Senate budget calls for state tax rollback, increased minimum wage
Sales tax holiday endorsed for Aug. 12-13
The Salem Evening News - May 26, 2006
By Edward Mason

BOSTON — The Massachusetts Senate yesterday passed a $25.4 billion budget that increased spending for education, health care and human services.

The highlight of the plan for fiscal year 2007 was $210.4 million in additional education aid for cities and towns. North of Boston school districts have buckled under years of state spending cuts, and they're hopeful the Senate package — more generous than the governor's $164 million plan or the House's $173 million — will become law.

The Senate also voted to increase the minimum wage from $6.75 to $8.25 an hour over two years, with additional increases tied to inflation, and to roll back the state income tax to 5 percent and give shoppers a sales tax holiday Aug. 12 and 13.

Business groups had opposed the higher wage, saying it would raise business costs. Proponents, though, argued that it would put more money into the pockets of low-wage workers and help stimulate the state economy.

The Senate also:

Adopted a plan to allow public housing authorities to check the immigration status of people who apply for public housing.
Voted for a $2,000 tax credit for hybrid vehicles proposed by Sens. Steven Baddour, D-Methuen, and Bruce Tarr, R-Gloucester. The plan also requires the state to purchase hybrid and alternative fuel vehicles.
Voted to create a bipartisan committee of the House and Senate members to coordinate Flood of 2006 relief efforts.
Approved an amendment by Baddour to tie Department of Mental Health funding to pairing abstinence education with practical sex education. Baddour had received about 100 angry e-mails over this proposal.
Approved $350,000 for a Department of Public Health program aimed at prevention of shaken baby syndrome. It was one of several public health initiatives by Sen. Susan Tucker, D-Andover.
Tucker also secured a pledge for $100,000 for Neighbors in Need, which fights hunger in the Merrimack Valley.

The income tax rollback was initiated by Baddour and Tarr. Tweaked by Democrats, it would drop the state income tax from 5.3 percent to 5 percent over three years. The rollback would start when local aid to cities and towns is restored to fiscal 2002 levels, adjusted for inflation.

The Senate shot down some proposals by North of Boston senators, most notably two backed by Tarr. Tarr had asked for $62 million in additional Chapter 70 funding but was rejected. Tarr acknowledged that the Senate, already issuing a generous plan, was trying to hold the line on further spending.

The Senate also rejected a proposal to fine employers who hire illegal aliens. The plan, supported by Tarr, was ditched because the state cannot enforce federal law.

Senators approved a compromise, creating an 800 toll free number people can call if they suspect a business is hiring illegal aliens. The attorney general would operate the number and pass reports on to federal law enforcement authorities.

With yesterday's passage of the Senate budget, both the House and Senate pick members for a conference committee to reconcile differences between the two budgets. The House last month passed a $25.7 billion spending plan for fiscal year 2007. A final version then goes to the governor for his signature.

The budget is due to be completed by June 30, the end of the current fiscal year.