A $500 million legislative transportation financing bill that has cleared the House, but is now under Senate scrutiny will better establish benchmarks for revenue, savings and reforms for both the state Department of Transportation and MBTA compared to Gov. Deval Patrick's $1.9 billion proposal, Senate President Therese Murray said today.
Murray, addressing the Greater Boston Chamber of Commerce, added the Legislature's plan requires MassDOT to stop paying workers with borrowed money by shifting employees from the capital program over a span of three years, a change poised to free up $233 million in capital spending capabilities for the agency.
"(The bill) is not a blank check for the Department of Transportation or MBTA," Murray said. "Instead, it holds the two agencies accountable for delivering savings or revenue and working toward contributing the same share of their budget that they are doing now."
The proposal, backed by Murray and House Speaker Robert DeLeo, also closes the operating gap in the state's aging transportation system over a five-year period, she said, adding the Senate bill redirects the current 2.5 cents per gallon charged at the pump for underground storage tanks to transportation, starting in Fiscal Year 2015.
The bill also requires MassDOT to enter into agreements with occupants of their rights-of-way that will provide at least $40 million annually, starting in Fiscal Year 2016, Murray said.
Patrick's plan, which has failed to win the backing of business leaders, raises the state income tax and lowers the sales tax, while also eliminating 44 tax exemptions "that will have deep and biting effects on people in every community across the Commonwealth," Murray said.
"There is a growing disconnect between state government and the people," she said. "We need to focus on regaining the trust of the people of Massachusetts by showing them how their money is being spent and that each dollar is going as far as it can."
Murray added that reforms outlined in major transportation legislation passed in 2009, including a reworking of the Capital Project Information System, need to be implemented to ensure the future success of the state's transportation system. Murray also cited recent payroll tax increases and federal budget cuts as reasons why the Legislature's bill would make sure middle-class families statewide weren't hit harder economically.
"We need to be talking about what transportation projects and policies will help advance the Commonwealth's economic development today, tomorrow and every year," she said. "It's important for this discussion to start now since we know that our transportation system will have more revenue."
While she lauded several state accomplishments, including a lower unemployment rate than the national average and a robust manufacturing industry, Murray also pushed for reformation of the state's welfare system and a "serious conversation" about what a living wage is for residents living in the Commonwealth.
Citing Maine and New York as examples of states that have adopted statewide wage increases, Murray said an adult earning minimum wage in Massachusetts earns $16,704 annually, compared to the federal poverty level of $19,090.
"By identifying what a living wage is in Massachusetts, we can have a positive impact on families,
and especially single parents who are trying to improve the lives of their children," she said. "We will support our growing economy, give our residents more to spend and this change will serve as a big step forward in helping our residents lead successful and self-sustaining lives in the Commonwealth."
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