DeLeo said with casino gambling done, it is time to think about other ways to boost economic development .
Associated Press photoMassachusetts House Speaker Robert DeLeo faces reporters in a hallway at the Statehouse, in Boston, Tuesday. Behind him is Chicopee state Rep. Joseph Wagner.
By COLLEEN QUINN
WALTHAM - A day after major lawmaking ended for the year with casino gambling, municipal health care and pension reforms ticked off his to-do list, House Speaker Robert A. DeLeo told business leaders he is in the midst of crafting economic development legislation for next year.
Speaking at the annual Retailers Association of Massachusetts meeting, DeLeo said with casino gambling done, it was time to think about other ways to boost economic development – the state’s jobless rate held at 7.3 percent in October. He did not offer any specifics, but said it was a top priority when the Legislature returns in January. He said he was talking to business leaders and retailers to get their input.
DeLeo estimated casinos would generate 15,000 or 16,000 jobs, and said cities and towns will see a boost to local aid, but said it will not be the only answer to economic recovery.
“This bill is not a panacea. It is not going to solve all the problems of the commonwealth. Now that we have passed expanded gaming, we can move on,” DeLeo told the retailers at Bentley University. “I never meant it to be a panacea. It is one important piece of legislation that could grow our economy.”
DeLeo also cited health care payment reform as the next big piece of legislation lawmakers will need to tackle. Gov. Deval L. Patrick has been pushing lawmakers to move on healthcare payment reform for months. DeLeo said he planned to start meetings next week with Health Care Financing Committee Chair Rep. Steven Walsh, D-Lynn, who he asked to collect information to study “what the exact fix might be.”
“Although I haven’t definitively set forth an agenda for next year – which I will when we go back in January – obviously the health care payment reform, you saw me address that today,” DeLeo told two reporters after his address to the retailers. “That is probably going to be the most difficult, complex issue that we have.”
DeLeo remained non-committal on one of the big concerns from retailers - providing a mechanism to capture the estimated $335 million in uncollected sales taxes from internet retailers. Bills to address the problem are being reviewed by the Legislature’s Committee on Revenue, as well as in Congress.
The Speaker described the online tax dilemma as a “hurdle” he is trying to overcome. Opponents of DeLeo’s successful 2009 push to raise the sales tax have raised it as a competitiveness issue.
The plan - known as the streamlined sales tax - would begin to enable Massachusetts to collect sales taxes from online purchases. Backers of the bill say states are collectively losing billions of dollars from one of their chief sources of revenue because online retailers aren't required to collect sales taxes from consumers. Retailers have held for a decade that tax-free online sales disadvantage brick-and-mortar stores. The issue has only gotten worse, they say, with the proliferation of smart phones.
After his formal remarks, DeLeo said that when he spoke to Retailers’ Association president Jon Hurst at the Wednesday meeting, he said, “I am not making any commitment on this one.”
“On the other hand, I am hearing from a lot of the retailers, they really feel that they are at a disadvantage,” he told reporters. “I am really concerned about our folks in our local communities. I want to see them thrive, and not get eaten up by a not fair playing field. But right now, I am in no way endorsing that.”
During his speech, DeLeo said he never shops online, and joked “I don’t know how,” and also added that “I don’t believe in it.” He prefers to give his business to local merchants.
He told the story of when he broke his ankle last winter after slipping on ice, he was talking to someone about needing to give up his black dress shoes and buy a pair of boots. The friend said he could buy them online, and also said to him, “you don’t have to pay taxes, you don’t have to pay shipping.”
“I said no. I just don’t do business that way,” DeLeo told the group. “That is one of the issues I am working on with Jon (Hurst) and some of you folks. We will see what we can get.”
The House ended its session Wednesday evening by passing bills targeting human trafficking, protecting rights for transgender citizens, and eliminating parole for three-time violent offenders. DeLeo called the habitual offender bill a “great piece of legislation.”
The bill, known as “Melissa’s Law” after the 27-year old teacher who was raped and stabbed to death in 1999, was passed in the House late Wednesday night and now likely heads to conference committee to iron out differences with the more comprehensive Senate crime bill passed earlier this month.
Critics of the bill say it will worsen prison overcrowding and unsafe conditions for both prisoners and corrections officers. DeLeo acknowledged it as a concern.
“I spoke to the chair yesterday, and I said we have to take a look at that, and a matter of fact before it goes into conference, we have to decide what is this is going to be about. And we have to talk to the players over at the Department of Corrections,” he said.
Also topping the priority list for next year is managing the state budget, which DeLeo foresees will continue to be challenging. He said he wants to make sure to continue to put money aside in the state’s rainy day fund, which reached a $1.4 billion balance after the governor signed a supplemental budget in October allocating an additional $350 million to the reserve fund.
“Although we are showing signs of improving and being in a lot better place than we were a year or two ago, I think there is still reason for pause. I think we still have to slow down a bit, make sure we put money into the rainy day fund, because I don’t think the happy days are back here again,” he said.
DeLeo pointed to the state’s 7.3 percent unemployment rate – compared to the 9 percent national rate, an increase in state tax receipts, and the recent upgrade from Standard & Poors to a AA + bonding rating, as signs Massachusetts is faring better than most states coming out of the recession.
“This newest credit rating represents the highest credit rating in the history of Massachusetts, even in these difficult times,” he said. “I think it happened because of a lot of people who came together and worked together.”
Another would-be reform plan could center on the state’s special education collaboratives, which have come under fire in recent months after salary abuses were exposed.
“I am very concerned about seeing our taxpayers’ money going to some of these outlandish salaries, but most importantly the students who need to be cared for, who really need the services, aren’t getting the services because money is being diverted elsewhere,” DeLeo said. “I think we have to take a close look at that.”