By:  Senator Richard R. Tisei, Minority Leader 

BOSTON - 'TIS THE SEASON of giving, and Governor Deval Patrick is celebrating his first year in office by making sure there's something under the tree for everyone this Christmas.

If you think your holiday shopping list is expensive, consider the governor's: He has put together a wish list containing more than $20 billion in new spending. This includes everything from $1 billion in subsidies to biotech companies and a $2 billion public higher education bond bill to $12 billion in capital spending and $4.8 billion in proposed new transportation projects and improvements.

By the administration's own estimates, Massachusetts will again face a structural deficit of more than $1 billion. If that figure is accurate, the Commonwealth needs to take a fiscally responsible approach to state spending and do some serious belt-tightening, rather than going on a spending spree.

Fortunately, the Legislature has put the brakes on much of Patrick's proposed new spending. Still, the governor's gifts just keep on coming:

For college students, free tuition to attend a community college. For New Bedford residents, a new, $1.4 billion commuter rail line to ride on (just cross your fingers and pray that it doesn't have to travel over one of the state's crumbling bridges). For bank executives, a $50 million bailout plan for all the bad loans they wrote during the past 10 years.

Big-shot Hollywood producers already received their gift last summer when Patrick signed into law expanded tax breaks for the motion picture industry. Isn't it nice to know your hard-earned tax dollars are being used to support the multi-billion-dollar film industry, at a time when local businesses are struggling under the weight of high taxes and regulatory red tape?

Massachusetts lost 200,000 jobs after the attacks on Sept. 11. 2001, and the economy has yet to fully recover. According to a report by MassINC, the state ranks an anemic second-to-last in job creation, ahead of only Michigan, which at least has a struggling US auto industry to blame. To put it in perspective: Louisiana, a state devastated by Hurricane Katrina in 2005, has already rebounded from that natural disaster and is creating new jobs at a faster rate.

So what is Patrick's solution to this problem? Raise taxes, of course. Local businesses already face high taxes. With added costs under the new universal healthcare law, an unemployment insurance rate increase, and a host of other expenses, the cost of doing business in Massachusetts is higher than ever, and now Patrick is pushing hard to close phantom corporate tax "loopholes." That's one gift the state's business community would like to get a receipt for -- so they can return it.

Businesses aren't the only group to end up on the governor's naughty list this year. Despite Patrick's free-spending ways, there are many who are receiving the proverbial coal in their stocking this Christmas.

Consider the state's taxpayers. If you've been waiting for Patrick to make sure the state fulfills its commitment to roll back the income tax rate to 5 percent, you'll have to wait some more. But hey, Massachusetts residents have been waiting 18 years to see the "temporary" tax increase rescinded, so what's a little longer?

If you're a homeowner, you're probably wondering what happened to the property tax relief Patrick promised over and over during his election campaign. You certainly won't find it under the tree this year, but what you will find is proposals for higher taxes on meals and higher taxes on hotel rooms. Taxes: the gift that keeps on giving.

Many people are concerned about the state's rising crime rate, but they're not going to find an additional 1,000 police officers on the street. That's another one of Patrick's campaign promises that was quickly abandoned when he took office and never made it onto his Christmas list.

Strong leadership is needed to improve the existing transportation infrastructure and to grow the economy. Only through fiscal discipline will we achieve those goals.

I'm sure the governor is making his list and checking it twice for 2008 already - one question, though: How much will those "presents" cost the taxpayers of the Commonwealth?

BOSTON - A highly anticipated report on the state’s long-term transportation needs and its ability to finance those needs has just been released, and the findings are not encouraging.

                The report, produced by the Massachusetts Transportation Finance Commission, offers a sobering picture. It estimates that over the next 20 years, the gap between what the Commonwealth must spend to address its transportation-related needs and the anticipated state and federal revenues that will be available to pay for those costs could be as much as $20 billion.

This dire outlook does not even include the costs associated with any new transportation projects that may be undertaken over the next two decades. It simply reflects the cost of maintaining and repairing our existing infrastructure of crumbling roads and bridges, which the Commission notes are “all in broad decline”.

                Unfortunately, the bad news is not isolated to any one agency, but is indicative of a problem that exists throughout our aging transportation system. In fact, the Commission, which was created by a special act of the Legislature in 2004, found that every state transit agency is running a structural deficit and using short-term “quick fixes” to “hide systemic financial problems”.

                So how did the state get into such a precarious position?

                According to the report, the state’s roads and bridges have been “chronically underfunded” for decades. Part of the problem, at least in recent years, has been the state’s diversion of resources away from the road and bridge program to help pay for its share of the $14.65 billion Central Artery project.

                Rather than focus on routine maintenance needs, MassHighway and other agencies have been pursuing policies of deferred maintenance. At the same time, construction costs have continued to rise. As a result, problems that would normally require only minor repair work if done immediately are often left to develop into more serious problems that, over time, end up costing the state more money to fix.

                The report notes that in 2003, 550 Massachusetts bridges were designated as structurally deficient, and MassHighway was spending $130 million a year on its basic bridge program. MassHighway estimates that twice that amount is needed this year to begin reducing the number of structurally deficient bridges. But even at this spending rate, the backlog will still number 400 in 10 years.

                 The MBTA is also facing significant budget pressures, despite the enactment of forward funding legislation in 2000 that was designed to put the authority on a stronger financial footing. Under forward funding, the MBTA receives a dedicated revenue stream of 20 percent of the state sales tax. But in its report, the Commission notes that this funding arrangement has failed to generate as much revenue as originally anticipated, leading to a shortfall in the MBTA’s share of the sales tax of $20.5 million in FY04, $21.1 million in FY05 and $35.1 million in FY06. 

In FY06, 25 percent, or $328 million, of the MBTA’s budget went to debt service payments. The report notes that this number is expected to rise to $436 million in 2009 and to $504 million by 2013.

                The MBTA has essentially been paying off the interest on its debt each year while barely touching the principal of the original debt. This heavy financial burden is preventing the MBTA from aggressively pursuing the types of projects needed to expand and improve transit service for commuters, who have been asked to absorb three fare increases over the past seven years.

                One thing we can’t count on is having the federal government bail us out. The Commission anticipates the state will receive about $10 billion in federal transportation funds over the next 20 years, even though $15 billion is actually needed.

                Sometime in the next few weeks, the Commission is expected to release its recommendations for closing the state’s transportation funding gap. Although no specific suggestions have been made yet, there has been speculation that the recommendations will include several policy ideas that have been floated in the past, such as raising the state’s gasoline tax (which has not been increased since 1990), restoring tolls in western Massachusetts, and adding new tolls to generate additional revenue.

                One new idea which the Commission may be considering is a move towards the use of special transponders on the state’s highways. These transponders would be able to track individual vehicles as they enter and exit a highway, allowing the state to assess motorists a fee based on the total number of miles they have traveled. Other states have been looking into this idea, and it would not be surprising to see Massachusetts follow suit, although it does raise some disturbing comparisons to “Big Brother”.

View Agenda

BOSTON – Members of the Republican Policy Conference have been traveling across the Commonwealth, generating widespread interest as they promote their legislative agenda to private citizens and local editorial boards. 

The GOP legislative agenda offers a blueprint for making Massachusetts more affordable and competitive, and for restoring confidence in state government.  In developing its vision for Massachusetts, the Republican Party has focused on pocketbook issues and the real problems residents are facing, including a shortage of affordable housing, costly auto and health insurance premiums, and rising energy costs.

        A centerpiece of the GOP agenda is a First-time Homebuyer Assistance Plan, offering tax-free savings accounts for first-time buyers to set aside money for down payment costs, private mortgage insurance and other housing-related costs.  The agenda also includes a Working Families Tax Credit “checklist” of new and expanded deductibles to offset everyday living expenses such as rent, child care, homeowner’s insurance, utility costs and college tuition.

        Other highlights of the agenda include:

·         expanded eligibility for the Senior Circuit Breaker Tax Credit;

·         regulatory relief for small businesses;

·         consumer incentives for alternative fuel vehicle and ENERGY STAR product purchases; and

·         the promotion of energy-efficient policies at the state and local level, including a new Green Buildings Initiative

           To read recent newspaper articles and editorials about the Republican Policy Conference’s legislative agenda, click here.

Today’s focus on the Global Warming Solutions Act will not address the very real problems currently facing the Commonwealth.  The bill is nothing more than a feel good exercise, window dressing on the issue of climate change, which we have already addressed in the Regional Greenhouse Gas Initiative and the comprehensive renewable energy bill.

We still lag far behind the rest of the nation in recovering jobs that were lost during the last economic downturn, and this bill is going to cost us even more jobs.  AIM, the state’s largest business manufacturing representative, has stated that this bill “would be a disaster, the last nail in the coffin for basically any hope of doing any manufacturing here at all”.

Members of the Republican Caucus have consistently raised concerns about the high cost of living in the Commonwealth and the increasing burden being placed on our business community.  Time after time, we have offered real solutions to these problems that will move the state forward in a positive direction.

With the state’s economy on the brink of a recession, it would have been more productive to use today’s session to work on issues that will help employers create more jobs, rather than once again adding to the cost of doing business in Massachusetts. What we should really be focusing on are some of the issues that are most important to the average Massachusetts resident:

BOSTON-  Looking back on the first half of the 2007-2008 legislative session, Senate Minority Leader Richard R. Tisei notes that “the Senate Republican Caucus continues to provide a necessary counterpoint to the heavily-controlled Democratic Legislature by promoting government transparency and moving forward with its legislative agenda for a more affordable and competitive Commonwealth.”

Despite holding only five of the state’s 40 Senate seats, the Republican Caucus – Senator Tisei of Wakefield, Assistant Minority Leader Bruce E. Tarr of Gloucester, Minority Whip Robert L. Hedlund of Weymouth, Assistant Minority Whip Scott P. Brown of Wrentham and Ranking Senate Ways and Means member Michael R. Knapik of Westfield – has fought for meaningful reforms in state government to assist the state’s taxpayers and promote a more favorable business climate to help strengthen and grow the state’s economy.  Looking back over the past year, the Caucus can point to several key victories.

As Governor Patrick continues to back away from his numerous campaign promises on property tax relief, the Caucus remains committed to promoting affordability by offering proposals to help ease the financial burden on the state’s residents.  Throughout the session, the Caucus has consistently put forward ideas to stem the exodus of residents who are fleeing Massachusetts for other states.

On numerous occasions, the Caucus has tried to provide tax relief and also to get state government to fulfill its promise to the voters of Massachusetts by rolling back the “temporary” 1989 income tax hike.  Eighteen years is far too long for taxpayers to wait for the rate to return to 5 percent.

In an attempt to further ease the financial burden on the state’s taxpayers, the Caucus has been calling for the implementation of a Working Families Tax Credit, which would allow taxpayers to claim up to $20,000 in deductions on their state income tax return to offset a variety of everyday living expenses, including rent, utilities, child care and tuition costs.  The proposal would create a checklist of qualifying expenses for which taxpayers could claim a deduction, ranging from $500 for property or casualty insurance costs on a primary residence to as much as $6,000 for mortgage expenses.

The Caucus has also been at the forefront in protecting local aid for cities and towns, particularly the Chapter 70 account that funds education.  During the Fiscal Year 2008 budget debate last spring, the Caucus proposed increasing this account by an additional $20 million by transferring money from non-essential accounts, such as the Lottery’s $10 million advertising budget, so every Massachusetts student can get a decent education.  The Caucus also offered several amendments to identify and distribute educational and special educational funding to cities and towns.

To ensure more stability and predictability in future local aid payments, the Caucus has called for the leasing of the state Lottery to a private vendor.  Other states have looked into similar proposals to generate revenues for local communities, through annuities and other funding options.  With the Lottery’s current worth estimated at anywhere from $11.2 billion to $30 billion, the interest alone from an up-front payment could provide a guaranteed and predictable revenue source for cities and towns for decades to come.

When the Democratic Legislature tried to put Hollywood interests ahead of hometown businesses, the Caucus attempted to block an expanded tax credit for the multi-billion dollar motion picture industry and substitute a tax incentive encouraging local businesses to create new jobs to replace the 200,000 the state has lost since 9/11.  Senator Tisei offered a jobs creation plan that would have provided incentive payments to small businesses in Massachusetts with gross income of under $5 million that create 5 or more new jobs.  These incentive payments would be equal to 50 percent of the income tax paid by the employees working in these new jobs.

Many legislators have already given tacit approval to Governor Patrick’s plan to close so-called corporate tax “loopholes”, which will negatively impact businesses across the state.  The Caucus strongly opposes giving a tax break to out-of-state film corporations, especially when the Governor is trying to squeeze more revenue from Massachusetts-based businesses, the same companies that provide permanent jobs to the residents of the Commonwealth.

The Caucus spoke out against a plan to keep the commercial property tax classification rate structure at 175 percent, rather than reverting to the 170 percent rate agreed to previously by the Legislature.  Like the income tax rate, this is another example of the state reneging on a prior commitment.  It also runs contrary to the Caucus’ goals of creating a more favorable business climate in the Commonwealth to spur economic growth and jobs creation.  Massachusetts currently ranks next-to-last in the nation in job creation.

To ensure that all businesses are competing on a level playing field, the Caucus secured language in the FY08 Senate budget establishing a hotline for reporting employers who hire undocumented workers who are in this country illegally, and requiring the state’s Attorney General to forward all complaints to the U.S. Attorney General’s office for action.  While the state is precluded by federal law from fining and prosecuting unscrupulous employers who exploit these workers and undercut their competition, this is one way the state can take a pro-active stance against illegal immigration.

During the Sudan divestiture debate, the Caucus called for expanding the scope of the bill to include the four other countries appearing on the U.S. State Department’s terror watch list: Cuba, Iran, North Korea and Syria.  At a time when our troops are fighting a global War on Terror, the state should not be using employee and retiree pension money to subsidizing foreign companies doing business with governments that are actively working against America’s interests by promoting terrorist activities.

In a further show of support for our troops, the Caucus secured passage of legislation that will reach out to Massachusetts veterans who have not yet received their Welcome Home Bonus, a one-time payment of $1,000 for active service in Iraq or Afghanistan and a $500 bonus to those who have served at least six months of active duty at home or abroad since September 11, 2001.  Less than half of the 28,000 qualifying veterans have claimed their bonus, so the Caucus – led by Senator Brown – has pushed for the creation of a new check-off box on the state income tax form to identify these veterans.  The bill was signed into law on November 27.

In 2007, the Caucus also claimed victory on two key environmental initiatives.  During this year’s budget debate, the Caucus secured unanimous, bipartisan support for the creation of a State Parks Preservation Trust Fund to address a $1 billion backlog in deferred maintenance needs and create a world-class parks system that will be enjoyed by Massachusetts residents for generations to come.  The Senate also approved Senator Tarr’s amendment requiring the Commonwealth to take an aggressive approach to reducing energy consumption and the emission of greenhouse gases caused by conventional fossil fuels by mandating that at least 50 percent of state-owned vehicles be running on alternative fuels by 2010.

The Caucus continues to serve as a watchdog over the Democratic majority, which at times seems emboldened by its numbers to try to push through questionable legislation.  A case in point is the recent proposal to carve out an exception for members of the Governor’s Council so they do not have to abide by a law that prohibits state employees who are also attorneys from representing clients in legal proceedings brought before state entities like the Industrial Accidents Board.

Senator Hedlund led the charge to block this legislation, which creates a clear conflict of interest by allowing Governor’s Councilors to practice before the very same judges they confirm.  This is the type of narrow, special interest bill that makes the public lose faith in state government, and requires constant vigilance by the Caucus.

The Caucus, under the leadership of Senator Knapik, also worked to enact meaningful welfare reform this session.  Although the Caucus successfully secured the passage of amendments barring non-citizens from receiving welfare benefits and requiring a detailed report on the number of recipients complying with their work activity requirement, the Democratic-sponsored bill that ultimately passed the Senate was a major disappointment.

Instead of taking steps to ensure that welfare remains a transitional program that promotes self-sufficiency, the proposed changes approved by the Democratic majority only perpetuate a system of dependency that has led some to see welfare as a way of life, which it was never intended to be.

Massachusetts’ welfare law was once the national standard.  Today, we are far behind many other states in the number of able-bodied recipients meeting their work requirement, despite the Caucus’ ongoing efforts to reverse this trend.

“As we prepare for the second half of the 2007-2008 legislative session, the Caucus stands ready to continue to offer a viable alternative to the Democratic majority and to look out for the interests of the state’s taxpayers,” noted Senator Tisei.

BOSTON- On January 2, in its first formal session of 2008, the Senate approved legislation codifying the state’s participation in the Regional Greenhouse Gas Initiative (RGGI).  Nine northeast states have joined this environmental compact to reduce carbon dioxide emissions from power plants by 10 percent between 2009 and 2019.

Under this initiative, electricity generating plants that comply with a defined emissions cap will be able to sell allowances through a “cap and trade” program to plants that exceed the cap.  Proponents are touting the environmental benefits, but the unanswered question is how much this program will impact communities, businesses and individual ratepayers, and whether it will put Massachusetts at a competitive disadvantage.

With the state expecting modest revenue growth and a projected deficit of more than $1 billion in FY08, the last thing we need is another costly program that will put Massachusetts even further in the red.  To address these concerns, the Senate Republican Caucus offered a series of amendments authored by Assistant Minority Leader Bruce Tarr, including one to suspend the compact if the cost to electric generators exceeds $150 million to ensure that these additional costs are not passed on to consumers.  Another amendment would require that 25 percent of the revenues generated by the auctioning of credits be returned to cities and towns.

Senate Adopts Several Republican Caucus Amendments

Convention Center Naming Rights – This amendment requires the Massachusetts Convention Center Authority to solicit bids for naming rights to the Boston Convention and Exhibition Center in South Boston.  Initial projections estimate that a naming rights agreement could yield between $500,000 and $1 million a year.  All proceeds will be used to offset the annual state subsidy for the convention center, which this year is projected to be approximately $2.5 million.

Immigration Enforcement – This amendment directs the state Attorney General to establish a 24-hour toll-free hotline for Massachusetts residents to report federal immigration law violations by businesses that employ undocumented workers.  It also requires that all complaints received be forwarded to the US Attorney General for investigation and enforcement.

State Parks Improvement – This amendment establishes a State Parks Preservation Fund, which will be accessible to the Secretary of Energy and Environmental Affairs for the purpose of maintaining and preserving all state-owned parks for the enjoyment of the public.  Funds deposited in this account will include voluntary tax check-off donations by individuals on their state income tax return, along with public and private gifts, grants and donations, and any other federal reimbursements.

Frivolous State Expenditures – This amendment prohibits state agencies and departments from using taxpayer funds to purchase gold-embossed stationery and business cards for employees.  It also requires the State Auditor to conduct a statewide audit of all agency administrative supply purchases, and to report back to the Legislature by February 15, 2008 with his findings and recommendations for reducing these costs.

Chapter 40A Study Commission – This amendment establishes a special commission to review the state’s zoning laws and to recommend changes that will enhance housing planning and production, promote economic development and preserve the character of cities and towns.

Senate GOP Caucus Files Budget Amendments

Restoration of Chapter 70 aid, tax amnesty program among top priorities

BOSTON – The Massachusetts Senate Republican Caucus has filed over 60 amendments to the proposed FY08 state budget, which is scheduled for debate in the Senate this week.        

        Senate Minority Leader Richard R. Tisei noted that the Caucus’ budget package includes a series of proposals that will reduce state spending, assist municipalities and generate administrative savings throughout state government.

New Minority Leader Sworn In

Senator Richard R. Tisei was sworn in  as the new Minority Leader by the Honorable Lee Johnson Presiding Justice of the Malden District Court. 

 BOSTON - The members of the Massachusetts Republican Senate Caucus recently elected Senator Richard R. Tisei (R-Wakefield) as their new Minority Leader. 

Tisei, who was sworn in on January 3, had previously served for 10 years as Assistant Minority Leader under former Senator Brian P. Lees (R-East Longmeadow), who decided not to run for re-election last year.

In his inaugural remarks, Tisei stressed the importance of stopping the exodus of residents leaving Massachusetts by making the state a more affordable place to live, work, raise a family and retire.  He also issued a call to legislators from both parties to put aside their political differences in the interests of working towards this common goal.

 "I intend to work hard to ensure that the atmosphere in state government is positive, and that our State House will be a place where, working together, we accomplish great things for the people of Massachusetts," said Tisei.

For the complete text of Senator Tisei's inaugural speech, click here.