WGBH Journal; Reaction To Tax Limits

DAY at 6:00 right here on WGBH Boston. Good afternoon and welcome the GBH Journal. My MIL kept us. On today's show we'll have a report on some local reactions to the issue of tax limitation.

An idea which received considerable attention since the passage of Proposition 13 in the state of California. And will have two features on food co-ops. One which looks at the Boston Food Co-op and Alston. And the other focusing on a cooperative bakery in Cambridge. These are the features on today's show. Three weeks ago voters in California passed a voter initiative entitled Proposition 13 which will cut property tax revenues in the state by 60 percent.

The overwhelming support for the proposition seems to be indicative of a general feeling of frustration among taxpayers nationwide. In the state of California where property taxes account for a large percentage of the state budget. Public agencies and public employees face the possibility of being cut back. Massachusetts is another state with high property taxes and part of the reaction to California's passage of Proposition 13 is for a local tax limitation group to start lobbying for similar legislation in this state. Unlike California however Massachusetts does not have a large budget surplus to compensate for the cuts in property tax income. Mike Marshall took a look at some of the possible local implications of the passage of Proposition 13 and he prepared this report. There's been a taxpayers revolt that's been brewing that's been gathering steam. It's just that the the media has consistently ignored

it until Jarvis again suddenly with the passage of Jarvis again in a very dramatic thing happening in California. Tax limitation the tax payer's movement becomes something that sexy something with a lot of appeal. But it's been around for a long time. We've just reached a level of strength of critical mass if you will to make the media sit up and take notice of us. Massachusetts has the highest property taxes in the nation. The state's cities and towns rely almost entirely upon these taxes revenues in providing municipal services. Recently people such as Donald fetter have begun to question the burden of local taxation in Massachusetts. In 1974 Feder became the executive director of a group called the Massachusetts Citizens for limited taxation. The organization began working on state tax reform long before California's Proposition 13. The recent passage of that amendment has given new impetus to tax limitation efforts in Massachusetts. Historically cities and towns in the Bay

State have been almost entirely responsible for funding their local services police and fire protection public schooling and Public Works receive only marginal amounts of state aid. Inflation has raised the cost of these services and pushed property tax bills up. This situation makes limiting taxes difficult. Unlike California Massachusetts does not have large surpluses in the state budget. They could aid cities and towns. The present efforts at tax reform are centered upon directing more state money back to these communities. John Delaney of the Boston municipal Research Bureau explains basically most of what is spent locally is for essential services schools fire police public works that sort of thing. There is obviously some marginal amount that can be caught perhaps three or four percent. But by and large what's done locally is what has to be done. What's got to be done for that situation is we've got to stops paying

for all that to such a great percentage with from the property tax to state I think spends 5 billion dollars a year now. I think that some state programs have. I've got to be looked at and curtailed. Better monitored better controlled in order to provide money which is now being spent on them. Back to the cities and towns. The desire to reduce state spending is a complicated process involving a redefinition of fiscal priorities. Some groups maintain that there is actually very little redirection possible in the state budget unless some state programs are eliminated. Local aid cannot be increased. Reducing property taxes without increasing local aid would have a major impact upon municipal services particularly education. This fear has led the Massachusetts Teachers Association to oppose any efforts to tax limitation according to William Hiebert the group's executive secretary. Schools in the state have no options to

dependents on the property tax. Well in Massachusetts the state's share our cost of local education K through 12 buyouts to an average reimbursement of about twenty two cents on the dollar. That means that on the average statewide but 78 percent of the school budgets must of necessity come from the real estate tax a property tax and a city or town. If there is a separate type of proposition in Massachusetts which limits the property taxes in any given city or town that lost revenue it will have to be made up from some other sources of state funds or the federal government. Because you know our judgement it would produce a chaotic situation. Public schools of the state.

Those favoring tax limitation do not anticipate such harmful effects from revenue decreases. Rather they feel that budget cuts at the state and local levels will remove waste. In fact a major facet of the Massachusetts tax limitation movement is a stance against big government. The Citizens for limited taxation feel constraining state and municipal spending is the best way to reduce taxes. Don Feder doesn't think such measures threaten essential services. I think that there are very few services that are essential provided by government. Those services will remain. If people need something they'll see to it the government finances it a lot of policemen and firemen. In fact probably a majority of them according to Time magazine voted for it are a scam despite the fact that the bureaucrats in their unions were dead set against it because those policemen firemen own homes and many of them said they'd rather lose their jobs and lose their homes. You know they could always find employment in the private sector.

Beyond that I don't think that tax limitation or jar scheme poses any threat to competent civil servants to competent public employees. People who are doing a good job. People in necessary governmental positions. It poses a threat to people with no show jobs. People win in fantasy we have government agencies that are just wasting our money and harassing us in various ways those are the people who are threatened by the polarization of views on tax limitation means that any such efforts in Massachusetts will be hotly debated. Last Tuesday the Senate admitted a bill that would slash property taxes in the state by nearly 50 percent. However the measure sponsors feel its chances for ultimate approval are doubtful. Another bill that would constrain state spending is being

sponsored by the citizens for limited taxation. The future of tax reform in Massachusetts is therefore highly uncertain. The overall impact of Proposition 13 seems to have been in raising the tax consciousness of both voters and government officials while direct action on the tax burden is far off. The issue has been very well recognized. This change in assumptions about government spending is best summarized by John Delaney. The people are going to demand restraint and I think that that's probably the big lesson of Proposition 13 for Massachusetts for right now. The presumption has shifted from a government program be a good program and not just day to government program being potentially removable and has to be better defended or eliminated for GBH Journal. This is Mike Marshall. Food co-ops in the Boston area are a popular enterprise. The concept

behind these co-ops are cooperatives. Is it their own by members and by member control. What they provide. Those who join are fresh food a pleasant atmosphere and good prices in return for which members work a pre-determined number of hours each month in the office. A certain philosophy of eating and buying often a company member's desire for good food and cheap prizes. On today's show we'll hear about two cooperative ventures in the Boston area. David Friedberg prepared a report on the Boston Food Co-op in Austin and Becky ror paid a visit to the slice of life bakery in Cambridge. That's where the two in that order. You know I love that organic cooking always ask for more. And they call me mr natural on down to the health food store. I only eat good sea salt white sugar don't touch my lips. And my friends is always begging me to take them on macrobiotic trips and yes they

are. All but not to take out my strongbox better keep under lock and take it off to where nobody else can see. I open that door so slowly take a peek up north. Then I pull out a Hostess Twinkies. In the daytime I'm Mr Hatcher. Helping me. But at night I'm a junk food junkie. Good. To me. Last time you can always find me at the whole earth vitamin bar just sucking on my plain white yogurt from my hand thrown pottery jar. And simple little hand pressed cider for dessert. Man walk in my face in a natural way on the sleeve of my peasant shirt oh yeah

we definitely consider ourselves an alternative. To the supermarket world. We don't work on impulse buying We don't work on coming up with specials to grab appeal of things that people don't really need or don't actually even want. We carry as many. As many alternatives to traditional diet as you probably can find in any and any one store generally at a much lesser cost. It cub staff member at the Boston Food Co-op is a master of ambidexterity. When things get hectic you might find him punching up grocery prices verifying the merchandise from a recent delivery explaining to a bewildered volunteer how to find the zucchini squash and incredibly he does it all at once. Such is the pace for the co-ops skeleton staff housed at a former tire warehouse in

Allston. The nonprofit store now serves over 1000 members who donate two hours each per month in exchange for about the cheapest grocery prices in town. The co-op offers also an atmosphere. Call it less antiseptic than supermarkets which many shoppers find appealing. I'm getting fried been mad at Breck lime. You live nearby the store Yeah I do. And how long you been shopping at the co-op. Shopping here. Ever since about three years ago when they had their own place. How do you find the prices here. Very good. Much cheaper. And then we have a chance to select quality merchandise. And if you like the cooperative spirit I think. I think that's the responsibility that you feel that you're responsible if things need to be filled in you take that responsibility. If a bag is broken you take the responsibility to to change it so it won't spill out of place but you have a personal feeling of responsibility and caring and thank the people here usually feel

that way about each other. They have so few staff people working here because the operative venture. Two hours a month. Well I'm over 65. I put in more than that as I feel like it. I'm not required to because after the age of 65 they think that happen to them. But I think it's a nice feeling you feel your own responsibility and we have to learn how to live in a cooperative society. From the first grade of school we're taught to beat each other rip each other off and you don't feel like you're you when you're in school. The from my going to police a paper for a grade and the whole content it's there it doesn't lend itself to confidence. So for me it's really learning. That ideas that I've been taught to do being competitive. We try to carry a full line of all products which people can use in cooking from scratch in other words making their own food rather than prepared foods out of a canned

frozen dinners and various foods which. Are marketed very often for what seems to be convenience. But when one becomes adjusted to preparing their own food it doesn't really seem to be a convenience anymore and the negative effects of these foods which always seem to carry a list of additives a mile long can be avoided once people become aware of these things. So in other words whenever possible we try to carry what is good for people. Very often we can't follow that specifically. People do want other things and that's certainly the duty of a co-op is to provide what people want. But it's also our duty at the same time to try to educate people so. The items that they are purchasing and perhaps point out things like advertising manipulation. That happens in the media daily constantly. To try to. Make it

clear to people that very often what is seems to be a need if it's thought through thoroughly is an artificially created one. We're now entering the freezer. Of the Boston Food Co-op. So then what he would do is look at the apples and make sure that all the kinds of apples we have here we have here tv whatever since you're sitting here all day you know we've got to bring out some of the most of what we do. Is. To show people how to do the different kinds of work they need to get done. And. Sometimes I'll be a new it will be a new member in time as it'll be an old member who just hasn't done that particular kind of work. Yes there are people that say why did you decide to sign up for the Boston full quote in the first place. Well I wanted to save money and I really don't like supporting you know big food business. I think being involved

somehow with what goes into my stomach I think this is a good place to do that. OK. 64 cents per 30. Right. Three years according. To bagels for 20 drank a key for 44. It's kind of an honor system here about eating munchies shop and reporting them when you get to a membership organization. The losses at the end of the year if a cop takes a loss everybody's a member takes the loss. I mean you're only hurting yourself if you don't most people. There's a lot more creative ways to steal them. People forget that people are forgetful tend to pay. About this much so here take this much more than that to make up for it. I like the

atmosphere. I like the type of food that we carry. Yeah there's a real sense of community. I really enjoy eating I'm addicted to food. You know at least once or twice a day. And if you want to enjoy your food why good food tastes good. It's fresher the day out of the market instead of sit in somewhere. Availability you get stuff you can't get in other places as well as it's fun you know you got the radio right now to see it I would say there's about forty eight or fifty people marching around. Most people are shopping there's six or seven people who are doing their work hours now. People in the back are cutting cheese up on the deck a couple babies in the store a couple families that's one thing we have a lot of new poll numbers this year. There must be at least a half a dozen newborns. Visiting a very healthy family. The one thousand member Boston Food Co-op.

Pull out Dr. Pepper and a. Junk food. Junkie. Lol the video of me. Down at the cow you think I heard it. Oh I don't know about arts crafts but I get something to eat. Friend Oh you're given to man only you know homegrown spies a guy John cheese autographed Grecian Urn filled up with brown rice. Yes that. Old lady had been spotted a product found in most Boston area food

co-ops is slice of life bread slice of life cooperative Bakery has been operating since January of 975. It is called a cooperative bakery in part because the bread is supplied to food co-ops but it is also a co-operative because of its own internal organization run as a nonprofit collective by the four staff members. Two men and two women slice of life bakery provides a link between nonprofit collective businesses and the nonprofit food co-ops. Three staff members describe the internal functions of the bakery. Nobody makes decisions without everybody else's input and then there is no manager there is no boss that we'll participate in making to see what happens to a group. You would tell me about the problems that you had when you close before with the lack of communication between the co-op or this collective and the co-ops. Have there been any other problems or since we reopened because of

what happened. Sure we tried to have a come together with our support group to me go formal decision making procedures and formal procedures for hiring and firing and we are also committed to keeping our support group active in making sure these members of each co-op can send members in and I don't mean decide totally on which ones can be voting and how many they can have each copy of so many vote on what it does for the bakery's help guide and direct it. And it's our link to the courts to know what their needs are from a bakery. What kind of Brit like you said for what kind of brains they want and what they're looking for us to produce and that helps us with our internal problems. We're too close to to see the city how to get out of both food cooperative and a slice of life bakery operate with the help of volunteers food co-ops require that members work a few hours a month helping out with

the operations of the co-op. The bakery has a range that co-op members can put in their work hours at the bakery. Elaine Sanish I think because we want it that way that's why the co-op bakery by sending volunteers then you know we have for people to produce quite a bit of bread and that keeps the price down and the overhead down this way co-ops work using volunteers to run stores or businesses so the prices can be lower. The bakery does supply bread to other businesses and to individuals. However they will not sell to just anybody. The nonprofit philosophy extends beyond the bakery itself. We don't sell to anybody that's not cooperate as we do so is this a restaurant but they're nonprofit orientated. We don't sell to people who are going to make a profit on our brand we are very committed to co-ops into nonprofit organizations I think are talking about community involvement that we just didn't want to be a business that we're seeing here but we want to be involved with the

community and part of the neighborhood in a lot of business from the community around here. Yes it's kind of a we heard there are some people who are very regular income and we even take orders from individuals sometimes if they can't get the bread they want is we don't have enough. Another goal of the bakery is to provide food co-ops and the community with a different kind of bread than that found in supermarkets making healthy bread is important to bakery members Bruce Goldstein and Elaine said Shall we try to make healthy bread mainly whole wheat bread. We only make one white bread. They're not organic. We we make we only use organic corn meal and organic rye flour. One of our goals of the future is to convert to organic ingredients without raising the prices. We've gotten so far is they would like to keep the prices what they are. Rather than raise them and go organic. I think we're committed to keep in mind things

ourselves and to educate ourselves about nutrition all the time. I often think of what part of what we meant and that was. To teach people to like whole grain breads you know by putting a good whole grain bread which are healthy for you. The ultimate goal of the bakery is that it will be able to continue to provide bread to co-ops and to the community in order to continue to operate they must run a good business. Elaine Sanna shall not only do we bake We also run a business. You know I think if we think it's important to run the business well there are very few collective businesses and the only way there's going to be more is if they succeed. People see you as a viable alternative. Elaine Sanish out of the slice of life cooperative bakery for GBH Journal. I'm Becky roar. And so for Thursday the twenty ninth day of June in 1978 IGB a journal of a

regional news magazine aired Monday through Friday at 4:30. Producer and editor for The Journal is Marjorie heard today's engineer Michael Garrison And I'm Bill kept saying the thought of all of your startled by a thunderclap this Thursday.