Transportation Finance Forum: Wednesday March 6
Join me, the Medford, Somerville and Winchester Chambers of Commerce and the rest of our legislative delegations at a
Transportation Finance Forum
Wednesday March 6 from 5:30 to 7:30 p.m.
Century Bank, 400 Mystic Ave, Medford.
Keynote: Mass. Department of Transportation Secretary Richard Davey
Panel:
Eric Bourassa, Director of Transportation Division, Metropolitan Area Planning Council (MAPC),
Alan MacDonald, Mass. Business Roundtable, Mass. DOT Board, Mass. Transportation Finance Commission, Winchester resident
Hayes Morrison, Somerville Director of Transportation and Infrastructure
Elizabeth Weyant, Advocacy Director, Transportation for Massachusetts (T4MA)
Comments: Somerville Mayor Joe Curtatone
Come to learn about the importance of transportation to residents and businesses, what options are on the table, and how to positively influence the discussion on Beacon Hill.
Read my op ed on the importance of major increases in transportation finance.
Questions? Contact Sara Doherty at 617-722-1578 or sara.doherty@masenate.gov..
New Revenue, Renewed Communities
Governor Patrick's budget proposal is aimed to generate revenue for major investment in transportation and education. I will be working to ensure that our tax system is fair, adequate, stable, simple, and efficient.
As a share of personal income, state taxes have been cut by over $3 billion since the 1990’s. Since 1977, when we were in fact among the highest tax states, we’ve cut taxes more than any state but Arizona with a 26% decrease, while the national average decrease was 7%. Some of those tax cuts are ones most people don’t even know about, including special business tax breaks to particular sectors, which have more than doubled in the last 15 years. (To learn more about those tax cuts, visit Mass Budget.)
If we paid the same portion of our income in taxes as in the 1990’s, we wouldn’t have a deficit -- we’d have another $2.5 billion to spend on education, home care, transportation, and other needs.
The recession has impacted us all – some more than others – and I understand that every penny of income is important to residents across the Commonwealth. While it is important to make smart investments that will help our state’s economy to grow,but also to raise revenue in a way that will not disproportionately affect low and middle income people.
The governor’s proposal focuses new spending on crucial areas to restore our economy through investments in transportation and education. It is broadly progressive, lowering the regressive sales tax from 6.25% to 4.5% (a 28% cut) and raising the income tax to 6.25% (a 15.9% increase). Doubling the personal exemption rate means people wouldn’t be taxed on the first $8,800 they make. The Governor’s proposal offers a menu, and we should consider his proposals, along with other alternatives.
One alternative is An Act to Invest in our Communities, which would raise revenues in order to reduce budget cuts, but also to make the tax system in Massachusetts fairer. It would generate an additional $1.2 billion annually in net state revenues, while reducing taxes, on average, for households in the bottom half of the income distribution.
Often, discussion of revenue is separate from discussion of what services that revenue pays for.
Tax cuts, exacerbated by the recession and the rising price of health care, have resulted in reductions in important areas, as we are reminded in every Ways and Means hearing. At last week’s hearing, for example, sheriffs reported a reduction of 756 employees (an 11.6% cut) since 2009, while the various courts have lost between 11% and 20% of their staff, resulting in increased costs as cases are postponed and individuals await trial in jail.
Massachusetts has cut aid to local education by 8%, early education and care by 27%, and higher education by 29% in the past 12 years. This is dangerous, since the most important resource we have to attract businesses to Massachusetts is our educated workforce. Too many children come to kindergarten already lagging behind, and too many young people can’t afford higher education.
Seniors have been affected by the cuts too. When Public Health spending was cut by 23%, there were fewer inspectors to check on conditions in nursing homes, or in compounding pharmacies, among other things. The wait list for home care is now over 1200, and funding for home care has gone down in the past 4 years, despite increased numbers of seniors.
Transportation funding is at a crisis point. For decades, Massachusetts has underfunded repairs of our transit, roads, and bridges. We borrowed for current expenses like patching up 40-year-old Red Line cars. Report after report has shown the need for major investment in repairs to all our transportation infrastructure. Failure to invest puts our economy at risk. Every year CNBC ranks “America’s Top States for Business.” From 2011 to 2012, Massachusetts fell from 6th overall to 28th. While Massachusetts remains among the top ranked states in most categories, the state’s ranking in the category of Infrastructure & Transportation fell from 29th to 45th.
Budget Hearings, Meetings: Speak Up!
I've been attending the Ways and Means hearings, from Boston to Greenfield. And dozens of people from our district have been visiting and writing to advocate for their budget priorities. I hope you'll let me know what you care about most.
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