Tuesday, July 7, 2015

MASSterList: Wynn's lawsuit threat counterpunch | Hub's housing boom lifts all boats? | Op-ed: Keep the MBTA fare cap




 



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Tuesday, July 7, 2015

By George Donnelly (@geodonnelly) with Keith Regan
What's happening today
Gov. Baker delivers remarks at the International Space Station Research and Development Conference (ISS R&D) at the Boston Marriott Copley Place, 1 pm. Other speakers include active NASA astronauts Cady Coleman, Karen Nyberg, and Sunita Williams. More information, and some live-streamed sessions, at www.issconference.org... Sen. Thomas Kennedy's funeral is today at St. Edith Stein Parish, Brockton, 11 am... Boston Mayor Martin Walsh joins U.S. Housing and Urban Development Secretary Julian Castro and state Housing and Economic Development Undersecretary Chrystal Kornegay at the Quincy Heights housing development ribbon-cutting ceremony, 193 Magnolia Street, Dorchester, 11:30 am.

Some tax-freeze math: Why little numbers matter
Today, MASSterList will heedlessly step on the third rail of Massachusetts tax policy -- entertaining the idea of raising them. We'll start with a back of the envelope calculation: How much would keeping the income tax rate steady (instead of allowing it to drop by 5 basis points) cost the average household? The answer: About $33 a year (using a household income number of $66,768).
All the same, small numbers have big meaning. The Senate floated a plan to freeze the rate to pay for an expanded earned income tax credit, a provision that would put more money in the pockets of the working poor. If the Massachusetts economy keeps expanding -- not a given -- the rate eventually will rest at 5 percent, and ultimately cost the average household roughly $100 per year. But it looks like the freeze plan is a non-starter with Speaker DeLeo, and certainly Gov. Baker.
There's some irony in denying the poor a tax break when compared to the Legislature's over-the-top, regressive increase of the sales tax from 5 percent to 6.25 percent in 2009. That one still takes real money disproportionately out of the pockets of low-income residents.
At 5.15 percent, Massachusetts has a competitive rate. North Carolina's flat rate is 5.75 percent, and many other competitor states, including California and New York, have much higher tax rates. Small changes in tax rates have no macroeconomic impact, but rate very high in political fallout.

Op-ed exclusive: Why we should keep the fare cap
The move to lift the MBTA fare cap hasn't gotten a lot of attention, and Kristina Egan of Transportation for Massachusetts and Tony Dutzik of the Frontier Group argue why it should stay in place. "...Establishing a new fare policy for the T is something that is best done deliberately, following careful study, and in consultation with the riders who use the system every day."
It's another MASSterList original op-ed. http://bit.ly/1eAsmwf

Wynn to Walsh: Simmer down or get sued
With a court date looming Thursday, Wynn Resorts sought to raise the stakes in its game of legal poker with Boston, threatening to sue both the city and Mayor Marty Walsh personally for what it calls a "campaign of falsehoods" against Wynn's would-be Everett casino and the process that led to its approval. According to the Globe, a letter from Wynn attorney Barry B. Langberg took aim at subpoenas issued by the city last week for investigators in the case that claim some were given access to confidential information as they investigated the involvement of convicted felon Charles Lightbody in the ownership of the Everett property. "The language of your subpoena was not typical legal wording but instead was designed to spread vicious falsehoods," Langberg wrote. On Thursday, the judge in the case will hear oral arguments on a motion by Wynn to have the city's lawsuit tossed. http://bit.ly/1fjObBc 

The meaning of pregnant pauses
One of the best political stories of the day can be found on the State House News Service website. When the Big Three paused for an interview after their weekly meeting yesterday, State House News Service's Andy Metzer covered the action. One question concerned the slow action on the state budget: "Asked whether he would be willing to take up a second interim budget, Rosenberg was quiet for a few moments before answering. 'Thanks guys,' said DeLeo's spokesman Seth Gitell, breaking the silence. Baker then offered: 'I hope there's not a second.' Patting both DeLeo and Rosenberg on their backs, he added, 'I'm very optimistic that these folks will figure this one out, OK?'"http://statehousenews.com/news/20151340

'Critical' employees seek justice in court
Yesterday the National Association of Government Employees tried and failed to get an injunction allowing some state employees defined as "critical" to participate in the early retirement program. But the fight is not over. A hearing is set for Aug. 24 to explore whether Administration and Finance followed the legislative intent of the early retirement law by defining "critical" employees only by the funding source of the job. MassLive's Shira Schoenberg reported that about 30 employees deemed "critical" had submitted applications to retire early, and perhaps fewer than 50 would take the retirement incentives if the union prevails. Here's her story:  http://bit.ly/1KIE1Xx

Housing production in Boston way up...
...And it's not just luxury units. The Globe previews a city-generated report that highlights a surge in low and middle-income housing. http://bit.ly/1UvqYvK

Boston 2024 counting on business big time
The complex financial plan that Boston 2024 says will make hosting the Olympics possible while protecting taxpayers relies on $1.5 billion in corporate support, a number that is either overly ambitious or too low, according to the Globe. Although corporate support for the Games remains strong, a recession at the wrong time could undermine the sponsorship revenue stream. "It will be tough and certainly not the slam-dunk they portray. Everything has to go right, including no recession at the wrong time," David D'Alessandro, former chief executive of longtime sponsor John Hancock Financial Services told the Globe. The paper says at nearly one-third of the total private budget, corporate backing is the largest single category of backing and the $1.5 billion figure is more than three times what organizers in Atlanta were able to bring in for the 1996 Olympics. More recent Games were more in the ballpark, however, with Beijing raising $1.3 billion in 2008 and London scoring $1.2 billion from sponsors in 2012. http://bit.ly/1H9NmR3 

Healey: "Lot of Concerns" on sex ad sites
Reacting to the murder of a prostitute in a Burlington hotel, which prosecutors say was part of a larger plot to rob escorts by tracking them through the online classified site Backpage, Attorney General Maura Healey told the Herald her office is aware of the site and will work to protect the public from it. "We have a lot of concerns with these websites. We saw it with Craigslist and we see the same concerns with Backpage," Healey told the Herald. "We're going to do everything we can to protect the public." The AG did not say what steps her office would take, and clearly she must tread lightly over free speech concerns. http://bit.ly/1S5jLhL 

Is yearbook union "propaganda"? 
Lowell Mayor Rodney Elliot and others are fired up over a photo that appeared in a middle school yearbook, the Lowell Sun reports. The photo in question shows the members of the school's championship Knowledge Bowl team posing in front of City Hall. Several of the students are holding signs that say "Do Your Job," a phrase that is apparently associated as much with an ongoing dispute over teacher contracts in the mill city as it is with Patriots head coach Bill Belichick. "I just think it's outrageous, quite frankly, that anyone would do that to middle-school students that are so proud of their accomplishments," Elliot told the paper. Though it's not clear what if anything can be done about it now, others seem to agree. "It's like they were sending a political message," said School Committee member Kim Scott. http://bit.ly/1fjRyrO
How to reach me and MASSterList
Nothing makes me happier than comments, tips, suggestions. Also, opinion articles also will be considered. Please don't hesitate to weigh in on what we're missing and where we should look. Reach me at gdonnelly@massterlist.com or on Twitter @geodonnelly.


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