Lawmakers figure how to close the budget gap without casinos
P. Nick Curran
Issue date: 3/28/08 Section: News
Gov. Deval Patrick's plan to build three resort casinos in Massachusetts to boost state revenues was shut down on the House floor last week, effectively killing the bill until next January, with the state facing a $1.3 billion spending gap.
Massachusetts lawmakers must now find alternate revenue-boosting methods in the face of a "gloomy economic forecast," said Victoria Bonney, spokeswoman for House Speaker Salvatore DiMasi.
Patrick said the proposed legislation would raise $124 million in casino licensing fees to help balance the state's budget, but now legislators must look elsewhere for the money.
In lieu of the casino plan, DiMasi, a Boston Democrat, has proposed a $1 tax increase on cigarette packs, which he said will raise $152 million in revenue.
"Without the casinos, there will be a major shortfall in the budget," said Rep. Martin Walsh, a Dorchester Democrat. "We'll have to take millions from the rainy day fund and cut a lot from the state budget."
The rainy day fund acts as a safety net and was started by former Speaker Thomas Finneran. During an economic surplus the government puts away money to use in the event of an economic downturn, and Walsh said they will have to use it to close this year's spending gap.
He said the casino bill was not given a "fair shot" and legislators rushed through the vote without having the opportunity to strengthen the bill.
Since the bill did not pass, Walsh said he would like to look at raising the alcohol tax, which has not been changed since 1975. Other potential money-making proposals include changing corporate tax laws that would generate $204 million and budget cuts that would free up $100 million, according to the House Balanced Budget Prosposal.
"If we don't have the money to spend on the things we want, we need to cut the budget," Walsh said. "Sometimes the cuts are hard or deep, but we need to look at them."
The Mashpee Wampanoag tribe is lobbying the federal government for permission to build a $1 billion resort casino in Middleborough, which would bring gambling to Massachusetts without any state government regulation.
Massachusetts lawmakers must now find alternate revenue-boosting methods in the face of a "gloomy economic forecast," said Victoria Bonney, spokeswoman for House Speaker Salvatore DiMasi.
Patrick said the proposed legislation would raise $124 million in casino licensing fees to help balance the state's budget, but now legislators must look elsewhere for the money.
In lieu of the casino plan, DiMasi, a Boston Democrat, has proposed a $1 tax increase on cigarette packs, which he said will raise $152 million in revenue.
"Without the casinos, there will be a major shortfall in the budget," said Rep. Martin Walsh, a Dorchester Democrat. "We'll have to take millions from the rainy day fund and cut a lot from the state budget."
The rainy day fund acts as a safety net and was started by former Speaker Thomas Finneran. During an economic surplus the government puts away money to use in the event of an economic downturn, and Walsh said they will have to use it to close this year's spending gap.
He said the casino bill was not given a "fair shot" and legislators rushed through the vote without having the opportunity to strengthen the bill.
Since the bill did not pass, Walsh said he would like to look at raising the alcohol tax, which has not been changed since 1975. Other potential money-making proposals include changing corporate tax laws that would generate $204 million and budget cuts that would free up $100 million, according to the House Balanced Budget Prosposal.
"If we don't have the money to spend on the things we want, we need to cut the budget," Walsh said. "Sometimes the cuts are hard or deep, but we need to look at them."
The Mashpee Wampanoag tribe is lobbying the federal government for permission to build a $1 billion resort casino in Middleborough, which would bring gambling to Massachusetts without any state government regulation.
Viewing Comments 1 - 3 of 3
Colonist
posted 3/28/08 @ 8:56 AM EST
Increase Cigarette Tax in MA = Drive to NH
Increase Alcohol Tax in MA = Drive to NH
Stop Casinos in MA = Drive to RI & CT
Increase Corporate Tax in MA = Move Business to another state
Balance the Budget, Ban the Pork
Hockeyrover
posted 3/28/08 @ 3:31 PM EST
Too many stupid myths in this article. 1) Casinos CANNOT set up in MA, even if the Indians get their land in Middleborough. The state is ONLY required to let them operate games that are ALREADY legal. (Continued…)
Steve Norton
posted 3/29/08 @ 12:11 AM EST
I believe a license fee for a casino near Boston could return $400 to $500 million. Discussed by several legislators was the possibility of slot machines at race tracks. (Continued…)
Post a Comment