Tisei Goes After Deval - Go Get 'Em!

Tisei calls for release of April revenue figures

Accuses DOR, Governor of withholding numbers to influence tax vote

BOSTON – Senate Minority Leader Richard R. Tisei is calling on the Department of Revenue to release April tax revenue figures, saying the Patrick Administration is purposely withholding crucial information from legislators on the eve of a scheduled Senate vote on a $500 million tax increase on businesses.

Noting that monthly tax revenues for the current fiscal year to date have consistently topped original projections, Tisei accused the Administration of dragging its feet on releasing April revenue figures because the numbers – which are expected to again top earlier benchmarks – might sway some legislators into voting against the governor’s proposed tax increases for Massachusetts businesses.

“For the past 10 years, DOR has consistently released the April revenue figures on the first or second day of the month,” said Tisei. “It stretches credibility for DOR to claim that, for the first time in a decade, they won’t have the figures ready until next week.”

Tisei said the unusual delay in releasing last month’s figures appears to be driven by an ulterior motive.

“By withholding information that will clearly show the state does not have a revenue problem but a spending problem, DOR is attempting to influence the debate on a major tax bill,” Tisei said. “DOR is keeping these figures a closely guarded secret because, if word were to get out that state revenues are continuing to come in above projected benchmarks, it would be very difficult for the Governor to justify his tax increase proposal.

“A number of people have noted that DOR, rather than acting as a neutral arbitrator and providing information, has been taking an aggressive lobbying approach throughout the tax debate and is being used by the Governor in a way it has never been used before,” he added. “My question is, when did DOR go from being an agency that enforces tax policy to one that actually tries to influence and set tax policy?”

Total tax revenues for Fiscal Year (FY) 2008 to date have exceeded original benchmarks by nearly $800 million, and April’s numbers will add to that figure. At the same time, state spending is growing at a rapid pace.

Over the past four years, state revenues increased by an average of 7.1 percent annually. In FY07, the state collected $19.736 million in revenues, a 6.8 percent increase over the previous year, which far exceeded the state’s original benchmark.

For FY08, the state initially anticipated taking in $19.879 million in tax revenues, but that figure has been revised upwards twice, and is now $20.225 million. Based on the latest benchmark, FY08 revenue collections will rise by 2.5 percent compared to last year, but projected spending is expected to grow by nearly double that rate, or 4.41 percent.

“This is the same type of tactic we saw employed during the Dukakis Administration, when Dukakis was doing everything he could to fudge the numbers and hide the truth from the Legislature and the public and almost led the state into bankruptcy,” Tisei said. “Governor Patrick campaigned on a promise to make state government more transparent, but he has been doing exactly the opposite in order to further his own tax and spend agenda.”