|
|
|
|
|
|
|
|
|
 |
 |
 |
 |
 |
 |
 | |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
Public Affairs
Public Policy
Information on this page is both provided by and linked to the Mass Council of Human Service Providers. MCHSP is a partner in encouraging legislative reforms to the betterment of individuals with disabilities. More updated information may be available at www.providers.org.
The upcoming presidential election is obviously a hot topic but, closer to home, there’s a very important decision for Massachusetts voters on November 4. It’s Ballot Question 1, a proposal to eliminate state income tax. We have been getting several questions regarding this matter so we thought it would be best to provide you with information on how it could impact Seven Hills Foundation’s programs and employees.
While the prospect of having a little more cash in your pocket may seem appealing during this difficult economic period, Seven Hills Foundation is encouraging voters to examine the long- and short-term ramifications of such a measure. If you’re a registered voter, please read the information below, make an informed decision and get to the polls on Nov. 4.
MAKE SURE YOU’RE REGISTERED
If you’re not registered to vote, you must be registered by October 15th in order to participate in the November 4th Presidential Election. Although we cannot tell you who or what to vote for, we do encourage everyone to vote. Our elected officials at both the federal and state levels make important decisions regarding funding for essential services for people with disabilities and other life challenges. Participation by all of us in the election process is needed, if we want our voices to be heard.
If you are not a registered voter and wish to do so before October 15th, I would suggest you go to the following web site: http://www.rockthevote.com/
FREQUENTLY ASKED QUESTIONS
What is Ballot Question 1?
Massachusetts Ballot Question 1 is a proposal to eliminate state income tax. If passed, state income tax will be cut in half (to 2.65 percent) on Jan. 1, 2009. On Jan. 1, 2010, state income tax will be eliminated entirely. A “No” vote on Question 1 will make no change in current state income tax laws.
Facts about Question 1
Chapter 257 implementation: The signing of Chapter 257 was a milestone, which underscored the need for the reform of purchased services and began a move toward fairness, adequacy and transparency in setting the rates for buying human and social services. Our Collaborative’s bill received unanimous support from the legislature and a clear message of support from the Governor. Now our attention is focused on effectively crafting the solution and implementing it in a manner consistent with our expectations. We are interested and available to work with our state government in developing an appropriate solution that models our ideas for real reform. And while progress toward reform continues, providers remain in a position of fiscal vulnerability due to the general rate of inflation and other key commodity increases, which impact their ability to provide quality services. Accordingly, we ask the state to consider offering a cost of living increase to all providers who have not had their new rates adjusted for inflation in the past two years. Further, we also ask to begin the implementation of Chapter 257 by fully funding 10% of the existing contract funding in FY 2010.
Workforce development - compensation: Retaining and recruiting qualified staff is a top priority for all health and human service providers and Seven Hills Foundation is no different. From July 2007 to July 2008 the consumer price index rose nationally by 5.6%. Last year’s salary reserve will cover less than one half of that rise. The impact is compounded on our low-paid workers who are historically one paycheck away from being a service recipient. Premiums for health insurance continue to grow at double digit rates, and our workers remain ineligible for important Connector services. We urge EOHHS to recognize the need for a continued salary reserve in the FY 2010 budget and set, at the very least, a level funding of $23 million.
Workforce development - education: For the past several years providers have accessed the state’s public higher education system through a tuition remission process. This process, administered by the Massachusetts Providers’ Council, permits eligible Seven Hills employees from to enroll in state-supported undergraduate classes. Participants are responsible for fees and book costs. Over 15,000 courses were accessed. And while this is a tremendous benefit, there is a need to access graduate courses and those operated through continuing education. Accordingly, the Massachusetts Providers Council and Seven Hills Foundation requests favorable consideration in working to expand the tuition remission program to graduate and continuing education courses in the public higher education system.
Energy costs: There is a growing crisis to providers in meeting rapidly escalating energy costs. Providers are now hard pressed to properly transport clients to vocational, medical and program-related activities, and to provide heating and cooling capability to their hundreds of residences and program sites. In addition, they are unable to reimburse staff at the I.R.S. level of 58.5 cents per mile for business travel. These fixed cost items are escalating and affecting program quality. Two years ago we estimated that the increased energy cost to the sector was close to $15,309,000 and was not reimbursed by the state. By including the July 2007 to July 2008 fuel oil increase of 56% and unleaded gas of 37% with other increases, it is clear that providers are still struggling to meet these increased costs. Seven Hills Foundation would request that the state establish a special reserve of at least $16,000,000 to help offset the increased energy costs and maintain service quality levels.
How much revenue does state income tax provide?
Massachusetts state income tax accounts for more than $12.5 billion of the state’s $28 billion budget.
How would passage of Question 1 affect Seven Hills Foundation?
The human services sector receives about $2.8 billion in state funding and Seven Hills Foundation receives 90 percent of its funding from the state (this includes the Medicaid matching funds). If Question 1 were to be approved, this figure could possibly be reduced by about 40 percent. In all likelihood, it would put human service providers like Seven Hills in the difficult position of cutting or diminishing services, leaving a segment of current clients without any type of care. This could also mean a significant loss of jobs.
What other types of services might be affected?
The elimination of state income tax would force cuts in state aid to cities and towns, creating reductions in funding for local public schools. This could translate into teacher layoffs, school closings and cutbacks in school programs. It could also threaten public safety by cutting funds for police, fire protection and emergency medical services. In addition, the loss of revenue from state income tax might prevent Massachusetts from making badly needed repairs to the state’s roads and bridges.
How would this lost revenue be made up?
Most likely, the state would be forced to raise other taxes and fees that would hit low- and middle-income families the hardest (e.g., sales tax). On the local level, it would probably mean higher property taxes as well as increased fees for local services, such as trash collection and water supply. Lower overall revenue would also cause the elimination of jobs.
Where does the Governor stand on Question 1?
Governor Patrick is firmly opposed to this measure, calling it “irresponsible.” Through spokesperson Rebecca Deusser, he released the following statement: “A cut of this magnitude would severely reduce the ability of the Commonwealth to provide the services that citizens and taxpayers have come to expect from their state government.”
What do others think?
The Providers’ Council is strongly opposed, stating that “these cuts would be extremely harmful to the human services sector, and it would put us in the situation of not being able to provide the same level of service to all the clients for whom we care. The loss of jobs for people working in this sector would create harm to this workforce and the benefit they deliver to our most vulnerable citizens.”
The Massachusetts League of Women Voters opposes Question 1, noting that “other taxes will most likely increase. Also, there would be less funding for public works projects, such as construction, public safety, school budget, and other state services like Medicaid.” The League also points out that “the federal government requires matching funds from a state for several types of aid. Programs like Medicaid could therefore lose even more than their state funds under this measure.”
According to Michael J. Widmer, president of the Massachusetts Taxpayers Foundation, a Boston public-policy research group, “It would be an absolute disaster for the state. This extreme measure would throw the finances of state and local governments into chaos and inevitably lead to major increases in property and sales taxes.”
Who is supporting Question 1 and why?
Those who support less government involvement are in favor of eliminating state income tax. They claim that Massachusetts politicians are guilty of overspending and poor fiscal management. Giving them less money to work with, they argue, will create more responsible government. While few will argue that the state could be more efficient in its spending, most experts do not see the elimination of state income tax as a viable solution to this issue.
If Question 1 passes, how much extra money will I see in my paycheck?
It depends on your income (see chart below). Keep in mind that part or all of this total could be negated by increased sales and property taxes as well as other fee increases. Also note that part of this total could be refunded to you after filing your state income tax return.
Current state income tax deductions
Annual salary State tax withheld per week*
$25,000 $19
$30,000 $24
$35,000 $29
*Single, claiming one exemption
Is elimination of state income tax a new concept in Massachusetts?
No. A similar referendum in 2002 received 45 percent of the vote and failed to be passed by the voters.
What can I do?
Read about the pros and cons of Question 1 so you can make an informed decision. Be sure you’re registered to vote and get to the polls on Nov. 4. Also, talk to your friends and family, explaining what’s at stake and encouraging them to learn about Question 1. If you think it’s important that human services continue to receive current levels of state funding, carefully examine the ramifications of Ballot Question 1.
The Governor reduced the Salary Reserve from $20 million to $10 million in the proposed FY 2006 budget.
- Call or write your legislators
Ask them to work to restore the override by going to House Speaker Salvatore DiMasi, Senate President Robert Travaglini, and the Chairs of both Ways and Means Committees and ask for this item to be brought to the floor of the House and the Senate.
- Use GiveVoice
We will be writing a GiveVoice letter. Please encourage all registered users to use this automated system that will send a letter, to every member of the House and Senate, that asks for a restoration of the $10 million. Please encourage people to register.
- Write a press release Your legislators all read the local papers. Use this as an opportunity to tell your community about the valuable services you provide and why having a professional, adequately paid staff is critical to the delivery of quality services. We got to the $20 million reserve through your advocacy and support--let's win again!
2007 Legislative Agenda
MCHSP, of which Seven Hills Foundation is a member, has proposed four bills for this legislative session. Please review the following fact sheets and communicate your support to your legislators.
An Act Creating a Loan Forgiveness Program for Direct Care Human Service Workers
Section 16 of Chapter 6A shall be amended to create a student loan program for credentialed direct care human service workers. The Act is designed to encourage individuals to enter and continue to work in human service programs. This student loan program would be administered by EOHHS, and eligible participants could be reimbursed up to $1,800 per year .
An Act Relative to Rate for Human and Social Service Program
This Act shifts the responsibility for setting rates to be paid by government agencies for human and social service programs, other than special education program, to the Division of Health Care Finance and Policy (DHCFP) within the Executive Office of Healtha nd Human Services (EOHHS). Currently, prices paid by state agencies for human services, other than special education programs, are determined through a bid process dictated by the Division of Purchased Services (DPS) and the Operational Services Division (OSD) within the Executive Office for Administration and Finance (A& F).
An Act to Promote Higher Edcation Among Employees of Human Service Providers Organizations
This Act will expand the current tuition remission program operated by the Massachusetts Council of Human Service Providers. The purpose of the Act is to assist in the recruitment and retention of contract human service worker in the community-based program and to advance the professional skills and training of the human service workforce in Massachusetts.The program would be expanded to provide tuition remission for continuing education and graduate courses, and to spouses of eligible employees.
Click here to sign up for advocacy email alerts
For further information regarding Public Policy initiatives visit www.providers.org
Public Affairs
|
Copyright © 2006 Seven Hills Foundation. All Rights Reserved.
