Massachusetts
Big ballot mistakes: Mass. rent control, tax cut proposals would backfire – The Boston Globe
Both are appealing. Who doesn’t favor more affordable rents or lower taxes?
But both are bad ideas even though they attempt to address real economic challenges posed by the state’s high cost of living. Like most simple answers to complex problems, they would only make matters worse.
The rent initiative, backed by labor unions, would discourage new construction, which is essential to keeping a lid on lease rates. It would also decrease property values, putting a strain on municipal budgets.
The tax cut, pushed by business groups, would take a large bite out of state revenues, forcing difficult decisions about which services to eliminate.
Here’s a quick primer.
What it would do: Filed by Homes For All Massachusetts, a coalition of housing groups, the initiative would peg allowable annual rent hikes to the rate of inflation (as measured by the Consumer Price Index), with a cap of 5 percent.
Landlords would be barred from raising rents after a tenant leaves. Owner-occupied buildings with four or fewer units would be exempt, as would new buildings during their first 10 years. Cities and towns couldn’t opt out.
The initiative would “protect tenants from big corporate investors who unreasonably increase rents, while allowing local landlords to earn a reasonable profit and enabling new construction to address housing shortages,” said Carolyn Chou, executive director of Homes for All Massachusetts.
Several big labor unions have endorsed the measure, including the SEIU Massachusetts State Council and the Massachusetts Teachers Association.
Why it won’t work: Backers designed the proposal to sidestep the obvious flaw of rent control: that it chills new construction. Hence the 10-year exemption for new buildings.
But most apartment projects in Massachusetts take years to finance, permit, and build. Developers calculate their payoff over several decades, and a rent cap waiting at the end of year 10 changes the math.
The deeper problem is high rents in Massachusetts are a supply problem. There are not enough apartments and rental homes.
Not only do rent caps discourage new construction, they may encourage landlords to convert rental units to condos or reduce their investment in existing properties.
Moreover, evidence shows rent control can have unintended consequences.
A working paper examining St. Paul, Minn.’s 2021 rent control ordinance, which was less severe than the Massachusetts proposal, found that property values fell 6 to 7 percent. The losses were driven largely by lower expected future rents being priced into valuations.
That kind of decline ripples through municipal budgets. Cities facing shrinking tax bases typically respond by raising rates, cutting services, or both.
“It would be catastrophic for the economy,” said Tamara Small, CEO of NAIOP Massachusetts, a commercial real estate trade group.
What it would do: Reduce the state levy on personal income to 4 percent from 5 percent, phased in over three years.
The initiative would put money into people’s hands and make sure the government is not growing faster than residents’ ability to fund growth, according to Jim Stergios, executive director of the Pioneer Institute, a business-supported think tank that filed the measure.
“This is about making Massachusetts a place where people want to stay,” he said. Pioneer estimates the tax cut would lead to the creation of as many as 48,000 jobs and spur economic growth that would offset the loss of tax revenue within a few years.
According to backers, which also include the Massachusetts High Tech Council and the Massachusetts Competitive Partnership, the net annual revenue impact during the three-year phase-in period would be about $680 million. Following full implementation, state revenue growth would increase as an economic boost from lower taxes kicked in.
Why it won’t work: Tax cuts can modestly boost growth as consumers and small businesses spend the extra money. According to a report by the Center for State Policy Analysis at Tufts University, the median household tax bill would shrink about $1,250 each year.
But the economic boost won’t fully recoup lost revenue. Claims that cuts “pay for themselves” are not supported by the weight of economic evidence.
According to the Tufts report, the tax cut would result in a much bigger hit to state revenues than estimated by the initiative’s supporters: $5.1 billion a year when fully in place, or about 10 percent of total state tax receipts. The state Department of Revenue issued a similar estimate.
“A cut of this size would more than offset the revenue gains from the millionaires tax and imperil efforts to balance the state budget and sustain core government programs moving forward,” the Tufts report said.
Massachusetts has a real cost-of-living problem, and voters aren’t wrong to demand action. But these ballot proposals offer short-term gratification without fixing the underlying problems.
Larry Edelman can be reached at larry.edelman@globe.com.
Massachusetts
Massachusetts AG Campbell accused of breaking professional conduct amid audit lawsuit
AG Andrea Campbell called Diana DiZoglio’s personal cell phone a day after an SJC justice moved the legislative audit legal case to the full court, a call that the auditor alleges violates the state’s professional conduct rules.
DiZoglio’s fight with Campbell is steaming ahead, even as the attorney general claims that there’s a “path forward” for the voter-approved audit of the state Legislature, over 15 months after 72% of the state signed off on the ballot measure.
DiZoglio’s office argues that Campbell’s attempt to call the auditor on her personal cell phone violates Rule 4.2 of the Massachusetts Rules of Professional Conduct, which prohibits lawyers from communicating directly about a case with an individual represented by another attorney without consent.
“The Attorney General is our state’s top law enforcement officer and should follow the Rules of Professional Conduct,” DiZoglio said in a statement on Wednesday. “I will not participate in dark, shadow conversations with the AG about this lawsuit.”
“That she is trying to get me to speak with her alone, via private cell phone, without my legal counsel present, is unacceptable,” the auditor added.
Campbell’s office is firing back at DiZoglio’s claim, which it says is a “false and baseless accusation.”
“If the Auditor is interested in a solution,” the office said in a statement shared with the Herald, “the AG is available to speak with her or the Auditor’s staff can speak with our office – but as it stands, her office refuses to engage with us directly on a path forward.”
DiZoglio and Campbell have been locked in a legal tug-of-war since voters approved the audit in November 2024.
Siding with legislative leadership, Campbell has claimed that DiZoglio has not answered basic questions on the scope of the legislative audit. The AG argues that the auditor’s review may also violate the state Constitution.
In February, DiZoglio sued House Speaker Ron Mariano and Senate President Karen Spilka for refusing to comply with the audit. The auditor is asking the SJC to allow her to appoint an outside attorney, as Campbell is representing the top Beacon Hill Democrats.
DiZoglio spotlighted Campbell’s attempt to talk with her on her personal cell phone after the AG appeared on GBH’s Boston Public Radio on Wednesday. The auditor also released emails between the two offices regarding the call.
In her radio segment, Campbell admitted to calling the auditor after seeing her at a recent event in Worcester and that she had yet to hear back from DiZoglio. The AG said the message that she is trying to convey to the auditor is that “there’s a pathway forward.”
Speaking at an event on March 16, DiZoglio said, “I have only asked for financial receipts and state contracts. There is nothing unconstitutional about … getting access to that information.”
Campbell argues DiZoglio has “changed” her stance on the audit’s scope.
Deputy Auditor Michael Leung-Tat expressed his concerns about Campbell’s call to DiZoglio in an email on Monday to Assistant Attorney General Anne Sterman and First Assistant Attorney General Pat Moore.
Leung-Tat emphasized that the last time DiZoglio and Campbell spoke via phone was allegedly in November 2023, when the AG informed the auditor of her support of the legislative audit.
“They don’t have a relationship beyond our office’s official communications,” Leung-Tat wrote, “and, as you know, official business between our offices is conducted at the staff level. … it appears that the Attorney General was calling the Auditor about the pending litigation before the SJC.”
“As you are aware,” the deputy auditor added, “we have been engaged with your office seeking assistance in our efforts to audit the Legislature since 2023, so it is curious that the Attorney General only just now decided to call.
In an email reply, Moore said there was “nothing unethical” about Campbell’s call and that the AGO was “surprised to see” the auditor’s “unfounded assertion.”
“The Auditor has also used her time in those forums make false allegations against the Attorney General and officers of every other branch of state government, recently including judges,” Moore wrote. “Having now heard multiple variations of these comments, the Attorney General felt it appropriate to reach to talk with the Auditor.”
After multiple exchanges back and forth, Moore refuted Leung-Tat’s claims that DiZoglio has answered Campbell’s questions to help the legislative audit proceed. The first assistant AG added that the office “takes pride in our professionalism.”
“We do not, just to pick one example,” Moore wrote, “claim that every state agency funded by legislative appropriation is corrupt; nor that the courts adjudicating our cases are.”
“Nor do we take exception to conferring with those against whom we are litigating,” he added. “We do that every day.”
Massachusetts
Massachusetts faces World Cup-test with friendly match in Foxboro
(WJAR) — Massachusetts will get a taste of World Cup action in Foxboro on Thursday.
There is a friendly match between Brazil and France at Gillette Stadium.
It’s being considered a test ahead of World Cup matches in June.
Massachusetts governor Maura Healey says dozens of agencies are involved in making sure the 7 World Cup matches are safe and secure.
Thursday is a test for transportation for the World Cup.
The MBTA will have 4 trains going from South Station to Foxboro.
MassDOT expects heavy traffic to begin later this morning with new traffic patterns near Gillette for the match.
As for the teams, NBC 10 caught up with Team France at their practice.
Team France says it is excited to face off against one of the best teams in the world.
France is ranked 3rd worldwide while Brazil is ranked 5th.
Parking opens at noon while the game’s kickoff is at 4:00 p.m.
Massachusetts
Gov. Maura Healey says Massachusetts is ‘match ready’ for World Cup
Gov. Maura Healey spoke Wednesday about the public health and safety preparations it is making ahead of this summer’s World Cup matches in Massachusetts.
Gillette Stadium — to be called Boston Stadium — will be the site of seven matches between June 13 and July 9.
The state is carrying out planning and training with local, state and federal agencies on everything from transportation and crowd management to cybersecurity, public health, and emergency response.
“Residents and visitors alike can be confident that we are prepared to host a safe, secure and successful World Cup,” Healey said.
Healey said the state secured about $76 million in federal funding to pay for security and preparedness.
The state has more information about the World Cup at Match-Ready Massachusetts.
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Gillette will host a friendly Thursday between France and Brazil as a warm up to the World Cup.
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