JCRC/MAJF interviewed the Vice Chair of the House Ways and Means Committee, Representative Barbara A. L'Italien (D-Andover) about Beacon Hill's budget, reform and revenue for the fiscal year 2010 (FY10) budget. This interview took place during the summer, prior to the Governor's announced plans for Budget cuts above.

Few people were as close the process as Vice Chair L'Italien. She worked diligently to retain essential health and human service programs in the House budget, and also to create a balanced budget as a member of the FY10 Budget Conference Committee. A member of the House since 2003, Representative L'Italien has been a champion for elders and individuals with disabilities and a great friend to the Jewish community. She has enjoyed legislative successes in the areas of health care, education, civil rights, disabilities, elder issues and economic development.  Representative L'Italien lives in the Merrimack Valley, representing parts of Andover, North Andover, Boxford, Georgetown, Methuen and Haverhill.

In terms of tough decisions, where does this budget year rank with regards to other budget years?

Given that the state budget had a $5.1 Billion budget deficit this year was definitely the toughest budget year in decades.  The decision to eliminate local earmarks followed by the need to remove broader programmatic earmarks was necessary to balance the budget.

What was the most difficult decision you had to make this budget year?

Personally, the most difficult budget cuts were the ones made to the programs for the poor, the elderly, and those citizens with mental illness and developmental disabilities.  Historically, those groups of people had been my advocacy focus so I knew what the impacts of cuts would be.

What was your experience like sitting on the 6 person conference committee?

The House budget needed to be scaled back by $1.5 Billion in order to reflect continued revenue shortfalls.  We knew that the budget would need to look more like the Senate version with some modest adjustments. The process for negotiating monetary, language and policy differences was forthright, respectful, and cooperative with a shared goal of finishing in a timely manner in order to give the Governor plenty of time to review and sign the document before July 1st (the day the new fiscal year begins). I was honored to be part of the decisions that took place and the faith vested in me by Speaker Bob DeLeo.

I was impressed by the professionalism of the Ways and Means Chairs – Senate Chairman Panagiotakos and House Chairman Murphy; my Senate counterpart - Vice Chairman Brewer; the Minority Party representation – Senator Knapik and Representative deMacedo and the Assistant Vice Chairs – Senator Chandler and Representative Kulik. Everyone realized the need to work in a cooperative manner.

Since FY11 seems to be as challenging as FY10, do you have any advice for non-profits and social service agencies?

Yes, unfortunately I believe that the FY11 budget will be even tougher to balance and will require further cuts to programs. Monthly revenue collections continue to plummet and we needed to dip into some of the federal stimulus funds intended for next year to balance out FY09.  Thus non-profits and social service agencies are going to have to plan to be vigilant about their search for other funding sources through grant writing and private fundraising to weather the storm.

Why in the end, did the House vote on the Sales, Alcohol and Hotel/Meals Taxes rather than other taxes?

No representative relishes the thought of raising taxes on their constituents.  However, given the extraordinary revenue drop-off it was decided that a balanced approach of cuts and efficiencies, federal ARRA funds and raising revenue was a balanced approach to addressing the $5.1 Billion budget gap. Any tax vote would need to have the majority support of the House and Senate in order to pass.

The income tax was preferred by a small group of people and the gas tax was primarily supported in the areas affected by the prospect of toll increases so neither was pursued.

The Sales tax was considered to be the tax with the ability to raise significant revenue and have support.  The sales tax had not been raised in thirty years and excludes essentials such as food, clothing (under $175), heating oil, tuition etc.

Lifting the sales tax exemption on alcohol was proposed by the Senate as they pursued ways to counter a $1.5 Billion shortfall after the conclusion of the House budget when April tax collections were revealed.

The Meals and Lodging taxes were initially proposed by the Governor in his Municipal Relief package a few years back and will be taken up at local option to assist the cities and towns in raising local revenue.