Thursday, June 8, 2023

Senate builds housing play into tax plan

Presented by UPS: Lisa Kashinsky's must-read rundown of what's up on Beacon Hill and beyond.
Jun 08, 2023 View in browser
 
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By Lisa Kashinsky

Presented by

UPS

FIRST IN PLAYBOOK: SENATE REVIVES HDIP — Top Senate Democrats are giving new life to one of Gov. Maura Healey’s ideas to boost housing production.

Senators want to expand the Housing Development Incentive Program — which uses tax credits and exemptions to help create market-rate housing in Gateway Cities — as part of the tax-relief package they plan to roll out later today and that's budgeted for $575 million.

The plan would lift the program's $10 million annual cap to $57 million in the first year and $30 million in subsequent years. The first-year bump is meant to clear the backlog of housing projects awaiting funding, Senate Ways and Means Chair Michael Rodrigues said.

The proposal largely mirrors what Healey pitched for HDIP in her tax-relief plan. The governor called to raise the cap to $50 million in the first year and $30 million thereafter.

But House lawmakers didn’t include the program in the tax breaks they passed in April, throwing legislative support for the measure into question. Both chambers have passed HDIP expansions before, but they never made it to the governor’s desk. And while Gateway City mayors are pushing for the increase, housing advocates remain split on the efficacy of the program.

”Housing is the No. 1 area Massachusetts needs to do more to be more competitive with the rest of the country," Rodrigues told Playbook. "We’re losing a lot of our 25 to 40 year olds because they just can’t afford to live in Massachusetts. We just need to create more units.”

Senate Democrats are also eyeing a $20 million increase to the Low Income Housing Tax Credit for building and rehabilitating affordable housing. That would bring annual funding for the program up to $60 million.

The tax credit is a "critical tool" for creating more affordable housing, Citizens’ Housing & Planning Association CEO Rachel Heller said. The program has already helped produce or preserve 25,147 housing units — the vast majority of which, 21,547, are affordable, she said.

Yet both the House and Healey bypassed boosting the tax credit in favor of other measures aimed at reducing housing costs — raising the rental deduction cap to $4,000 from $3,000 and doubling the senior circuit breaker tax credit to $2,400. Look to see whether the Senate matches those changes.

GOOD THURSDAY MORNING, MASSACHUSETTS. The Senate’s housing gambit comes as a new report shows some communities are falling short on their affordable housing commitments under the state’s Community Preservation Act. GBH’s Katie Lannan has more.

TODAY — Healey and Lt. Gov. Kim Driscoll host a Caribbean-American Heritage Month reception at 11 a.m. at the State House and announce a technology and innovation grant at 2:30 p.m. at MITRE in Bedford. Driscoll attends a Northeastern Arc event at 6:30 p.m. in Everett. Healey attends Gala on the Greenway at 7 p.m. in Boston. AG Andrea Campbell holds a press conference on child and migrant labor issues at 3 p.m. in her office at One Ashburton Place. Boston Mayor Michelle Wu attends a Mattapan coffee hour at 9:30 a.m., is at the BCYF senior center in Charlestown at 11 a.m. and speaks at the Margarita Muñiz Academy graduation ceremony at 2:15 p.m. in Jamaica Plain.

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

 

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DATELINE BEACON HILL

Gov. Maura Healey, lawmakers and drag queens raise a Pride flag

The governor, lawmakers and drag queens celebrate Pride Month outside the Massachusetts State House on June 7, 2023. | Gov. Maura Healey/Twitter

— POINT OF PRIDE: The state’s first openly lesbian governor gathered with legislative leaders, members of the LGBTQ+ legislative caucus and drag queens to raise the Pride flag outside of the State House yesterday and to tout Massachusetts as a place that protects LGBTQ+ rights, Kelly Garrity writes in. Gov. Maura Healey also plans to march in Boston’s Pride For the People parade on Saturday.

— BUDGET TALKS BEGIN: The three senators and three representatives tasked with hashing out the differences between the House and Senate budgets held their first meeting yesterday, with 24 days to go until the new fiscal year, the State House News Service reports.

— TAKING THEIR OATHS: John Moran and Bill MacGregor were sworn in yesterday as state representatives for the 9th and 10th Suffolk districts, respectively, bringing the House back to full strength.

"Months after party, Healey still taking donations for inauguration, pushing fund-raising past $3 million,” by Matt Stout, Boston Globe: “The last balloon fell on Governor Maura Healey’s inaugural party five months ago. But the fund-raising committee she created to finance the January bash has continued to collect money — nearly $90,000 since February — with little clarity about where any of the excess is going. … Healey’s political advisers, and at least one donor, said the $88,000 in private contributions the committee has accepted in recent months were pledged before or around the inauguration, but the checks are just now arriving.”

“Republicans push to open payroll records,” by Christian M. Wade, Eagle-Tribune: “Republican lawmakers have filed a new proposal that would require these quasi-government agencies, including those operating public pension systems, to provide payroll information to the state Comptroller's office to be included on a public website. … The Senate's GOP minority proposed a similar plan as an amendment to the $56 billion state budget, but the move was rejected by Democrats who control the chamber.”

“Healey says no indication Baker administration broke the law after mistaken use of $2.5B,” by Chris Van Buskirk, Boston Herald: “There is no indication the Baker administration broke the law when $2.5 billion in federal money was erroneously used to pay off pandemic-era unemployment benefits, which should have been funded through state coffers, Gov. Maura Healey said. … Members of the state’s congressional delegation sent a letter Wednesday to a U.S. Department of Labor Official urging federal officials to work with Massachusetts to rectify the 'accounting error.'”

— From the opinion pages: “Earlier mistakes foreshadowed the state’s $2.5 billion unemployment accounting blunder,” by Larry Edelman, Boston Globe: “In December 2021, the state released details of a similar but much smaller mix-up made during the same timeframe."

— "Across the country, migrant surge is often a case for emergency response. In Mass., Healey is keeping her options open," by Samantha J. Gross, Boston Globe: "Making an emergency declaration would give Governor Maura Healey 'great latitude' to loosen regulations and remove layers of bureaucracy to more quickly and easily secure medical supplies, hotel rooms, and other necessary provisions."

“Billions in federal dollars are up for grabs. Quentin Palfrey is in charge of getting Mass. a share,” by Lucia Maffei, Boston Business Journal.

 

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

 
 
FROM THE HUB

“In an about-face, Boston City Council passes the city’s operating budget, then reverses course,” by Danny McDonald, Boston Globe: “In a dramatic bit of intrigue at Boston City Hall, the City Council Wednesday at first passed a $4.2 billion municipal operating budget, before two councilors changed their votes, which meant the measure did not advance to Mayor Michelle Wu’s desk.”

“Boston Mayor Wu's police vehicle wasn't headed to emergency at time of crash, she says,” by Sharman Sacchetti, WCVB: “Boston Mayor Michelle Wu said she was not responding to an emergency on Tuesday when the police department cruiser in which she was riding attempted to pass through a busy intersection with lights and sirens activated and was struck by an oncoming vehicle. … Wu said she was reviewing documents on her phone at the time of the crash, which happened while she was en route to a meeting at Copley, and was not seriously hurt.”

— More: “‘I was very scared’: Mother of infant involved in crash with Mayor Wu wants changes to procedures,” by Ted Daniel and Marina Villeneuve, Boston 25 News.

— FIRST IN PLAYBOOK: State Sen. Liz Miranda is endorsing Sharon Durkan in the special election for District 8 Boston city councilor. She was endorsed by Councilor Ruthzee Louijeune yesterday.

 

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PLANES, TRAINS AND AUTOMOBILES

“The Somerville Community Path extension still isn’t open. People have been using it anyway,” by Spencer Buell, Boston Globe: “The project, part of the Green Line Extension, is tantalizingly close to finished. So close, in fact, that some cyclists and pedestrians sometimes sneak past barriers to access it.”

MARIJUANA IN MASSACHUSETTS

“Joint Committee On Cannabis Policy Hears Testimony On Bill To Expand Medical Access,” by Chris Faraone, Talking Joints Memo: “The bill in play would [open] up opportunities for manufacturers and retailers that currently serve just adult-use patients to enter the medical market.”

THE LOCAL ANGLE

“Polar Park revenues still low, but city says ballpark still paying for itself,” by Tréa Lavery, MassLive: “The city of Worcester anticipates that it will continue to make annual payments on its debt for the Polar Park project, but 2024 will be the toughest year that it has to do so. … A report released [last] month by researchers at College of the Holy Cross and Kennesaw State University in Georgia suggested the project could create a deficit of $40 to $60 million for the city. [City Manager Eric] Batista and the city administration, however, have maintained that Polar Park is and will continue to pay for itself.”

“Report shines light on Brookline’s financially vulnerable,” by Sam Mintz, Brookline News: “Roughly one in four Brookline residents is financially vulnerable, living in households with incomes well below the living wage for Norfolk County … More than one-third of Brookline residents spend over 30% of their income on housing.”

“Prior to its abrupt closure, Compass Medical was involved in acquisition talks with Atrius,” by Jessica Bartlett, Boston Globe.

 

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.

 
 
MEANWHILE IN NEW HAMPSHIRE

“Chris Sununu says Christie has a shot and Pence should lose the tie,” by Lisa Kashinsky, POLITICO.

“N.H. lawmaker leaves Democratic caucus over first in the nation primary and LGBTQ rights,” by Steven Porter, Boston Globe.

 

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HEARD ‘ROUND THE BUBBLAH

SPOTTED — Sen. Ed Markey back behind the wheel of an ice cream truck, except this time it’s electric (h/t James Bikales).

TRANSITIONS — Dan Hendrick is now VP of government affairs for REV Renewables after nine years at Clearway Energy Group.

— Lisa Peterson joins Salem Mayor Dominick Pangallo’s office as chief of staff on Monday.

— Abigail and Richard Gould have launched consulting firm Oak & Argyle. Abigail was most recently director of legislative affairs for former Auditor Suzanne Bump. Richard was VP of strategy at RISE construction and is a State House alum.

— JERA Americas has hired Mary Coleman as director, market and regulatory affairs, and Apera Nwora as director of U.S./external affairs.

Baker administration EEA Sec. Katie Theoharides is joining The Trustees of Reservations as president and CEO on July 10.

HAPPY BIRTHDAY — to Zayda Ortiz of Progressive Mass, Joseph Prezioso, Bill Douvris, Ben Case, Dan Futterman, Michael Vallarelli, David Ciampi and Hailey Reed.

NEW HORSE RACE ALERT: THE STATE HOUSE ALWAYS WINS — Hosts Jennifer Smith and Steve Koczela discuss how a routine audit uncovered an accounting error that could cost the state billions of dollars. CommonWealth Magazine’s Michael Jonas joins to take a closer look at the state Lottery’s new “Billion Dollar Extravaganza.” Subscribe and listen on iTunes and Sound Cloud.

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.

 

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