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  Romney May Veto Religious Funds Bill
Says Required Disclosure Appears to Be 'Intrusive'

By Frank Phillips
The Boston Globe
January 24, 2006

http://www.boston.com/news/local/massachusetts/articles/2006/01/24/romney_may_veto_religious_funds_bill/

Governor Mitt Romney signaled yesterday that he is likely to oppose a bill requiring religious institutions to disclose their finances, creating a major hurdle for advocates of the legislation who must gain a veto-proof vote in the House to guarantee that it becomes law.

The governor's comment caught supporters of the bill off guard, particularly since Romney had appeared to support the measure last August. Romney's comment also comes as supporters engage in a fierce political struggle on Beacon Hill over the legislation with the Catholic Archdiocese of Boston and other religious denominations. Opponents say the measure violates religious freedoms and puts undue financial burdens on churches, particularly smaller denominations.

Meeting with reporters in his office yesterday, Romney said the bill appears to be "far more intrusive" than "routine, regulatory interaction" and would place "substantial burdens on religious organizations."

"I will not be able to support a bill which goes beyond a very routine, regulatory interaction level, but instead imposes the kind of onerous reporting requirements, oversight, and intrusion in religious practice which is reportedly being considered by some associated with this bill," the governor said.

Leaving the door open for his backing of some oversight, Romney said he does support the concept "that our government and society has a responsibility for routine regulatory interaction with churches and with charities."

The legislation would require all religious organizations that have annual revenues of more than $500,000 to file annual financial reports and a list of real estate holdings with the attorney general's charities division.

Some lawmakers and lay Catholics have demanded more information about the financial health and holdings of the Boston Archdiocese as it settled civil suits from the clergy sexual abuse crisis and launched a sweeping reconfiguration of parishes.

The bill is scheduled to be considered by the House tomorrow. After Romney's remarks, sponsors of the bill, sensing a shift in the political dynamics around the measure, immediately asked for a meeting with the governor. Supporters of the bill say they believe they have a majority of representatives, but not the necessary two-thirds to override a gubernatorial veto. The Senate passed the bill by a wide margin last fall.

"The governor misunderstands the bill," said Secretary of State William F. Galvin, a cosponsor of the legislation. He said he contacted Romney's legal counsel, Mark Nielsen, and asked him to set up a meeting between advocates and the governor. "It is not intrusive as he thinks it is, and, in fact, it meets his criteria as he defined routine regulatory review. We can comply with that."

Eric Fehrnstrom, the governor's director of communication, said Romney is open to meetings with proponents of the bill, but not until the legislation gets to his desk. "If and when a bill reaches the governor's desk, there will be time for its opponents and supporters to make their arguments," he said.

Senator Marian Walsh, a Democrat from West Roxbury and the chief sponsor of the bill, said the governor, as he considers mounting a presidential campaign, should be aware that there is support nationally to force religious groups to open their financial books.

"The discussion we are having here in Massachusetts is not an aberration," Walsh said in an interview yesterday. "If the governor is concerned nationally, he will find that where we are with this bill is where the growing movement in this country is."

In August, Romney called the Massachusetts legislation "a very important area of inquiry," but he did not endorse the bill.

"Clearly, nonprofit organizations should be subject to a level of disclosure which is consistent with the tax treatment they receive," Romney told reporters at the time.

Getting an accurate head count, even just two days before the scheduled vote, was difficult for both sides. "It is really hard to tell," said state Representative Byron Rushing, a Democrat from the South End and the House's second assistant majority leader, who is leading the opposition.

Rushing said the Massachusetts Council of Churches, representing Protestant churches, has stepped up its lobbying against the bill and has been joined by rabbis and other religious leaders opposed to it. They are creating doubt among lawmakers by arguing that the burden of reporting would distract from their missions and cut deeply into their meager budgets, he said.

"Everybody is thinking about it in a way they weren't thinking about it before," Rushing said.

In addition, Archbishop Sean P. O'Malley sent a letter last week to the parishes in the Boston Archdiocese, telling them to lobby their state representative. It included a special report card that each parish priest or leader was told to fill out, recording where the legislator stood on the issue. The card was to be sent back to the State House lobbyist for the state's four Catholic dioceses.

"I have never seen, in my memory, this tactic ever employed, even on moral and social issues by the church," Galvin said.

In the mailing, O'Malley accused those pushing the financial disclosure of trying to use the political process to assert control of the financial affairs and decisions of the archdiocese.

He also said it was aimed solely at the archdiocese by people who are upset over the parish closings and the church's financial problems.

Walsh, who said she is confident the bill will get at least a majority vote in the House, said O'Malley's description of the bill and the motives of its sponsors are a distortion.

Last week, Walsh said she and other backers plan to amend the legislation by excluding some smaller religious groups from disclosure requirements.

The original bill called for all religious groups with revenue of $100,000 to file a review of their finances by a certified public accountant every year, but the supporters plan to offer an amendment that would increase the threshold to $500,000 in revenue. The amendment also raises to $1 million from $500,000 in annual revenue the threshold for filing a detailed, outside financial audit.

 
 

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