By Bob Katzen
The Senate 3-36, rejected an amendment that would maintain the current 90/5/5 law under which 90 percent of the capital gains tax collections exceeding $1 billion goes to the Rainy Day Fund, 5 percent to the State Retiree Benefits Trust Fund and 5 percent to the State Retiree Benefits Trust Fund.
The amendment would replace a pending 60/20/20 proposal that would send, in fiscal 2024 only, 60 percent of the $1 billion excess to the Rainy Day Fund while sending 20 percent to the State Retiree Benefits Trust Fund and 20 percent to the State Pension Liability Fund.
Amendment supporters said it is essential to provide 90 percent to the Rainy Day Fund which helps bail out the state during slow economic times when tax revenues shrink.
Sen. Bruce Tarr (R-Gloucester), the sponsor of the amendment, did not respond to repeated requests by Beacon Hill Roll Call asking him to comment on his amendment.
Amendment opponents said the Rainy Day Fund is flush with $7 billion and argued these retiree and pension funds are currently underfunded and need some additional money for just one year.
Senate Ways and Means Chair Sen. Mike Rodrigues (D-Westport) did not respond to repeated requests by Beacon Hill Roll Call asking him to comment on his opposition to the amendment.
(A “Yes” vote is for maintaining the current 90/5/5 formula. A “No” vote is for the 60/20/20 formula.)
Sen. Patricia Jehlen No