Linsky Fights for Sherborn Taxpayers

BOSTON -- Lawmakers grilled Gov. Deval Patrick's top budget officials Thursday, sounding a skeptical note on key elements of the new governor's $26.7 billion state budget, from community policing to homelessness funding.

Patrick's budget, publicly unveiled Wednesday, was the subject of the joint Statehouse hearing convened by the powerful House and Senate Ways and Means Committees, which eventually will write their own versions of the state budget, using Patrick's plan as a blueprint.

Lawmakers questioned whether Patrick's proposal to close what he calls "corporate tax loopholes" will scare off businesses. They also frowned on the plan to slash community policing grants and said the budget doesn't do enough to ease pressure on property taxes.

One of the biggest concerns was Patrick's plan to raise about $500 million each year by closing what he called seven tax "loopholes." Business leaders said the plan would dramatically increase their taxes and drive away companies, a worry echoed by lawmakers.

"We've been trying to send a message to the business community that Massachusetts is a good place to come to and to do business," said House Chairman Robert DeLeo, D-Winthrop. "With the proposal of the governor relative to the corporate tax loopholes, are we sort of reversing that trend and not putting out the welcome mat?"

Rep. Vinny deMacedo, R-Plymouth, said plan could also be bad for workers.

"My concern is really job creation," he said. "We are trying to attract business."

Patrick has repeatedly defended the proposal, saying the "loopholes" were unintended by lawmakers.

"We are talking not about incentives that the Legislature created to encourage business investment but gaps that nobody intended that were discovered by clever and creative tax accountants," he said Tuesday.

Patrick's plan to shift funds from community policing grants to hire 250 new officers, as part of his campaign pledge to eventually hire 1,000 new officers also raised eyebrows.

Last year, the state spent about $21 million on community policing programs. Patrick's plan would spend $20 million to hire the additional 250 police officers and reduce community policing grants to $10.7 million.

Patrick's administration and finance chief Leslie Kirwan responded that they are "trying to be flexible and give the secretary of public safety broad latitude to work with municipal governments to meet their needs."

Senate Ways and Means Chairwoman Therese Murray, D-Plymouth, said Patrick's plan could saddle local communities with the cost of the additional officers long after state support had dried up.

Patrick's plan to pour an additional $200 million into local aid also drew criticism from lawmakers who said Patrick's plan doesn't go far enough to make up for cuts to aid to cities and towns during the state's fiscal crisis of 2002-2003.

State Rep. David Linsky, D-Natick, said one of the towns he represents, Sherborn, has pushed for property tax overrides every year and that the average property tax bill is about $12,000. He said an increase in the meals tax, also proposed by Patrick, won't help.

"What the towns need that I represent, quite frankly, is cold hard cash," he said.

Patrick's decision to fold 11 separate line items funding homelessness programs into two also drew concerns.

Patrick has said that reducing the number of line items will give his administration the flexibility it needs to respond more quickly to changing needs, but lawmakers worried some homeless programs could fall through the cracks.

Other lawmakers, including DeLeo, said they were worried that the decision to trim water and sewer subsidies for households that rely on the Massachusetts Water Resources Authority could drive up rates. The budget would cut the relief package from $25 million to $15 million.

Kirwan said it was one of many difficult decisions in the budget needed to close a $1.3 billion spending gap. Without the cut, rates were expected to rise about 5.8 percent per household, she said. With the cut, that rate would increase by about 6.2 percent.

Patrick's proposed budget represents a 4 percent increase over the budget approved last year.