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Sen. Moore votes for budget that reflects state’s fiscal challenges June 22, 2009 ... In the face of serious fiscal challenges from the continuing recession, including severe drops in state revenue collections, Sen. Richard T. Moore, D-Uxbridge, and his colleagues in the Legislature on Friday approved a $27.4 billion budget that balances the urgent need for additional revenues with necessary relief for cities and towns. The governor has 10 days to either sign the budget legislation or send it back to the Legislature. The new fiscal year begins July 1. “I voted for the final FY10 budget plan, but did so reluctantly,” remarked Sen. Moore. “We've heard the sometimes conflicting concerns of voters as the revenue has dropped sharply, and we have produced the best budget we could in the midst of economic calamity. Cuts in important safety net services we care about have been made, although hesitantly, and we've had to put aside the demands of special interests for favored treatment.” 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 the Commonwealth. Even at 6.25 percent, 30 other states will have a higher aggregate state sales tax rate than Massachusetts. “I previously voted against raising the sales tax, and would have preferred not to support any new taxes or fees in the final budget,” continued Sen. Moore. “But, in the end, there were no good choices. Given the continuing decline in revenue, our best hope is that the economy begins to turn around. There are a few positive signs, but it looks like next year's FY11 budget will present equally stark choices. It should be noted,” Moore stated, “that public employees, including legislators, have experienced cuts in health care and pensions.” In comparison to the FY09 budget passed last year, the recently-enacted FY10 budget sees 50 line item expenditures eliminated; the consolidation of another 160 line items; and a total of 800 earmarks eliminated, saving the taxpaying citizens of the Commonwealth an estimated $170 million. “The Senate and House made tough decisions,” Senate President Therese Murray, D-Plymouth, said. “Even as we faced the unprecedented pressures of this economic crisis, we delivered a responsible budget on time that raises necessary revenues for the state and offers relief to our cities and towns. And coming after the Legislature’s approval of landmark transportation reform, the budget also provides revenue that should prevent a planned toll increase July 1. With a combination of difficult cuts, new revenues and key reforms, we have put together a balanced budget to see the Commonwealth through this next fiscal year as we continue to work with the Administration on difficult challenges in this recession.” 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 also 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 among neighboring communities to share resources. “Despite the grim economic news that has been following us for some time now, real reforms have been initiated in Massachusetts as the Legislature has taken a lightning-fast response to streamlining and improving our state government,” remarked Sen. Moore. Coming one day after the Legislature sent comprehensive transportation reform to the Governor’s desk, the conference budget includes a provision to help sustain and improve the state transportation system moving forward. 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 will 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 for cities and towns; and raises health benefit contributions for all state employees by 5 percent, saving $50 million for the Commonwealth. |
