May 2009

Our State’s Budget Crisis

These are very difficult times for all of us.  I understand.  As your state representative, I hear your concerns and appeals for assistance.  I am acutely aware of the challenges we face together in our three towns, in our state, and in our country.  As a public servant whose represents and supports you, I am particularly troubled by the citizenry's lack of trust in government.  The misdeeds of a few have tarnished the reputations of many.  People are demanding change and reform.  

 
I am writing to assure you that I hear you and that I am acting on your behalf.  Reforms have, in fact, been initiated and we are working in the legislature toward their enactment.  Ethics reform, transportation reorganization, and pension reform bills took center stage in legislative debates since January.  The Massachusetts House of Representatives has passed three bills:  one ending abuses of public pension and disability programs, a second restructuring and abolishing some transportation agencies, and a third imposing severe penalties on those who violate lobbying laws.  These reforms will save money and increase government accountability.  The Massachusetts Senate has yet to act on ethics reform and the other two reform bills are in House/Senate conference.  All of these bills must be signed by the Governor before they become law.  I am confident that most of these reforms will be enacted before anyone in the Commonwealth adds to the state's revenues by paying higher taxes.      

The financial impact of this recession on our citizens is far-reaching and painful.  It has forced people out of their homes and out of their jobs.  It has devastated and imperiled retirement savings accounts and delayed retirement for many others.  Massachusetts' revenues from income taxes and capital gains taxes have dropped significantly, by more than $2 billion, with frightening speed.  Simultaneously, the costs of programs to help the disadvantaged, the unemployed, and the elderly - such as Medicaid, Medicare, and Temporary Assistance to needy families (TANF) - have been rising, about $2 billion worth.  With decreased revenues and increased spending obligations, Massachusetts faces a $4 billion budget gap.

To address this gap, the legislature proposed severe spending cuts.  The House of Representatives Ways & Means Committee, of which I am a member, crafted a budget proposal in mid-April that would cut nearly $2 billion in spending, while eliminating 55 different programs outright.  Citizens from Lincoln, Sudbury, and Wayland protested the cuts.  They asked for more state aid for local schools.  They requested more funding for their children with special needs.  They appealed for funding for veterans and the homeless and the blind.  They pleaded for more Council on Aging funding, and for continuing aid to domestic violence victims.  They entreated me for funding to keep youths from joining gangs, and for housing for the homeless. 

My colleagues received similar appeals.  There was insufficient will, in this representative democracy, to solve the $4 billion dollar budget gap solely by slashing state programs.  Nor would the reforms we will enact create immediate savings.  New, significant revenues are needed. 

Four days ago, we in the Massachusetts House of Representatives voted to increase the state sales tax from 5% to 6.25% in order to generate about $900 million in additional revenue, with $205 million for additional state aid to municipalities and $300 million to meet our transportation agency debt obligations.  The remaining $395 million is to be allocated for the human services needs that I have described above.  

For Lincoln, Sudbury, and Wayland, the FY 2010 local aid increase of $205 million would put State House of Representatives local aid figures, when combined with federal stimulus dollars, 9% higher than what our towns will receive in FY 2009 - a $1.2 million increase.  Although these figures may change after the Senate acts on its own budget in late May, I am confident that we will be able to send about $15 million in financial support to our three towns during these very difficult financial times.

Could we have passed an income tax increase instead of a sales tax?  No, given debate and discussion that occurred in the legislature over the past several months.  There was no majority in the House for that.  Could we have passed a significant gas tax instead?  No, not at levels that would generate significant revenues.  A 19-cent per gallon increase, as the Governor proposed, would only generate about $450 million, and there wasn't majority support in the legislature for even a 19-cent increase.  Moreover, a majority of my colleagues over the past couple months advocated for a single, broad-based tax increase, rather than a myriad of small tax increases, such as the ones the Governor proposed.

While I realize that raising the sales tax is a dismal option among many bleak options, Massachusetts' sales tax, even with the proposed increase, will still be lower in many cases than our neighboring states (except New Hampshire, which has no sales tax).  Connecticut has a 6% sales tax, Vermont has 6.05%, Rhode Island has 7% and New York has 8.25%.  Moreover, the Massachusetts' sales tax is not as regressive as others; food, most clothing, and home heating oil are exempt.  In fact, Massachusetts' sales tax burden, even after this increase goes in effect, will place us squarely in the middle of all fifty states.

I struggled with the decision to increase the sales tax.  It was not my preferred method of raising revenues.   Nor was it the most progressive. But it was the most viable, given the perspectives of the Massachusetts House membership.  It was also a necessary component, along with the reforms and expenditure cuts that I am pushing to get enacted, of our effort to close the widening budget gap we face as a state.  

I fully understand the effect that any tax increase would have on Massachusetts' families and on small businesses.  I weighed those effects against the damage that would be done to our towns and our Commonwealth by the drastic cuts to human services, public education, and public safety that would have occurred without the sales tax increase.  In the end, I chose to invest in our towns and in our children's futures, to honestly address our Big Dig debt obligations, and to protect the most vulnerable of our citizens in our three towns and our Commonwealth.

Office Hours for May 2009

Friday, May 15th

Please join me at office hours in the district:

• Lincoln Public Library, 3:00 - 3:30 (Tarbell Room)
• Sudbury's Goodnow Library, 4:00 - 4:30 (2nd Floor)
• Wayland Public Library, 5:00 - 5:30 (Raytheon Room

*No appointments are necessary.  First come, first serve.

“Ask the Rep”

Wednesday, May 27 at 7:00 PM

Call in during the live show (508-358-3472) or email questions to This e-mail address is being protected from spambots. You need JavaScript enabled to view it  prior to May 26. 

Ask questions... get engaged... start a dialogue! 

Wayland residents can watch the show on Comcast channel 9 or Verizon channel 37.  The show will be rebroadcast in all three towns.  Check cable listings in the local papers.