COMMONWEALTH OF MASSACHUSETTS

STATE SENATOR
MICHAEL O. MOORE

SECOND WORCESTER DISTRICT
State House, Room 518, Boston, MA  02133 (617) 722-1485

June 19, 2009

Senator Michael O. Moore Announces Budget Reflecting State's Fiscal Challenge 

BOSTON —  Faced with the precipitous decline in state tax collections and the stark reality of building an operating plan on continuously declining revenues, Senator Michael O. Moore (D-Millbury) announced that the Senate approved a $27.4 billion budget on time that balances the urgent need for additional revenues with necessary relief for cities and towns. The governor has 10 days to either sign the budget legislation or send it back to the Legislature. The new fiscal year begins July 1.

“Although we find ourselves in the midst of an unprecedented economic decline, the Senate has taken steps to try to ease the burden of the current financial struggles that are facing our cities and towns,” said Senator Michael Moore.  “While there are no ‘quick-fix’ solutions to this fiscal crisis, the sales tax increase and the Municipal Relief Package provide municipalities with tools to try to raise revenue to maintain vital services.”

Senator Moore sponsored multiple amendments in the approved budget.  Among the amendments was a section restoring funds to the Department of Environmental Protection Brownfield Remediation Program. This program is designed to clean up hazardous waste sites in the community, thereby restoring properties to viable economic conditions. 

Also approved in the budget was $2.5 million for The Cummings School of Veterinary Medicine at Tufts University to help fund operations for practice of veterinary medicine at five hospitals. These facilities treat over 70,000 cases each year. This is a significant victory for the school which recently faced the threat of losing 100% of state funding

Senator Moore was also was instrumental in creating compromise language relative to Managed Care organizations within the Commonwealth.  This amendment seeks to realize $30 million in savings per year.

Additionally, Moore was able to maintain level funding at $1.3 million for the Massachusetts Academy in Worcester.  The Academy is an accelerated program for 100 junior and senior students highly advanced in math and science. The Academy has an existing partnership with Worcester Polytechnic Institute, which offers seniors college level credit upon successful completion of the class.

The conference budget contains a sales tax increase from 5 percent to 6.25 percent that will generate $759 million in new revenues for fiscal year 2010 and help restore core services and programs for the citizens of the Commonwealth. Even at 6.25 percent, 30 other states will have a higher aggregate state sales tax rate than Massachusetts.

Sales tax revenues will help restore important services that were previously cut, including $10 million for Prescription Advantage, $6.5 million for youth violence prevention grants and $4 million for universal pre-K. The conference budget also generates approximately $80 million from the removal of the alcohol sales tax exemption. That money will be used to restore safety-net services such as substance abuse programs, community health centers, domestic violence prevention, elder care and early intervention programming.

The budget also includes a municipal relief package that allows cities and towns to raise additional revenue locally to maintain essential services provided by schools, police and fire departments. The plan allows municipalities to adopt a local option meals tax of .75 percent and also a 2 percent lodging tax that combined could generate nearly $95 million for cities and towns.

The municipal package also eliminates the property tax exemption on poles and wires located on public property and public rights-of-way that could generate another $26 million locally. It also includes an incentive to develop cost-cutting regionalization agreements to share resources with neighboring communities.

Coming on the same day the Legislature sent landmark transportation reform to the Governor’s desk, the conference budget puts forth a proposal to help sustain and improve the state transportation system moving forward.

The proposal establishes the Massachusetts Transportation Trust Fund, which will receive $275 million annually from sales tax revenues for use by transportation authorities and agencies in all areas of the Commonwealth. This transfer will avoid the need for any devastating increases to the Turnpike tolls, MBTA fares or the gas tax in fiscal year 2010.

The conference budget also raises the so-called Pacheco Law restrictions on private contractors to a threshold of $500,000; allows Massachusetts to participate in the popular multi-state Powerball lottery game which would bring in additional money for cities and towns; and raises health benefit contributions for all state employees by 5 percent, saving $50 million for the Commonwealth.

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