ED: GOOD MORNING. IT’S SUNDAY, SEPTEMBER 4. STATE REPRESENTATIVE AARON MICHAEL-WITZ, CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE IS OUR GUEST. LET’S GO "ON THE RECORD." THE STATE HOUSE HAS PLENTY OF MONEY COMING IN, BUT TAXPAYERS WOULD LIKE TO SEE MORE COMING OUT. CAN THE CHAIRMAN HELP MAKE THAT HAPPEN? TIME TO GO "ON THE RECORD." >> FROM CHANNEL 5, INSIDE WORD FROM WASHINGTON TO BEGIN HILL, TODAY’S NEWSMAKERS ARE GOING "ON THE RECORD." ED: WELCOME TO "OTR." I’M ED HARDING ALONG WITH NEWSCENTER 5 POLITICAL REPORTER JANET WU. HOPE YOU’RE ENJOYING THE LABOR DAY WEEKEND. WE’RE PLEASED TO HAVE AARON MICHAEL-WITZ WITH US. HE IS A DEMOCRAT, REPRESENTING THE 3RD SUFFOLK DISTRICT SINCE 2009. HE IS ALSO CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE. A RESIDENT OF BOSTON’S NORTH END. ALSO A GRADUATE OF NORTHEASTERN UNIVERSITY. SO WAS MY FATHER, BY THE WAY. GO HUSKIES. GREAT TO SEE YOU. REP. MICHAEL-WITZ: HAPPY LABOR DAY. JANET: CAN YOU BELIEVE IT IS ALREADY HERE? LET’S DIVE RIGHT IN. THE FEDERAL GOVERNMENT ISSUED A DAMNING INDICTMENT AGAINST THE BAKER ADMINISTRATION, ACCUSING IT OF MAKING FALSE CHOICES IN RUNNING THE MBTA, BY REPLACING RIDER SAFETY AND PUBLIC CONFIDENCE WITH CAPITAL IMPROVEMENTS. IS THE FEDERAL TRANSIT AUTHORITY RIGHT ABOUT THIS? REP. MICHAEL-WITZ: IN A LOT OF RESPECTS THEY ARE. I READ THE REPORT. THERE IS A LOT TO STILL GO THROUGH TO GET TO THE BOTTOM OF WHAT ARE THE RIGHT PATHWAYS TO BE TAKEN, MAYBE FROM THE LEGISLATURE’S STANDPOINT. BUT THE FTA IS DEAD ON, THERE WAS A LOT OF DECISIONS MADE NOT PUTTING THE SAFETY FIRST AND FOREMOST. PARTICULARLY STARTING IN 2019, INCIDENT AFTER INCIDENT. AND MOVING MONEY OVER FROM THE CAPITAL SIDE TO THE OPERATIONAL SIDE SHOWS EVEN MORE SO, THOSE CHALLENGES. JANET: SO YOU ARE AWARE OF THIS GOING ON BEFORE YOU READ THE REPORT, IS THAT FAIR TO SAY? REP. MICHAEL-WITZ: I DO NOT THINK IT WAS SURPRISING, BUT CERTAINLY DISAPPOINTING AND SOME OF THE THINGS WE SAW THERE WERE NOT NECESSARILY THINGS WE WERE AWARE OF, WHICH IS WHY WE STARTED HAVING THE OVERSIGHT HEARINGS THE MINUTE THE FTA ANNOUNCED THEY WERE DOING THIS. CHAIRMAN STRAUSS HAS BEEN HOLDING THOSE AND I THINK WE WILL HOLD THEM THROUGH THE FALL, TO SEE WHAT WE CAN BE EFFECTIVE ON. ED: DOES THE LEGISLATURE OWN SOME OF THE MISTAKES BY NOT INSISTING ON A COURSE CORRECTION YEARS AGO OR INTERVENING MORE VIGOROUSLY? REP. MICHAEL-WITZ: EVERYONE IN STATE GOVERNMENT OWNS SOME OF THIS COMMITTEE COULD NOT WALK AWAY FROM IT. SO, OBVIOUSLY THE LEGISLATURE IS INVOLVED IN THIS. EVERY TIME THE ADMINISTRATION ASKED US FOR FUNDING, WE PROVIDED IT, BASICALLY THE FULL AMOUNT THAT THEY ASKED FOR. WE HAVE PUT UP SIX INCH OF $50 MILLION SINCE THE FTA REPORT CAME OUT IN THE GOVERNOR RECENTLY IN THE BUDGET REQUEST IS ASKING FOR $200 MILLION MORE. WE ARE ANALYZING THAT RIGHT NOW. BUT WE STILL HAVE WORK TO DO. THIS IS NOT JUST A FUNDING ISSUE, THIS IS MORE OF A CULTURE DISCUSSION, A WORKFORCE DISCUSSION, AND DISCUSSIONS FALL AT THE FEET OF THE ADMINISTRATION. JANET: YOU DO NOT LIVE FAR FROM THE STATEHOUSE. I SUSPECT YOU WALK MORE, BUT WHEN YOU GET ONTO YOU FEEL SAFE OR HAVE YOU FELT SAFE? REP. MICHAEL-WITZ: I DO WRITE IT TO GET THROUGH MY DISTRICT. IT GOES FROM ONE END OF THE ORANGE LINE TO HALFWAY DOWN THROUGH, SO I RIDE ON A REGULAR BASIS. I FEEL SAFE WHEN I HAVE TAKEN IT. I HAVE NEVER HAD AN INCIDENT. TO YOUR POINT, I DO WANT TO WORK, WHICH IS THE BEAUTY OF MY DISTRICT. BUT I CERTAINLY CAN SYMPATHIZE WITH ANY OF THOSE CHALLENGES THAT PEOPLE FEEL. WE NEED TO MAKE THE T FEEL SAFE. IF WE CANNOT DO THAT, IT WILL NOT BE SOMETHING PEOPLE WANT TO TAKE. AND WE NEED TO MAKE IT RELIABLE. ED: DO YOU THINK IT SHOULD GO INTO RECEIVERSHIP? REP. MICHAEL-WITZ: I THINK THAT PARTNERSHIP IS PROBABLY THE WAY TO GO. WE NEED TO FIND THE RIGHT BALANCE OF MAKING SURE THAT THERE IS OVERSIGHT. I THINK THAT WE WELCOME THE OVERSIGHT FROM THE FEDERAL GOVERNMENT ON THIS. THIS WAS NOT A PROBLEM CREATED IN THE LAST COUPLE YEARS, THIS HAS BEEN GOING DECADES BACK, AND IT WILL TAKE A WHILE TO GET US OUT OF IT. SO, ANY INVOLVEMENT THE FEDERAL GOVERNMENT CAN DO TO TO BE -- TO BE HELPFUL, WE WOULD WELCOME THAT. I DO NOT KNOW IF I AM AT RECEIVERSHIP YET. I WILL KEEP AN OPEN MIND. JANET: THE OTHER BIG ISSUE ON BEACON HILL IS TAX THERE’S -- TAXES. VOTERS ARE ANTSY ABOUT GETTING BACK TAX MONEY AND HOW THEY’LL GET IT. THIS WEEK, GOVERNOR BAKER SUBMITTED FINAL YEAR END NUMBERS TO THE STATE AUDITOR ON TAX RECEIPTS AND IT IS ESTIMATED THAT VOTERS ARE DUE $2.9 BILLION AS REQUIRED BY THE 1986 LAW. THE STATE AUDITOR HAS THE FINAL WORD, BUT DO YOU THINK HE IS WRONG ON THIS? REP. MICHAEL-WITZ: NO, IT IS THE LAW. IT WAS PASSED BY THE VOTERS. IT HAS ONLY BEEN INSTITUTED OR TRIGGERED ONE OTHER TIME. JANET: DO YOU AGREE THE $2.9 BILLION IS MOST LIKELY THE CORRECT FIGURE? REP. MICHAEL-WITZ: IT SEEMS LIKE THAT IS THE CORRECT FIGURE. WE DID NOT KNOW WHAT IT WAS AT THE END OF JULY WHEN WE WERE TRYING TO MAKE DETERMINATIONS ON HOW TO MOVE FORWARD WITH THE ECONOMIC DEVELOPMENT BILL, ONE OF THE REASONS WHY WE WERE HESITANT. BUT NOW THAT WE HAVE THAT NUMBER, THE AUDITOR WILL CERTIFY THAT. JANET: THE SAID HE WAS SURPRISED AT THE TIME AND HE FELT LIKE HE WAS AMBUSHED BY THE BAKER ADMINISTRATION, BECAUSE THEY DID NOT KNOW ABOUT THE LAW, THEY DID NOT KNOW THE MONEY WAS DUE. DID YOU NOT HAVE THE RESPONSIBILITY OF KNOWING THAT AND INFORMING THE SPEAKER? REP. MICHAEL-WITZ: IT IS NOT THAT WE DID NOT KNOW ABOUT THE LAW, BECAUSE THE LAW HAS BEEN OUT THERE. I HEARD ABOUT THIS DISCUSSION -- IT HAD NOT BEEN TRIGGERED IN 35 YEARS, SO FOR IT TO BE TRIGGERED FOR THE FIRST TIME IN 35 YEARS WAS A SURPRISE TO SOME DEGREE, BUT I THINK IT IS MORE ABOUT THE AMOUNT. THE LAST TIME THIS WAS TRIGGERED WAS $27 MILLION. GRANTED, THAT IS A DIFFERENT TIME, 35 YEARS AGO, SO IT WILL BE MUCH MORE INFLATED. I DO NOT KNOW IF WE SAW IT TO THAT DEGREE OF THE MULTIBILLION DOLLARS THAT WAS GOING TO HAPPEN. I THINK THAT CHANGED OUR OUTLOOK ON HOW TO MOVE FORWARD WITH A LOT OF SPENDING, BECAUSE WE HAVE A LOT OF THINGS WE HAVE TO WORRY ABOUT GOING FORWARD. ED: TO THAT ISSUE, WHAT IS THE MOST EQUITABLE WAY OR SMARTEST WAY TO RETURN THE TAXPAYER MONEY? DO YOU DO IMMEDIATE REBATES, TAX DEDUCTIONS OR SPENDING IT ON , PROGRAMS TO BENEFIT SOME TAXPAYERS LIKE THE T AND SCHOOL SAFETY? REP. MICHAEL-WITZ: ON THE MONEY -- ON THE $3 BILLION ITSELF, THE WAY THE LAW IS WRITTEN IT WILL BE A TAX CREDIT. I THINK THE ADMINISTRATION IS DISCUSSING EXACTLY WHAT THAT TERM COULD MEAN, COULD IT BE A DIRECT CHECK, IS IT SOMETHING THAT SOMEBODY WOULD HAVE TO FILE NEXT APRIL WHEN FILING TAXES, THAT IS SOMETHING WE ARE CONTINUING TO ANALYZE. I THINK WE HAVE A LOT OF NEED AND INVESTMENTS WE NEED TO MAKE, NOT JUST ON THE MBTA, BECAUSE WE KNOW THE SAFETY REPORTED NOT GIVE A SPECIFIC DOLLAR AMOUNT BUT THERE ARE OBVIOUS NUMBERS THAT WILL COME OUT OF THAT OVER TIME, PROBABLY IN THE BILLIONS. WE ALSO HAVE AN EARLY EDUCATION FUNDING DISCUSSION WE ARE HAVING, THAT WE WERE HAVING AT THE STATEHOUSE THAT WE WILL CONTINUE TO HAVE BASED ON THE COMMISSION REPORT FROM MARCH, WHICH IS OVER $1 BILLION AS WELL. THERE ARE NEEDS THAT WE HAVE. JANET: ARE YOU SAYING MOST OF THE $3 BILLION SHOULD GO BACK AS A TAX CREDIT IN SOME FORM, A REBATE OR SOMETHING YOU HAVE TO FILE ON YOUR INCOME TAX? DIRECT CASH AS OPPOSED TO SPENDING IT ON THINGS THAT WILL BENEFIT THE COMMUNITY AS A WHOLE? REP. MICHAEL-WITZ: I THINK THAT WE WILL FOLLOW THE LETTER OF THE LAW AND MOVE FORWARD WITH IT. IT HAS NOT BEEN TRIGGERED IN 35 YEARS. IF THERE WAS A FORMALLY RELATED TO THE WAGE GROWTH VERSUS EXCESS REVENUE -- THAT IS HOW YOU COULD GET TO THE TRIGGER POINT, WHICH IS THE CHAPTER IN THE GENERAL LAWS. I THINK WE ARE AT THAT POINT AND WE NEED TO MOVE FORWARD. ED: I AM SIMPLIFYING THE QUESTION BUT DO YOU BELIEVE THIS COULD BE AN INCOME TAX PEOPLE WOULD HAVE TO CLAIM ON THEIR TAX RETURN? AN INCOME THAT PEOPLE WOULD HAVE TO CLAIM? REP. MICHAEL-WITZ: I THINK THAT IS HOW IT WAS INITIALLY DESCRIBE