Beacon Hill Preps For Transit Funding Debate
Proponents of Gov. Deval Patrick's plan to raise taxes for education and transportation put a brave face on Thursday after House Speaker Robert DeLeo indicated he would pursue a smaller investment package focused mainly on transportation.
Though the size and scope of DeLeo's plan remains an open question, the speaker's embrace of new revenue to fund transportation all but guarantees that, in some form, Massachusetts residents will be asked to pay more next year to fix roads and bridges and maintain the state's aging public transit system.
DeLeo told business leaders in a speech to the Greater Boston Chamber of Commerce on Thursday that the House would address transportation financing, likely before the state budget in mid-April, with a proposal for new revenue "of a significantly smaller size" than proposed by Patrick.
"I think the governor and I are putting the emphasis on the same subject matter - transportation and education. I just feel that that maybe we have to go in a different direction or maybe a slower pace in some of those areas," DeLeo told reporters after his speech, expressing his most serious concerns about Patrick's plan to eliminate a number tax deductions that help the middle class.
Transportation Secretary Richard Davey, who attended part of the early morning event, said he felt the administration and the House cleared an important "threshold" Thursday, even if it remains to be seen how big the House revenue package will be.
"Obviously, we want to see the details of the plan, but we're not arguing about the priorities and the need to raise revenue, which are important philosophies," Davey said. "We've gotten over that threshold and now it's about how and when."
DeLeo said he and Patrick have spoken about each other's positions, understand each other, and will continue to negotiate. "I expect we'll sit down and talk and hopefully come to a mutual agreement," DeLeo said, adding, "At the end of the day, I don't want to come forward with a plan that's so burdensome on the taxpayers of Massachusetts that we’re defeating all the good we're doing with transportation and education."
A UMass Lowell poll released Wednesday night showed the electorate divided on Patrick's budget plan to raise $1.9 billion in annual new taxes for transportation and education, with 47.9 percent at least somewhat supportive compared to 45.6 percent opposed.
At moments in DeLeo's speech, applause from the business audience at the Park Plaza reflected that discord.
When DeLeo said he "embraced" the governor's priorities of transportation and education and agreed that neither could be "sufficiently addressed without the injection of additional revenue into the system," a portion of the room broke out into applause. But a few sentences later, DeLeo hushed those proponents by saying he believes the revenue package should be smaller. Again, there was applause, though less than before.
"I sense a little civil war here," DeLeo joked.
Kristina Egan, director of Transportation for Massachusetts, was one the first in the room to clap her hands at DeLeo's mention of a commitment to financing transportation with new revenue, before DeLeo added the caveat that it would be a much smaller investment.
After the speech, Egan said she remained optimistic. "We're very pleased that will be dedicated for transportation . . . He said smaller but then he named a lot of the really important priorities so we are hopeful that he will still put forward a package that reaches about $1 billion a year," Egan said
DeLeo said he was still working with Reps. William Straus, Joe Wagner and Brian Dempsey to craft the plan, including the amount of money and how it will be spent, but identified the deficit at the T, paying for employees on the capital budget, and helping regional transit authorities as priorities. Patrick’s plan calls for an extra $11.1 million for the Worcester Regional Transit Authority.
"At the very least, those are three items I feel will be on the agenda, not to mention the fact of making further investments as well," DeLeo said.
DeLeo said the details of the plan should be ready by late March or the first week in April, and though it is his "desire" to tackle transportation financing separately before the budget he said that was not a certainty.
"It is my desire that we debate the transportation issue before we do the budget. I think because of the importance of this subject matter I would rather have it debated before we do the budget so we can be sure we give the debate ample time," DeLeo said.
He said any newly generated revenues should be dedicated in law to transportation, and the money, projects, and burden of paying for them should be spread equitably across the state.
Asked how he views different tax options, DeLeo, who led the push to raise the sales tax in 2009, joked that he would have to be a bit evasive in his answer. "Thank you, next question," he said, before offering, "There's never an easy avenue or easy discussion when it comes to voting for taxes. I'm all too aware of that."
Michael Widmer, president of the Massachusetts Taxpayers Foundation, called DeLeo's response to the governor's budget "sensible," "focused," and "balanced." "The governor put a very large tax increase on the table that clearly is too ambitious," Widmer said, supporting "the notion of focusing on the priorities of transportation but doing it in a more measured way."
Widmer said the governor has a right to ask for what he wants and believes in, but considering the economic situation he said, "The timing is just not right for something that sweeping."
Despite high gasoline prices, the Democratic House in New Hampshire voted this week in favor of a 15-cent increase to the state's 18-cent gas tax phased in over four years for transportation improvements. Though the plan still needs to clear the Republican Senate, the action could give Massachusetts cover to raise the gas tax and remain competitive in the region.
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