| | | | |  | | By Lisa Kashinsky | | | UNEXPECTED EXPENSES — Another month, another multibillion-dollar curveball in Beacon Hill's tax-break talks. First there was April’s $2.2 billion revenue shortfall (collections improved in May — more on that shortly). Now the state could owe the federal government up to $2.5 billion after a routine audit showed the Baker administration mistakenly used federal funds to pay jobless benefits during the pandemic instead of drawing from state accounts. The Healey administration is talking to the federal Department of Labor to see how much money, if any, the state will need to repay. Gov. Maura Healey told reporters yesterday after meeting with legislative leaders at the State House that she hopes “to be able to resolve things in a way that minimizes any impact on the commonwealth.” Yet the potentially high tab is casting another pall over tax-relief talks that were already shaken by April’s revenue shocker. Tax collections rebounded in May — the state brought in $236 million more last month than in May 2022, and $169 million more than its benchmark projection for the month. But collections are still lagging behind the same time period last year. Add in the $2.5 billion accounting error and it starts to feel reminiscent of when tax-relief talks fell apart last year, after lawmakers learned they would have to send nearly $3 billion back to taxpayers under Chapter 62F. But Senate President Karen Spilka doesn't want a repeat performance. Senators already earmarked $575 million for tax breaks in their budget. And Spilka told reporters yesterday that their proposal “will be out soon, so stay tuned."
|  From left: House Speaker Ron Mariano, Gov. Maura Healey, Senate President Karen Spilka and Lt. Gov. Kim Driscoll address reporters on June 5, 2023, at the Massachusetts State House. | Lisa Kashinsky/POLITICO | As Senate leaders put the finishing touches on their plans — the House and Healey's are already on the table — another conservative advocacy group is pressing lawmakers to keep pushing tax relief through. Americans for Prosperity is spending thousands of dollars on Facebook and Instagram ads urging tax cuts, the group founded by the Koch brothers told Playbook. The ads are targeting half a dozen Democratic senators, including Ways and Means Chair Michael Rodrigues and Anne Gobi. But Gobi just joined the Healey administration, and it’s unlikely her eventual successor will be seated in time to vote on the budget or tax plans. GOOD TUESDAY MORNING, MASSACHUSETTS. Chris Sununu isn’t running for president. But he hasn’t ruled out running for a record fifth term as New Hampshire’s governor. “That’s on the table, to be sure,” the Republican told WMUR. "We’ll figure that out this summer.” Sununu is freezing the 2024 GOP gubernatorial primary while also setting himself up to potentially play kingmaker in his state's presidential primary. The governor's decision not to seek the Oval Office opens up the first-in-the-nation primary state. Out of the three Republicans expected to enter the race this week — former Vice President Mike Pence, former New Jersey Gov. Chris Christie and North Dakota Gov. Doug Burgum — one, Christie, is planning a New Hampshire-heavy campaign starting with a town hall at Saint Anselm College at 6:30 p.m. But Sununu doesn’t think a crowded field is a good thing. His decision not to run doubled as a warning to lower-polling candidates to get out by Christmas or risk renominating former President Donald Trump, who Sununu doesn’t think can win another general election. Read Sununu’s Washington Post op-ed and watch his interview with CNN’s Dana Bash.
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New Hampshire Gov. Chris Sununu speaks at the Republican Jewish Coalition annual leadership meeting on Nov. 19, 2022, in Las Vegas, Nevada. | Scott Olson/Getty Images | TODAY — Healey speaks at the BIO International Convention at 9 a.m. and attends the opening of the Massachusetts Pavilion at 10 a.m. at the BCEC, and speaks at the New Commonwealth Fund third anniversary celebration at 7 p.m. at Fenway Park. Lt. Gov. Kim Driscoll speaks at Colliers’ Coffee and Conversation at 9 a.m. in Boston and at the MASSBUYS EXPO Exhibitor Reception at 5 p.m. at the Hynes Convention Center. Former Acting Gov. Jane Swift and her daughter, Lauren Hunt, testify before the Joint Committee on Health Care Financing on legislation to regulate pharmacy benefits managers at 10 a.m. at the State House. Boston Mayor Michelle Wu makes an announcement about BPS high schools at Madison Park High at 11:30 a.m. Tips? Scoops? Testifying on a bill? Email me: lkashinsky@politico.com.
| | | | A message from UPS: UPS invests more than $343 million in safety training in the U.S. every year. It’s why more than 10,000 UPS drivers have driven 25 years or more without an accident and earned a place in our Circle of Honor. Learn more | | | |  | DATELINE BEACON HILL | | — HE’S RUNNING: GOP state Rep. Peter Durant is running for the state Senate seat vacated by Democrat Anne Gobi, who joined the Healey administration yesterday as rural affairs director. Durant filed paperwork with state campaign finance regulators yesterday and is expected to make a formal announcement on Wednesday. He faces Democratic state Rep. Jon Zlotnik in the special election that the Senate has yet to schedule. The Boston Herald's Chris Van Buskirk first reported Durant's plans to run. — “Healey administration sells former New Bedford orphanage to developer for affordable housing,” by Samantha J. Gross, Boston Globe: “On Monday, Governor Maura Healey made good on an early promise to turn vacant, state-owned lands into solutions to the ongoing housing crisis. The administration announced the state sold a 1.4-acre lot and former orphanage in New Bedford to a Roxbury developer with plans to build 28 rental units — 70 percent of which would rent at an affordable rate and 30 percent at market rate.”
| | VAX-ACHUSETTS | | — “State health rapid response team deployed to Chelsea veterans’ home after new COVID-19 outbreak,” by John Hilliard, Boston Globe: “As of Monday, 15 residents and 10 staff members had tested positive, according to Veterans’ Services Secretary Jon Santiago. A state Department of Public Health rapid response team was deployed to the home Friday.” — “West Springfield truckers honored by Baystate for role in covert operation to obtain COVID masks,” by Jeanette DeForge, Springfield Republican.
| | | | DON’T MISS POLITICO’S HEALTH CARE SUMMIT: The Covid-19 pandemic helped spur innovation in health care, from the wide adoption of telemedicine, health apps and online pharmacies to mRNA vaccines. But what will the next health care innovations look like? Join POLITICO on Wednesday June 7 for our Health Care Summit to explore how tech and innovation are transforming care and the challenges ahead for access and delivery in the United States. REGISTER NOW. | | | | | | | THE RACE FOR CITY HALL | | — FIRST IN PLAYBOOK: Boston City Councilor Ricardo Arroyo is drawing another challenger. Enrique Pepen, executive director of the Boston Office of Neighborhood Services under Mayor Michelle Wu, is entering the District 5 race today with a pledge to “be a voice for transparency, integrity, and accountability” on a legislative body whose current iteration is mired by infighting. Pepen previously worked for former City Councilor Tito Jackson, former Rep. Joe Kennedy III and former Mayor Marty Walsh. The son of Dominican immigrants, he lives in Roslindale with his wife and two young children, his campaign said in a statement. Arroyo, who rebuffed calls to step down after a pair of federal investigations showed former U.S. Attorney for Massachusetts Rachael Rollins likely violated ethics rules to aid his failed campaign for Suffolk district attorney, is also facing Hyde Park police officer Jose Ruiz and Mattapan resident Jean-Claude Sanon, per the Dorchester Reporter. — “Forced to quit over racist remarks, an Everett politician plans a comeback,” by Liz Neisloss, GBH News: “On a recent day at a small convenience store in his neighborhood in Everett, former City Councilor Anthony DiPierro held what he called the first ‘listening session’ of his campaign to return to office. It was a friendly gathering with a few relatives and old friends dropping in to shake hands and wish him well. Just over a year ago, DiPierro had been forced to resign his post after it was revealed he’d shared racist memes and racial slurs online, including with other Everett officials.”
| | FROM THE HUB | | — “Lawsuit plaintiffs ask redistrict judge to review the moves of two precincts,” by Gintautas Dumcius, Dorchester Reporter: “Councillor At-Large Ruthzee Louijeune on Sunday expressed confidence in the redistricting map she steered to Mayor [Michelle] Wu’s desk for a signature after plaintiffs in a lawsuit challenging the previous map raised concerns in a filing with the judge.” — “As biotech conference arrives in Boston, Wu launches push to diversify industry,” by Adam Reilly, GBH News.
| | | | A message from UPS:   | | | | | PLANES, TRAINS AND AUTOMOBILES | | — “MBTA submits revised worker safety plan after feds dubbed first draft ‘insufficient’,” by Taylor Dolven and Laura Crimaldi, Boston Globe: “The T’s new plan outlines more than two dozen reforms with deadlines on or before Aug. 7, including evaluating training, qualifications, and experience of its dispatchers, increasing its training instructor to participant ratio, and developing procedures to document who has right-of-way access.”
| | DAY IN COURT | | — “Texas sheriff recommends charges over Martha’s Vineyard migrant flight,” by Ben Brasch, Washington Post: “A Texas sheriff’s office has recommended that a San Antonio-area district attorney file criminal charges following an investigation into the transportation of 49 asylum seekers from Texas to Martha’s Vineyard, Mass., in the fall, allegedly on direction from Florida Gov. Ron DeSantis. It is not clear who the charges would be filed against, but the case would include both felony and misdemeanor charges of unlawful restraint, according to the sheriff’s office.” — “Massachusetts Guardsman Jack Teixeira’s new attorney represented a Guantanamo Bay detainee,” by Rick Sobey, Boston Herald.
| | IT'S NOT EASY BEING GREEN | | — “SouthCoast Wind pulling out of its wind farm deal,” by Bruce Mohl, CommonWealth Magazine: “SouthCoast Wind said on Monday that it is moving to terminate its existing offshore wind contracts with Massachusetts and hoping to rebid them at higher prices in the state’s next procurement. … The SouthCoast announcement means the second and third Massachusetts offshore wind procurements are a bust, with 2,400 megawatts of wind power scrapped.”
| | | | GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGISTER HERE. | | | | | | | FROM THE 413 | | — “Immigrants, refugees find emergency shelter in Greenfield through state-funded program,” by Mary Byrne, Greenfield Recorder: “As many as 50 rooms in the city are expected to be occupied in the coming days by families, immigrants and refugees who qualify for temporary shelter under the state’s Emergency Housing Assistance Program."
| | | THE LOCAL ANGLE | | | — “Business confidence drops to 3-year low,” by Christian M. Wade, Eagle-Tribune: “The latest Business Confidence Index, which is compiled by the pro-business group Associated Industries of Massachusetts, shows overall enthusiasm among employers declined by 0.5% points to 49.6 in May, dropping below the 50 mark that separates optimistic from pessimistic outlooks for the first time since December 2020.” — “Police investigate vandalism targeting Bolton Pride Parade & Rally,” by Henry Schwan, Telegram & Gazette.
| | 2024 WATCH | | — “Robert F. Kennedy Jr. tests the conspiratorial appetite of Democrats,” by Michael Scherer, Washington Post: “Kennedy still believes that then-Sen. John F. Kerry (D-Mass.) won the 2004 election — which reelected Republican George W. Bush — based largely on a loose analysis of exit polls, voting machines and precinct vote counts, echoing the kind of false claims made by [former President Donald] Trump and his supporters about the 2020 election. ... He dismisses concerns that his candidacy could help Trump or another Republican win." — WEST WATCH: No, not Kanye. Progressive activist and former Harvard professor Cornel West, who twice left the school over disputes with leadership, is mounting a third-party presidential bid, Kierra Frazier reports.
| | | | A message from UPS: UPS invests more than $343 million in safety training in the U.S. every year. Our operations employees completed more than 6 million hours of safety training in 2022 alone.
Not only do we practice safety, we celebrate it too. As of 2023, more than 10,000 UPS drivers have driven 25 years or more without an accident — which is about 15 billion miles — and have earned a place in our Circle of Honor.
Learn how UPS delivers safety | | | | | HEARD ‘ROUND THE BUBBLAH | | TRANSITIONS — State Street’s Yvonne Garcia and CVS Health president and CEO Karen S. Lynch have been elected to the John F. Kennedy Library Foundation board. — James Kwon is now communications director for Rep. Seth Magaziner (D-R.I.). — Andrea Gayle-Bennett, a retired brigadier general in the Massachusetts National Guard and health care professional, has been appointed as the first deputy secretary of the Executive Office of Veterans’ Services. — Aaliyah Duncan has joined Rep. Ayanna Pressley's Boston office as a staff assistant. She was previously an intern in Sen. Ed Markey's office and recently graduated from Boston University. HAPPY BIRTHDAY — to Grace Ross, Donna Fenn, Jen Hemmerdinger, Elvira Mora and Christopher Rowland, Washington Post reporter and former Boston Globe Washington bureau chief. Happy belated to state Sen. Adam Gomez and Robert Kraft, who celebrated Monday. Want to make an impact? POLITICO Massachusetts has a variety of solutions available for partners looking to reach and activate the most influential people in the Bay State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness among this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com. | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our politics and policy newsletters | | Follow us | | | | |
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