase, “there ought to be a law,” legislators have until 5pm Friday to submit to the House and Senate clerks their legislative proposals for consideration before the 186th session of the General Court.

During the last legislative session 6,308 bills were filed by Senators and Representatives. The Legislature enacted and the Governor signed into law 230 bills in 2007 and a whopping 454 pieces of legislation in 2008. Too many of these bills increased costs to small businesses, raised taxes to pay for duplicative programming, and increased regulatory burdens on companies hindering job creation here in the Commonwealth.

We spent far too much time debating “well-meaning” proposals that ended up having a negative effect on our state’s small businesses and taxpayers. With Massachusetts already having the highest energy rates and the most stringent environmental regulations in the nation, the Legislature added to this burden with the passage of the Global Warming Solutions Act. Further, a controversial bill that would hit employers with triple damages if they lose wage disputes with workers was also signed into law this past session-even if they were not guilty.

One bill that came perilously close to becoming law, and will likely receive strong support in the new session, is the so-called “trans fat bill,” which would require all restaurants to ban the use of ingredients that contain trans fat. By any measure, Massachusetts residents are among the healthiest in the nation. If you ask me, they’re taking pretty good care of themselves without “Big Brother” telling them what to do.

During the upcoming legislative session we will continue to fight for legislative proposals that are aimed at what the citizens of the Commonwealth expect and deserve, proposals that make state government more efficient and provide our citizens and business community with the best opportunity for success. So, the next time you find yourself saying, “there oughta be a law,” ask yourself, “ought there be a law?”

GOP senators refuse to grant governor 'blank check' to cut local aid

Governor Deval Patrick was granted expanded 9C budget powers by the Legislature today, despite unanimous Republican opposition and a warning from Senate Minority Leader Richard R. Tisei that lawmakers would regret “handing the Governor a blank check” to cut local aid.

Patrick was given the expanded powers on a vote of 131-22 in the House and 32-6 in the Senate, with only a handful of Democrats siding with the minority party. The expanded 9C powers will allow the governor to make reductions in non-executive branch line items that are normally beyond his control, including local aid.

Tisei, who voted against giving the governor expanded powers, criticized Patrick for failing to provide details on his budget-cutting plans. With potential local aid cuts looming, Tisei said cities and towns deserve to know if there will be reductions in Chapter 70 education funding, Lottery Aid and Additional Assistance, and how extensive those cuts will be.

“The governor is asking for unprecedented powers, and we’re just handing him a blank check to do as he pleases,” said Tisei. “He has not even given us the courtesy of spelling out what he intends to do, how big the cuts are going to be, and what type of formula or mechanism he will be using. Where is the plan?”

Tisei contrasted Patrick’s approach with that of his predecessor, Mitt Romney, who was granted expanded 9C powers in January of 2003, but only after detailing exactly where he would be making his cuts.

“Romney announced that he was not going to play favorites, and that every community would be treated the same across the board,” Tisei said. “Municipal officials knew where they stood and there wasn’t any feeling that one community was being treated unfairly or any differently compared to others.

“This governor came into office promising to have one of the most transparent administrations, but he has not shared with us any information on what he’s going to do, which is not very transparent,” Tisei added. “The silence from the Corner Office has been deafening, which says a lot about how this administration operates.”

During the Senate debate, Republicans offered a series of amendments to protect local communities, including language:

· requiring that every city and town receive the same proportional cut if local aid is reduced;

· requiring a seven-day waiting period between the time the governor files a plan detailing proposed budget reductions and the time those reductions actually take effect; and

· requiring the governor to consider the potential impact of local aid cuts on those communities and school districts that have still not recovered from the cuts that occurred in fiscal year 2003.

Transportation reform proposal unveiled

Senate Minority Leader Richard R. Tisei participated in a press conference today, as the Senate unveiled plans to file a bipartisan transportation package that could save the state more than $6 billion through reforms, efficiencies and consolidations. Speaking at the press conference, Tisei said the proposal sends an important message to the state's taxpayers that lawmakers are serious about implementing long-overdue transportation reforms. Formal legislation is expected to be filed in February.

9C cuts: Where is the plan?

The Boston Globe is reporting on the Republicans' efforts to get Governor Patrick to detail how he will use the expanded 9C powers he is requesting from the Legislature to balance the budget. With the House and Senate scheduled to meet today, the Governor has yet to submit any formal plan.

Republican leaders call on Patrick to detail his 9C plans prior to vote

With just one day remaining before the Legislature is scheduled to vote on granting expanded 9C powers to Governor Patrick, Senate Minority Leader Richard R. Tisei and House Minority Leader Bradley H. Jones, Jr. are calling on the Governor to explain how he will use these additional powers to address the state budget deficit.

“If in fact it is your judgment that the severity of the deficit facing the Commonwealth requires not only additional cuts throughout the executive branch, but also cuts in other areas of state funding, including local aid, we require more information of your exact plan for action before we can reasonably consider your request,” Tisei and Jones wrote to the Governor in a joint letter dated January 12.

Calling Patrick’s appeal for expanded budget-cutting authority an “extraordinary request,” Tisei and Jones noted that the Governor could still pursue “alternative mechanisms for maintaining a balanced budget,” including “filing supplemental appropriations bills to reduce spending in accounts not under your current 9C authority to reduce.”

“Given the options, the full details of your plan should be shared with the membership and the public prior to our consideration of your bill to expand 9C authority,” Tisei and Jones wrote.

With local aid potentially on the chopping block, Tisei said it is not unreasonable to expect Governor Patrick to provide a detailed explanation of how he would use his expanded 9C powers to close an estimated $1 billion budget gap, especially if cities and towns are going to be impacted.

“If the Governor is asking for emergency power, he should have a plan for what he’s going to do with that power,” said Tisei. “Mitt Romney was in office for only two weeks when he asked for expanded 9C powers, and he outlined exactly what he would do. Governor Patrick has been in office for two years and first asked for 9C powers six months ago, and he still doesn’t have a plan on the table for what he would do.”

“I’d be very surprised if members of the Legislature are willing to give the Governor a blank check when it comes to issuing cuts in local aid,” Jones said. “The Governor should spell out exactly how much money he plans to cut, what accounts he will be targeting, and what mechanism he plans to use when making his 9C cuts. Until he can give us those answers, the Legislature should not be so quick to cede unilateral budget-cutting authority to the Governor.”

GOP leaders offer state treasurer creative proposal to overhaul Turnpike's finances

House Minority Leader Bradley H. Jones, Jr. along with Senate Minority Leader Richard R. Tisei sent the following letter to Treasurer Cahill today. The letter offers a detailed and creative proposal for overhauling the current financial disaster facing the Massachusetts Turnpike Authority.

Dear Mr. Treasurer:

As you are well aware, the current economic climate is worrisome and uncertain and it has forced policymakers to search outside-the-box for creative solutions to very complex problems. From glaring deficiencies in our transportation system to potential billion dollar deficits in our state budget, we have urged our colleagues to be thoughtful when proposing potential solutions. Unfortunately, many of the proposals, particularly regarding our transportation infrastructure, strike us as quick fixes rather than creative solutions. We have been considering a proposal that may provide state officials with the resources and time to overhaul our transportation system and would like to share it with you so as to solicit your thoughts and feedback.

The Massachusetts Turnpike Authority (MTA) has been sinking into a severe financial quagmire. Numerous attempts to mitigate the MTA’s fiscal problems, although well-intentioned, have proven insufficient at best. Furthermore the MTA’s solvency is threatened by complex lending agreements, the recent rating downgrade by Moody’s and the threat of further downgrades to its bond insurer, which has created pressure for a substantial toll increase.

We propose the Turnpike sell some of its capital assets to the Pension Reserves Investment Trust (PRIT) for cash at current fair market value. The result of this would provide the Turnpike with much needed revenue, while simultaneously providing the PRIT with valuable investment property.

Since 1959, the Turnpike has acquired various properties whose value has undoubtedly increased exponentially over the past five decades. Collectively, the Turnpike’s properties are estimated to be worth well over $8 billion, though a full and accurate accounting has been difficult to determine. Even the sale of five percent of such assets could cover the costs of terminating the Authority’s swaptions.

While the real estate market is certainly not what it was two years ago, no one can argue that property values in Massachusetts haven’t rapidly skyrocketed since the 1950s. The eventual sale of acquired properties by the PRIT could easily provide a healthy return in as little as five or ten years. Although the world’s financial markets, on average, provide sound returns in the long-run, the markets’ recent devastating behavior is enough to convince even the most aggressive investors to retreat to safer investments. Likewise, we understand that one goal of the fund has been a diversification of its portfolio, and this proposal would be consistent with that goal.

We hope you will give some consideration to this option as we in the Legislature weigh many potential solutions to finance our transportation system. This task will certainly be challenging, however, we cannot settle for narrow solutions to complex problems. Nor should increased tolls or taxes be the first resort.

Another unfunded mandate?

The Patrick Administration unveiled its new Mass in Motion initiative this week to address the child obesity epidemic. Under the proposal, beginning this fall schools will be required to measure the height and weight of all 1st, 4th, 7th and 10th grade students. If a student is found to be overweight, their parents will be notified and they will be sent home with information on proper nutrition and exercise.

Now, we don’t want to make light of the serious health problems associated with child obesity. However, we have to wonder how the Patrick Administration expects local school districts to comply with this new mandate, especially after the Governor has already cut funding for school nurses.

During the last round of 9C cuts, school-based health services were slashed by $567,500. With Governor Patrick eyeing additional 9C cuts to close another $1 billion shortfall in revenues, school-based health services could be facing the loss of even more funding. Cities and towns are going through financial problems of their own, and the last thing they want to have forced on them by the state is another unfunded mandate, however well-intentioned.

GOP tax amnesty plan approved

Governor Patrick has signed a GOP-sponsored tax amnesty proposal that will allow individuals to make good on any outstanding tax liabilities owed to the state without having to pay any penalties. The proposal was first inserted into a deficit reduction bill by House Minority Leader Brad Jones and Senate Minority Leader Richard R. Tisei last fall, and is now Chapter 461 of the Acts of 2008.

An analysis conducted by the Department of Revenue (DOR) estimates the two-month amnesty could bring in up to $20 million in revenues for the state. The actual dates for the tax amnesty will be determined by the DOR Commissioner, but the program is scheduled to end no later than June 30, 2009.

“This is a win-win proposition for the Commonwealth and its taxpayers,” said Senator Tisei. “Individuals can pay off their outstanding tax debt without facing penalties, and the state can raise additional revenues that can be used to help close the budget gap and spare many important programs that service some of our most vulnerable residents.”

A new legislative session begins

The Massachusetts Senate Republican Caucus is ready to do the people’s business, following today’s Inaugural ceremonies marking the start of the 2009-2010 legislative session. Pictured are (left to right) Minority Whip Robert L. Hedlund; Michael R. Knapik, the ranking member of the Senate Ways and Means Committee; Minority Leader Richard R. Tisei; Assistant Minority Leader Bruce E. Tarr; and Assistant Minority Whip Scott P. Brown.

Senator Knapik comments on the Governor’s Task Force on Public Integrity

In response to the release of the report issued by the Governor’s Task Force on Public Integrity, Senator Knapik issues the following statement:

“As a member of the Governor’s Task Force on Public Integrity, I am pleased Governor Patrick will be filing legislation to strengthen the Commonwealth’s ethics, conflict of interest, and lobbying laws.

Over the past several months it has become clear that something must be done to restore the public’s trust in its government. It seems not a week can pass without a new revelation of questionable conduct of officials at all levels of government, from national office to local office.

As the Legislature embarks on a new session today, it is imperative that Massachusetts government stand up and emphatically state that ‘business as usual’ can no longer be tolerated and that our government officials, both appointed and elected, should be held to the highest standard of integrity.”

BUDGET WATCH: December revenue figures released

The Department of Revenue (DOR) finally had some positive news to report today in terms of state revenue collections – well, sort of.

The good news is that, based on preliminary figures, $1.866 billion in total revenues were collected in December of 2008. That’s up $21 million (or 1.2 percent) from the previous December and is $55 million more than the revised monthly benchmark that was set last October. But there’s a catch.

DOR reports that December tax collections were boosted by nearly $170 million in corporate settlement payments and other one-time payments. Without these payments, total revenues would have actually come in $115 million below the revised monthly benchmark and $149 million below December 2007 collections.

That’s not very comforting news, especially when you consider that most everyone is predicting there will be a steep drop in capital gains tax collections in January.

Business confidence at 17-year low

We all know 2008 was a tough year for the economy, both locally and nationally. But a new survey helps put things into some historical perspective to show just how bad the state’s business climate really is.

Today’s Boston Business Journal reports that the Associated Industries of Massachusetts (AIM) Business Confidence Index (BCI) took a huge hit in 2008, falling to its lowest level in the 17 years that AIM has been tracking these figures. The BCI fell 5.5 points in December to finish the year at 36.3, easily shattering the previous monthly low of 41.4 recorded in October of 2008 and capping a 17.2-point drop for the year. You’d have to go all the way back to the 1991-1992 recession to find anything even remotely resembling the latest index ranking (the index stood at 41.5 in December of 1991).

Just another reason why it makes sense for the Commonwealth to repeal the $500 million corporate tax increase as soon as possible.

ON THE AIR - Tisei hosts MBTA's Dan Grabauskas on this month's 'Legislative Report'

MBTA General Manager Dan Grabauskas is the guest on this month’s edition of “Legislative Report”, hosted by Senate Minority Leader Richard R. Tisei.

“Legislative Report” can be seen on the following local cable access stations:

Malden Access Television (MATV) on Wednesdays at 7:30 p.m. and Thursdays at 8:30 p.m. (Channel 16)

Melrose Massachusetts Television (MMTV) on Mondays at 9 a.m. and Tuesdays at 6:30 p.m. (Comcast Channel 3 and Verizon Channel 39)

Reading Community Television (RCTV) on Mondays at 3 p.m., Tuesdays at 9 p.m. and Thursdays at 4 p.m. (Comcast Channel 10 and Verizon Channel 32)

Stoneham TV on Wednesdays at 2:30 p.m., Thursdays at 8 p.m. and Fridays at 8:30 a.m. (Verizon Channel 34, RCN Channel 3 and Comcast Channel 9)

Wakefield Community Access Television (WCAT) on Sundays at 6 p.m., Mondays at 7 p.m. and Wednesdays at 7 p.m. (Comcast Channel 16, RCN Channel 13 and Verizon Channel 42)

GOP leaders to file legislation to repeal controversial $500M corporate tax increase

Casey Ross takes a look at the implementation of the state’s controversial corporate tax increase in today’s Boston Globe. The story includes comments from Senate Minority Leader Richard R. Tisei and House Minority Leader Bradley H. Jones, Jr., who today announced plans to file legislation to repeal the increase.

The following is the text of the GOP leaders’ announcement:

Senate Minority Leader Richard R. Tisei and House Minority Leader Bradley H. Jones, Jr. announced today that Republican legislators will be filing legislation on January 14 to repeal the $500 million corporate tax increase that took effect on January 1.

The tax increase – believed to be the largest business tax increase ever passed in the Commonwealth – was approved by the Legislature on July 1, 2008 without the support of a single Republican legislator and signed into law by Governor Deval Patrick the following day. The tax changes impact businesses that employ nearly 40 percent of the state’s workforce, including many multi-state companies that are based outside of Massachusetts.

“The combination of a bad economy plus a substantial increase in the cost of doing business brought on by these tax increases could cripple our state’s economy,” said Senator Tisei. “The real damage will be over the long-term, as many of these businesses will not replace the jobs that are lost here and will instead opt to move the jobs to more tax-friendly states.”

“We are in the midst of what is expected to be a very deep recession,” said Representative Jones. “Imposing new taxes on struggling corporations could have a disastrous effect on our state's economy and I am confident that these tax increases will lead to more layoffs in the short term and more companies fleeing the state in the long run.”

Both Tisei and Jones served on the special commission that reviewed the state’s corporate tax laws, but did not support the commission’s final recommendations and voted against the resulting legislation.

Because the tax increases were introduced halfway through the current fiscal year, they are expected to generate $290 million in new revenues for the state in Fiscal Year 2009, which ends on June 30. Once they are fully implemented, however, the state expects to bring in as much as $500 million in additional corporate tax revenues a year.

In calling for the repeal, Tisei and Jones cited recent unemployment figures which show the state’s jobless rate is creeping upwards. According to the Department of Labor and Workforce Development, the state’s unemployment rate now stands at 5.9 percent, the highest it’s been since August of 2003. Between August and November of 2008, Massachusetts lost 19,100 jobs, and economic forecasters are predicting the state could lose anywhere from 26,000 to 100,000 jobs by the time Patrick’s first term ends in 2010.

“These tax increases were passed at a time when the state was experiencing a very different economic climate,” said Tisei and Jones. “Given the unprecedented fiscal crisis the state is now facing, we think the best thing we can do to minimize the impact of the current recession is to eliminate these tax increases before they do any further harm to our workforce and our economy.”

HAPPY NEW YEAR!

The Massachusetts Senate Republican Caucus would like to wish our readers at Scaling the Hill a very Happy, Healthy and Prosperous New Year in 2009!