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In The News

Districts expecting less state education money

Bay State Banner, July 1, 2020

“We shouldn’t keep passing the buck,” said Colin Jones, senior policy analyst at Massachusetts Budget and Policy Center. “It makes no sense for individual districts and child care providers to be going into a completely out-of-control market for PPE and equipment individually.”

Commissioner: Fed aid won’t solve child care system woes

Daily Hampshire Gazette, July 1, 2020

Last week, the left-leaning Massachusetts Budget and Policy Center estimated that early education and family day care homes will need $690 million over the next five months to successfully reopen, cautioning that child care is a key foundation for virtually all other economic sectors because it enables parents to work.

Task force: Child care constraints threaten Cape recovery

Cape Cod Times, June 25, 2020

An investment of $690 million in federal and state funding during the next five months will be needed to bring the early education system out of closure and into continued operation, according to a report issued by the Massachusetts Budget and Policy Center earlier this week. “Without significant additional funding from the state or federal governments, the early education system in Massachusetts will be unable to reopen successfully and remain financially viable over the coming months as parents return to work,” the report stated. The report also notes the workforce that could be particularly hard-hit by closures are primarily low-salaried and “almost entirely women, and with more people of color and foreign-born workers compared to Massachusetts at large.”

At 'financial risk,' child care system needs $690M, says report

Boston Business Journal, June 24, 2020

In its new report, the nonprofit MassBudget estimated early education providers lost up to $250 million in private tuition each month of the shutdown. Now, providers may also face a 20% increase in the cost of operations due to new safety protocols and disruptions of enrollment. “Families with options, such as keeping kids home with family or private caregivers, may choose to move away from group child care entirely, further financially destabilizing the system,” the report said. The report noted low-income families and families of color are “more likely” to be hurt by child care center closures during the pandemic. “Accessible early education and care for young kids and their families is vital to the recovery of our economy from the Covid-19 crisis,” the report said.

Rep. Barber files bill to close corporate loopholes, raise progressive revenue, and fill budget gaps

The Somerville Times, June 24, 2020

“Raising new revenue responsibly is a critical tool to support and sustain our recovery,” said Rep. Barber. “Revenue the state would receive from recoupling to the GILTI provision could be used to fund our COVID-19 response, as well as our critical needs including equitable education funding, transportation and local services, making our Commonwealth stronger financially in the long-run.” “Our future hangs in the balance as we see billions of dollars potentially drained from schools, mass transit, and the public good” said Marie-Frances Rivera, President of the Massachusetts Budget and Policy Center. “Corporations who are profitable during this time have a moral obligation to pay their fair share and invest in our collective future.”

Education funding shortfall could spur new lawsuit

Commonwealth Magazine, June 23, 2020

This year was supposed to be the first year of funding under the new formula. In his January budget proposal, Baker proposed adding $303.8 million in new state aid to school districts, compared to the amount distributed in fiscal 2020. Because of the way Baker wanted to phase in changes related to low-income students, that represented slightly less than one-seventh of the total implementation cost, which the Massachusetts Budget and Policy Center pegged at $375 million a year. But with the coronavirus pandemic tanking state revenues, Baker’s budget proposal is essentially meaningless. In the absence of an annual budget, the state plans to base its aid distributions to districts for July and August on the amounts they received this year.

COVID Tax Woes Delay Funding For $1.4 Billion Student Opportunity Act

WGBH, June 22, 2020

"Not having this additional funding is a recipe for disaster at this point," Marie-Frances Rivera, president of the Massachusetts Budget and Policy Center, told WGBH News. "It's essentially $300 million that districts across the commonwealth" will lose, Rivera said, referring to the amount of money in the governor's pre-COVID budget for the Student Opportunity Act in fiscal 2021. That will affect mainly gateway cities who serve the most kids of color and low income kids and English language learners, she added. "Those districts were expecting this infusion of cash, which they're not going to get," said Rivera.

Undocumented employees at greatest risk in economic downturn, says report

Boston Business Journal, June 8, 2020

Almost half of the employed undocumented people in Massachusetts are at high risk of losing their jobs or income because of the coronavirus, according to a new report by MassBudget. As a result of businesses having to shut down to slow the spread of Covid-19, 55,000 out of the 122,000 employed undocumented people could lose their jobs, the nonprofit MassBudget said in its report. The estimates are likely low, as finding accurate numbers of undocumented people is difficult, the report notes. MassBudget is urging lawmakers to support these workers through financial relief for those with Individual Taxpayer Identification Numbers, a move that could benefit about 57,000 adults and children, some of whom are likely undocumented, according to MassBudget. Similar to the Federal CARES Act, this bill would provide stimulus checks to those who cannot get a social security number.

Report: Undocumented immigrants at risk of losing work, pay

Commonwealth Magazine, June 8, 2020

Nearly half of the undocumented immigrants employed in the state, an estimated 55,000 workers, were at risk of losing their job or losing pay because their workplace had to close during the COVID-19 shutdowns, according to a report issued Monday. The analysis by the Massachusetts Budget and Policy Center, a liberal-leaning policy think tank, said workers without legal status in the country are disproportionately employed in sectors that have experienced widespread closures due to the pandemic. These include jobs that require close customer interactions, such as those at restaurants, hotels, and barbershops. The Mass. Budget report highlighted state legislation that would offer financial relief to people who hold Individual Taxpayer Identification Numbers (ITINs) — some of whom are undocumented. Workers can get an ITIN number with a foreign passport.

New unemployment claims continue to slow in Massachusetts

SouthCoast Today, June 6, 2020

In a Wednesday analysis, the Massachusetts Budget and Policy Center warned that the state's economic recovery could suffer if federal lawmakers do not extend the PUA program, which runs through the end of 2020, or if policy granting a bonus $600 per week to all benefit recipients is allowed to expire at the end of July. "Bold federal policies to strengthen unemployment insurance have been a crucial source of funds for many workers whose income has been interrupted," Phineas Baxandall, a senior analyst at MassBudget who authored the report, said in a press release. "If these benefits are allowed to expire before the Massachusetts economy has recovered, a lot of people and prospects for growth will be harmed."

Economists urge Beacon Hill to raise taxes

Taunton Daily Gazette, May 26, 2020

“Large cuts would erode the health and social infrastructure needed to continue combatting COVID-19, increase an already high level of inequality, and exacerbate the economic downturn. Instead of budget cuts, the state should look to raise revenues to balance its budget,” the economists wrote in a letter to Gov. Charlie Baker and legislative leaders that was distributed Tuesday by the Massachusetts Budget and Policy Center. Raising the personal income tax and the corporate tax “are fair ways to do this, since they fall only on persons with incomes and businesses with profits,” the economists wrote, projecting that a 1 percentage point increase in the income tax could raise $2.5 billion per year while a 1 percentage point increase in the corporate tax rate could raise $180 million per year “even if the income tax base falls by 25 percent and the corporate tax base falls by 50 percent during this recession.” This is not the time for an austerity budget,” MassBudget President Marie-Frances Rivera said in a statement. “The economists’ letter underscores how public spending cuts would lengthen an oncoming recession, as it would take money out of our local economy that would otherwise recirculate and spur economic activity. Furloughing public employees, cutting state contracts to businesses and nonprofits, and reducing assistance to municipalities and low-income families will take money out of the Massachusetts economy, prolonging and deepening the recession. Avoiding budget cuts through targeted tax increases is the best way to build a strong recovery in Massachusetts.”

Group of economists push for tax hikes to balance Massachusetts state budget

Boston Herald, May 26, 2020

A group of 91 Massachusetts economists are calling on Gov. Charlie Baker and legislative leaders to raise personal income and corporate taxes amid projected massive coronavirus-induced decreases in tax revenues. They claim it’s the only “fair” way to balance next year’s budget and avoid spending cuts — even as homeowners and businesses try to dig out of an economic hole. “In a recession, balancing the budget by cutting spending has a more negative impact on economic growth than balancing the budget by raising taxes. Both the personal income tax and the corporate tax are fair ways to do this, since they fall only on persons with incomes and businesses with profits,” the economy and public policy experts wrote in their May 26 letter to Baker, House Speaker Robert DeLeo and Senate President Karen Spilka.

Other revenue options besides personal income tax

Boston Globe, May 22, 2020

Massachusetts faces crucial decisions about how to fund our public services, and thus I deeply appreciated the perspective of economists Alicia Sasser-Modestino, Alan Clayton-Matthews, and Michael Goodman in their recent op-ed (With plummeting revenues, state should impose a temporary tax increase, Opinion, May 16). As we face an unprecedented economic freefall, cuts to public services will do far more damage than asking people who can afford it to contribute a little more in taxes. While the authors refer to an increase in the personal income tax to help offset revenue declines, there are many other options to fund the essential services we all rely on. Among them, are dozens of ineffective corporate tax breaks that together now cost the Commonwealth over $1 billion a year. One example: The single sales factor tax break forfeits $180 million per year to mutual fund companies, an industry that has shed thousands of jobs in our state over the last two decades. As state revenues plummet, we must discuss the most effective use of these dollars during this unprecedented crisis. With so many of our friends and families undergoing economic distress, how we invest in our people and the public good, including health care, schools, and transit will reflect our values now more than ever. - Marie-Frances Rivera, President, MassBudget

Child care choices limited for returning workers

Gloucester Times, May 20, 2020

Marie-Frances Rivera, president of the Massachusetts Budget and Policy Center, a left-leaning think tank, said the state needs to provide more support and guidance. "Parents should not be forced to work when circumstances such as lack of safe and affordable child care make it impossible," she said in a statement.

Bill Seeks To Offer Equal Stimulus Checks To Immigrant Taxpayers

North End Waterfront, May 14, 2020

According to the Massachusetts Budget and Policy Center, approximately 57,000 Massachusetts residents live in a household with an ITIN filer. To provide assistance that would fill the gaps left by federal relief programs to these residents would cost about $58 million.

Somerville School Committee considers uncertain budget

Wicked Local Somerville, May 12, 2020

Revenues declined 25% during the March-April period and are projected to be lower in the May-June period as the state closed the fiscal year. Revenues are $2.1 billion lower than what was forecasted, and, per an article from the Massachusetts Budget and Policy Center (MassBudget), that is going to worsen going into fiscal year 2021.

Stimulus checks pitched for undocumented workers

Gloucester Times, May 6, 2020

The left-leaning Massachusetts Budget and Policy Center estimates the state's proposal would benefit about 57,000 individuals.

Representative Barber files legislation to support immigrants during COVID-19 pandemic

Somerville Times, May 6, 2020

ITINs (Individual Taxpayer Identification Numbers) are issued by the IRS for tatt filing purposes to individuals who are ineligible for Social Security Numbers. ITIN filers include undocumented immigrants and other vulnerable groups who pay taxes through alternative means. There are an estimated 57,000 ITIN filers in Massachusetts, yet the CARES excluded ITIN filers and their families from receiving critical stimulus checks.

Letter: COVID-19 makes funding for birth-age 5 child care urgent

Worcester Telegram, May 1, 2020

Child care programs and early educators serving birth-age 5 may become an endangered species following COVID-19. Samantha Aigner-Terworgy, Department of Early Education and Care commissioner, shared that the lost monthly revenue for private pay to child care sites across the state is $248 million. The Care.com proposal for early educators to provide in-home care further threatens programs’ sustainability. Exacerbating the issue, MassBudget forecasts revenue loss for the fall of FY21 to be $5-5.7 billion.

Immigrant stimulus check bills draw support

SouthCoast Today, April 30, 2020

The Massachusetts Budget and Policy Center pegged the cost of providing cash benefits to ITIN filers, in an amount equal to the federal stimulus they’d receive if eligible, at $58 million. An estimated 57,000 Massachusetts residents live in households with an ITIN filer, according to the center.

The Sobering Truth behind COVID-19's Impact on Massachusetts' Annual Budget

JD Supra, April 27, 2020

Massachusetts Taxpayers Foundation (“MTF”) estimates FY21 tax revenue to fall $4.4 billion below the modest benchmark established in early calendar year 2020, while the Massachusetts Budget and Policy Center projects a more dramatic $5 to $5.7 billion range for potential drop in collections. These staggering figures will continue to be impacted by rising unemployment due to business and school closures across the state.

State Rundown 4/22: Earth Day Lessons from Pangea to Pandemic

Just Taxes Blog, April 22, 2020

Massachusetts lawmakers continue to weigh emergency measures. The Massachusetts Budget and Policy Center released a brief that provides options to support individuals and families in the Commonwealth where federal cash assistance falls short.

Tax cuts that continue to haunt Mass

Boston Globe - Op-Ed, February 12, 2013

Tax policy debates are about how we pay for the things we do together for our communities, our families, and our economy. Working together through government allows us to accomplish things that are vital to us as a Commonwealth and that we can't do alone...About 15 years ago, at the height of the dot-com bubble, our state made tax policy choices that have shaped state policy ever since...The state enacted a series of cuts to the income tax that are now costing us close to $3 billion a year. We cut the tax rate on most income from 5.95 percent to 5.3 percent, costing over $1.5 billion. We cut the tax rate on dividends and interest from 12 percent to 5.3 percent, costing about $850 million. We increased the personal deduction to $4,400, costing $550 million.

Look at what the state is doing right

Massachusetts Budget and Policy Center, January 23, 2011

WITH THE governor scheduled to file his budget proposal for the coming year on Wednesday, and the Commonwealth facing a budget gap of close to $2 billion, knowing that our government provides services as efficiently as possible will be more important than ever.