Rep. Hynes State House Report March, 2003 Romney Budget: Governor Mitt Romney has unveiled his first state budget in this most unusual of times. Against the background of a fiscal deficit of $3.2 billion, Romney seeks to remain true to his campaign promises to balance the budget without new taxes by restructuring government agencies and programs and eliminating waste and inefficiency. The Governor deserves credit for proposing what he promised. Not all of his recommendations will be adopted, as he himself recognizes, but each will be genuinely evaluated and scrutinized to see if it truly achieves the primary objective of reducing costs without the elimination of core essential services. The Governor's proposal may, in fact, be overly optimistic in the savings it achieves and may overstate the value of certain appropriations (ie: Local Aid) but the Governor does seek to reshape and reorder state government in the most widespread reorganization of the last 50 years. All citizens must be engaged in this process, telling us in government the programs they believe are essential: concerned, not simply with self benefit, but the needs of others. The Legislature needs to work responsibly with the Governor to meet the overarching objective of eliminating the deficit and sustaining core services, without economically disadvantaging taxpayers. Sacrifices will be asked of all but I am confident that working together we, as a Commonwealth, will emerge stable, strong, and better prepared to meet the daunting challenges of this new century. FY '02 Deficit Reduction: The Governor and Legislature are hopeful they have solved the ongoing budget deficit of the current fiscal year. The Governor was given additional emergency powers to reduce spending across all expenditures. He acted swiftly reducing, among other items, Local Aid by $114 Million. I was able to meet personally with the Governor to argue that such reductions, with more than half of the year already gone, needs to be done fairly, equitably, and in a balanced manner for every municipality. He agreed to this and reduced two principal accounts, Additional Assistance and Lottery Aid, by 9.35% each. In addition to the emergency reductions made by the Governor, the Legislature passed a $207 Million fiscal balancing plan, closing out several dedicated accounts and increasing fees at the Registry of Deeds, requested by the Governor. Local Aid: The Governor's FY '04 Budget cuts state revenue sharing to municipalities by $350 Million. In the principal Local Aid accounts, the Governor asserts there is no greater than a 10.5 % reduction for any community. I make no quarrel with the need for Local Aid reductions. The new reality is that the state is broke, and everyone has to face these hard facts. Spending will be cut in every area and, in fact, the Legislature's reductions in Local Aid may be even more drastic - closer to the 20% loss for which I have been suggesting Town Managers prudently budget. Where I quarrel with the Romney Budget on Local Aid is with his prescription. He sees state revenue sharing as the way to redistribute wealth; to give little to those municipalities whose property and per capita income is high and to give much to poorer communities. He abandons the primary reason for the construction and support of Local Aid in the past 40 years, the fundamental purpose for the Lottery, and that is to provide state monies to every municipality so that there can be meaningful reductions and less reliance on the property tax. Many of us will challenge the abandonment of this basic value. Mentally Ill: One of the programs the Governor initially eliminated was $12 Million for the operation of day treatment programs for the mentally ill. These programs, promised to be continuously available when the old institutions were closed decades ago, are essential to the profoundly mentally ill. Without such programs these folks will fall deeper into the black hole of depression, suicide, and dysfunction. Several of us brought this to the Governor who actively listened and reversed this decision. Thus, at least for now, these vitally important day treatment services will continue to make an essential difference in the lives of some of our community's most vulnerable citizens. State Economy/Revenues: The national and Massachusetts economic climate continues to remain bleak. Economists from the Federal Reserve Bank of Boston, the University of Massachusetts and others have revised expectations of a more immediate rebound in the national and state economies. International uncertainty and the outcome of the Iraq situation seem to constrain most from investing in the American economy in any way which would arrest the current anxiety and lead to more sustainable growth. All agree this will definitely come in time but it will be later rather than sooner. State finances are particularly affected by this uncertainty and, in fact, February revenues failed again to meet projections, perhaps due more specifically to the President's Day snowstorm which had the effect of causing a white out to the most productive retail day of the month. Additionally, Massachusetts job losses continue, with the greatest losses being in the financial and technology sector, with those laid off, therein, finding themselves unemployed for longer than is traditional. The best advice being offered is "continue to hang on; expect this rough ride to continue for awhile longer!" Pharmacy Fee Refund: Recently, Massachusetts' three major pharmacy chains yielded to the outcry from concerned citizens, members of the Legislature, and Attorney General Tom Reilly, agreeing to stop passing on the $1.30 fee assessed on each prescription to their customers. Brooks, Walgreens, and CVS pharmacies have also said they will provide refunds to consumers who paid the fee an important victory for residents who need medication. Meanwhile I am watching this issue closely to help ensure that citizens are not gouged. I am continuing to cosponsor legislation to repeal the fee, since I believe any levy on medications is poor public policy, whether the customer or the pharmacy is picking up the tab. In addition, I will persist in exploring new ways that Massachusetts residents can access cheaper drugs, like bulk purchasing, whereby the state would buy pharmaceuticals directly from the manufacturers at a discount. Tax Benefits: While we find this time of year particularly taxing, as we prepare our tax returns for the IRS and Department of Revenue, let us not overlook those items which may benefit our situation. Two such benefits which I had a hand in developing are the Title V Tax Credit and the Circuit Breaker for senior citizens. An owner occupant of a principal residence may be entitled to a tax credit for the repair or replacement of a failed cesspool or septic system. The amount of the Title V Tax Credit for those who qualify is equal to 40 percent of $15,000. The maximum credit that may be claimed in any one year is $1500, up to over four years, the maximum aggregate credit of $6000. Look for the property form enclosed in your copy of the Massachusetts Income Tax Form 1…. The Circuit Breaker allows an owner or renter of a principal residence , who is age 65 or older, to claim a refundable tax credit to affect burdensome property taxes.. Limits apply for qualifying applicants to both their annual income and to the assessed valuation of their residence. The maximum credit allowed is $790. For more information, please contact the local Council on Aging or my office. Reflection: "Not a day passes over the earth, but men and women of no note do great udiep; deeds, speak great words, and suffer noble sorrows." Charles Reade Back to top of page |