Middleboro Review 2: POLITICO Massachusetts Playbook: Tax breaks’ big break on Beacon Hill

Thursday, May 5, 2022

POLITICO Massachusetts Playbook: Tax breaks’ big break on Beacon Hill

Presented by Reproductive Equity Now

OH WHAT A RELIEF IT IS — They say you can’t always get what you want, but it turns out Charlie Baker just might.

Karen Spilka wants tax relief.

Yes, you read that right. More than three months after the governor first urged the Legislature to cut residents a tax break — to little avail — the Senate president is now calling on her colleagues to draft a tax relief package before the end of session in July.

Spilka was spurred by soaring tax revenues. April tax collections added up to $6.9 billion, the state said yesterday. That’s over $2 billion more than expected and leaves the state at least $3.5 billion ahead of its year-to-date benchmark with two months left in the fiscal year.

“I believe we can safely balance targeted spending investments to a number of crucial areas, such as housing, childcare and higher education, with tax relief for individuals and families who are feeling the effects of inflation and continued economic disruption,” Spilka said in a surprise evening statement, in which she also set the timeline for turning to tax relief for after the Senate budget is done later this month.

But it’s unclear whether any of Baker’s proposed $700 million in tax breaks for renters, seniors and low-income workers, or his requests to lower the tax rate on short-term capital gains and increase the estate tax threshold, will be included. Spilka didn’t delve into any details yesterday. She mentioned working with the House, where Speaker Ron Mariano has expressed openness to some form of tax relief and has hinted at the estate tax, but has remained vague beyond that.

It was a roller-coaster of a day for the governor, who was making the media rounds to push his tax cuts before Spilka’s big announcement, and who also saw the Revenue Committee reviewing his tax cut proposal punt on making its recommendation until the last day of session. Baker told the Boston Globe that billions of dollars of surplus revenue means “people deserve our help, and we can give it to them — and still fund all the stuff that people want to fund.”

GOOD THURSDAY MORNING, MASSACHUSETTS. It's been over a month since Senate staffers asked Spilka to voluntarily recognize their union and meet with its representatives. They're still waiting.

"The Massachusetts State House Employee Union cannot engage in productive dialogue with Senate Leadership if we are not invited to have a seat at the table," the group said in a new statement. "With her and the Massachusetts state Senate’s track record for supporting organized labor, we are still hopeful she will also affirm her support for her staff."

Spilka said this week she's still waiting on Senate counsel to work through what she called "complex, thorny issues," surrounding the unionization effort.

TODAY — Baker speaks at State House News Service’s “Net Zero Massachusetts” event at 8:30 a.m. in Boston. Baker and Lt. Gov. Karyn Polito announce the administration’s fiscal 2023-2027 capital investment plan at 1:30 p.m. at the Quincy Courthouse. Polito and Rep. Jim McGovern attend a ribbon-cutting ceremony in Auburn at 11 a.m.

Former Gov. Deval Patrick speaks at the MassBio State of Possible Conference, which starts at 8 a.m. in Cambridge. Former state Sen. Dianne Wilkerson is on “Notorious in the Morning” at 8:30 a.m. AG Maura Healey and state Rep. Chynah Tyler host a campaign media availability on child care policy at 11:15 a.m. at Ellis Early Education Center in Boston. Assistant House Speaker Katherine Clark tours Asian-owned small businesses in Malden and speaks at the Massachusetts AAPI Celebration Lunch at 2 p.m. at South Cove Community Health. Advocates for “Ollie’s Law” to increase safety regulations at doggy day cares and boarding facilities host a “Pics with Paws for Protection Laws” event at 12:30 p.m. outside the State House.

Tips? Scoops? Email me: lkashinsky@politico.com.

A message from Reproductive Equity Now:

Abortion rights are under attack like never before. Right here in Massachusetts, thousands of college students live in “access deserts” where the nearest abortion provider is an hours-long trip away. That cannot stand. Navigating an unplanned pregnancy is stressful. But accessing medication abortion shouldn’t be. We have an opportunity to ensure that abortion care is accessible to all across the Commonwealth. State legislators must pass An Act to Require Public Universities to Provide Medication Abortion. Learn more.

BALLOT BATTLES

— REVVING UP: The battle over app-based drivers’ classification is even more likely to head to the ballot after state lawmakers failed to act on proponents’ proposed legislation by yesterday’s deadline.

Petitioners now have to gather 13,374 new signatures by July 6 to secure their spot on the November ballot for questions regarding the availability of licenses for alcohol sale, dental insurance regulations and classification and benefits for rideshare and delivery drivers. The tech-backed coalition pushing the driver classification question is still circulating two versions of its petition, but only one is expected to make the ballot, the secretary of state’s office said.

Both sides of the driver classification battle have been preparing to head to the ballot for some time. But first they have to get through court. The state’s Supreme Judicial Court heard arguments yesterday over both the app-based driver and alcohol-sale license questions, with opponents arguing that they go against the state’s rule that lets initiatives go to a vote only if they cover a single topic, not unrelated ones. The court also heard arguments over the proposed millionaires’ tax:

— “On ‘millionaires tax’ ballot question, Mass. high court weighs just how well voters speak legalese,” by Matt Stout and Jon Chesto, Boston Globe: “The Supreme Judicial Court on Wednesday took up the latest challenge to the proposal to tax annual earnings above $1 million, with opponents asking the justices to change how the measure is summarized for voters. ... The measure says that all new revenue from this tax — estimated to be anywhere from $1.3 billion to more than $2 billion annually — would be earmarked for education or transportation. But it also includes a crucial phrase: The money would be ‘subject to appropriation’ by the Legislature, meaning lawmakers ultimately decide how it’s spent. The Massachusetts High Technology Council, a business group which filed the challenge with the SJC, has asked that a line be inserted into the summary indicating that the Legislature could ultimately reduce funding on education and transportation from other sources and simply replace it with the new surtax revenue.”

THE LATEST NUMBERS

— “Massachusetts logs nearly 3,000 new COVID cases, virus hospitalizations recede,” by Rick Sobey, Boston Herald: “The state Department of Public Health’s report of 2,985 cases was up 6% from last Wednesday’s total of 2,807 infections.”

DATELINE BEACON HILL

— “What finally put undocumented immigrant driver’s license bill in play?” by Shira Schoenberg, CommonWealth Magazine: “The first time a bill was proposed in Massachusetts to let immigrants without legal status obtain a driver’s license was in 2003. Since then, bills have regularly been introduced, languished in committee, and quietly been disposed of. In February, the Massachusetts House for the first time passed a bill that would let this population get driver’s licenses, and the Senate is poised to follow suit on Thursday. … Those involved say there are multiple factors. Immigrant organizations have been championing the bill for years, led in the early days by the Irish International Immigrant Center, Brazilian Worker Center, and the Massachusetts Immigrant and Refugee Advocacy Coalition, among others. But an expanded coalition co-led by labor unions took over the campaign in 2019 and has been more successful in its organizing. The national debate on immigration has also shifted. And the bill itself changed, with stricter provisions requiring immigrants to prove their identity. That has moved more law enforcement officials to back the bill, which in turn makes more legislators comfortable.”

— “Harmony Montgomery’s safety and well-being not given priority, Mass. report finds,” by Laura Crimaldi and Elizabeth Koh, Boston Globe: “In an unsparing report, the Massachusetts Office of the Child Advocate declared Wednesday that the state’s child welfare system systematically overlooked the needs of Harmony Montgomery, who was last seen two years ago, just months after the 4-year-old girl was placed with her troubled father and moved to New Hampshire. The first public accounting of the high-profile case by Massachusetts officials, the report documented failures at every turn by the Department of Children and Families and the juvenile court to safeguard the girl’s well-being. The missteps culminated in February 2019 when a juvenile court judge placed the child in the care of her father, Adam Montgomery, 32, a man with a violent criminal history who had only shown sporadic interest in his daughter.”

— “Housing secretary says state must get MBTA zoning proposal 'right',” by Ethan Forman, Gloucester Daily Times: “The creation of multifamily zoning in 175 MBTA communities, including those on Cape Ann, is something the state must get right to solve the housing crunch, state Housing and Economic Development Secretary Mike Kennealy told a group of 80 business leaders Wednesday morning in Essex. … Kennealy was asked how the state could overcome resistance to the proposed zoning. ‘The folks who are resistant to new housing,’ he said, ‘you should ask them, ‘Where do you think their kids are going to live?’ 'Where is the next generation in this state going to live if we never resolve this?'”

— “More immigrants seeking public assistance,” by Christian M. Wade, Eagle-Tribune: “The number of refugees and non-U.S. citizens seeking financial help from the state's primary cash assistance program, known as Transitional Aid to Families with Dependent Children, jumped by more than 60% between 2020 and 2021, according to the report from the state Department of Transitional Assistance. The state provided welfare benefits to more than 3,000 non-citizen recipients last year, the report noted, compared to 1,819 in the preceding year.”

— “Asserting that fetuses have rights, draft SCOTUS opinion could lead to abortion ban even in states like Mass., experts warn,” by Milton J. Valencia, Boston Globe: “A federal ban based on the ruling could set up legal challenges of state laws that protect a woman’s rights to decide. Massachusetts’ Constitution grants far broader legal rights than the federal Constitution allows, say legal observers, who point out the state was the first to legalize same-sex marriage. But federal law trumps state law.”

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VAX-ACHUSETTS

— “COVID study: Nearly 13% of hospitalized patients had serious neurologic symptoms,” by Rick Sobey, Boston Herald: “About one out of every eight patients admitted to the hospital for COVID-19 had serious neurologic symptoms, according to a new study from Boston University School of Medicine.”

FROM THE HUB

— “Following Supreme Court ruling, Salem’s Satanic Temple wants to fly its flag at Boston City Hall,” by Danny McDonald, Boston Globe: “The Satanic Temple has applied to fly its flag at City Hall Plaza — a move made immediately in the wake of an unanimous US Supreme Court ruling earlier this week that found the city of Boston violated the First Amendment rights of a Christian group by refusing to fly a flag bearing a cross outside City Hall in 2017.”

ON THE STUMP

— NEW: Auditor hopeful and state Sen. Diana DiZoglio has returned 6,500 certified signatures to the secretary of state’s office, more than the 5,000 she needs to get on the ballot. Her campaign said DiZoglio appears to be the first statewide Democratic candidate to return papers to the secretary.

— “Auditor candidate Chris Dempsey accuses rival Sen. Diana DiZoglio of a ‘falsehood born of willful ignorance’,” by Alison Kuznitz, MassLive: “State auditor candidate and Sen. Diana DiZoglio accused opponent Chris Dempsey this week of not publicly weighing in on the Minneapolis police killing of George Floyd nearly two years ago, with the murder igniting a massive wave of protests and police reform bills across the country, including in Massachusetts. … But Dempsey, the former assistant secretary of transportation under Gov. Deval Patrick, decried that as a ‘falsehood born of willful ignorance.’"

— “In 2 key New England races, the candidates disagree over abortion — and the outcomes could have a major impact,” by James Pindell, Boston Globe: “Incumbent Governor Janet Mills, a Democrat, has worked with a Democratic-led Legislature to strengthen abortion rights in her state. … Her likely Republican opponent, former governor Paul LePage, who opposes abortion rights, issued a statement the same day, declaring that during his time as governor he had ‘a proven history of supporting life.’ … [In New Hampshire], Senator Maggie Hassan, a Democrat who favors abortion rights, is in a neck and neck contest with a large Republican field, almost all of whom oppose them.”

A message from Reproductive Equity Now:

HEALEY WATCH

— “Former Boston mobster to Maura Healey: I want my money back,” by Sean Philip Cotter, Boston Herald: “Aging former Boston mobster Vincent ‘The Animal’ Ferrara is suing Attorney General Maura Healey, claiming the guv hopeful’s office wrongfully swiped a bunch of his money — and he wants it back. Ferrara, now 73 and of Revere, alleges that Healey’s assistant attorneys general rolled in last September with a warrant and confiscated $268,000 across two bank accounts in his name as part of some sort of new enforcement operation.”

— “Some Massachusetts tax filers to receive part of $2.3 million TurboTax settlement amid 'misleading tactics',” by WCVB: “Under the terms of the settlement, Massachusetts will receive $2.3 million for tens of thousands of eligible consumers who were allegedly deceived into paying to file their federal tax return, the attorney general's office said.”

WARREN REPORT

— “Warren Proposes Giving U.S. FTC Power to Probe Price Gouging,” by Laura Davison, Bloomberg: “Senator Elizabeth Warren says she’s writing a bill that would empower the Federal Trade Commission to investigate price gouging on products from food to fuel, which she said would bring immediate relief to families.”

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THE PRESSLEY PARTY

— “Pressley renews calls for ending filibuster, expanding court following leaked SCOTUS draft opinion,” by Saraya Wintersmith, GBH News: “Democratic Congresswoman Ayanna Pressley responded Wednesday to a leaked draft Supreme Court opinion that suggested the justices will overturn Roe v. Wade, saying Congress should expand the number of justices on the Supreme Court, end the filibuster and pass a federal law ensuring abortion access.”

FROM THE 413

— “‘Sick’ Springfield courthouse trial delayed again as settlement talks continue,” by Stephanie Barry, Springfield Republican: “A trial over working conditions at the Roderick L. Ireland Courthouse set to go off in Boston on Thursday has been delayed again until Monday, an attorney for the plaintiffs confirmed. The trial has been rescheduled once again as settlement talks persist between current and former courthouse employees and state Trial Court officials, according to Springfield lawyer Jeffrey Morneau.”

— “UMass chancellor condemns new emails targeting Black students as ‘deeply racist,’ vows to investigate,” by Scott Merzbach, Daily Hampshire Gazette: “Several months after racist emails were sent to Black student groups at the University of Massachusetts, prompting an ongoing investigation into their origins, Chancellor Kumble R. Subbaswamy announced that additional emails, containing similar messages, were received Tuesday evening."

— “The Birds have landed. Here's what you need to know about Pittsfield's new e-scooters,” by Meg Britton-Mehlisch, Berkshire Eagle: “Last week, a fleet of sleek, silver and blue electric scooters — known as Birds — arrived in the city's downtown. Since then, the scooters have been used for 905 rides as part of a soft launch, officials said Wednesday. It's part of a profit-sharing agreement between Bird, based in Santa Monica, Calif., and the city of Pittsfield.”

A message from Reproductive Equity Now:

The future of Roe v. Wade hangs in the balance and abortion rights are under attack like never before. Here in Massachusetts, we have an opportunity and obligation to ensure that abortion care is accessible to all people across the Commonwealth. But right now, thousands of college students across Massachusetts live in “access deserts.” Without access to medication abortion on campus, some students are forced to travel for hours on public transportation to access care. We must ensure that the Commonwealth is a beacon for reproductive freedom — and that starts with improving access to care on our college campuses. That’s why state legislators must pass An Act to Require Public Universities to Provide Medication Abortion. Navigating an unplanned pregnancy is stressful. Accessing medication abortion shouldn’t be. Learn more.

THE LOCAL ANGLE

— “Diesel prices surge to record high $6.10 in Massachusetts: ‘It’s unimaginable right now’,” by Rick Sobey, Boston Herald: “The average price of $6.10 per gallon across the Bay State is nearly $1 more per gallon than a week ago. With trucks using diesel, experts worry that a continuing rise in fuel costs will affect prices at your local grocery store, on top of the inflation that has already caused prices to soar.”

— “RMV will not further reach out to more than 800 Massachusetts drivers who were granted licenses without taking road test,” by Heather Morrison, MassLive: “About 2,100 drivers in Massachusetts received a notice in February that they needed to return to the RMV to take a road test after they were granted licenses without taking the test. But not everyone returned. There are still 838 customers that failed to take the required road test. Their licenses, the Massachusetts Department of Transportation said, have been suspended but they will not be sending those drivers any further notifications.”

— “Mass. public companies added 100K workers. Here's who gained (and lost) the most,” by Don Seiffert, Boston Business Journal: “Massachusetts-based public companies added nearly 100,000 employees last year through acquisitions or hiring. ... That’s more than any year since 2018, when those same companies grew headcount by 155,000.”

TRANSITIONS — David Melly , a state House alum, has joined the Environmental League of Massachusetts as legislative director.

— Former Boston Herald reporter Amy Sokolow is now a digital executive producer at 7News.

HAPPY BIRTHDAY — to Endpoints’ Nicole DeFeudis, Nicole Serrano, Brian Fry and Jedd Ari Fisch. Happy belated to GWU’s Todd Belt.

NEW HORSE RACE ALERT: SCOTUS SHOCKWAVES COULD SHAKE MASS. — Reproductive Equity Now Executive Director Rebecca Hart Holder discusses the draft SCOTUS majority opinion, published by POLITICO, that could strike down Roe v. Wade with hosts Steve Koczela and Lisa Kashinsky. Koczela runs through MassINC Polling Group's latest poll on Covid-19’s impact on education. Subscribe and listen on iTunes and Sound Cloud.

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