DeLeo says no to taxes

HOUSE SPEAKER ROBERT DeLeo laid out his agenda for the upcoming legislative session on Wednesday, saying he will look to expand early childhood education, maintain local aid, increase drug abuse treatment and mental health services, and foster renewable energy sources around the state – all without new taxes or fees.

While his remarks to the House lacked specifics, DeLeo emphatically made one more promise about a raging issue that many will hold him to – fixing the broken MBTA system.

“As I do, I know many of you represent constituents whose lives have been upended because of the storms,” the Winthrop Democrat told members. “We are each aware of how this unprecedented series of snowstorms has affected us all — especially those who rely on the MBTA. I’ve had numerous and early conversations with the governor and the Senate President regarding public transportation. We will work together to fix this problem.”

DeLeo gave more than a passing nod to the regions outside of Boston, addressing a complaint by many lawmakers who claim they often get the short end of the stick when it comes to budget and legislative priorities. DeLeo, who said he has made a point to visit districts outside of Interstate 495, said he will include those regions in formulating energy and biotech initiatives.

“Even as we face unforeseen fiscal circumstances, we will find inventive ways to extend our economic success to every corner of the Commonwealth,” DeLeo said. “I’ve seen what many of these regions have to offer: the pockets of innovation, the entrepreneurs, the people who make Massachusetts work. But too often folks in Greater Boston don’t know about them. I want to shine light on the successes throughout the state so that Massachusetts as a whole can prosper.”

On energy, DeLeo said high costs are a concern, but he devoted most of his remarks to clean energy, which is generally more expensive. One of his top lieutenants, Rep. Patricia Haddad of Somerset, has filed legislation to expand the region’s natural gas pipeline infrastructure, to import electricity from Canada, and to promote offshore wind development.

But time and again, DeLeo returned to the theme that all the progress that will be made will be done without increasing taxes or fees, promising that the House will pass no budget that includes new revenues.

“We know many families’ budgets are stressed to the limit,” he said. “We will not add to that burden.”

House Minority Leader Bradley Jones, who called on DeLeo to renew his pledge of no new taxes back in January, applauded the promise and praised the speaker for offering a “measured” vision that took fiscal reality into measure.

“I’m happy to see that [no new taxes] as part of the speakers remarks today,” Jones said. “I think he gave a speech that was measured in his realization that we have finite resources. Of course, there is a desire of wanting to do more, there was certainly some commentary… but that’s going to be very, very tempered by the resources available.”

Some observers said DeLeo’s mix of expanded programs without more money, especially with the T’s problems sucking all the oxygen out of the room, will be challenging.

“I guess anything is possible but it would be extremely difficult given the size of the deficit,” said Eileen McAnneny, the new president of the Massachusetts Taxpayers Foundation. “If there are expansions of programs, you would have to cut somewhere else.”

McAnneny said her group projects about a “moderate” 4 percent increase in revenues for fiscal 2015, but said spending has largely outpaced that gain, making any new programs reliant on cuts in other areas. While McAnneny said she hasn’t seen any specifics about DeLeo’s agenda or had an opportunity to analyze the impact, she said much of the budget challenges will start and end with the MBTA.

DeLeo’s address came nearly six weeks after the Legislature was sworn into office. But while he laid out his priorities, he gave no indication who would carry out his marching orders. He still hasn’t appointed committee chairs and a spokesman said there is no timetable to do so. Technically, the only committees operating are the Temporary House Committee on Ways and Means with Rep. Brian Dempsey continuing as acting chairman, and the Temporary Committee on House Rules.

The remarks also came as the House voted on Gov. Charlie Baker’s plan to close the $768 million budget deficit. The House’s amended bill, spelled out on the floor by Dempsey, was nearly identical to Baker’s proposal with the only changes amounting to about an $18 million difference. In the House bill, nearly $10 million that was slated to be taken from the state’s sheriffs’ departments and more than $2 million for legal services for indigent defendants were restored.

The House also removed language that would have given Baker expanded power to make changes in eligibility and benefits for those receiving Medicaid through the MassHealth program. An administration spokesman said that change removes about $5 million from the recommended cuts. Both the House and Baker held local aid harmless.

Dempsey also said the $40 million cut to transportation , including $14 million from the T, “is not desirable but is not impacting service.”

Baker had announced that he will take a voluntary 10 percent cut to his office’s budget. While the House bill does not include any cut to the Legislature’s budget, one Ways and Means official said both the House and Senate have agreed to take a voluntary cut, though the exact amount has not been determined yet.