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June 29, 2005 – As Governor Romney and state lawmakers celebrated news of the state’s improving fiscal health and its growing current year surplus, Senator Richard T. Moore
called for a responsible approach in responding to the unexpected “windfall.” In a letter to Senator Therese Murray (D-Plymouth), the Senate Ways and Means Committee Chair, Moore identified some spending priorities to be considered by legislative budget writers.
“The continued good news regarding state revenues suggests that we may have a surplus in FY ’05,” Senator Moore wrote. “After providing for any required partial repayment to the Commonwealth Stabilization Fund (“Rainy Day Fund”) and any increase in personal exemptions required by current law, the Uxbridge lawmaker offered his thought for responsible use of the surplus. Current law requires that when state revenues exceed the amounts taken in during the previous year by a certain percentage, a provision is triggered to increase the amount of personal income tax exemptions for individuals and families.
In his letter, Senator Moore proposed:
- A one-time payment to assist cities and towns with fifty percent of the $93 million deficit for extraordinary snow and ice removal expenses related to the severe winter of 2004-2005 that would cost $46.5 million.
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- A one-time supplemental local aid payment using the Lottery Formula, similar to the extra local aid provided in 2004 (since there is no agreement as yet relative to formula reform for Chapter 70). $50 million.
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- Appropriation of a $150 million reserve for health care expanded access, affordability and accountability trust fund. Senator Moore is leading legislative efforts to expand health care access. He argues that rather than utilizing $50 million of the Commonwealth Stabilization Fund and $37, 320,113 from the Children and Seniors Fund, this fund, assuming passage of the Senate Bill No. 2043, would be used for such programs as:
(a) Increased provider payments to doctors and hospitals $58 million
(b) Increased prevention funding - $25 million.
(c) Reinsurance subsidy funding - $15 million
(d) Expanded Medicaid Coverage to reduce the uninsured - $50 million
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- Rebate all or partial payments made in 2002 state capital gains taxes to 145,000 investors using the plan recently reported by the Committee on Revenue or some compromise version between that plan and full rebate. Up to $250 million.
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- As an alternative to the Capital Gains Tax refund, or if additional funding is available, in addition to the refund, Moore proposed increasing the amount available for senior citizen and veterans local property tax abatements and providing state reimbursement. He wants the state to pay for the cost of the reimbursement rather than leaving it to local option acceptance since, Moore explained, most communities will not be able to increase their share.
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“It should be noted that the recommendations in Items 1, 2, and 4 would be one-time expenditures utilizing the FY ’05 surplus. This seems to be a more responsible approach to the surplus than making any further adjustments in the state income tax rate at this time” Senator Moore concluded.
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