Gov. Deval Patrick filed about 10 proposals for raising new revenues, including a 50 cent per pack cigarette tax increase.
Photo by Josh Reynolds / Associated PressSpeaker of the House Robert DeLeo, left, is seen with Gov. Deval Patrick in November, as the two spoke during a signing ceremony legalizing casino gambling in Massachusetts. Now, it seems, the two leaders are at odds over a proposal by Patrick to raise taxes and fees.
BOSTON - House Speaker Robert A. DeLeo Wednesday shot down Gov. Deval L. Patrick’s proposals to raise $260 million in new taxes and fees, saying that “predictability and consistency” in the tax code are critical for business leaders.
DeLeo, in a speech on the House floor, emphasized the need for job creation including boosting community colleges.
DeLeo, a Winthrop Democrat, said he would oppose new taxes and fees to balance the state budget for the fiscal year that starts July 1. That could doom Patrick’s proposals for raising revenues.
Patrick on Jan. 25 filed about 10 proposals for raising new revenues.
Patrick, for example,called for a 50-cent increase in the state's existing $2.51-a-pack cigarette tax to help finance court-mandated subsidized health care for legal immigrants, expanding the state’s bottle deposit law to include containers of water, juices and sports drinks and charging the state sales tax on candy and soda.
“I hear time and time again from business leaders that predictability and consistency in the tax code are what’s most important,” said DeLeo, a former House budget chief who was elected speaker in 2009.
“For the past two years, this House has rejected balancing the budget with new taxes and fees. Any changes to revenue policy should be approached with extreme caution and should never be done piecemeal. As such, we will release a budget from the House Committee on Ways & Means that does not rely on new taxes and fees," he said.
DeLeo’s pledge comes three years after state legislators and the governor raised $1 billion in new taxes including increasing the sales tax from 5 percent to 6.25 percent, creation of a local option tax of 0.75 percent on restaurant meals and giving communities the option to increase the 4 percent local tax on motel rooms by 50 percent to 6 percent.
Rep. Benjamin Swan, a Springfield Democrat, said he was not surprised by DeLeo’s stance but he believes new revenues are needed.
Benjamin Swan
Swan said he supports the governor’s plan to increase tobacco taxes and to impose the sales tax on candy and soda.
“We have to spend money wisely but we have to have money available,” Swan said.
But Rep. Donald F. Humason, a Westfield Republican, said DeLeo set the right tone by opposing new taxes and fees.
“I give the speaker credit,” said Humason. “It was the right message to send.”
Rep. Angelo J. Puppolo, a Springfield Democrat, agreed.
“I was very pleased to see he minced no words and made it abundantly clear there will be no new taxes and fees,” he said. “That will go a long way toward helping the economy.”
In a statement, Jay Gonzalez, secretary for administration and finance, said the administration proposed “a small amount of targeted tax increases” to help avoid cuts in education, local aid and safety net programs.
“None of our proposals hurt our economic competitiveness,” Gonzalez said.
DeLeo, son of a late track worker at Suffolk Downs in Boston, is noted mostly for his strong support of a new law that legalizes casinos.
DeLeo said he believed that broad agreement can be reached on a bill to cut the growth in the costs of health care while improving high standards of care and innovation.
DeLeo signaled that legislators will take up Patrick's disputed plan to overhaul community colleges. He said that House members have long believed they can do a better job of aligning community colleges with the needs of employers.
“With greater coordination and support these institutions can be an even more vibrant and integrated component in our overall workforce development system here in the commonwealth,” the speaker said.
Patrick submitted legislation to fold the 15 community colleges into a new central system for improving coordination for job training. Patrick wants to give the state Board of Higher Education new authority to set fees for students, allocate state funding and appoint and remove presidents.
Rep. Sean F. Curran, a Springfield Democrat, said the governor’s bill could hurt the independence of Springfield Technical Community College and Holyoke Community College.
Curran said he was against Patrick’s bill to strip powers away from boards of trustees for the community colleges.
“I’m not so sure the Patrick plan will happen,” Curran said. “I’m certainly opposed to it.”
In a prepared statement, Patrick emphasized the common ground between himself and the speaker.
"Speaker DeLeo shares my commitment to strengthening our innovation sectors, making our community college system an integral part of the commonwealth’s economic development strategy and reforming the way we pay for health care," Patrick said.