By Bob Katzen
Senators who live more than 50 miles from the Statehouse are eligible for a special federal tax break. A 1981 federal law allows them to write off a daily expense allowance when filing their federal income tax return. The complicated system determines a daily amount, ostensibly for meals, lodging and other expenses incurred in the course of their jobs, which can be deducted for every “legislative day.”
Under the Massachusetts Legislature’s system and schedule, every day of the year qualifies as a legislative day. The Legislature does not formally “prorogue” (end an annual session) until the next annual session begins. This allows legislators to take the deduction for all 365 days regardless of whether the Legislature is actually meeting or not. Legislators do not even have to travel to the Statehouse to qualify for the daily deduction.
The amount of the deduction is based on the federal per diem for Massachusetts. It varies from year to year. The daily per diem for legislators for fiscal year 2023 varies in different parts of the state and is seasonal. It ranges from $98 per day to $459 per day or between $35,770 and $167,535 annually.
Beacon Hill Roll Call’s research indicates that 11 of the state’s 40 legislators live more than 50 miles from the Statehouse, qualify for this deduction and are eligible to pay a reduced or no federal income tax on their legislative salaries.
PARKING SPACE – Senators are entitled to a parking space inside the Statehouse garage or at the nearby McCormack State Office Building. The first $300 in monthly value of the space is a tax-free benefit under federal and state guidelines that apply to all public and private employees, not just state senators. Any value of the space above this amount is treated as taxable income.
The value of the parking spaces in 2023 was determined by the Division of Capital Asset Management and Maintenance to be $449 per month. Based on that figure, legislators would be taxed on the excess $149 monthly by the Internal Revenue Service and the state.
HEALTH INSURANCE – Senators are eligible to choose from nine health insurance plans offered by the state’s Group Insurance Commission, which manages the plans for over 137,000 individuals—current and retired state workers, as well as certain municipal workers, and their dependents.
Senators elected on or before July 1, 2003, pay 20 percent of the total premium and the state pays 80 percent. Those elected to their first term on or after July 1, 2003 pay 25 percent while the state picks up only 75 percent. State and federal privacy regulations protect this information and it is not possible to obtain records about which plans individual legislators have purchased. The out-of-pocket monthly premiums paid by senators for family plans range from $311.02 to $788.43. For individual plans, they pay from $125.66 to $354.68 each month.
LIFE INSURANCE – Legislators who purchase a health insurance policy from the state are also required to buy the state’s basic $5,000 life insurance policy. This costs employees $1.27 to $1.59 per month, depending on the date of hire. The same 20/80 25/75 formula used for health insurance also applies to this life insurance. Senators also have the option to buy additional life insurance with a value of up to eight times their salary. The entire premium for the optional insurance is paid by the senator.
LONG-TERM DISABILITY AND HEALTH CARE SPENDING ACCOUNT – Legislators also have the option to open a Health Care Spending Account (HCSA) and Dependent Care Assistance Program (DCAP), and to buy long-term disability insurance. The HCSA allows legislators to set aside funds to pay for out-of-pocket health care expenses with before-tax dollars while the DCAP allows them to set aside funds to pay for certain dependent care expenses with before-tax dollars. This participation reduces their federal and state income taxes. The entire premium for long-term disability is paid by legislators.
DENTAL AND VISION INSURANCE – Senators are eligible to choose one of two dental/vision insurance plans. Current monthly employee premium costs paid by senators for family plans range from $14.32 to $19.36, while individual plans range from $4.64 to $6.26. All senators pay 15 percent of the premium and the state pays 85 percent.
CATEGORY #1 – LOCAL SENATORS’ BASE SALARIES
Here are local senators’ base salaries. They are the same for all senators.
Sen. Patricia Jehlen $73,655
CATEGORY #2 – LOCAL SENATORS’ STIPENDS
Here are local senators’ stipends for their positions in the Democratic and Republican leadership, as committee chairs, vice chairs and the ranking Republican on some committees.
Sen. Patricia Jehlen $40,936
CATEGORY #3 – LOCAL SENATORS’ GENERAL EXPENSE PAY ALLOWANCE
Here are local senators’ pay for general office expenses. The amount is $20,468 for members who live within a 50-mile radius of the Statehouse and $27,291 for those who are located outside of that radius.
Sen. Patricia Jehlen $20,468
GRAND TOTAL OF LOCAL SENATORS’ SALARIES
Here are the top ten senators who are paid the highest salaries including the three categories of base pay, stipends and general expense pay allowance.
Karen Spilka (D-Ashland) $ 203,286
Michael Rodrigues (D-Westport) $ 196,736
Cynthia Stone Creem (D-Newton) $ 196,463
Michael Barrett (D-Lexington) $ 182,818
Sal DiDomenico (D-Everett) $ 182,818
Joan Lovely (D-Salem) $ 182,818
William Brownsberger (D-Belmont) $ 182,818
Cindy Friedman (D-Arlington) $ 175,995
Bruce Tarr (R-Gloucester) $ 175,995
Julian Cyr (D-Truro) $ 169,173
Here are local senators’ current total annual salary including the three categories of base pay, stipends and general expense pay allowance.
Sen. Patricia Jehlen $135,059