Friday, June 16, 2023

Let the tax-relief lobbying begin (again)

Lisa Kashinsky's must-read rundown of what's up on Beacon Hill and beyond.
Jun 16, 2023 View in browser
 
Massachusetts Playbook logo

By Lisa Kashinsky and Kelly Garrity

PROGRAMMING NOTE: Massachusetts Playbook won’t publish Monday for Juneteenth. We’ll be back in your inboxes on Tuesday.

PLAYING THE LONG GAME — Senators unanimously passed a roughly $590 million package of tax breaks last night that aims to boost housing production but excludes several business-friendly changes sought by the House and Gov. Maura Healey, teeing up another closed-door clash between chambers.

It also sets off a new round of lobbying around cutting the short-term capital gains tax rate to 5 percent from 12 percent — a key component of both the House and Healey’s tax plans that the Senate skipped — and the “single sales factor apportionment” for corporate taxes that representatives approved but senators rejected.

Business leaders didn’t push Senate President Karen Spilka too hard on either measure when she spoke at a Greater Boston Chamber of Commerce event yesterday ahead of her own chamber’s tax debate. But they made clear they’re going to keep up the pressure in private as the tax plans head to the negotiating table.

“We’ll work with people on the conference committee and make our feelings known,” Jim Rooney, the chamber’s president and CEO, told Playbook after the event. "We think that there's the capacity, as the House did, to embrace” both measures, he said.

But Rooney also signaled that the business community is willing to play the long game. Business groups are likely to get one long-sought win after both legislative chambers passed measures to raise the estate-tax threshold to $2 million. Some senators have expressed openness to discussing the single sales factor down the line. And Senate Ways and Means Chair Michael Rodrigues raised the possibility of revisiting short-term capital gains changes in an interview with the State House News Service.

Housing advocates are taking a similar approach to two housing-development programs that the senators want to expand. If the House doesn’t agree to additional funding for the Housing Development Incentive Program and the Low Income Housing Tax Credit, advocates say they could get another shot at both in an upcoming housing bond bill.

Meanwhile, the Massachusetts Law Reform Institute is asking lawmakers to hold off on pumping more money into HDIP until they tackle existing issues with the program, such as the unequal distribution of credits among Gateway Cities. The nonprofit is also urging lawmakers to consider building some mechanism to create affordable units into the program that’s designed to spur production of market-rate housing. Senators rejected an amendment to do so yesterday, but several signaled a willingness to revisit the idea at a different time.

GOOD FRIDAY MORNING, MASSACHUSETTS. TGIF!

TODAY — Healey and Lt. Gov. Kim Driscoll are on “Java with Jimmy” starting at 9 a.m. (Driscoll goes first.) Healey is on GBH’s “Boston Public Radio” at noon. Driscoll chairs a Governor’s Council on Sexual Assault, Domestic Violence and Human Trafficking meeting at 1 p.m. in Lynnfield. Rep. Jim McGovern attends a Juneteenth flag raising at 5 p.m. at Worcester City Hall. Boston Mayor Michelle Wu attends a public housing event at 11:30 a.m. in Charlestown, the opening of the city’s “Slavery in Boston” exhibit at 1 p.m. at Faneuil Hall and the Embrace Ideas Juneteenth Block Party at 4 p.m. at RCC.

THIS WEEKEND — MBTA GM Phil Eng is on WBZ’s “Keller @ Large” at 8:30 a.m. Sunday. BPS Superintendent Mary Skipper is on WCVB’s “On the Record” at 11 a.m. Sunday.

Tips? Scoops? Planning on lobbying the tax-relief conference committee? Email us: kgarrity@politico.com and lkashinsky@politico.com.

 

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DATELINE BEACON HILL

— ASKING FOR CLEMENCY: Gov. Maura Healey is recommending pardoning seven people for decades-old crimes that range from arson to drug possession to assault, making her the first governor in more than three decades to propose pardons in the first year of their term. The pardons now go to the Governor’s Council for approval.

Healey also pledged to “modernize” the state’s clemency process. Each governor gets to issue their own guidelines. The former attorney general said during a State House press conference that she wants to “center fairness and racial and gender equity” in hers.

The group Healey first hopes to pardon includes a nurse, a social worker and a U.S. Army veteran. None are incarcerated. Only a few, including Glendon King and Terrance Williams, who appeared with Healey yesterday, still live in the state. And each were recommended for pardons by the Parole Board under former Gov. Charlie Baker.

Healey is still considering one other holdover recommendation. Her office said it is not for Gerald Amirault and Cheryl Amirault LeFave, the siblings convicted in a high-profile child sexual abuse case who Baker controversially moved to pardon toward the end of his second term but later withdrew.

The governor also vowed as a candidate that she would pardon those convicted of simple marijuana possession, but has yet to do so. “We need to do so in a way that legally makes sense,” Healey said yesterday. “We don’t want anybody to be set back, held back, from housing, from employment, from school because of a simple marijuana possession violation.” More from the Boston Globe’s Matt Stout and GBH’s Katie Lannan

Governor Maura Healey announces she is recommending seven individuals for pardons to the Governor’s Council at the State House on June 15, 2023.

Governor Maura Healey announces she is recommending seven individuals for pardons to the Governor’s Council at the State House on June 15, 2023. | Joshua Qualls/Governor’s Press Office

— TODAY’S SPECIAL: Senators approved Nov. 7 as the date for the special election to fill the seat Anne Gobi vacated to become Healey’s rural affairs director. That would make the primary Oct. 10.

— CHEEKY PROTEST: Eight members of the climate group Extinction Rebellion were arrested and escorted from the Senate gallery yesterday, after the pink-thong-clad protesters bared what they called their own “natural gas infrastructure” to send a message to lawmakers (scrawled across their bottoms) to “stop passing gas” — in this case, fossil fuel infrastructure. Each is charged with trespassing on state property, disorderly conduct and indecent exposure, state police said. Extinction Rebellion protesters have already faced arrest this year for staging a sit-in at the governor’s office (when she wasn’t there) and disrupting a joint session.

“Spilka outlines a different vision of competitiveness,” by Bruce Mohl, CommonWealth Magazine: “Where [other] groups to one degree or another prioritized tax cuts designed to keep wealthy residents from fleeing the state, [Senate President Karen] Spilka said the real problem is 26- to 35-year-olds who are struggling to live here because of the high cost of housing, health care, and higher education.”

FROM THE HUB

“Boston’s new district map likely to stand, attorneys indicate,” by Emma Platoff, Boston Globe: “Boston’s new political map looks most likely to stand, leaving the city on schedule for its elections this fall, after the attorneys who sued to block an earlier set of the boundaries indicated Thursday that they are 'unlikely' to try to obstruct the latest attempt."

“Boston City Council’s cut to veterans’ office sparks outcry,” by Gayla Cawley, Boston Herald: “The City Council’s decision to cut $900,000 from the veterans’ services budget has prompted an outcry from across the country, council President Ed Flynn said.”

“Advocacy group calls for exhibit on slavery to be moved from Faneuil Hall, named for a slaveowner,” by Laura Haefeli, WBZ.

 

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THE RACE FOR CITY HALL

“At-large update: Incumbents fill up war chests as challengers make ballot,” by Gintautas Dumcius, Dorchester Reporter: “The field of at-large City Council candidates stands at eight, as the four incumbents run for another two-year term and four challengers look to knock them out of a spot.”

“City Councilor Karen Kalinowsky is running for mayor of Pittsfield,” by Meg Britton-Mehlisch, Berkshire Eagle: “Citing her frustration with the recent budget process, City Councilor Karen Kalinowsky said Thursday she is joining the race for mayor.”

DAY IN COURT

“Jack Teixeira, Air National Guardsman accused of leaking military secrets, indicted on new charges,” by Shelley Murphy and Tonya Alanez, Boston Globe: “Jack D. Teixeira, the Massachusetts Air National Guardsman accused of leaking top secret information on the Internet, was indicted Thursday by a federal grand jury in Boston on six counts of willful retention and transmission of national defense information, court filings show. The indictment comes two months after Teixeira, 21, of Dighton, was arrested on a criminal complaint filed by prosecutors.”

“Two from Worcester charged in Capitol riot; recorded themselves in building,” by Craig S. Semon, Telegram & Gazette: “Julie Miller, also known as Hong Ngo, 51, and Long Duong, also known as Jimmy Hoang Duong, 54, were taken into custody after an arrest warrant was issued Monday by a federal court in Washington."

FROM THE DELEGATION

— “US senators urge regulator to change guidance on Massachusetts auto law,” by David Shepardson, Reuters: “[Sens. Elizabeth Warren and Ed Markey] on Thursday urged the National Highway Traffic Safety Administration (NHTSA) to reconsider its decision to tell automakers not to comply with a recently effective Massachusetts state ‘right to repair’ law designed to allow customers access to vehicle data.”

“Sherrod Brown, Tim Scott float tougher bank CEO penalties after Warren rift,” by Eleanor Mueller, POLITICO.

FROM THE 413

“State puts Southampton immigrant facility on hold,” by The Daily Hampshire Gazette: “State officials have determined that the cost of operating a temporary processing facility for legal immigrant families and other displaced people at a former Harley-Davidson dealership would be prohibitive and have put plans on ‘indefinite pause.’”

THE LOCAL ANGLE

“With no state oversight, Mass. medical school morgues are vulnerable to black market for bodies,” by Ally Jarmanning and Walter Wuthmann, WBUR: “Medical school morgues — like the one at Harvard where a manager is accused of stealing and selling body parts for tens of thousands of dollars — face no state oversight in Massachusetts, state officials said Thursday."

“Somerville dedicates funds for a supervised consumption facility,” by Martha Bebinger, WBUR: “Somerville has approved most of the money needed for a mobile clinic where people using drugs could be monitored and revived if they overdose.”

REGIONAL ROUNDUP

“R.I. official resigns amid scandal over racist, sexist comments made in Philadelphia,” by Edward Fitzpatrick, Boston Globe: “David Patten, the state official accused of making a series of racist, sexist comments during a business trip to Philadelphia, resigned Thursday evening. Patten’s resignation as director of Capital Asset Management and Maintenance in the state Department of Administration comes amid national coverage and mounting criticism of Governor Daniel J. McKee’s administration over the incident. Patten wrote that his resignation becomes effective June 30.”

“Several NH mayors, police chiefs say it’s time to give undocumented immigrants access to IDs,” by Gabriela Lozada, NHPR.

MEDIA MATTERS

“Bloomberg cancels local ‘Baystate Business’ radio show, lays off hosts,” by Larry Edelman, Boston Globe.

HEARD ‘ROUND THE BUBBLAH

TRANSITIONS — Maura Hogan joins Seven Letter’s Boston office as senior director.

Kristin Kelleher is now New England director of public affairs at Equinor. She most recently was stakeholder engagement manager for Beacon Wind at Equinor.

HAPPY BIRTHDAY — to POLITICO’s Madison Fernandez, Tom Fleming, the Boston Herald’s Mac Cerullo, MassINC’s Richard Parr, Nicholas McCool and Bill Shaner.

HAPPY BIRTHWEEKEND — to CBS News reporter Nicole Sganga, state Rep. Aaron Saunders and Maxwell Nunes, who celebrate Saturday; to Steph Evans, Rick Cappellazzo, Sarah Anders, Marlborough City Councilor and mayoral candidate Samantha Perlman and Ravi Simon, who celebrate Sunday; and to Monday birthday-ers DPH Media Relations Director Ann Scales, Sen. Ed Markey campaign alum and the AFL-CIO’s Liz Vlock, Galen Clark and HubSpot’s Katie Burke.

NEW HORSE RACE ALERT: IT’S NOT EASY BANKING GREEN — Boston Globe climate reporter Sabrina Shankman joins to talk about Gov. Maura Healey’s new “green bank” for affordable housing. Hosts Steve Koczela and Lisa Kashinsky discuss whether former President Donald Trump’s latest indictment is affecting his third White House bid. Subscribe and listen on iTunes and Sound Cloud.

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