Amendment #5 to H3535

New Growth Amendment with Funds

Representatives Jones of North Reading, Peterson of Grafton, Hill of Ipswich, Poirier of North Attleborough and deMacedo of Plymouth moves to amend the bill by inserting after SECTION 17 (as printed) the following:-

“SECTION XX.  Chapter 10 of the General Laws, as most recently amended by chapter 307 of the Acts of 2012, is hereby amended by inserting after section 35XX the following new section:-

Section 35YY. (a) As used in this section, the following words shall, unless the context otherwise requires, have the following meanings: -

“Allowable budgetary tax revenues”, for fiscal year 2014, an amount equal to baseline budgetary tax revenues; for fiscal years 2015 to 2017, an amount equal to allowable budgetary tax revenues for the preceding fiscal year, plus the allowable budgetary tax revenue growth rate; for fiscal year 2018 and each subsequent fiscal year, an amount equal to allowable budgetary tax revenues for the preceding fiscal year plus the total state tax revenue growth rate.

“Allowable budgetary tax revenue growth rate”, the total state tax revenue growth rate minus 0.25%.

“Baseline budgetary tax revenues,” an amount equal to the consensus tax revenue estimate for fiscal year 2014, as determined by the consensus tax revenue forecast pursuant to section 5B of chapter 29, minus $195,000,000.

“Total state tax revenues”, the revenues of the commonwealth from every tax, surtax, receipt, penalty and other monetary exaction and interest in connection therewith as determined by the consensus tax revenue forecast pursuant to section 5B of chapter 29, including, but not limited to, taxes and surtaxes on personal income, excises and taxes on retail sales and use, meals, motor vehicle fuels, businesses and corporations, commercial banks, insurance companies, savings banks, public utilities, alcoholic beverages, tobacco, inheritances, estates, deeds, room occupancy and pari-mutuel wagering, but excluding revenues collected by the state from local option taxes, so-called, for further direct distribution to cities and towns.

“Total state tax revenue growth rate”, the annual percentage change in total state tax revenue from the current fiscal year to the previous fiscal year, as determined by the consensus tax revenue forecast pursuant to section 5B of chapter 29.

(b) There is hereby set up on the books of the commonwealth a separate fund to be known as the Transportation Investment Fund, hereinafter called the fund. There shall be credited to the fund: an amount equal to the difference of total state tax revenues and allowable budgetary tax revenues; or an amount to be certified by the comptroller pursuant to subsection (d), whichever is greater.

(c) Amounts in the fund shall be held by the state treasurer or his designee as trustee and not on account of the commonwealth, and the state treasurer is hereby authorized and directed to disburse amounts in the fund according to the following schedule: (i) for the fiscal year 2014, an amount not to exceed $139,000,000 to the Commonwealth Transportation Fund, established by section 2ZZZ of chapter 29, and the remaining balance of such excess Pay-Go Capital and Transportation Debt Relief Fund, established by section 2HHHH of chapter 29; (ii) for the fiscal year 2015, an amount not to exceed $131,400,000 to the Commonwealth Transportation Fund, established by section 2ZZZ of chapter 29, and the remaining balance of such excess Pay-Go Capital and Transportation Debt Relief Fund, established by section 2HHHH of chapter 29; for the fiscal year 2016, an amount not to exceed $227,400,000 to the Commonwealth Transportation Fund, established by section 2ZZZ of chapter 29, and the remaining balance of such excess Pay-Go Capital and Transportation Debt Relief Fund, established by section 2HHHH of chapter 29; for the fiscal year 2017, an amount not to exceed $136,400,000 to the Commonwealth Transportation Fund, established by section 2ZZZ of chapter 29, and the remaining balance of such excess Pay-Go Capital and Transportation Debt Relief Fund, established by section 2HHHH of chapter 29; for the fiscal year 2018 and each subsequent fiscal year, an amount not to exceed $259,900,000 to the Commonwealth Transportation Fund, established by section 2ZZZ of chapter 29, and the remaining balance of such excess Pay-Go Capital and Transportation Debt Relief Fund, established by section 2HHHH of chapter 29.

(d)  For purposes of determining the amount to be credited to the Transportation Investment Fund established pursuant to subsection (b), the comptroller shall on March 1 of each year certify allowable budgetary tax revenue growth rate and total state tax revenue growth rate for the following fiscal year.  If the comptroller certifies that the total state tax revenue growth rate will be less than 2.5%, then the comptroller shall credit to the fund amounts sufficient to meet the amount authorized to be transferred to the Commonwealth Transportation Fund for the fiscal year under subsection (c).”.

; and further, by inserting after SECTION 9 (as printed) the following sections:-

“SECTION XX.  Chapter 29 of the General Laws, as so appearing, is hereby amended by inserting after section 2GGGG the following section:-

Section 2HHHH.  (a) There shall be established and set up on the books of the commonwealth a separate fund to be known as the Pay-Go Capital and Transportation Debt Relief Fund, consisting of amounts transferred to the fund in accordance with section 35YY of chapter 10, income derived from the investment of amounts so transferred, and any other applicable general or special law. Money remaining in the fund at the end of the year shall not revert to the General Fund.

The purpose of the fund shall be to create and maintain a reserve from which appropriations shall be made for the following purposes: (1) to provide a cash resource for the purchase of transportation-related infrastructure, as determined by the department, and (2) to provide debt service to amortize the principal amount of debt issued by the Commonwealth for transportation purposes, or by the Massachusetts Bay Transportation Authority, as determined by the department; provided, not more than 40 per cent of the fund’s reserves shall be used pursuant to subdivision (1), and not more than 60 per cent  of the fund’s reserves shall be used pursuant to subdivision (2). The fund shall be under the control of the department, and shall not be subject to appropriation.

SECTION XX.  Section 5B of chapter 29 of the General Laws, as most recently amended by section 112 of chapter 165 of the Acts of 2012, is hereby amended by striking the third sentence of the fourth paragraph and inserting in place thereof the following:-

Said consensus tax estimate shall determine the amount of total state tax revenues and the amount of state tax revenues available for the annual budget, which shall equal total state tax revenue net of the amount necessary to transfer, from the General Fund to the Commonwealth's Pension Liability Fund, to amortize the unfunded liability of the system according to the schedule established under paragraph (1) of section 22C of chapter 32, and of the amounts transferred to the MBTA State and Local Contribution Fund under 1 section 35T of chapter 10, and to the School Modernization and Reconstruction Trust Fund under section 35BB of chapter 10, and to the Transportation Investment Fund under section 35YY of chapter 10.”.

Additional co-sponsor(s) added to Amendment #5 to H3535

New Growth Amendment with Funds