News: Let the good fiscal times roll

Thursday, April 14, 2022

Let the good fiscal times roll

Apr 14, 2022

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MORE MONEY, MORE PROBLEMS TO SOLVE — Massachusetts and its capital city are flush with cash, and that means budget writers from Beacon Hill to Boston City Hall are packing their fiscal 2023 spending plans with "once-in-a-generation" investments in affordable housing, child care and more.

House leaders swimming in surplus funds and better-than-expected revenues are loading up their $49.6 billion budget plan — up $1.4 billion from Gov. Charlie Baker's proposal — with investments in early education, rental assistance and workforce development programs. They also want to require jails and prisons to provide inmates and their families free phone calls and extend free school meals for another year.

Call it a philosophical difference or an election-year reality, but Baker and House leaders just aren't seeing eye to eye on tax cuts. The Republican governor continues to push $700 million in tax breaks for renters, seniors and low-income workers. But top House Democrats see the state's good fiscal fortune as an opportunity to invest in programs "underpinning our middle and lower class workforce," Speaker Ron Mariano said.

Mariano isn't shutting the door on doing some sort of tax relief package later this session, though. So governor, if you're reading this, don't give up hope.

Plus, this is all still early stages. The FY '23 budget will undergo changes before it becomes law, starting with the House debate later this month.

WHEN OPPORTUNITY KNOCKS — While the House budget relies solely on state revenues, Boston Mayor Michelle Wu is using the rest of the city's $350 million in American Rescue Plan funding to prop up her "transformational" investments in affordable housing, economic development and her city Green New Deal.

The mayor's nearly $4 billion budget proposal is part progressive policy wishlist and part upkeep of basic city services. Perhaps surprisingly, Wu is only calling for a 1 percent cut to the police budget — a small decrease compared to the 10 percent cut Wu and other councilors advocated for in the wake of George Floyd's murder — as she focuses instead on diversifying the force's ranks and marrying public safety with public health.

Some fiscal watchdogs warn of the dangers of leaning on one-time funds for major initiatives like housing and fare-free transit. But Phineas Baxandall of the Massachusetts Budget and Policy Center told Playbook that the federal aid serves the "double function of helping to deal with current shortfalls in meeting our needs and at the same time helping to create a different reality for the future."

GOOD THURSDAY MORNING, MASSACHUSETTS. Baker and Lt. Gov. Karyn Polito are skipping their party's May nominating convention in Springfield, Baker campaign advisor Jim Conroy confirmed to Playbook.

Instead of hearing from their party's top elected officials — Baker and Polito declined Chair Jim Lyons' invitation to speak at the event, deferring to the candidates running for office — delegates will listen to Thomas Homan, a former ICE acting director and Donald Trump "border czar," and anti-abortion advocate David Bereit.

Baker may be gone from his party's convention, but he won't be forgotten this cycle. He's helping launch Bristol County Sheriff Thomas Hodgson's reelection campaign later this month and is out collecting signatures for Anthony Amore, whom he endorsed for state auditor.

Baker plans to introduce Amore to his donors at a campaign finance committee meeting with Polito on April 26 at the Lenox Hotel in Boston, per an email obtained by Playbook.

TODAY — Baker and Wu attend a pier groundbreaking ceremony at the U.S. Coast Guard's Boston Base at 10 a.m. Wu announces her new chief of human services at 2:15 p.m. in Roslindale. Lt. Gov. Karyn Polito, Sen. Ed Markey and Rep. Jim McGovern announce food security grants at 10 a.m. in Worcester. McGovern and Markey announce federal funding for UMass Amherst at 3:30 p.m. Rep. Lori Trahan honors military service academy nominees at 5 p.m. in Lowell. Boston City Councilor Ruthzee Louijeune kicks off MWPC and Benchmark Strategies' virtual Emerging Leaders Speaker Series at 5 p.m. Governor hopeful Geoff Diehl kicks off his Middlesex County tour at 8 a.m.

Tips? Scoops? Email me: lkashinsky@politico.com.

A message from PhRMA:

Thousands of scientists in Massachusetts are creating ground-breaking treatments to fight everything from the common cold to cancer. Gov. Charlie Baker's bill would let the government set prices on medications, limiting the amount of research scientists can do to create cures. More importantly, it might make some medications harder to get. Gov. Baker: let the scientists do their jobs, don't discriminate against patients, and stop threatening access to medications. Go to SupportMassCures.com to learn more.

CAMPAIGN MODE

— FIRST IN PLAYBOOK: Progressive Democrats of Massachusetts is endorsing Quentin Palfrey for state attorney general after he earned 67 percent support from the group's members, his campaign said.

— PRIMARY SHAKEUP: The DNC is upending the presidential nominating calendar currently led by Iowa and New Hampshire by opening an application process for the early slots, my POLITICO colleague Elena Schneider reports. Iowa, with its botched 2020 caucuses, is considered more at risk than New Hampshire. But if the Granite State loses its first-in-the-nation-primary status, our frequent access to candidates could go along with it. Sen. Maggie Hassan (D-N.H.) pledged to defend the primary. New Hampshire Democrats Chair Ray Buckley and MassDems Chair Gus Bickford didn't immediately return requests for comment.

— "Voters want *some* student loan forgiveness," by Eli Okun, POLITICO: "By a 2-to-1 margin, voters support federal forgiveness of at least some student loan debt: Just 29% oppose the idea. But supporters are split over how much and for whom. Only 19% want all debt wiped out for all borrowers, while similar proportions would limit the amount of debt forgiven, the scope of borrowers included or both."

THE LATEST NUMBERS

— "Massachusetts reports COVID cases jump 52%, hospitalizations up again," by Rick Sobey, Boston Herald: "The state Department of Public Health's report of 1,969 cases was a 52% jump from last Wednesday's total of 1,296 infections. … Meanwhile, the Massachusetts average percent positivity has climbed to 3.48%, significantly up from 1.60% a few weeks ago."

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DATELINE BEACON HILL

— TO GAS TAX OR NOT TO GAS TAX: A major credit agency now says temporary gas tax suspensions "are unlikely to lead to rating changes." But House Speaker Ron Mariano, who's argued that a gas tax holiday could hurt the state's bond rating, isn't budging.

"I thought it was a very bizarre statement for a bond rating agency to make," the Quincy Democrat said Wednesday. "Either it will affect the bond rating or it won't."

GOP governor hopeful Chris Doughty is seizing on the S&P proclamation to again call to suspend the gas tax. Beacon Hill Republicans could give it another go by filing a budget amendment.

— "Mass. House passes on tax breaks proposed by Baker for now, seeks to boost spending on kids, criminal justice," by Matt Stout, Boston Globe: "That includes a proposed $110 million to extend a free school meals initiative currently covered by an expiring federal program; tens of millions more dollars to bolster childcare worker salaries; and $20 million to cover a new proposal requiring all jails and prisons make phone calls free for prisoners and their families, something only one other state currently mandates. … Suffolk County Sheriff Steven Tompkins, who serves as president of the Massachusetts Sheriffs' Association, said he supports efforts to make the calls free; most, if not all, sheriffs currently charge 14 cents a minute, he said. But 'at first blush,' he said, he doesn't believe the $20 million would be enough, including to cover the portion of what departments collect to help fund inmate programs."

— "Massachusetts housing advocates concerned about end of rental assistance programs," by Sam Turken, GBH News: "State officials say the programs will stop accepting new applications Friday because the commonwealth anticipates exhausting federal rental assistance funding in the coming months. As a substitute, the state is investing money in a separate, state-funded rent relief program that will continue accepting applications. But housing advocates are concerned that may not be enough to make for the end of the federally funded programs."

— "Mass. Gaming Commission Chair: state would be 'ready' to issue licenses if sports betting is legalized," by Amy Sokolow, Boston Herald: "The chair of the Gaming Commission chose her words carefully when discussing why sports betting has not yet come to Massachusetts, but she made one thing clear: the board is ready to go as soon as that happens."

— CLIMATE CLASH: Vastly outnumbered Senate Republicans dropped "alternative legislation" on energy and climate change last night, just hours before the chamber is set to debate a proposal spearheaded by Senate President Karen Spilka. Senate Minority Leader Bruce Tarr said the Republicans' plan — creating a $500 million Commonwealth Decarbonization and Energy Independence Fund to modernize the electric grid, provide rebates for electric vehicle purchases and charging stations, and "intensify" carbon sequestration efforts — "directs attention and spending to the places they need to go today to make cost-effective differences for tomorrow."

A message from PhRMA:

VAX-ACHUSETTS

— COVID CAUTIOUS: As Covid-19 case and positivity rates tick back up, the Baker administration is hosting free, family-friendly vaccination clinics at trampoline parks, zoos, bowling alleys and Six Flags New England during school vacation week. In Boston, the city's health commission is urging people to get vaccinated and to take a Covid test before gathering for the holiday weekend, the marathon and more.

— "Federal mask mandate on planes, buses, trains extended another 2 weeks until May 3 amid national uptick in COVID cases," by Erin Tiernan, MassLive.

FROM THE HUB

— "Michelle Wu's Boston budget proposal goes big on housing, little change to police," by Sean Philip Cotter, Boston Herald: " Wu's $3.99 billion offering is the largest proposal in city history, featuring a 5.7% year-over-year increase that follows in the usual trend of multi-percentage-point jumps. … Housing made many of the big headlines, as Wu touted $380 million in new funding 'to build and acquire new affordable units, invest in affordable homeownership, and fund housing stability services and an expanded voucher program.' … What barely came up was the police department, notable due to the rhetoric around cop funding over the past two years."

— More: "Wu proposes 1 percent cut to Boston police budget for next fiscal year," by Ivy Scott and Danny McDonald, Boston Globe: "Her budget calls for a $10 million reduction in spending on personnel services, which Justin Sterritt, the city's chief financial officer, said is largely the result of a lower payroll burden. … Jamarhl Crawford, a police reform activist and member of the city's police reform task force in 2020, called the proposed cuts a solid first step that he hopes will pressure police officials into keeping a tighter rein on spending. … Larry Calderone, president of the police department's largest union, decried Wu's proposed budget cuts, saying better policing will require more funding and new hires."

— "Boston protester charged with assaulting police officer," by Sean Philip Cotter, Boston Herald: "Police have charged one of Mayor Michelle Wu's frequent protestors with assaulting a cop at a demonstration this week outside of City Hall. Catherine Vitale, 31, of Dorchester, was hauled off on Tuesday after she and a few other protesters showed up chanting in and then outside of City Hall as Wu and law-enforcement officials held a press conference about security for the upcoming Boston Marathon."

— "Timeline sharpens in search for new BPS leader," by Jenna Russell, Boston Globe: "James Guerra, president and CEO of JG Consulting, said he plans to post the position nationally and 'open the portal' to online applicants by Friday. He recommended allowing three or four weeks for candidates to respond before an initial committee review of applications in mid-May, followed by two rounds of interviews during the weeks of June 6 and June 13."

— More: "Amid leadership transition, labor tensions grow in Boston Public Schools," by James Vaznis, Boston Globe: "[Boston Superintendent Brenda] Cassellius and the School Committee have canceled several negotiating sessions recently with the Boston Teachers Union, frustrating leadership and members. The union also is outraged over a proposal that would increase pay each year by 2 percent or less during the course of a three-year contract, calling it 'insulting and insignificant.'"

— "Iconic Boston Pride parade will not return this summer," by Saraya Wintersmith, GBH News: "Boston won't enjoy its massive Pride Parade celebrating the region's LGBTQ community this year despite the city re-opening amid the lingering pandemic. Boston Pride, the nonprofit organizer of past parades, moved to dissolve itself last year amid a boycott over issues of race and transgender inclusion and complaints of excessive commercialization."

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DAY IN COURT

— "State Ethics Commission hearing involving DA Early kicks off in Boston," by Brad Petrishen, Worcester Telegram & Gazette: "Lawyers gave opening statements and heard from the first witness Wednesday in a contentious first day of state Ethics Commission hearings regarding the 2017 'Troopergate' scandal. … [Worcester District Attorney Joseph D. Early Jr.] and three other public officials — Senior First Assistant District Attorney Jeffrey Travers, former State Police Col. Richard D. McKeon Jr. and former State Police Maj. Susan Anderson — are accused of breaking civil ethics laws by trying to improperly remove statements police attributed to an arrested judge's daughter from the public record."

— "A judge told Jasiel Correia to report to prison. Will the appeals court let him stay free?" by Jo C. Goode, Herald News: "After exhausting seven extensions to stay out of prison from a lower federal court, convicted former Fall River mayor Jasiel Correia II is asking the First Circuit Court of Appeals to grant him a permanent stay pending the appeal of his criminal corruption and fraud conviction."

FROM THE 413

— "Justice Department, Springfield reach unprecedented settlement on police use-of-force policies," by Stephanie Barry, Springfield Republican: "U.S. Attorney Rachael S. Rollins and civil rights watchdogs announced an unprecedented court settlement with the city designed to revamp use-of-force and reporting policies within the police force. The consent decree offers the Department of Justice a measure of control over the Springfield Police Department. The announcement follows a year of negotiations and comes nearly two years after the Justice Department issued a blistering 28-page report portraying the police department's former Narcotics Unit as heavy-handed during arrests, among other failings. … The consent decree will tightly control any use of force police employed by officers during an arrest beyond 'unresisted handcuffing,' require strict reporting protocols and greater transparency."

— "Easthampton Mayor Nicole LaChapelle apologizes for racially insensitive remark to student," by Jeanette DeForge, Springfield Republican: "Mayor Nicole LaChapelle has apologized after making a racially insensitive remark to members of the Easthampton High School award-winning civics competition team last week."

A message from PhRMA:

Massachusetts is a booming biotech ecosystem. Its scientists and researchers are developing ground-breaking treatments to fight everything from the common cold to cancer.

Gov. Charlie Baker's bill imposes government prices on medications, which would then limit the amount of research scientists can do to create lifesaving treatments. By setting medication prices, it also means politicians decide which patients and diseases are more important than others.

State bureaucrats should not be playing doctor. When the government imposes artificial prices from the top-down, some patients can lose access to their medications. Seniors, the disabled, and the chronically ill are most vulnerable to these policies.

Gov. Baker: let the scientists and doctors do their jobs, don't discriminate against patients, and stop threatening access to medications. Go to SupportMassCures.com to learn more.

THE LOCAL ANGLE

— "UMass Tuition Rising This Fall After Two-Year Freeze," by Chris Lisinski, State House News Service (paywall): "Tens of thousands of in-state undergraduate UMass students face a 2.5 percent jump in tuition in the 2022-2023 academic year, representing between $346 and $395 more per year, as well as increases in room and board costs ranging from 1.9 percent to 3.9 percent. Out-of-state undergraduates face roughly similar tuition increases next year, as do all graduate students at the Amherst, Boston and Lowell campuses."

— "The Newton-to-White-House pipeline taps public health professionals," by John Hilliard and Gal Tziperman Lotan, Boston Globe: "While Massachusetts has long sent its brightest political stars to Washington, the pandemic has created a new demand in the halls of power for the world-class medical expertise concentrated in the greater Boston area."

— "Danvers superintendent reaches retirement deal amid hockey controversy," by Bob Hohler, Boston Globe: "Danvers School Superintendent Lisa Dana, stepping down amid a turbulent period marked by allegations of racist, homophobic, and antisemitic behavior by members of the 2019-20 high school hockey team, will receive a $280,000 lump sum when she retires in August. But she will forgo the final four years of her contract under a separation agreement with the school committee."

— "Scandal widens in Stoughton Police Department amid investigation into pregnant woman's death," by Laura Crimaldi, Boston Globe: "Two Stoughton police officers have been placed on paid administrative leave, following the resignation of a third, amid a widening misconduct probe prompted by the death last year of a 23-year-old pregnant woman in Canton."

— "New report highlights dual impact of pandemic and racism on Asian American community," by Sarah Betancourt, GBH News: "Suzanne Lee was walking toward the Public Garden from her home in Chinatown in 2021 when a white man rolled down his car window and said 'go back to where you came from. You brought us this, you brought the virus.' It's just one of many racial hate incidents Asian Americans in the area have faced during the pandemic, creating a triple threat of racial prejudice, mental health concerns in the community and economic loss, according to a new report from the Institute for Asian American Studies at UMass Boston."

CONGRATS — to GBH's Saraya Wintersmith on winning a Gracie Award for her profile on former Boston city councilor and mayoral hopeful Annissa Essaibi George.

TRANSITIONS — Caroline Kimball-Katz, an Andrea Campbell alum, has joined the Planned Parenthood League of Massachusetts as associate comms director.

HAPPY BIRTHDAY — to former Rep. Chester Atkins, and Joe Rospars, founder and CEO of Blue State and an Elizabeth Warren alum.

NEW HORSE RACE ALERT: BUDGET THEATER — State House News Service's Katie Lannan and Chris Lisinski walk hosts Jennifer Smith, Steve Koczela and Lisa Kashinsky through the House budget proposal and Senate staffers' union push. Subscribe and listen on iTunes and Sound Cloud.

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