Jehlen budget event, 5/1

Berger led off by demonstrating that the budget had still not recovered from the tax cuts of the 90’s; that the local economy could not produce the tax revenues now that it did in the go-go (bubble) years of the 90’s. In fact, we’re still way below FY 2002 levels in any number of areas: environment, Chapter 70 education aid, public health. Berger emphasized that business depends as much on public investment as does the public at large. (As I write this, it seems foolish even to separate the two.) Berger also pointed out that tax cuts for favored businesses have not worked, most notably the manufacturing tax credit of the 1990’s. Manufacturing continued to leave MA (and the US), while the money could have been spent to better educate the workforce.

Berger then took on the corporate tax loopholes that Gov. Patrick has proposed closing. Folks, I defy anyone to reasonably defend the specifics of these loopholes: for example, turning ownership of an office building into a “partnership” to avoid a transfer tax, then dissolving the partnership once it’s sold. That’s just bogus. (Here’s more on those.)

Sullivan was next: He outlined the Governor’s strategies for closing the loopholes, and maintained that Patrick only went after unintended tax benefits, not actual pro-active policy decisions in the tax code. He showed that the House’s budget relies more heavily on taking from the rainy day fund than the Governor’s budget. He also discussed the benefits of moving municipal unions into the state insurance system, and moving underperforming pension funds into the state’s system. For this he took some heat from a Medford firefighter, a member of the city’s pension board: “You’re raiding our funds.” That’s absolutely false, but it shows there’s some resistance to this plan (and the GIC consolidation) from some fairly powerful interests.

Nilsson of Neighbor to Neighbor put an end to the wonkery with a cheerleading style, encouraging people to get in their representatives’ faces, and citing Wal-Mart as an example of a corporate tax dodge. This worked: One soft-spoken woman declared “It pisses me off.” Nilsson says N2N is now talking with small business owners who are not benefiting from the loopholes that larger businesses can exploit. And they encourage you to pick up the phone and call a rep or sen: 617-722-2000.

A lively Q&A followed: Most questions were directed at Sullivan, as the governor’s representative. Sullivan deflected the concern that Verizon would pass the cost of taxing telephone poles onto the consumer: They can try, but after all, they can only charge what the market will bear. A school superintendent complained of the money ordinary schools lose to charter schools; and asked about state assistance with buying energy on the open market; apparently the state has a person for just that.

One intriguing question: Why does the state pay $3000/month to house homeless families in emergency shelters, instead of paying housing vouchers? (Hey, you could get a pretty nifty place for $3000/mo.) Sullivan answered that the governor  favors a comprehensive approach with more prevention.

Kudos to Sen. Jehlen for helping bring such information to the public. When people know what’s going on, they feel empowered to act. It’s one more step away from Godzilla vs. Mothra politics when ordinary folks — even if only a few — have some understanding of complicated issues.

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