Saturday, May 23, 2009

Reform before Revenue

Lately in Massachusetts, this catch phrase has lead to all sorts of one-upmanship and criticism in the State House. The Governor has threatened to veto a proposed sales tax until he gets real reform and the House and Senate has gone off on the Governor for not understanding the process. I think we all need to take a step back and start again.

The newspapers and blogs have taken the Governor’s side in this and have gone as far as asking citizens to call their legislators to tell them to reform the system before revenue enhancements. This is complicated and let me give you one legislators opinion.

First, there is the premise that Legislators don’t want to reform the processes that we govern by. This is not true. As a matter of fact, both the House and Senate have passed various reform bills concerning ethics, pensions, and transportation. We are now reconciling these in conference committee. This is the process by which we work. The Governor should understand that. Second, while you may or may not agree with all the parts in the bills passed, all would be an improvement on the existing statutes. These will get better in conference and I think that most will be happy with the final bills.

So why not do these before the budget and any revenue increases? Our budget has to be passed by July 1st. We need to pass budgets in the House and Senate prior to that in order to conference the budget and get it to the Governor in time for his deliberations and signing. We can’t stop this practice as the state wouldn’t have a budget if we did and that would be bad for all of us. And we have a huge budget crisis that needs our attention. This is the worst I have seen in my 23 years in the Legislature and we need to resolve it before we know what else we can do on things such as transportation.

The Legislature is frustrated with the governor because he should understand this. The ethics bill doesn’t save a dime for the state and I would suggest that it doesn’t make us any more ethical. If you have a bad apple, they will continue to be ethically challenged regardless of how many laws one passes. This doesn’t mean that we shouldn’t examine our laws and change them to reflect our times, but this is not the most pressing issue for most people. As for the pension bill, by the Governor’s own words, it saves $1 billion over the next twenty years. We need to save $1.5 billion additionally in our budget this year because of lowered revenue figures in the past month! Again, I think most people would agree that we need to stop some of the past practices regarding pensions, but the real crisis is the budget and how we keep services intact for the citizens of the state.

I believe that the Governor is setting up “straw men” with issues that are popular with the press and play well. This is an old and reliable political ploy. However, his reticence to work with the Legislature on budget issues makes it far more difficult to resolve our budget problems.

The Governor has chastised the Legislature for not passing his gas tax. Then he has criticized us for passing a sales tax. As I have said in the past, the sales tax was not my first choice, but it was the only one with enough votes to pass. The Governor has said that a broad based tax such as the sales tax is a thumb in the eye to the citizens of the Commonwealth. Yet his gas tax would be a far larger broad based tax and much more unfair to large regions of the state. His criticism of taxes rings hollow in the face of the proposed gas, sugar, rooms, telecom and meals taxes that he has proposed. His suggestion that expanded gambling in Massachusetts is a broad based tax on the poorest residents and his department of revenue has increased their enforcement of business taxes to the point that the business community is ready to revolt.

If we want to restore the faith of the electorate, we need to pass a balanced budget that is intelligent and fair. Most people that I have talked to aren’t all that concerned about another ethics law. They equate it to dozens of gun laws and yet we still have gun crimes in the Commonwealth. If you want an honest legislature, elect honest people and let them do their jobs. People in my district are concerned over their health care, whether they can buy a house, get a job or get their kid into a college and afford to pay for it. They are worried about the economy and whether their property taxes will go up if the state can’t afford local aid. They are worried that their bridge won’t get repaired or their state park my not open or that their child can’t get a summer job. These are all budget issues. We need to finish our budget deliberations in order to do that.

Again, as I have said in the past, our budget doesn’t balance in the best of times. That is why we’ve laid off big dig debt on the Turnpike. It is why we took school building assistance and the MBTA out of our budget and gave them a revenue stream. It is why we were so backlogged in capital projects. And it is why we don’t fully fund health care each year shorting one part or another of the system. We can’t afford to do all this with the healthiest of revenue streams.

Rather than calling cuts reforms; and rather than kicking each other over the process, we should be working together on the worst budget crisis in the last 70 plus years. We should be planning for when we get out of this. We should being working to expand the economy. And we should be trying to find ways to do things cheaper while maintaining services because this is true reform.

But that takes hard work. It is easier to criticize one another over who is at fault or who mom likes best.

12 comments:

Middleboro Review said...

Dan,

You made valid points, many of which I fully agree with.

I attended the Governor's Forum in Franklin and listened to very valid comments from the 'public' about gross flaws that need to be corrected to save money.

One gentleman explained the transportation system. Since I was unfamiliar with the lines to which he referred, you'll have to pardon my errors in a synopsis, but he pointed out commuter rail lines that are under-utilized because there is no "shuttle" bus line available at the urban end of the line. (I believe he was specifically referring to the Needham line.) He explained at length the need to re-structure that would eliminate administrative costs, make the system more workable and serve consumers better.

School Administrators spoke out about the ever-changing Federal forms that lead to many not filing for reimbursements. School nurses spoke out about higher reimbursements for school health clinics that represent a duplication of health services.

There were a number of parents of the disabled or special needs population who will lose day programs, transportation and dental care. Many of those cuts will force a parent to leave his/her job to care for the child. Others may have reduced services provided through federal programs.

These and the elder care programs are those that were created to actually save money, prevent institutionalization or nursing home care, as you know.

Since Education, Health Care and the Human Services programs represent the largest portions of the budget, it might seem that the greatest economies could be accomplished in those areas.

Parents spoke out at each of the forums I attended and suggested that the supervisors be eliminated before the case workers.

One parent spoke about a 'special needs' child that regional offices were fighting NOT to provide services to because the care was so expensive. Others have complained about regional offices fighting FOR cases for funding reasons.

I've spoken to parents of special needs student who are 'mainstreamed' and don't belong in classrooms.

We've got an educational system that is extremely expensive and broken. When a high school graduate can't make change because of a power outage or can't compose a simple note without spellcheck, MCAS scores betray.

Middleboro spends + $9 million for health insurance out of a ~ $70 million budget.

At the Taunton Forum, with the Taunton Mayor present, I asked about GIC. From my understanding, since GIC doesn't provide a history of claims, it prevents municipalities from getting competitive bids for comparison.

This economic downturn has provided an opportunity to correct many of the things that just added more people and more programs at a time we could afford it.

From what I heard, consumers of those services have solutions to offer that go unheeded.

Regarding Ethics and Pension Reforms, both have to do with public confidence and not specifically cost savings.

In response to a recent article regarding a local politician who was convicted of corruption, the comments were consistent in echoing a widespread belief that all politicians are corrupt. While that is totally untrue and it could be argued that the conviction indicates that the system works, it's public perception that needs to change.

Greg said...

Dan, The legislature is fighting a strong perception of guilt by association and no matter how correct you are on the actual facts, sometimes you have to assuage the populist feelings. I know you know this, but that is what I see happening.

Perception is stronger than reality on subjective matters.

dan bosley said...

I agree on the reforms that have been heard in the forums are real and many are doable. We need to work with our regional transportation systems in order to buy smaller buses that reflect today's routes and our economic diversity. We can use new fuel efficient buses to sell carbon credits to the market and put that money back into transportation. WE need to consolidate the back room ops for our college systems. this would not only be more efficient, but would stop duplication in our colleges.Everyone wants all the latest "stuff", but we can't afford it. Three are lots of ideas like this that truly reform government while letting it still provide services.

dan bosley said...

Greg, You and MR both mentioned the perception problem and the need to address this. I agree completely, however, here's the problem. No matter what we do, the press and those who want to criticize will always find something to point to. Former Speaker Charlie Flaherty once said that if he walked across the Charles river one day, the next day the local headline would be "Charles Flaherty can't swim!"

That doesn’t mean we shouldn’t address these issues, but our responsibility also calls for us to address the most pressing issues even if they are not the most popular. Our fiscal situation is a disaster unless we address it. That means cuts, reforms, taxes, and setting the stage for economic growth. We need to have a budget in place by July1, and that is difficult given our revenue situation. It also means that we need all of our leadership collectively working to bring forth the best ideas and to make sure we have the will and votes to do what needs to be done.
Having the Governor criticize what many construe to be tough votes doesn’t help and feeds into people cynicism by reinforcing the stereotypes that we aren’t working hard. It also reinforces the Legislature’s belief that the administration takes a very simplistic view toward very complicated issues. The devil really is in all the details in state government. For some reason this administration seems to think that if we can think of something in the morning, it can get done by the afternoon. Issues can be complicated. That doesn’t mean that some aren’t straight forward. I agree that one day equals a year service n our pension system is inequitable and Legislators who choose not to run again shouldn’t get a pension bump. However, take us out of the equation and pension systems are complex and people were hired based on a benefit package. How we effectuate change is complicated. If General Motors issued a statement that they would no longer honor their pension commitments to their employees, we would all be up in arms. Yet that is what the Governor wants us to do to members of one pension plans. Regardless of the equity of the current plan (and since our pensions are offset by social security, few are getting rich from our state pension) we need to work through all of the details before a plan is passed.

Middleboro Review said...

Dan,

I'll try to simplify and be brief, sins for which I have never been accused.

Some of the issues the Governor and the Media have recently raised have been long standing "thorn in the side" issues of voters that the legislature has failed to heed.

They are easily explained with "There are hearings
scheduled XX/XX/XX. to address solutions to this issue.
Come and voice your opinion."

One of the greatest obstacles has been that the hearings are in Boston during workdays.

A number of years ago, Title V hearings were conducted in a number of heavily impacted areas during evening hours and we attended several.

In addition, the legislature has passed laws, many with good reason, that impose mandatory expenses on cash strapped municipalities.

One that quickly comes to mind is the library hours.
Failure to meet those requirements jeopardizes library certification and expels the municipality from the "system" resulting in a loss of privileges.

In good times, maybe it was a sensible requirement.

At present, forced with difficult decisions, what if those requirements were suspended or reduced by 50% for a period of one year?

It might reduce the difficult decisions forced on many
communities of sacrificing their Park Dept. services that keep kids off the streets or their libraries that have become internet resources for job searches and student papers.

Middleboro has 3 historic "sacrificial lambs" -
Library, Park Dept. and COA.

Each of those define a community and serve important functions, are the first to be cut and maybe struggling communities could
provide reduced services with 20% cuts, maybe 4 days week with cooperation from a legislature
that hears what is being expressed.

Middleboro Review said...

Dan,

What I see for "The Future":
Having watched the economic disaster unfold in California, it is reasonable to believe you will
believe you have balanced the budget for this year and be rudely awakened by a deepening recession and further decreasing revenues.

Without vigorous and continuing pursuits of "reforms," creative solutions (unheard of in
government), and unshackling of "state mandates," the options are limited.

Middleboro Review said...

Dan,

Public Education:
The gamesmanship played by the previous Administration that exacerbated our current
crisis was never fully explained by the legislature to the public. Hence, we have a mythical former
governor who accomplished great feats.

One of the all time classic political comments is when Deval Patrick was elected Governor, the state surplus suddenly vanished.

Some have used the local access cable programs wisely and explained to constituents the mysterious workings of government. Most have not.

What I discovered going door to door for various purposes, is that most people have never met or seen their elected officials. Part of that may be that Middleboro has 3 state representatives.
Part of that may be that Middleboro elected John McCain, Mitt Romney, and G.W. Bush and hosted George Wallace.

The omission has not gone unnoticed and will be addressed on a local level in the future.

I firmly believe that cable, the internet, newsletters and blogs such as yours serve an integral purpose in educating the public about the workings of government, allowing voices to be heard and
overcoming the media soundbytes that are inappropriate on difficult topics. BlueMassGroup
and political blogs go a long way, but begin with the premise that the reader understands how government functions.

Having looked around, many towns now offer local "blogs" in which residents can raise questions,
important issues, criticize officials and sometimes receive some very pertinent information that goes beyond the ability of the "sound byte" media to convey.

Beyond that, the failure of legislators to engage the communities and spend some time "educating" voters has created your own monsters. Forced
to rely on Media soundbytes, what choice is there?

This is not intended as a personal criticism, but I firmly believe legislators have allowed constituents to become too isolated from the process. That may have worked in good times, but now? We're in the soup together!

dan bosley said...

I agree with pretty much everything you are saying. I think we have, as a group, become very good at politics, but not governing. We need to spend more time explaining the reasoning behind what we do in order to gain the public's trust.
There are some thorn in the side issues that are not as simple as they seem when presented in a few paragraphs in the paper. But it is up to us to do a better job at explaining. I get very frustrated sometimes when I hear someone say that I may be right, but their constituents will never understand. It is up to us to be leaders in our districts and explain issues.
But the public has a responsibility also. When I first came into the Legislature, people judges you on the body of your work. They may not agree with you all the time, but they voted based on your hard work and explanations. today, there are far more one issue people. If you disagree with them on one issue, they threaten to vote against you. That is frustrating from our perspective. We both have a job to do, and when I get people complaining that my posts are too long, i get frustrated because some issues need a long explanation as they are complicated.

Middleboro Review said...

"...and when I get people complaining that my posts are too long, i get frustrated because some issues need a long explanation as they are complicated."

Dan, while I try my best to simplify issues, reduce my verbiage, I think I beat you - unintentionally! For which I apologize.

Life and issues have become complex and the media seems to have convinced most that "life and issues" can be reduced to a soundbyte, as in "Wilkerson stuffing cash in bra defines politics."

If G.W.B. didn't convince folks about that fallacy, nothing will!

But indulge me, yet again!

About 2 years ago, when we began our Mega Monster Casino Odyssey, few paid attention to town government believing it was unimportant until they awakened to the threat of a 24/7 Mega Monster in their backyards.

The local town government that was mostly ignored has gradually become understood and much the same needs to happen on the state level. And, in time, it will if it is worked at -- by all.

The Middleboro Mega Monster potential spread around as other towns and regions recognized "this could be us."

As services are cut, some will accept the lazy excuse about Beacon Hill's failures, but thinking people will rally around each other to create solutions.

And a few will continue to endorse the Pot Of Gold Fantasy of expanded predatory gambling whether it's slot parlors, racinos or casinos as a cure for all ills.


There is a significant gap between PDA, BMG, and the various political junkies and the electorate that will require time to fill.

As always, I believe people will find the best solutions and much of this will be a painful process in the next 2 years that will create unlikely casualties, some of which can be moderated by wise legislative decisions.

dan bosley said...

Thanks, and I don't mind long posts at all.

I don't mean to minimize the symbolism of some issues nor do I think we can ignore them, but right now we need to come up with some creative solutions to reform the way we do business or else we won't be doing any business. We need more people like you who research the issue (like Gambling) and find out what the facts are, or we will see more people (and politicians)doing whatever is expedient rather than what is right.
Thanks for the posts and for the comments, and keep up the good fight.

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