These provisions affect areas of tax and energy policy, address the pay of state employees who work in the military, and provide for studies on a variety of issues that could set the stage for future policy moves.
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File photo / The RepublicanBy KYLE CHENEY
BOSTON -The budget on Gov. Deval l. Patrick’s desk, the bulk of which appears headed for passage, has drawn scrutiny for its provisions to overhaul the way cities and towns design health plans for their workers, the way defense counsel is provided to indigent residents, and for its ambitious and untested plans to wring savings out of perpetually costly health care programs.
But buried in the 314-page document are dozens of potential changes to longstanding policies that received little attention and passing mention – if any – by lawmakers as they crafted, passed and negotiated the $30.6 billion budget during April, May and June.
Those provisions, included among 218 budget outside sections, affect areas of tax and energy policy, address the pay of state employees who work in the military, and provide for studies on a variety of issues that could set the stage for future policy moves.
Here’s a rundown of some of the lesser-publicized riders in the Legislature’s budget:
Pay for public employees on active duty: The budget extends until Sept. 11, 2014 a program permitting cities, towns and school districts to continue paying the base pay of any employees on active military duty. The program, which requires that municipalities and school committees opt in to participate, pays those employees the difference between their public salary and any compensation they receive from the military. Without action, the program would expire later this year.
Pension funding schedule extension: Almost never highlighted by state budget writers but essential to their budget-balancing approach, the budget officially extends from 2025 to 2040 the due date for the state’s pension system to be fully funded, allowing the state to push off billions of dollars in payments to a future generation of taxpayers. The extension was largely agreed to by legislative leaders, Treasurer Steven Grossman and Gov. Patrick in recent months but has yet to be put into effect.
Organ donation tax deduction: Individuals who donate an organ – bone marrow, a liver, a pancreas, a kidney, an intestine or a lung – to another person for a transplant would be eligible to claim a tax deduction of up to $10,000, based on travel expenses, lodging expenses and lost wages connected with the procedure.
Expanding power of child advocate: The child advocate – a position created by lawmakers in 2008 as part of a push to crack down on child abuse and neglect – would gain “unrestricted access to all electronic information systems” under a provision in the budget, expanding the office’s access, which currently entitles the child advocate to see “all relevant” documents.
Public safety fines: The commissioner of Public Safety would be authorized to levy fines of up to $5,000 for anyone who violates provisions of the law dealing with architecture, engineering and warehousing.
Tax policy report: The Department of Revenue would be required to file a quarterly report listing “tax policy issues under development.” The report would be required to include issues on which “the commissioner reasonably anticipates issuing public guidance” within a year, helping taxpayers and businesses anticipate potential changes in tax policy.
Tax judgments: Under the budget, if a state agency is awarded a tax settlement or judgment in excess of $10 million, the proceeds would be deposited in the state’s rainy day fund, rather than the General Fund used to pay budgeted expenses.
Regional transit authority funding: Set to take effect this month, a plan to require all regional transit authorities to establish a plan for forward funding would be pushed back another two years, according to the budget, to July 1, 2013. Under the provision, established originally as part of a 2008 overhaul of the state’s transportation system, “The secretary of the executive office for administration and finance shall develop a plan for accomplishing this conversion to forward funding and to seek the necessary appropriations to implement the plan.”
Deficit spending for snow removal: The budget permits that state’s transportation authorities to spend up to $30 million into deficit if the state’s snow and ice costs exceed $50 million in the upcoming winter. This past winter, snow and ice removal costs exceeded $80 million, outpacing anticipated expenses of about $59 million.
Tax expenditure commission: Annual budgets typically include scads of study commissions and requirements that agencies file progress reports, many of which never act on their mandate, but some of which provide the substantive basis for major policy change. This year’s budget is no different. Among the panels established is a commission to review the state’s thick booklet of tax breaks for a variety of industries, which by some measurements exceed $20 billion each year.
The tax expenditure budget has been on the Legislature’s radar for years, but little has been done in the way of a comprehensive proposal to amend or eliminate outdated tax breaks. The commission is charged with considering “the public policy objectives behind the grant of any tax expenditure, the metrics for measuring success in meeting those objectives and the need for additional reporting, sunset or clawback provisions.”
The commission’s report is due April 30, 2012, and is required to include “any recommendations regarding changes to the administration or evaluation of current tax expenditures and criteria for evaluating proposals for new tax expenditures.” Member of the commission are to include designees of the secretary of administration and finance, the state auditor, the state treasurer, the House and Senate minority leaders, the House and Senate Ways and Means Committee chairs, the House and Senate Revenue Committee chairs, and two gubernatorial designees.
Department of Correction procurement: The budget requires the Department of Correction to rebid its food, medical and commissary contracts at all state institutions. The agency is also required to confer with county sheriffs who may wish to participate in the procurement.
Committee on Public Counsel Services appointments: Although plans to overhaul the state’s program for indigent defense counsel are well-known, less discussed was the provision to reconstitute the board of the Committee on Public Counsel Services within 90 days. The proposal ends the terms of the CPCS board 90 days after the governor signs the budget and requires that the governor nominate two members to one-year terms, that the Senate president and House speaker each nominate two members to two-year terms, and the Supreme Judicial Court nominate nine members to four-year terms.
Extraordinary women: The budget also includes a special commission to “identify women who have made an extraordinary contribution to the commonwealth ”and determine a way to honor those women within the Statehouse. The commission would include three members of the House, three members of the Senate and two gubernatorial appointees. The commission’s report is due Dec. 31.
