BHB: January 2003 Archives

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Beacon Hill Beat By Curt Lovelace

January 2003 Editions. Compiled from staff reports, wire services, and the State House News Service.

Catherine A. Boudreau, President of the Massachusetts Teachers Association, responded to the possibility of cuts in the state's education budget on Thursday. In a press release, she wrote, "Gov. Mitt Romney's proposed budget cuts will hurt public school children and students at our state and community colleges and the University of Massachusetts. Public education is a core service of state government and an investment in the future. By making these cuts, Gov. Romney is breaking his promise to protect essential services from the budget ax. In addition, these cuts will have a negative long-term impact on our economy."

Outlining several ways in which the union believes Gov. Romney's proposed cuts will harm the Commonwealth, Boudreau concluded, "Education cuts are penny-wise and pound-foolish. The Legislature has the option of raising revenues in order to avoid them. Options for this year include tapping deeper into the Rainy Day Fund and borrowing against the Tobacco Trust Fund. For next year and beyond, it is critically important for the Legislature to adopt new sources of revenue. The governor must keep his promise to protect education and the other core government services he has pledged to maintain."

The most important story on Beacon Hill this week is the effort to control the state's budget deficit. Gov. Mitt Romney on Thursday hiked fees, announced layoffs, and slashed state spending on health care, public safety, education, aid to cities and towns, and dozens of other programs. The governor raised fees by $5 million and cut $343 million in spending.

The governor also announced plans to lay off 125 state workers, and called on the Legislature to approve $143 million in additional cost-cutting measures, including $39 million in health care savings, such as forcing state workers to pay more for coverage. The House and Senate will likely debate the second set of proposals next week. If passed into law, the entire plan would close a cavernous budget gap. Romney says the problem could reach $650 million by June 30.

Lt. Gov. Kerry Healey, hoping to blunt the impact of a $114 million local aid cut, proposed on Thursday a savings package targeting union-backed wage and construction rules. Healey said the "burdensome" rules add to local government costs. The package, which was still being assembled Thursday afternoon, could save communities between $75 million and $100 million a year. The House and Senate may debate the proposal and other Romney administration cost-cutting plans next week. Healey said the plan was the fruit of a two-week circuit she has taken around the state, soliciting cost-saving ideas from 300 local officials in 80 communities.

"This package is by no means exhaustive, nor does it conclude our actions on behalf of local government or my outreach to individual communities," Healey said. "Our administration views this package as a first step in what will be an ongoing dialogue between local government and the administration." The plan would abolish civil service requirements for local workers, excluding firefighters and police officers. Civil service rules were established more than a century ago to professionalize the public workforce, but Healey said they have become "just another layer of bureaucracy." The plan would also hike the amount communities can ask their workers to pay for health insurance, from 10 percent to 25 percent. Romney has asked that state workers pay the same share for health insurance.

The legislation, which the administration has called Help Ease Local Pressures (HELP), would also allow communities greater flexibility to spend funds as needed in the last two months of a fiscal year. It also allows localities to give early retirement incentives to their workers, to reduce payroll costs.

Senate President Robert Travaglini has emerged as the lone leader on Beacon Hill to endorse a tax hike as a way to close the budget gap without decimating government programs. "We have a core mission here, and once we go below that level, I'm going to kick in,'' Travaglini said in an interview published Wednesday. ''There's no appetite in this building or in this business to raise taxes, but there's also no willingness to abandon the core mission of government. You reach a point where you say, `You can't go there.' The system implodes, and you have to provide.''

Travaglini's position puts him squarely at odds with House Speaker Thomas Finneran, a fellow Democrat, who has dismissed talk of taxes, and, most clearly, with Republican Gov. Mitt Romney, who has staked his budget balancing plan on a pledge to avoid any tax increases. Until now, Travaglini has said he would seek to respect the strong anti-tax sentiment voters registered when the elected Romney and nearly passed a ballot plan to wipe out the income tax. House Ways and Means Chairman John Rogers (D-Norwood) also recently suggested tax hikes should be considered.

Metropolitan District Commissioner David Balfour will step down in a couple of weeks; he was asked to do so Wednesday by Environmental Affairs Secretary Ellen Roy Herzfelder. "They need to do what they need to do," Balfour, 49, told the State House News Service late Wednesday. "We'll learn a lot more over the next 24 hours as to what the future of the agency is. There are thousands of different rumors going around." The $50 million agency, which oversees a 20,000-acre parks system, as well as public swimming pools, skating rinks and beaches, has for years been a target of restructuring plans to merge its functions with other public entities.

Lt. Gov. Kerry Healey was accompanied to Wednesday's Governor's Council meeting by the Romney administration's two latest hires who will staff the Judicial Nominating Council. Healey and Gov. Mitt Romney have tapped former Suffolk County District Attorney Ralph Martin to head up the JNC that has helped recent governors recruit and screen potential judges. Martin and Romney's Chief Legal Counsel Daniel Winslow are in the process of rewriting the executive order Romney will use to reconstitute the JNC and issue new guidelines for reviewing applicants. The attorneys who will make up the council have yet to be named but they are expected to be in place Mar. 1 when the new system will be launched.

This week, Healey introduced the eight elected governor's councilors, who provide advice and consent to judicial appointments, to the two JNC staff members who will oversee the process. The JNC's new executive director is Elissa Flynn-Poppey. She's a Suffolk Law School graduate who most recently was an associate with the Boston firm of Melick, Porter & Shea. Flynn-Poppey will be assisted by Linda Wilson.

Labor agreements on major public works projects are limiting municipalities to union-only contracts and adding millions of dollars to the cost of building new schools, according to a Beacon Hill Institute study. Economists from the Suffolk University Department of Economics reviewed expenditures at 52 school construction projects and found project labor agreements added $31.74 per square foot to costs. Cities and towns that agree to project labor accords spend an average of 17.3 percent more than they would using a competitive and open bidding process, the study said.

Project labor agreement supporters say they guarantee quality work on big projects and fair compensation for workers. The agreements, between public entities and construction unions, require all workers to be hired through union halls and the application of union employment rules. Workers in exchange pledge not to strike. Institute officials say the study is the first attempt to provide statistical evidence on the cost of project labor agreements. The study looks only at school construction but its authors extrapolate their findings to conclude that the use of such agreements added $1.8 billion in costs to the state's big-ticket projects, including the Big Dig, the Boston Harbor Cleanup and the new Boston Convention Center. The study is available at www.beaconhill.org.

Wednesday January 29, 2003
Romney's Budget-Cutting Ax Falls on Press Secretaries

Describing it as an "extremely wasteful system" that "makes no sense," Gov. Mitt Romney on Tuesday consolidated state government's communications structure, firing 21 press secretaries and announcing a centralized method of communicating to the public through the press. The move will shave $1.2 million off the state budget.

Romney's press operation, led by communications director Eric Fehrnstrom and Romney press secretary Shawn Feddeman, will have a hand in most pressing issues. The new system requires Cabinet press secretaries to "coordinate on policy matters and issues of urgent concern" with the governor's press office. All but two of the state's Cabinet-level agencies will have press secretaries.

Spokespeople at most sub-Cabinet agencies, except those with built-in public information functions like the Department of Public Health, are being let go. And eleven sub-Cabinet press secretary positions will be eliminated or left vacant, with affected employees moving to non-press roles. Sub-Cabinet agencies that will retain spokespeople include the Department of Public Health, Registry of Motor Vehicles, Department of Revenue, Department of Correction, Division of Insurance, Department of Environmental Protection, Department of Social Services, Department of Education, and the Massachusetts Emergency Management Agency. Two of the ten Cabinet-level entities - Health and Human Services and Consumer Affairs and Business Regulation - do not yet have full-time press secretaries. The governor's office will handle press calls for the Executive Office of Administration and Finance and the Department of Labor and Economic Development

Secretary of Administration and Finance Eric Kriss will likely announce emergency budget cuts on Thursday. Such major announcements in recent years have typically been announced by
governors, with an opportunity for questions. In addition, Lt. Gov. Kerry Healey will likely outline non-monetary proposals to ease the bite of local aid cuts.

A panel representing law enforcement, corrections, religious advocacy, and academia will discuss how best to reintegrate prisoners into society at a forum Wednesday sponsored by MassINC, the non-profit policy think tank. The event follows the release of a MassINC report, "Prisoner Re-Entry: What are the Next Steps?"

Speakers include Lt. Gov. Kerry Healey, a criminologist by profession, Public Safety Secretary Edward Flynn, Anne Morrison Piehl from the Kennedy School of Government, Truesee Allah, of the Nation of Islam's Ministry of Outreach, Tim App, executive director of the Massachusetts Parole Board, Suffolk County Sheriff Andrea Cabral, Boston Police Superintendent Paul Joyce, Lowell Police Superintendent Edward Davis and Rep. Marie St. Fleur (D-Boston), sponsor of post-release supervision legislation.

The Senate on Monday sent the House its version of proposed joint rules changes and appointed five members to a special committee that will examine joint rules. Senate President Robert Travaglini announced the following members have been appointed to a the Special Committee on Joint Rules: Sens. Stephen Brewer, (D-Barre), Frederick Berry, (D-Peabody), Richard Moore, (D- Uxbridge), Richard Tisei (R-Wakefield), and Joan Menard (D-Somerset). The Senate meets next at 11 a.m. Thursday without a calendar. It looks like there won't be any formal sessions this week.

Saying budget cuts have added a "sense of urgency" to their mission, the Children's League of Massachusetts on Monday said they would push to expand their influence beyond state-run bureaus and improve communications between families and consumer groups. The league represents more than 50 agencies that aid children. The league includes public and private providers of services and funding, but plans to expand its scope to organizations representing children and families who have received services. League officials said they're not pressing for more public funding, given the dismal fiscal climate, but are making a greater effort to band together in difficult times.

With hundreds of millions of dollars worth of disputed Big Dig contract claims still pending, the Massachusetts Turnpike Authority this week announced that retired judge Edward Ginsburg will lead a comprehensive review designed to recover costs on past and present contracts. Ginsburg will work in consultation with Inspector General Gregory Sullivan, external engineers and the turnpike's legal team. At the end of their review, officials at the turnpike and inspector general's office will consult with Attorney General Thomas Reilly.

The representation of the 3rd Barnstable House District remains in the hands of a special committee on elections. A recommendation to the House as to whether to officially seat Falmouth Democrat Rep. Matthew Patrick could come this week. Patrick was re-elected by a 17-vote margin, but Republican Larry Wheatley challenged his victory in court.

A Barnstable Superior Court judge ordered the Legislature to schedule a special election in light of evidence that several irregularities existed on Election Day, jeopardizing the validity of Patrick's win.

House Majority Leader Salvatore DiMasi chairs the special committee, accompanied by Rep. Eugene O'Flaherty (D-Chelsea), and Rep. George Peterson (R-Grafton). Peterson said he expects the committee to meet sometime this week, as members received copies of the transcript from last week's hearing Thursday. He's optimistic they will have a recommendation for the full House by week's end, but has yet to receive a schedule from DiMasi. The majority leader's office said there is no definitive timetable, but there may be a meeting announced Monday or Tuesday. Peterson said he believes House members have the jurisdiction to decide the matter, and that a special election is warranted. O'Flaherty called the case a "novel situation" and said he is still reviewing the evidence and conferring with the House counsel to determine the appropriate next step.

The House and Senate have passed differing versions of plans to change the joint rules that govern the ways the branches interact and the flow of legislation. A conference committee may soon be appointed to settle differences, unless legislative leaders can reach an agreement informally.

Members of the Democratic State Committee meet tonight in Framingham. Up for discussion are plans for caucuses across the state on Feb. 8. Delegates will then be chosen for the party's June convention in Lowell, and the ongoing work of two special committees. One, co-chaired by US Rep. James McGovern of Worcester and former Gov. Michael Dukakis, is exploring options to improve the nominating convention process. The number of candidates running for statewide office, and the need for more than one ballot in some races, overwhelmed planners of last summer's conclave and left candidates and party regulars frustrated and embarrassed.

Another panel is exploring ways to assure that the party's message resonates with a wider audience. When voters in November handed Republicans the governor's office for the fourth consecutive four-year term, Democrats howled and the finger pointing at first appeared to threaten party chairman Philip Johnston. He quickly tapped a special committee to perfect an outreach effort that would attract voters from across the philosophical spectrum to the Democratic column. Named to co-chair it were conservative Sen. Guy Glodis of Worcester and his liberal colleague, Sen. Jarrett Barrios of Cambridge.

Budget Cuts Curtail Income Tax Audits in Commonwealth

Budget cuts and layoffs at the Department of Revenue have led to a "virtual discontinuance" of personal income tax audits and the curtailing of corporate tax audits, based on a review by Inspector General Gregory Sullivan. Romney administration officials and legislative leaders learned of the findings in a letter released Friday morning. Sullivan said payroll records indicate DOR has 25 percent fewer full-time tax administration employees than it did in June 2000. Some of those who remain have been pressed into routine return processing work due to cuts in the agency's seasonal workforce, Sullivan says.

While no specific estimate is provided, Sullivan says that based on historical state and national tax data, the state is losing out on more than $100 million in tax revenues that would be secured by more field audits. Sullivan said DOR is doing its best with a limited budget, but other states are bolstering auditing to help generate tax receipts to balance budgets. Sullivan is urging Beacon Hill to increase funds for auditing because, he says, every dollar spent in this area generates $5 to $15.

As expected, Republicans selected Darrell Crate, on Wednesday night, to serve as Committee Chairman. Crate, the choice of Gov. Mitt Romney, defeated Michael Gilleran 54 to 11. There were four blank votes.

The only surprise to veteran committee members was the number of committee members present for the meeting. One long-time member told the Beacon Hill Beat that she had never seen this many members in attendance at a meeting. Out of 80 members, 71 were attended. This was really surprising, the longtime committeewoman said, in light of both the frigid weather and the fact that "everybody already knew that Darrell was going to win."

Gilleran has run for the position twice before, but dropped out before the votes were taken in each case. One committee member remarked that "if Gilleran had given the speech that he gave last night two years ago, he might have one." But, this committee member explained, this wasn't likely on Wednesday, because this was a "tight operation."

Crate replaces Jean Inman, who was filling out the remainder of the term of now-Lt. Gov. Kerry Healey. Inman did not run for the position.

Following two hours of debate that featured a look back at why senators were unhappy under former Senate President Thomas Birmingham, the Senate on Thursday adopted rules changes on a 33-5 vote. The Senate then quickly adopted joint rules changes, which must be worked out with the House.

The House met briefly Thursday morning before adjourning until Monday when another informal session is scheduled. There was no word as to when Speaker Thomas Finneran will announce his leadership and committee assignments but most believe that news will come early next week.

The 24 new House members on Thursday elected Rep. Michael Costello (D-Newburyport) as president of their freshman class. Costello is the son of former House and Senate member Nicholas Costello (D-Amesbury). The new representatives also elected Jennifer Callahan (D-Sutton) as vice-president, Robert Coughlin (D-Dedham) as treasurer and Republican Donald Humason, Jr. of Westfield as secretary.

The House on Wednesday overwhelmingly approved new rules governing the flow of bills, dismissing criticism from Republicans who said the changes would "create one terrific logjam." The joint rules, approved by a vote of 128 to 22, control the movement of bills between the House and Senate over the two-year legislative session, which has just begun.

One change would allow legislative committees to hold bills until the third Wednesday in April of the second year of the legislative session. Current rules force committees to act on legislation by June of the first year. House leaders said the change would allow rank-and-file lawmakers more time to review complex issues. "This will be a better process," said Rep. Salvatore DiMasi (D-Boston), the House Majority Leader. "Members said they needed more time."

But Republican Leader Bradley Jones of North Reading said holding bills until April in the second year would not leave time for debate on important issues on the House floor. The new deadline falls just before the Legislature focuses its attention on the state budget each spring. Jones said it would lead to a confusing crush of legislative activity just before formal sessions end. "We are going to get a bottleneck of bills, and they won't get the attention they deserve," said Jones. "That's going to create one terrific logjam."

Legislation that appears headed quickly for Gov. Mitt Romney's desk would help newly installed Essex County District Attorney Jonathan Blodgett overcome a serious fiscal obstacle early in his tenure. While Blodgett retained more than 90 percent of the staff engaged by his predecessor, one-time DA Kevin Burke, five individuals who left the office are eligible for a combined $201,000 in accrued sick leave and unused vacation benefits. Payment of that sum is more than Blodgett can afford and the pending bill would allow him to pay it out over a three-year period. Senate Majority Leader Frederick Berry (D-Peabody) marshaled the bill through the Senate on Tuesday and it was given an initial endorsement Wednesday in the House.

Economists and fiscal experts delivered sobering news Wednesday to state officials still reeling from a record drop in tax collections: it's not going to get much better anytime soon. Tax forecasts released by the Department of Revenue and the Massachusetts Taxpayers Foundation confirm predictions of a $600 million state budget deficit in the fiscal year that ends in June and a spending gap of at least $2 billion in fiscal 2004, which begins July 1. Economists said their forecasts are complicated by the uncertainty over a war with Iraq. Romney aides and legislative leaders hope to agree on a fiscal 2004 revenue estimate by Monday, Feb. 3.

Wednesday January 22, 2003
$600 Million in Budget Cuts May Be Announced Next Week

Gov. Mitt Romney plans to announce up to $600 million in budget cuts sometime next week, a spokesman said Tuesday. The cuts will likely include $200 million in local aid reductions, and $400 million in cuts to other areas, such as state services, communications chief Eric Fehrnstrom said. The governor also plans to unveil legislation he hopes will ease financial burdens on cities and towns. The bill may include changes to construction and bidding rules, and relaxing of mandates from the state on cities and towns. Romney also plans to update his forecast for this fiscal year's projected budget deficit, which his administration has said could reach $600 million.

In an announcement which should catch nobody by surprise, the state's largest teachers' union went on the record Tuesday in opposition to establishing 11 new charter schools. The Massachusetts Teachers Association consider the move "reckless and irresponsible" because it comes in the midst of a fiscal crisis in state government. Association officials say expanding the number of charter schools will take more money away from traditional public schools at a time when school aid may soon be hit with budget cuts. Of course, the union also opposed charter schools in good financial times.

Proponents of charter schools say they represent a viable and successful option for parents who want more education choices for their children.

Three public hearings will be held this week to review applications for six new charter schools in Boston, and one each in Haverhill, North Adams, Salem, Waltham and Worcester. Final votes on the proposals by the Board of Education will be taken in February.

Democratic and Republican House members will caucus today before launching a 1 p.m. debate on proposed changes in the Joint Rules that govern operations of the two branches acting in concert. An order offered by Rep. Salvatore DiMasi, the Boston Democrat who is Speaker Thomas Finneran's point man on rules, recommends changes in several Joint Rules.

Senators on Thursday take a look at their own rules as well as joint rules. Debate is not expected to approach the intensity of that on the other side of the State House two weeks ago when House members worked on their rules.

New Senate President Robert Travaglini (D-East Boston) continues to define what his leadership of the Senate will look like. With his latest announcement he also signaled the start of real work in the Senate for the current session. Late last week he named his committee chairmen and assigned members to committee assignments on Friday. The appointments define the areas of public policy that the state's 40 senators will work on this year. The assignments are as follows.

Rules And Ethics (Consolidated)
Brewer - chair, Murray - vice chair, Menard, Montigny
Ways And Means
Murray - chair, Panagikotakos - vice-chair, Tolman - assistance vice-chair,
Antonioni, Brewer, Fargo, Jacques, Magnani, Morrissey, Nuciforo, Pacheco,
Resor, Shannon, Wilkerson
Third Reading
Shannon - chair, Hart - vice-chair, Barrios, Moore
Long-Term Debt (New Committee)
Montigny - chair, Magnani - vice-chair, Brewer, Chandler, Moore, Wilkerson
Science And Technology
Melconian - chair, Magnani - vice-chair, Fargo, Tolman, Tucker
Steering And Policy
Jacques - chair, Melconian - vice-chair, Baddour, Glodis, Hart, Montigny,
Moore, Nuciforo, O'Leary
Post Audit & Oversight
Pacheco - chair, Fargo - vice-chair, Havern, Joyce, Moore, Panagiotakos
Banks & Banking
Nuciforo - chairman, Joyce - vice-chair, Creedon, O'Leary, Tolman
Commerce & Labor
Hart - chair, McGee - vice-chair, Magnani, Tucker, Wilkerson
Counties
Tolman - chair, O'Leary - vice-chair, Baddour, Chandler, Moore
Criminal Justice
McGee - chair, Antonioni - vice-chair, Creedon, Creem, Morrissey
Education, Arts & Humanities
Antonioni - chairman, Magnani - vice-chair, O'Leary, Resor, Wilkerson
Election Laws
Joyce - chair, Glodis - vice-chair, Nuciforo, Shannon, Wilkerson
Energy
O'Leary - chair, Magnani - vice-chair, Chandler, Resor, Tolman
Federal Financial Assistance
Havern - chair, Melconian - vice-chair, Berry, Menard, Walsh
Government Regulations
Morrissey - chair, Tucker - vice-chair, Baddour, Hart, McGee
Health Care
Moore - chair, Barrios - vice-chair, Chandler, Fargo, Tucker
Housing And Urban Development
Chandler - chair, Panagiotakos - vice-chair, Berry, O'Leary, Tucker
Human Services And Elderly Affairs
Tucker - chair, Wilkerson - vice-chair, Barrios, Fargo, McGee
Insurance
Glodis - chair, Wilkerson - vice-chair, Jacques, Montigny, Shannon
Judiciary
Creedon - chair, Baddour - vice-chair, Antonioni, Jacques, Wilkerson
Local Affairs
Fargo - chair, Wilkerson - vice-chair, Creem, Nuciforo, Tolman
Natural Resources And Agriculture
Resor - chair, Brewer - vice-chair, Creedon, Fargo, Pacheco
Public Safety
Barrios - chair, Joyce - vice-chair, Brewer, Chandler, Pacheco
Public Service
Magnani - chair, Tolman - vice-chair, Hart, Joyce, Shannon
State Administration
Wilkerson - chair, Fargo - vice-chair, Glodis, Shannon, Tolman
Taxation
Creem - chair, Rosenberg - vice-chair, Havern, Jacques, O'Leary
Transportation
Baddour - chair, Chandler - vice-chair, Hart, McGee, Montigny

Last week, State Treasurer Timothy Cahill tapped Rep. Joseph Sullivan (D-Braintree) to run the State Lottery. Sullivan is expected to resign from the House within the next week or two. With almost a full two years left in the representative's term, House Speaker Finneran is expected to set a date for the special election so the 5th Norfolk District will be represented when the House confronts the next round of tough budget decisions this spring. The district covers Braintree, one precinct in Holbrook and one precinct in Randolph.

The annual joint revenue hearing tomorrow arrives two months earlier than usual, a sign the Romney administration and the Legislature are indeed working together in an attempt to arrive at a consensus revenue number for fiscal year 2004. Arriving at such an agreement before Romney files his budget is almost certain to help the process, which in other years has dragged on for months. Given the current 'fiscal emergency' that has resulted in the Legislature granting Romney unprecedented powers to cut spending, delays or disagreements about projected revenues stand in the way of consensus solutions.

Senate Ways and Means Chairwoman Therese Murray (D-Plymouth) and Secretary of Administration and Finance Eric Kriss will preside, along with Rep. John Rogers (D-Norwood), who served as House Ways and Means chairman last year. House Speaker Thomas Finneran has not yet announced his chairmen for the new session. Testimony is expected from Department of Revenue Commissioner Alan Lebovidge, Massachusetts Taxpayers Foundation Executive Director Michael Widmer, economists Fred Breimyer of State Street Bank, Dr. Alan Clayton Matthews of the UMass Department of Public Policy, and Yolanda Kodrzycki from the Federal Reserve Bank in Boston.

The 80 members of the Republican State Committee tomorrow night pick a new chairman to lead the party in what Gov. Mitt Romney and other party leaders hope will be a rebuilding effort. In the hunt for the unpaid spot atop the party hierarchy are businessman Darrell Crate, Romney's choice, and Michael Gilleran of Wellesley, an attorney who has twice before campaigned for the top spot and backed out just before each election. In 2001, Gilleran withdrew from his own campaign when Kerry Healey sought the top spot and Gilleran was persuaded to serve as her deputy director. Crate also has ties to now Lt. Gov. Healey since he works as chief financial officer of Affiliated Managers Group, a financial firm operated by Healey's husband. The state committee making Wednesday's decision is made up of one man and one woman from each of the state's 40 senatorial districts.