The total savings to the Commonwealth from this cut is $61,400 per year, $122,800 over the 2011-2012 legislative session.

All Massachusetts governors are obligated to increase or decrease legislative salaries biennially under the terms of a constitutional amendment approved by voters in 1998. The amendment, approved by a better than two-to-one margin, requires legislative salaries to be "increased or decreased at the same rate as increases or decreases in the median household income for the Commonwealth for the preceding two-year period, as ascertained by the governor."

Until this year, legislators' salaries have been raised every two years, an increase of $14,722, or 31 percent, since the mandated salary adjustment became part of the state constitution.

BONUS PAY FOR ALL 102 LEGISLATORS - Over the past few years, the Legislature has increased the total number of legislators who receive annual bonus stipends of $7,500 to $35,000 beyond their annual base salary. The latest figures show that 101, or more than half, of the state's 200 legislators receive a stipend. All 40 senators and 62, or more than 40 percent, of the representatives receive bonus pay for their service in Democratic or Republican leadership positions, as committee chairs or vice chairs and as the ranking Republican on some committees.

Supporters say legislators in these important positions should be appropriately compensated for their many added responsibilities and hard work. Critics say the base salary is sufficient and is almost always automatically increased every two years.

PER DIEMS - Legislators are entitled to collect "per diems" to reimburse them for mileage, meals and lodging expenses for travel from their "place of residence to the Statehouse and return therefrom, while in the performance of their official duties." The amount of the per diem varies based on the city or town in which a legislator resides and its distance from the Statehouse. These reimbursements are not taxable income and range from $10 per day for legislators who reside in the greater Boston area to $82 for Western Massachusetts lawmakers and $100 for those in Nantucket. Bay State legislators in 2011 so far have received a total of $218,321 in per diems that range from $144 to $7,300 for individual members.

The Legislature in 2000 doubled these per diems to the current levels. Supporters of the per diems say they are a reasonable reimbursement for legitimate expenses. Opponents say the idea of paying a per diem is outrageous. They note that other state workers and most private workers are not paid additional money for commuting.

$7,200 FOR GENERAL EXPENSES - Each legislator receives a $7,200 annual general expense allowance. The Legislature in 2000 doubled this allowance from $3,600 to $7,200. This separate, flat rate expense allowance is not based on a lawmaker's geographical distance from the Statehouse. It is designed to pay for some of the costs of legislators' Statehouse and district offices and to pay for other expenses including contributions to local civic groups and the printing and mailing of newsletters. Legislators are issued a 1099 from the state and are required to report the $7,200 as income but are not required to submit an accounting of how they spend it.

PARKING SPACE - Lawmakers are entitled to a parking space inside the Statehouse garage or at the nearby McCormack State Office Building. The first $230 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 legislators. Any value of the space above this amount is treated as taxable income. The value of the parking spaces in 2011 was determined by the Bureau of State Buildings to be $394 per month. Based on that figure, legislators would be taxed on the excess $164 monthly by the Internal Revenue Service and the state.

HEALTH INSURANCE - Legislators are eligible to choose from 11 health insurance plans offered by the state's Group Insurance Commission that manages the plans for over 350,000 individuals--almost 190,000 current and retired state and municipal workers, and their families and dependents. Total monthly premium costs for family plans range from $1,062 to $2,020, while individual plans are available from $441 to $868. Lawmakers elected on or before June 30, 1993 pay 20 percent of the premium and the state pays 80 percent. Those elected to their first term after June 30, 2003 pay 25 percent while the state picks up only 75 percent. State and federal privacy regulations protect this information; it is not possible to obtain records about which plans individual legislators have purchased.

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. The policy costs $6.30 per month. Lawmakers elected after June 30, 2003 pay 25 percent of the premium and the state pays 75 percent. Those elected to their first term on or before June 30, 2003 pay 20 percent while the state picks up 80 percent. Legislators 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 legislators.

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 - Legislators are eligible to choose one of two dental/vision insurance plans. Total monthly premium costs for family plans range from $90 to $124, while individual plans range from $29 to $40. Lawmakers pay 15 percent of the premium and the state pays 85 percent.

SOME LEGISLATORS DO NOT PAY FEDERAL TAX ON THEIR LEGISLATIVE SALARY - Legislators who live more than 50 miles from the Statehouse are eligible for a special tax break. A 1981 federal law allows these state legislators 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" or 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. 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 and changes on October 1 of each year. The daily per diem for legislators from October 2010 through September 2011 is seasonal and ranges from $267 to $320 per day or between $87,455 and $116,800 annually. It is estimated that more than one-third of the state's 200 legislators qualify for this deduction and are eligible to pay little or no federal income tax on their legislative salaries.

LOCAL LEGISLATORS' ANNUAL SALARIES FOR THE 2011-2012 SESSION
Here are the annual salaries local legislators will receive in 2011 and 2012.

The dollar figure includes the base salary of $61,132 plus any stipend the legislator receives for his or her service in Democratic or Republican leadership positions, as committee chairs or vice chairs and as the ranking Republican on some committees.

It does not include the $7,200 general expense allowance or any per diems.                                  

Rep. Geoff Diehl    $61,132                                   
Rep. Daniel Webster    $61,132                                   
Sen. Thomas Kennedy    $68,632                                   
Sen. Therese Murray    $96,132