Home 
Local Aid and Finance Rep. Kulik files MMA’s reform bill
As the Legislature begins its 2009-2010 session, the deepening economic recession is expected to dominate Massachusetts politics in the year ahead.
The Legislature and the Patrick administration are expected to engage in a year-long process of reforming state government, pursuing savings opportunities, and weighing options to help cities and towns stave off devastating personnel and service cuts.
Rep. Stephen Kulik, a former selectman and MMA president, has filed an omnibus bill with four reforms being advocated by the MMA on the issues of telecommunications property taxes, health insurance plan design, charter school funding, and local-option meals and lodging taxes.
First, the bill would eliminate an existing loophole and authorize cities and towns to collect personal property taxes on telecommunication company poles, wires and equipment, which would net communities an estimated $80 million statewide.
Second, the bill would empower cities and towns to modernize their health insurance plans outside of collective bargaining. Currently, cities and towns are required to bargain changes to employee health insurance plan design (e.g., co-pays, deductibles, tiered networks). By giving local government the same authority that the state has, cities and towns could save as much as 4 percent on health insurance costs beginning as soon as July 2010.
Third, the bill would help cities and towns deal with the increasingly divisive issue of charter schools. The bill would prevent any new charter schools from being approved in fiscal 2010 and would prevent any existing charters from expanding. This change would create some much-needed breathing space for cities and towns that have been negatively affected by charter school costs.
The bill would also provide for a share-the-pain system for charter schools. If a municipality suffers a cut in its Chapter 70 distribution in fiscal 2010, its charter schools would face a similar cut in reimbursements.
Fourth, the bill would provide for a local-option meals tax (up to 2 percent) and an increase in the lodging tax of up to 2 percent. The local-option meals tax would net an estimated $120 million statewide for each percent. The lodging tax increase would add approximately $20 million to local revenues.
Local Aid and Finance Rep. Kulik files MMA’s reform bill
Rep. Kulik files MMA’s reform bill
As the Legislature begins its 2009-2010 session, the deepening economic recession is expected to dominate Massachusetts politics in the year ahead.
The Legislature and the Patrick administration are expected to engage in a year-long process of reforming state government, pursuing savings opportunities, and weighing options to help cities and towns stave off devastating personnel and service cuts.
Rep. Stephen Kulik, a former selectman and MMA president, has filed an omnibus bill with four reforms being advocated by the MMA on the issues of telecommunications property taxes, health insurance plan design, charter school funding, and local-option meals and lodging taxes.
First, the bill would eliminate an existing loophole and authorize cities and towns to collect personal property taxes on telecommunication company poles, wires and equipment, which would net communities an estimated $80 million statewide.
Second, the bill would empower cities and towns to modernize their health insurance plans outside of collective bargaining. Currently, cities and towns are required to bargain changes to employee health insurance plan design (e.g., co-pays, deductibles, tiered networks). By giving local government the same authority that the state has, cities and towns could save as much as 4 percent on health insurance costs beginning as soon as July 2010.
Third, the bill would help cities and towns deal with the increasingly divisive issue of charter schools. The bill would prevent any new charter schools from being approved in fiscal 2010 and would prevent any existing charters from expanding. This change would create some much-needed breathing space for cities and towns that have been negatively affected by charter school costs.
The bill would also provide for a share-the-pain system for charter schools. If a municipality suffers a cut in its Chapter 70 distribution in fiscal 2010, its charter schools would face a similar cut in reimbursements.
Fourth, the bill would provide for a local-option meals tax (up to 2 percent) and an increase in the lodging tax of up to 2 percent. The local-option meals tax would net an estimated $120 million statewide for each percent. The lodging tax increase would add approximately $20 million to local revenues.
Written by MMA Legislative Director David Baier
