The Stanley Report

Senate, House File Budget

Rep. Stanley voted against a $27.4 billion House budget, citing that the budget went too far in slashing aid to cities and towns. Additionally, Rep. Stanley voted against the budget because the legislature had yet to finalize the ethics reform. While the House passed legislation to reform pension and transportation issues, ethics had yet to be discussed. Rep. Stanley stated at the beginning of the legislative session that he would not consider voting for new revenue increases unless all three ethics reforms were passed. People throughout the Commonwealth are financially strained, and Rep. Stanley is concerned that new taxes would cause further harm to small businesses and consumers.

The conference budget contains a sales tax increase from 5 percent to 6.25 percent that will generate $759 million in new revenues for fiscal year 2010 and help restore core services and programs for the citizens of MA. Sales tax revenues will help restore important services that were previously cut, including $10 million for Prescription Advantage, $6.5 million for youth violence prevention grants and $4 million for universal pre-K. The conference budget also generates approximately $80 million from the removal of the alcohol sales tax exemption. That money will be used to restore safety-net services such as substance abuse programs, community health centers, domestic violence prevention, elder care and early intervention programming.

The budget also includes a municipal relief package that allows cities and towns to raise additional revenue locally to maintain essential services provided by schools, police and fire departments. The plan allows municipalities to adopt a local option meals tax of .75 percent and also a 2 percent lodging tax that combined could generate nearly $95 million for cities and towns.

The municipal package eliminates the property tax exemption on poles and wires located on public property and public rights-of-way that could generate another $26 million locally. It also includes an incentive to develop cost-cutting regionalization agreements to share resources with neighboring communities.

The proposal establishes the Massachusetts Transportation Trust Fund, which will receive $275 million annually from sales tax revenues for use by transportation authorities and agencies in all areas of the Commonwealth. This transfer is supposed to avoid the need for any devastating increases to the Turnpike tolls, MBTA fares or the gas tax in fiscal year 2010.

The conference budget also raises the so-called Pacheco Law restrictions on private contractors to a threshold of $500,000; allows Massachusetts to participate in the popular multi-state Powerball lottery game which would bring in additional money; and raises health benefit contributions for all state employees by 5 percent, saving $50 million for the Commonwealth.

Gov. Patrick signs landmark pension reform

Continuing the Legislature's ambitious reform agenda, the Senate and House approved landmark legislation that will eliminate the worst offenses in the state pension system. Gov. Patrick signed off on the bill on June 16th. The landmark pension reform legislation will close loopholes and eliminate abuses, help restore public confidence in government and reduce long-term costs to the state's retirement system.

The legislation includes critical reforms that will apply to both current and future employees as well as elected officials, ensuring that necessary change can begin immediately. The Special Commission on Pension Reform continues to examine additional issues, including instituting dollar limits on benefits, reforms to disability retirements and system administration improvements. The commission's report on a broader pension system overhaul is due on September 1st, and the Governor will work with legislators on additional reforms based on those recommendations.

The new law targets glaring loopholes that have allowed some to exploit the system and unfairly boost their public pensions. Among the loopholes the law closes is the so-called "one day, one year" provision that allows elected officials to claim an entire year of credible service for working one day in a calendar year. The law also removes a provision that allows elected officials to claim a "termination allowance" based on the failure to be nominated or re-elected.

House & Senate Approve Transportation Reform Bill

The Legislature approved a transportation reform bill to help fix the state's road, bridge and commuter systems. The House approved the measure by a vote of 130-25 and the Senate by 27-11. The bill is currently on Gov. Patrick's desk for approval or amending. This legislation would abolish the Massachusetts Turnpike Authority (MTA) as of Jan. 1 and create a new Massachusetts Department of Transportation while keeping the Massachusetts Port Authority and Massachusetts Bay Transportation Authority intact. Conference committee members predicated the reforms could save MA taxpayers $6.5 billion over 20 years, in part by consolidating planning, oversight and back-office operations such as accounting and legal services. To read the language of the conference report, please click here.

House approves ethics reforms

On Thursday, June 25th, the House voted on and approved important legislation to strengthen the state's ethics and lobbying laws. Rep. Stanley filed his own ethics legislation to define lobbying; ban gifts from lobbyists to public officials; provide the Secretary of State rule-making authority to implement the lobbying laws, to provide confidential, binding advisory opinions and impose fines; require lobbyists to wear name and affiliation badges while on duty in any public building; and remove the provision that allows the legislature to be exempt from the state's open meeting law. Rep. Stanley's four bills are currently before the Joint Committee on State Administration and Regulatory Government. Three of the bills filed by Rep. Stanley are the same language of what was included in the Conference Committee's legislation. The approved Conference Committee bill will now be sent to Gov. Patrick for his approval or veto.

House passes language to mobilize economic recovery in MA

The House passed legislation that paves the way for MA to receive millions of federal stimulus dollars from the American Recovery and Reinvestment Act (ARRA) of 2009. This legislation provides states with funding for numerous programs and projects, including infrastructure projects designed to create jobs and spur economic growth. Potentially $8.7 billion will be available to Massachusetts. The enactment of this legislation will help Massachusetts streamline federal funding that is desperately needed by municipalities.

The legislation was the product of a partnership between leaders in industry, labor and government; members of these groups worked together to develop a set of legislative recommendations to meet federal deadlines and requirements. This legislation will also help ensure federal dollars are well spent. Among other things, it helps those without jobs by amending a benefit training provision in the unemployment insurance statute and aids municipalities by altering the funding mechanisms for the Clean Water and Drinking Water State Revolving Funds which provide loan assistance to municipal projects that improve water quality.

Contact Information: State Representative Thomas M. Stanley State House, Room 167 Boston, MA 02133 (617) 722-2810 Thomas.Stanley@state.ma.us

Contact Information:

State Representative

Thomas M. Stanley

State House, Room 167

Boston, MA 02133

(617) 722-2810

Thomas.Stanley@state.ma.us