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From the Metro staff at The Boston Globe

DiMasi: Local aid may be slashed 10 percent next year

December 8, 2008 01:49 PM Email| Comments (62)| Text size +

By Matt Viser, Globe Staff

House Speaker Salvatore F. DiMasi said today that state aid to cities and towns will be cut by up to 10 percent next year, a major drop-off that will likely cause layoffs and major cutbacks in municipalities across Massachusetts.


greene_dimasi3_met_001.jpg
House Speaker Salvatore F. DiMasi

“There's going to have to be some cuts made across the board in fiscal 2010,” DiMasi told a group of reporters in his office. “Now, how much of a cut local aid will take is a matter of how much, it’s not a matter of whether they will take a cut or not … I suggest it’s going to be at least 5 [percent], and as much as 10 percent.”

To lighten the blow, DiMasi is planning to propose legislation to eliminate a major union-backed provision that prevents municipalities from joining the state health insurance program without union approval.

Under current law, cities and town officials must earn the backing of 70 percent of local union members before they can join the state’s Group Insurance Commission. DiMasi argues that the provision has prevented municipalities from joining the state system, whose larger size provides more cost savings through bargaining power with insurance companies.

The budget crunch can be seen in a place like Chicopee, where about half of the city’s $140 million budget comes from state aid.

“It’s more money that we take in for property taxes,” said Mayor Michael D. Bissonnette, who last week directed city department heads to prepare budgets next year that are 8 percent to 15 percent less than this year.

“When you know you’re about to get rained on, you better get your rain gear out,” he said. “So that’s what we’re doing.”

Most municipalities still have not recovered from the last round of cuts to local aid, which began in 2002. When adjusting for inflation, all cities and towns are getting less money from the state than they did in 2002, for a combined loss of $566 million, according to Geoff Beckwith, executive director of the Massachusetts Municipal Association.

“Local aid reductions of those magnitudes would have extraordinary effects on local cities and towns,” Beckwith said. “Our recession in Massachusetts will last longer if our public safety and public education services sag.”

Collectively, cities and towns could save between $436 million and $764 million in fiscal year 2013, according to an estimate by the Massachusetts Taxpayers Foundation. But so far, only 17 municipalities and 10 school districts have joined out of the nearly 480 cities and towns, regional school districts, charter schools, and regional planning agencies that are eligible.

DiMasi also signaled that he would be willing to support Governor Deval Patrick’s plan to allow municipalities to impose new property taxes on telecommunication companies for phone lines. Patrick has also proposed allowing municipalities to impose a meals tax, which DiMasi had vigorously opposed but now calls “a possibility.” When asked whether he would support licensing casinos, he pointed out that the industry has suffered along with the economy but added, "I'm not saying no at all."

“Something needs to be done immediately and expeditiously,” DiMasi said of his proposal on the insurance changes. “These times are unique and immediate action needs to take place.”

Governor Deval Patrick also said the dire times call for dramatic steps.

“I don’t think there’s a lot of good news on the horizon,” Patrick said. “We have done as much as we can to hold local aide and school funding harmless. But I’ve said all along, if we need to go deeper we will go deeper.”

Patrick, Senate President Therese Murray, and DiMasi are planning to meet tonight with the governor’s team of economic advisers. In addition, the state’s top budget officials are scheduled to hold a hearing next week to determine next year’s budget revenue estimates.

“We are in very uncertain and difficult times,” said Senator Steven Panagiotakos, the chairman of the Senate Committee on Ways and Means. “And in many ways we are just now coming into the worst of it, especially with the job losses.”

One particularly dire problem on the horizon is capital gains taxes. State officials have estimated that the taxes will drop by 30 percent, but some budget watchers now expect that figure to go even deeper. For every additional 10 percent loss, the state will have face a $200 million shortfall.

“Expectations need to be kept at a realistic level,” Panagiotakos said. “You can’t think that everything going on globally does not affect state revenues and the state’s investment in core services. It will.”

DiMasi, who has been under fire because of several ongoing ethics investigations, reiterated that he plans to run for speaker again in January. But when asked whether he planned to serve the full two-year term, he said, "I don't know. Do you think you'll have your job two years from now?"

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62 comments so far...
  1. New plan : why not cut spending instead of coming up with more tax ideas - this is exactly why i voted for question 1 - these politicians dont get it - if they cut spending to municipalities then teachers, policemen and firemen get laid off, which is exactly what the opponents to question one said would happen if it passed, and its still happening when it failed - this commonwealth is running itself into the ground at this point.....

    Posted by Matthew December 8, 08 02:13 PM
  1. Hey Sal, how about instead of taking the easy road and whacking the cities and towns, and by extension property taxes andinstead you take a really courageous stand and eliminate bloat and corruption at the state level.
    Eliminate prevailing wage law, reform pensions and eliminate the baloney full retirement after 20 years or less deals at 42 years old, clean up the Lottery Commission, Mass Port, Turnpike and the T where all old hacks go to die after sucking at the taxpayers teat for as long as possible. Get your union pals in line and get concessions instead of contributions and endorsements. Do all that and thebn come to state aid.

    Posted by Outraged taxpayer December 8, 08 02:23 PM
  1. Looks like Czar Demasi is prepping us for some tax increases. Pushing those emotional buttons. "Layoffs in public safety" "Teacher layoffs". Funny, why doesn't the Czar address the sinful retirement perks so rampant in the public sector? Why won't the Czar comply with the ethics Subpeona? Me thinks the Czar is trying to get the spotlight off of his face.

    Posted by XENOPHON December 8, 08 02:24 PM
  1. So for the people that voted to keep the income tax must be glad that they're paying the 5% tax plus in addition, they'd lose local aid, the same local aid that was threatened to be lost if Question 1 passed last month. Mass. resident must love paying taxes.

    Posted by will December 8, 08 02:28 PM
  1. maybe something to generate taxes would be good Mr. Speaker ? Maybe the casino idea is looking better now ? Maybe working with municipalities to generate renewable energy for govt buildings (schools, for example) so they can generate their own energy and not send the money to power companies. Cities are paying ridiculous rates for insurance so let's take the steps NOW to make it more affordable for municipalities, employees of those municipalities so people aren't losing jobs causing another decrease in tax revenues, foreclosures, etc...Time to be smart not political.

    Posted by Dave D December 8, 08 02:28 PM
  1. Alternatively, the beacon hill hacks like Dimasi and his cronies could stop sucking at the taxpayer teet and cut bogus state spending, like paying salaries to the fat cats on the Mass turnpike board.

    Posted by Geoff December 8, 08 02:28 PM
  1. Maybe if the state looked into the spending habits of the friends of the House Speaker, this State could be in a lot better shape. How can someone get away with all he is doing considering two councilors have been taken down and I am sure they aren't the only corrupt ones on Beacon Hill

    Posted by Waide December 8, 08 02:32 PM
  1. Oh great - tax the phone lines so they can raise our bills. Have a meals tax so the politicians can put more "sand in the sandbox". All sounds good with one addition - any money collected under these taxes is used to offset the property tax levy in our local towns. That assures that Prop 2 1/2 is defended - if they want to raise the prop tax - they still have to get an override approved.

    Steve W.

    Posted by Stevil December 8, 08 02:35 PM
  1. Don't worry, all. These never involve layoffs or reductions in salary.

    Posted by Mike December 8, 08 02:40 PM
  1. Maybe if Sal and all his cronies gave back all the special interest money they've accepted local aid wouldnt have to be cut....

    GET RID OF SAL!!! (and all the rest of 'em!)

    Posted by jr December 8, 08 02:43 PM
  1. As long as the layoffs hit the union workers...teachers, police, fire, etc...I don't mind. These unions are killing us. Look no further than the American auto workers unions who more twice an hour more than the workers in the Japanese plants.

    Posted by Steve December 8, 08 02:43 PM
  1. The reason Speaker DiMasi's not sure he's going to complete another two year term as speaker is because any state rep who votes for him will feel their constituents wrath come election time, and even if DiMasi is re-elected as speaker, it's a pretty good bet he'll be indicted and have to resign, before he is convicted. Speaker DiMasi knows all too well that he'll lose his state pension if he's an active state employee when convicted. Sal will bail if he loses the speaker's fight or is indicted. He's not sticking around for two more years of "will he quit before he's indicted" stories. And if my state rep's any example, he told me the last thing he wants to do is to have to again vote for DiMasi as speaker. He said he's received at least a dozen calls and letters from constituents who told him they'll never vote for him again if he votes to re-elect DiMasi as speaker. Apparently, one way or another, through DiMasi's indictment or being repudiated by his House colleagues, Sal's on the outs and change is coming to the Massachusetts House of Representatives!!!

    Posted by ConnyPhil December 8, 08 02:43 PM
  1. Maybe they should also sweeten the deal to allow towns to dump paid police details, too in favor of civilian flaggers.

    Posted by J December 8, 08 02:51 PM
  1. Why don't you bums on the hill cut your pay in half? You dont' work 12 months a year or even come close to 40 hours a week. Oh whats the point the morons of mass keep electing you so they get what they deserve...more big government taking from their citizens.

    Posted by jimmy December 8, 08 02:52 PM
  1. Wow! How naive does the state government think the taxpayers are? The article states "DiMasi also signaled that he would be willing to support Governor Deval Patrick’s plan to allow municipalities to impose new property taxes on telecommunication companies for phone lines." Of course, the Department of Telecommunications & Cable will approve a pass through of these taxes as a cost of business so the ratepayers (aka taxpayers) will be paying for this anyway but instead Patrick, DeMasi, and the public unions can decry the big bad utilities for raising rates on the overextended ratepayer while they continue to get their big raises. This is intellectually dishonest but since the taxpayers voted down the income tax repeal, what do they have to fear at the ballot box in two years?

    Posted by DisinterestedObserver December 8, 08 02:55 PM
  1. I don't see those idiots under the Golden Dome taking any paycuts. They probably will vote themselves a raise!
    I Love My Country, but I Hate and Despise my Government

    Posted by Shaboom December 8, 08 03:04 PM
  1. See I told you. If question one passes, local aid will be cut, services will be cut and property taxes will go up.
    What it failed and they are cutting aid anyway?
    SUCKERS

    Posted by 57-states December 8, 08 03:17 PM
  1. Several cape towns are nothing more than a trough for the lazy. Orleans has over 70 town employees per square mile, and is bloated with debt.

    Posted by Clammer December 8, 08 03:24 PM
  1. Notice you hear these so -called " the people's servants in goverment " talk about cutting aid to cities and towns but you never hear " I will take a pay cut "

    Posted by Barry Serpa December 8, 08 03:28 PM
  1. Bust those municipal unions. They're killing the tax payer.

    Posted by Amin December 8, 08 03:31 PM
  1. When oh when to all public agencies get rid of no show jobs? Those who pay taxes loose services those who do not still get things given to them.

    Posted by emmo December 8, 08 03:32 PM
  1. I thought voting yes on Question 1 was going to take away local aid? See what happens when you do not send a strong message to these hacks. This State is in shambles.....

    Posted by shaun December 8, 08 03:33 PM
  1. I curse all you clowns that voted against question 1. just like I said they going to tax and cut local aid anyway so you should have taken some of the money when you had the chance . Morons in this state will go along with raises taxes ,screw that tell them to layoff all the lazy city and state suckpumps but no , they'll try and layoff teachers and cops and fireman to make their corrupt point .

    Posted by redzone December 8, 08 03:36 PM
  1. I hope they cut by 50% and crime goes up 75% in all towns.

    Posted by Massucks December 8, 08 03:45 PM
  1. Can Sal tap into his vice money to help out here?

    Posted by joemac22 December 8, 08 03:49 PM
  1. Remember when the fearmongers were all, "Ooooh, if you vote yes on Question 1, your local communities will have less aid!"? Well, guess what, it's happening anyway AND you get to have the same amount of state taxes taken out of your paycheck.

    I hope all those who were duped into voting no by the teachers' unions and state legislators will learn from this experience, vote for smaller government, and vote YES on the next initiative that puts money back into workers' pockets.

    Posted by Kristina December 8, 08 03:51 PM
  1. They're not going to cut waste and graft, folks. They're cutting local aid by 10% so as to preserve their waste and graft. That's why they got behind the anti-proposition 1 campaign: they feel entitled to your money, no matter how ineptly they spend it.

    You can be sure, however, that DiMasi and friends will jump up on the grandstand and publicly scold any Bay State employer who lays off employees on account of their own entitlement-addled ineptitude.

    Maybe now when that question -- you know which one -- appears on the ballot again, you'll vote the correct way and force spending increases to be approved through 2-1/2 overrides, rather than the snatch-and-grab legislation that's nickel-and-diming dimwit progressive New Englanders.

    Posted by TheScarecrow December 8, 08 04:05 PM
  1. Didn't I read that the Liquor control board in Boston is a part-time job for 3 people- who each make $85,000, $85,000, and $100,000 a year PART TIME.

    Can we cut some of the patronage and bloat first PLEASE

    Posted by tdest December 8, 08 04:09 PM
  1. 2 Words...CUT SPENDING!

    Posted by kalajen December 8, 08 04:10 PM
  1. It's all Bush'es fault!!

    Posted by Edgar December 8, 08 04:26 PM
  1. here it comes- cuts in all the crtical, high impact services- education and local aid- the front line for MA taxpayers. Of course, left untouched are the defined benefit pensions, the archane union work rules, the waste, patronage and graft. You get the government you deserve...

    Posted by mynameisbob December 8, 08 04:33 PM
  1. And where the heck is our governor- last time I saw him he was bawling in Chicago over a month ago- does he realize there's a crisis? Together we can...

    Posted by bobagain December 8, 08 04:40 PM
  1. I agree with all twenty three comments that iv'e read before me. We must be the only ones who voted yes on question1.
    Time to get with it Massachusetts residents!!

    Posted by bob mcdonald December 8, 08 04:48 PM
  1. Sal,,, Diane and Chuck are waiting for you.

    Posted by RC December 8, 08 04:54 PM
  1. Get rid of DiMasi!!

    Posted by patti111 December 8, 08 05:01 PM
  1. Diane Wilkerson for Governor!!!!!

    Posted by Hung Wang December 8, 08 05:03 PM
  1. I smell a tax increase coming.....This is their way of getting an additional increase in the gas tax...I know this is paving the way, Any bets????

    Posted by ron December 8, 08 05:04 PM
  1. I'd support this on one condition - these new revenues should be used solely to offset current property tax levies. For example, if the levy for the town is $100 million and you collect $10 million in new taxes - the town's taxpayers split $90 million instead of $100 million - everyone gets a 10% tax cut. Otherwise this turns into a giant sand box for the pols to play in.

    Posted by Stevil December 8, 08 05:04 PM
  1. Why do you all waste your time posting here with complaints, call DiMasi:

    Telephone: 617-722-2500

    Rep.SalvatoreDiMasi@hou.state.ma.us

    Posted by mtbr1975 December 8, 08 05:15 PM
  1. The grass is always greener on the other side of the fence. I moved here from New Jersey and my income tax went down from 5.8% to 5.3%. My sales tax went from 7% to 5%. My property taxes went down 40% here from New Jersey. On top of this my car insurance even went down here in MA as well.

    Posted by barco1 December 8, 08 05:25 PM
  1. This is unacceptable. It's time for local leaders - selectmen, mayors, and city counselors to band together (not the inept MMA) and demand that their local reps preserve local aid.

    Posted by Peter B December 8, 08 05:28 PM
  1. This state is not fast becoming a National Joke...That ship has sailed when Question 1 went down in flames...Thanks to the nutty left wingers and teachers unions for brain washing the people of MA...
    Hopefully...someone will bring Question 1 back and the good citizens of MA will have learned a hard lesson....In order to drop pounds...You need to starve the PIGS at the Trough!........Eliminate the bloated government pensions...Toll jobs....Mass Pike.....and full time legislature....and go to a VAT consumer tax.

    Posted by TiredofHacksinMAGovt December 8, 08 05:28 PM
  1. If we are to take a 10% cut in local aid in exchange how about taking over our pension liabilities. Governor Patrick had proposed the smaller pension plans that were not performing up to par of the States plan should have been swallowed up by the State Pension plan. Now is the time for the State to take all the cities and towns pension obligations in exchange for cuts in local aid. The facts are the facts firefighters, policemen, and custodians of the local pension boards are no match for the big boys on Wall Street. We need to put our trust in the professional money managers of the State Pension system.
    Speaking as a former Treasurer of municipality and current School Business Manager the time has come. Then comes the hard part. Pension reform, it is
    so needed.

    so needed

    Posted by Paul December 8, 08 06:01 PM
  1. Public employee unions in Mass should be BUSTED and destroyed. They have gotten us into this mess, so let them feel some pain as we try to get out of it. Lots of good suggestions so far, like getting rid of the prevailing wage laws. It is beyond disgusting that unskilled and uneducated fools are required to be paid $35+ per hour (or whatever it is, in that ballpark) to do jobs that a monkey could do, just because some powerful union nitwits leaned hard on the legislators. That is much more than what the average recent college grad makes around here, even with 5-10 years of experience. If the unions aren't taken on now then they never will be, and this state will continue to descend into economic oblivion. They have to rely on threats and extortion to get wages and benefits that they could never earn with their own skills, and everyone else pays the price. Bust the public employee unions, they are the enemy!!!

    Posted by DB December 8, 08 06:09 PM
  1. Why not eliminate county government? Follow that be eliminating the Senate and all their perks and aids. Also, term limits sure sounds good.

    Posted by ashe December 8, 08 06:12 PM
  1. If you had good pension plan...would you defer it? If you got a raise would you decline it and work for a "hometown discount" to spread resources throughout the company to make it more efficient? Probably not.

    Posted by sabotslugs December 8, 08 06:29 PM
  1. Sure, Sal is thrown out but look at the little piglets already lining up to take Sal's place at the front of the trough. Johnny Rogers from Norwood is a name that's being thrown around. Now there's a real change. More of the same. Business on Beacon Hill will never change. It's a sickness that runs deep and will continue as long as a one party system exists and Pols run unopposed.

    Posted by Tom December 8, 08 06:54 PM
  1. How about we look at more wastefull spending... do you all know that the MCAS that is given in 9th 10th and 11th costs a ton of money to administer (millions). I know the fed picks up some but the towns the rest. I got an idea just get a copy and have a teacher whose job was saved correct it. Then give the real one in the 11th which is the only one you have to pass to graduate. No that makes too much sense lets layoff more teachers expand classes and then complain that our students do horrible on the MCAS. I bettcha some politicians gettin nice and paid by the MCAS administrators company to keep status qou.

    Posted by Fogs December 8, 08 07:21 PM
  1. DUH- It's the PUB(L)ic sector unions plain and simple.
    They are the scourge of the taxes we pay.
    The 'pinky ring' leaders make me puke and the politicians that kowtow to them are vile and reprehesible sellers of their souls for votes to the vile bile.

    Posted by gcwnsw December 8, 08 07:39 PM
  1. hey, 1 through 42 move, if you don't like democracy you can move out of our great state (with the exception of #40) we don't need or want you crybabies for when the going gets tough.

    Posted by Bruce Musler December 8, 08 07:44 PM
  1. Look, we need stop this nonsense and collectively organize to realize the issue is the capitalist system on the national and international level that is the problem and causing our pain and suffering. We need to call on each other to effectively speak truth to power so that we can realize social change and transformation that creates the space for social justice and economic democracy.

    Posted by David December 8, 08 08:00 PM
  1. Deval is a laughingstock.

    Posted by Buddyhacket December 8, 08 08:21 PM
  1. This is a joke. Again, no accountability. Why doesn't DiMasi get his own "house" in order before he whacks everyone else. And by "house" I mean all the corruption, bloat, greed and insider deals. Like HE'S the man to that, right! What a joke.

    Posted by stanfield December 8, 08 08:26 PM
  1. How many hundreds has he put in his bro or manzierre???

    Posted by Roje December 8, 08 08:31 PM
  1. This may be the most unimaginative administration and legislature of all time. They only see one side of the issue...revenue.

    Posted by Reggie December 8, 08 09:51 PM
  1. Will the FBI hurry up and pay that visit to Sal?

    Posted by MIAMathha December 8, 08 10:30 PM
  1. Feel good about voting against Question 1 now?

    Posted by christy11 December 8, 08 10:37 PM
  1. So many fools voted to against question 1 to protect their union gravy. Now they'll be eating Alpo with the rest of the good citizens.

    I would much prefer to have property taxes higher with revenue benefiting the town I live in. Than to watch the corrupt circus collect it all and hope they can spare a few pennies on each dollar as it drips through the inefficient syphon.

    Additionally, at least prop-2 1/2 would keep a lid on things. Way to go fools.

    F

    Posted by chainsaw December 8, 08 10:41 PM
  1. "DiMasi, who has been under fire because of several ongoing ethics investigations, reiterated that he plans to run for speaker again in January. But when asked whether he planned to serve the full two-year term, he said, "I don't know. Do you think you'll have your job two years from now?" "

    If this a was a justworld, DiMasi would be ou tof a job already. And insetad he makes a sacastic comment to a reporter who is probably very worried about his job today. What a dope.

    Posted by Jeff December 8, 08 11:14 PM
  1. Toll salaries, mass pike jobs, etc do not compare to Boston Teachers whose Salaries/pensions/healthcare benefits are excessive compared to the private sector. I know of three teachers in their early 50s who retired last year with an annual pension of $85-90K each with 90% health benefits. Workers in their 70s could never attain that level of financial security in the private sector.

    Posted by jiling71 December 8, 08 11:28 PM
  1. Here's another take - how about cutting the $50million that the state is giving to Newton to build their new $140 million High School - you know, the one that the people living in Newton voted for (after their mayor convinced them that their taxes wouldn't go up as a result)> now that school project is about $60m overbudget and the rest of the state is getting billed $50m for this ridiculous overimprovement.
    Let the people of Newton who voted to spend $200 million (that's only the current estimate) pay for it all themselves so the rest of the taxpayers in Massachusetts can use the $50m where it's really going to make a difference

    Posted by yougottabekiddingme December 9, 08 12:52 AM
  1. Municipal Budgets & Unions...its not all what you think. It's MANAGEMENT, not so much Union that's killing us. Look at the pay scale. I make $15.80 an hour & I've worken for the City for more than 7 years. The head of our Building makes $110,000 +. There are a dozen other "MANAGEMENT" under her who make a killing too. And scores of do-nothings making more than $60,000. Meanwhile, my co-pays have increased so much that even though I have health ins, I can't afford to go to the Dr.

    Posted by HateTheCity December 9, 08 09:53 AM
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