1. Overall State Budget Issues. Despite an improved revenue performance in fiscal 2006 that continued into the fall, the new Governor and Legislature continue to face a large and growing gap between available resources and the costs of a long list of important priorities. Dealing with this challenge is the first of the top ten issues, and it will dominate the financial decision-making for some time to come.
The mismatch between expected revenues – and the costs of widely held goals such as greater local aid, additional spending for higher education, and increased capital investment – is staggering. Even with careful targeting on only those priorities of greatest importance for the long-term health of the Massachusetts economy, their costs are likely to exceed available resources by billions of dollars, according to an analysis by the Massachusetts Taxpayers Foundation. Contrary to the common belief that the Commonwealth can finance its unmet needs through economic growth, addressing any substantial portion of these spending ambitions would push the state budget deeply into deficit under any reasonable set of assumptions about future tax receipts and spending growth, the MTF analysis concludes.
The recent actions of outgoing Governor Mitt Romney to cut a number of budget items will be among the first issues to be reviewed, and there will be strong pressures to restore these cuts. An important Technology Bond bill with a number of important projects is another issue left over from the previous session. The new Governor, like many of his predecessors, says he doesn’t like the Legislature to earmark funds form specific projects, yet legislators believe that these projects are important to their regions or to the Commonwealth as a whole. If an executive administration is unresponsive to the needs of various legislative districts, interested parties press their senators and representatives to address the matters through the budget. Obviously, the strength of the state’s economy and revenue growth helps or hinders the ability of a governor or the Legislature to respond to pressing public needs.
2. Health Care. Implementation and sustainability of the landmark Massachusetts Health Care Reform law, coping with the health and service needs of a growing elder population living at home rather than in nursing homes, reducing the pressure of rising medical malpractice premiums, cutting patient infection rates, easing the stress on municipal budgets of spiraling public employee health insurance, and addressing shortages in the health care workforce of nurses, physicians, pharmacists, public health workers, and others are all key issues in a long list of concerns.
3. Education. Continuing to address education funding needs while easing the burden on local property taxes, pushing for continued achievement and accountability of students and teachers, building or renovating school facilities both locally and in higher education, and providing assistance to keep tuition and fees within the range of affordability for middle income families top the list of concerns in this area that is so critical to the state’s economic future.
4. Transportation. Finishing the construction and safety repairs of the “Big Dig,” restoring the state’s crumbling infrastructure of roads and bridges, expanding commuter rail service, protecting the state’s investment in the Massachusetts Turnpike, promoting tourism, and dealing with the cost and complications imposed by the federal government’s “Real ID” driver licensing mandate are all big ticket items that must be addressed.
5. Immigration. While the problem of illegal immigration is the result of failures of our federal government, must of the burden is borne by state and local government. Within the state’s limited authority to respond to this issue, the state must make it clear to employers that hiring illegal aliens is not acceptable. While steps must be taken to prevent illegal aliens from driving without licenses, a more thorough public discussion is needed regarding the issue of tuition charges for children of illegal aliens who graduate from Massachusetts high schools and want to seek legal citizenship.
6. Public Safety. Making our neighborhoods safe from sexual predators and violence continues to confound law enforcement, the courts, policy makers and others. Reforming the state’s administration of building codes and standards, preventing abuse of children and elders, reducing traffic deaths and injuries from drunk or sleep impaired drivers, and addressing the problems of substance abuse are clearly on the list for action.
7. Energy and Environment. Joining other Northeast states in the Regional Greenhouse Gas Initiative to reduce global warming, promoting alternative energy development, investing in the state’s parks, promoting acquisition of open space are key issues on the upcoming agenda.
8. Smart Growth/Economic Development. Reforming the state’s affordable housing law - Chapter 40B – to give communities more leverage with developers, establishing new tools for economic development such as the proposed Chapter 40T, promoting the growth of the biotechnology industry, are critical to the state’s future economic success.
9. Same Sex Marriage. The issue may be gaining some level of public acceptance, but it will not go away without giving the voters an opportunity to agree or disagree with the Supreme Judicial Court’s opinion. At the same time, same sex relationships should be permitted to share health and life insurance, inheritance of property and assets, joint ownership of property, hospital visitation, etc.
10. Housing. One of the biggest anchors dragging down state economic growth is the lack of affordable housing of all types. In addition, housing costs – including heating, home repair, and property taxes – make it difficult for senior citizens, for children to remain in the community where they were raised and for those who work for municipal governments to be able to live in the community that employs them.
