Patrick Still Harboring Concerns As Tax Bill Heads For House-Senate Talks
The state Senate's solid support for a package of $600 million in new revenue for transportation may have eased tensions on Beacon Hill, but the prospects for an amicable resolution between the governor and Legislature on tax hikes remain uncertain.
The debate over taxes and long-term funding for the state's public transit and transportation system sizzled for weeks leading up to Monday's running of the Boston Marathon, but the topic has understandably taken a backseat following the tragic bombings that left three dead and over 170 injured.
With the House poised this week to begin debate on its $33.8 billion state budget plan, the issue should surface again quickly and questions remain about how Gov. Deval Patrick will respond after threatening to veto the House bill, but relaxing his stance toward the Senate version.
After a 10-hour session, the Senate voted 30-5 early on April 13 in favor of a funding plan that directs $600 million in new revenue to transportation, and claims to support as much as an $800 million new investment by 2018. The proposal mirrors the $500 million tax package approved by the House, but calls for new revenues from the lease of MBTA and MassDOT land to utilities and the diversion to transportation of tax revenues currently committed to underground storage tank removal.
Patrick called the Senate bill a "significant step" in the direction of finding $1 billion more a year for transportation improvements, but expressed concerns that lawmakers may need to overcome to avoid his veto.
"It is concerning that some of the resources in this bill are diverted from current spending on other needs, such as education, the social safety net and environmental protection. I expect us all to focus on that as this bill moves into conference committee and as both bodies debate their budget proposals," Patrick said in a statement that administration officials said he wrote himself last week.
Patrick said he will also be analyzing the bill to decipher whether the new sources of revenue in the Senate bill, which include the gas tax, tobacco taxes, property leasing and business taxes, will be reliable in the future and available soon enough to accelerate repairs and system improvements to create jobs and economic development.
"As we analyze the bill in more detail, our focus will be on whether we can rely on these new resources in the future and when they will be available, because the sooner we start rebuilding our system, the sooner we get the many jobs these improvements will bring. We will also be looking to see whether the bill gives MassDOT the authority to make the additional reforms and achieve the savings we and others have sought," Patrick said in the statement.
House budget officials last week huddled to review the 888 amendments filed to the Ways and Means budget that will be debated starting today.
A spokeswoman for Ways and Means Chairman Rep. Brian Dempsey said the Haverhill Democrat is not concerned about beginning budget deliberations with the transportation financing issue unresolved, even though the House budget assumes $265 million in revenue from new taxes for transportation.
"He feels the votes in both branches were representative of support," said the Dempsey spokeswoman.
The House on Thursday named Dempsey, Transportation Committee Co-chair Rep. William Straus, and Rep. Steven Howitt (R-Seekonk) to a conference committee that will try to merge the House and Senate bills. After meeting over the weekend to pass its bill, the Senate on Thursday adjourned until Monday without naming negotiators to work with the House.
House leaders rounded up 97 votes of support for their tax package, falling at least a handful short of those required to override a veto from Patrick. While some House liberals voted against the House plan, the Senate movement to a higher new revenue number and greater transportation investments succeeded in turning most liberal opponents in the Senate who may have tried to hold out for a larger tax package similar to the governor's initial plan.
"I think it will be more attractive to those of us who were hoping for more revenue, but what it will do for those skittish about new taxes, I don't know," Rep. Jonathan Hecht, a Watertown Democrat, said about the Senate transportation financing plan.
Hecht voted against the House tax bill, and said it's too early to know how he will respond to the eventual compromise legislation.
"I think the Legislature missed an opportunity to do something to help the economy both in the short term and in the long term in a way that could be paid for fairly. As for what I'll do when the bill comes out of conference, we'll have to see what comes out," Hecht said.
Hecht said he opposed the House bill because it was "inadequate" and the way the House leaders proposed to pay for the transportation investment with gas, tobacco and business taxes "wasn't as fair as it could be.
"Rep. Josh Cutler, a freshman Democrat from Duxbury, said he hasn't had a chance to closely review the Senate bill yet. "I would start from a position of no. I would have to be convinced, and right now I haven't been convinced," Cutler told the News Service.
Cutler voted against the House bill because he felt "on balance weighing the pros and cons to my district it wasn't going to help."
"My focus would be on infrastructure improvement. I voted in favor of the amendment to relieve the Big Dig debt burden from the MBTA. I'd like to see before we go to the taxpayers that we're exhausting every other possibility and I don't feel we have yet," Cutler said.
Straus said last week that the House's 29 Republicans and between 10 and 15 House Democrats are committed to voting against new taxes in any form. If conferees can craft a plan that holds the Senate support exhibited on last week and flips a few "nay" votes to "yea," Democratic legislative leaders would be able to force their plan into law even if Patrick ends up using his veto option.
Counting those who missed the vote, Straus said 101 House members support the House plan.
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