state aid

It seems Massachusetts is at the middle of the pack, nationally, when it comes to taxes on casinos.  And, we're on the low end for the Northern states.  Why is the tax revenue aspect of the casino gambling bill not being debated in the House this week?  Is MA leaving money on the table?  What are the true reasons for allowing casino gambling in MA?

[Economic development secretary, Gregory P.]  ]Bialecki said the state must look at casinos primarily for their ability to create jobs and long-term economic development...Tax money has to be a secondary concern, he said, emphasizing the importance of debating the bill outside the pressures of budget season, when the need to plug short-term holes in spending could cloud discussion about economic development.  [Full Article: The Boston Globe]

When natural disasters strike, such as Hurricane Irene,  it's our government that protects families and property, shelters the homeless, and revives communities adversely affected by the subsequent destruction.  It's up to all of us to continue to invest in our government so that it can continue to do this work, and carry out the other programs and services we rely upon every day.

...the National Guard was assisting evacuations in the towns of Charlemont, Ashford and North Adams. 200 National Guard troops were deployed to Greenfield in order to assist with evacuations in Franklin County and the Berkshires.  [Full Article: MassLive.com]

In the past three years, Lawrence lost $12 - $15 million in local aid.  The lack of these funds have severe reprecussions. Lawrence lost one-third of their police ranks due to these budget cuts and layoffs , so consequently when emergency services recently were faced with a large and unruly crowd, they were forced to call in reinforcements from the state and another town to assist in handling the situation. Clearly Lawrence residents have been adversely affected by State and Municipal budget cuts.  It seems they don't have what we all strive for - a safe community to live and work. We all need to work to change this...all communities in MA should be safe to live and work, supporting healthy families, and with the opportunity for providing quality education for all our children.

"I feel pretty positive we will be able to restore some of those cuts," [State Rep. David] Torrisi said. "It's not consolation to the people suffering right now, but we're trying our best to deliver the resources."  [Full Article: Eagle-Tribune]

Are you ready for another casino gambling proposal from the Governor and the State House Leadership?  It seems they're ready for prime time with a 133-page bill which would provide for the development of three casinos and a slot parlor, itemizing the respective development fees, and collections of the state's share of the revenues.  Let the betting, I mean vetting, begin...

Anyone applying for a gambling license would have to pay the state a $350,000 non-refundable application fee...The casinos would pay the state 25 percent of their revenues; the slot parlor would pay the state 40 percent of its revenue and another 9 percent to a special fund for the horse-racing industry...A quarter of the state’s casino revenue would be sent to cities and towns... The state would send another 5 percent to a special fund to help compulsive gamblers.  [Full Article: Boston Globe Metro Desk]

It should not have been a surprise to anyone that the federal stimulus dollars provided to MA were going to be fully spent during the fiscal year 2012 budget cycle, if  not already spent in the previous year.  We were riding a temporary wave of economic recovery euphoria when for a couple of months tax revenues had been higher than last year.  Now that the stock market has declined dramatically, our current tax revenues have also declined.   In fact, MA tax revenue collections are lower than in fiscal 2008.

Worcester has additional money in its fiscal year 2012 budget.  

“This positions the city well,” Mr. Petty said. “It’s good to see that the city manager is looking at the long-term picture by wanting to set aside much of this money for reserves. But he is also looking at the future by investing more money in our public schools for technology upgrades and capital projects. I am a firm believer that we need to fix up our high schools so we don’t lose students to other communities."  [Full Article: Worcester Telegram & Gazette]

Why are state revenues rising this year?  Are these tax collections sustainable and predictable cashflows?

...the fundamentals of state budgets still look gloomy. That’s partially because other levels of government are putting additional pressure on states. Some of that pressure will come from the debt ceiling agreement, which is likely to cut numerous discretionary programs that give states federal money. [Full Article: Stateline]

From the municipalities' prespective, the meals tax revenue saves jobs and programs.  From the consumers' perspective, the meals tax is pennies and not noticeable - as long as the meal tastes good...otherwise nothing is right about the dining experience!

While often generating relatively modest sums in the scope of the overall budgets, the tax revenue often proves pivotal, the difference between eliminating programs and positions or not...“It’s $800,000 we would have to find elsewhere,’’ said Michael Meehan, a spokesman for the city of Somerville, which approved the tax two years ago. “That’s a lot of jobs.’’

“In the grand scheme of things, we didn’t think it was that big a hit,’’ said Sharon Lynn, the town manager. “Seventy-five cents on a $100 tab? We didn’t think that would keep too many visitors away."  [Full Article: The Boston Globe]

Some companies have stalled contract work in Massachusetts because of the debt ceiling debate and legislation the House has now passed.  

Alan Clayton-Matthews, an economics professor at Northeastern University, said the cutbacks could hamper the state’s economic recovery as well as the country’s. Clayton-Matthews calculated that Massachusetts could lose an estimated $18 billion in federal dollars by the end of the next decade, when the spending cuts wind down. Though the federal cuts will probably not force the state or the country back into a recession, Clayton-Matthews said, he disagrees with economists who believe lowering the deficit will hasten a recovery by encouraging businesses to borrow and grow. [Full Article: Boston Globe]

The loss of jobs is not the only outcome of these challenging economic times.  Many of our children are experiencing adverse consequences that will affect them throughout their lives, due mostly to our economy and how we address these financial challenges, especially for our most vulnerable population.

“Food is costing more, and dollars don’t stretch as far,’’ [Dr. Megan] Sandel said. “It’s hard to maintain a diet that is healthy.’’

Chronic hunger during toddler years, when young brains are still growing, can negatively affect learning and psychological, social, and a raft of other skills, said Rafael Pérez-Escamilla, professor of epidemiology and public health at the Yale School of Public Health.  [Full Article: Boston Globe]