Mark Molloy, Esq., Tenax Strategies, Inc.
As the Legislative Session Turns Towards the End of Formal Session, Progressive House Members Urge Senate Action on Increasing Taxes
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s the Massachusetts legislature pushes towards the end of formal sessions on July 31, a significant number of House legislators have called upon their Senate counterparts to take up legislation providing revenue for the Commonwealth’s transportation infrastructure. Thirtyseven House members led by House Progressive Caucus Chairs, Rep. Tricia Farley-Bouvier of Pittsfield and Jack Lewis of Framingham, expressed concern that the Senate had “not yet taken up the progressive transportation revenue bill, which the House passed in early March.” The letter, which was sent to the entire Massachusetts Senate, elicited a quick response from Senate leaders akin to “what about the bills we’ve sent over?” As reported previously in Construction Outlook, the Massachusetts House of Representatives passed a tax package right before the COVID-19 pandemic severely impacted the Massachusetts economy. The measure would raise approximately $600 million through a combination of fuel tax increases, rental car, and ride hailing assessments as well as other measures. In their letter, Representatives highlighted: “The Commonwealth is now facing a staggering $6-$7 billion revenue loss and the prospect of laying off thousands of teachers, social workers, and human service workers if we cannot find a way to address this fiscal crisis. We must instead explore a menu of options including tapping the Rainy Day Fund, maximizing federal aid, raising targeted progressive revenue, and possibly even borrowing. Our argument to raise further progressive revenue is weakened JULY, 2020
because a previous tax vote that the House took to generate $600 million did not move forward in the Senate. The Commonwealth’s borrowing constraints and interest rate also stands to be negatively impacted without this $600 million in revenue. As policymakers, it is on us to find creative answers to difficult questions. There is never a perfect time to pass a tax increase, but as elected officials, it is our duty to act boldly and in the best interest of our constituents.” In making the case for additional tax revenue, advocates have highlighted two essential elements: (a) the price of fuel has dropped dramatically due to a number of factors and (b) the Commonwealth’s transportation funding gap has not gone away, nor will it. For its part, the Senate response was led by Senator Adam Hinds, the Senate Chair of the Joint Committee on Revenue. In pointing out his work with a Senate working group looking at the issue of funding in light of the COVID-19 pandemic, Senator Hinds released a statement which stated that he “appreciate[d] the House members' legislative advocacy, just as the Senate will continue to advocate strongly for action on lowering the cost of prescription drugs, mental health reform, healthy youth, climate change legislation, and legislation relating to telehealth, surprise billing, and scope of practice." The measures highlighted by Senator Hinds are measures, previously passed by the Senate during this session, that currently sit before the House. continued on page 9
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