SalemNews.com, Salem, MA

October 14, 2008

Question 1 vexes town officials

By Alan Burke

MARBLEHEAD — Question 1 on the November ballot could be the ruin of local government — or it could be a windfall for the town.

The measure aims to abolish the state income tax, and while most town officials are worried about it, at least one, school board member Jonathan Lederman, sees it as a financial boon for Marblehead.

Selectman Judy Jacobi announced last week that she will ask her board to consider taking a public position on the question at the next meeting on Wednesday, Oct. 22.

Jacobi cited information she received in a forum that included Sen. Bruce Tarr (R-Gloucester), state Rep. Brad Hill (R-Ipswich) and Michael Widmer of the Massachusetts Taxpayers Foundation. She was particularly impressed that Widmer, a man she characterized as generally conservative, had raised serious objections to the measure.

"It looks as though we (in Marblehead) would lose $1 million in local aid (from the state)," Jacobi said.

"Very possibly," Selectman Harry Christensen said.

Jacobi went on to caution against the use of the property tax to substitute for any loss of state aid. New Hampshire has no income tax, she said. "And New Hampshire has the third highest property tax rate in the country."

According to some estimates, the loss of the income tax would cut revenues statewide by 40 percent.

School Committee Chairwoman Amy Drinker will likewise bring the issue before her board on Thursday, Oct. 16. "The magnitude of cutting $12 billion of revenue out of the state's coffers is mind-boggling," Drinker said.

On the school side of town spending, she said, "I would imagine that we would be looking at drastic cuts." Layoffs might become necessary.

"I support Question 1," said her colleague Jonathan Lederman. "I think it's time to send a message."

Noting that the Legislature previously overrode a 2000 vote to roll the income tax back to 5 percent, Lederman suggested that sending a message might be the only option available.

"They're going to do whatever they want anyway," he said of the Legislature. "They'll probably go and reverse it the same day."

If allowed to stand, Lederman said, any income tax cut would be "a windfall" for Marblehead because residents send much more money to Beacon Hill than they get back. "And we do get such a small portion of our operating budget from the state."

If the measure were to go into effect, Lederman expressed support for collecting more money from within the town. "I would be glad to pay more to send my kids to school."

Sending a message is justified, Lederman said. "Just take a drive through a state construction project and look at all the people just hanging around doing nothing." Such projects should be shut down before any state aid is cut, he said.