Monday, May 6, 2024

April revenue showers make budgeting less dour

Presented by NextEra Energy: Lisa Kashinsky and Kelly Garrity's must-read rundown of what's up on Beacon Hill and beyond.
May 06, 2024 View in browser
 
Massachusetts Playbook logo

By Lisa Kashinsky and Kelly Garrity

Presented by 

NextEra Energy

TAX TALK — April’s somewhat deceptive tax-revenue rebound isn’t changing Beacon Hill’s fiscal calculus.

In a rare positive Friday afternoon news dump, the state said it collected $1 billion more in tax revenue than projected in April, a much-hoped-for reversal of financial fortunes after months of below-benchmark hauls. Overall, the state collected more than $6 billion last month — $1.5 billion more than in April 2023, when a revenue drop shook the State House. And year-to-date collections are also running above benchmark.

But Gov. Maura Healey’s chief budget writer was quick to qualify that revenues exceeded expectations in large part because of the millionaires surtax and excess capital gains collections, meaning that money can’t be used to balance the overall fiscal year 2024 budget.

And so the administration won’t be reversing its hiring pause or its mid-year budget cuts, Administration and Finance Secretary Matthew Gorzkowicz said. But he does expect the state will end the fiscal year in balance.

In sum, the state isn’t fully out of its fiscal “winter” even as the forecast looks less gloomy. And that means talk of raising taxes is hanging around — even as Beacon Hill’s Big Three insist that’s not on their radars, at least not right now.

“No. I don’t even have a radar screen,” House Speaker Ron Mariano quipped when asked by WBZ’s Jon Keller (in an interview taped before April’s revenue report was released) whether he would consider increasing taxes. “I don’t think there’s a real appetite from anyone in the House side to talk about [ways to increase tax] revenues at all.”

Instead, Mariano said, he wants to see if the $1 billion in tax breaks the Legislature passed last year work as intended to keep people and businesses in Massachusetts. (Healey also continues to defend the tax cuts and credits.)

Mariano also poured cold water on Boston Mayor Michelle Wu’s proposal to hike commercial property taxes, which would need local and state legislative approval. “If it was that good of an idea, you’d think that the [city’s] council would embrace it,” Mariano said of the idea that’s still being kicked around in committee. He was dismissive of a bill that would tax university endowments over $1 billion.

And he expressed “healthy skepticism” about the virtues of real-estate transfer fees, even after he previously showed some openness to the concept (though not necessarily to Healey’s idea for a 0.5 percent to 2 percent tax on the portion of property sales over $1 million). Mariano pledged to take up Healey’s $4 billion housing bond bill after the budget, so be on the lookout for the House’s take.

But first, we’ll get the Senate’s read on the state of the state’s finances when the upper chamber unveils its budget blueprint on Tuesday. Senate President Karen Spilka is kicking things off today by rolling out her plan to pay for free community college for all during a late morning event in Lowell. GBH’s News’ Katie Lannan has an early look at how the Senate wants to spend nearly $1.6 billion on early education and child care and make more families eligible for state subsidies for the latter.

GOOD MONDAY MORNING, MASSACHUSETTS. Go Bruins!

TODAY — Healey and Lt. Gov. Kim Driscoll are joined by a slew of mayors and town managers for the launch of a statewide campaign to boost the administration’s housing agenda at 12:30 p.m. at the Lynn Housing Authority. Wu hosts a South End coffee hour at 9:30 a.m. and speaks at a Bluebikes event at 11:30 a.m. at City Hall Plaza. Rep. Stephen Lynch celebrates federal funding at 10 a.m. at the Mary Ellen McCormack Housing Development in South Boston.

Tips? Scoops? Email us: lkashinsky@politico.com and kgarrity@politico.com.

 

A message from NextEra Energy:

With a presence in 49 states, NextEra Energy is one of the nation’s largest capital investors in infrastructure, creating thousands of jobs and generating millions of dollars in new tax revenue for communities across the U.S. We generate more electricity from the wind and sun than anyone in the world as we work toward securing America’s energy independence and security with clean and emission-free low-cost energy.

 
DATELINE BEACON HILL

“Steward files for bankruptcy, leaving its eight Massachusetts hospitals in limbo,” by Robert Weisman and Jessica Bartlett, The Boston Globe: “Steward Health Care, which once trumpeted its community hospital system as a low-cost alternative to Boston’s medical goliaths before expanding nationally and falling into a deep financial crisis, filed for bankruptcy protection early Monday morning. Under Chapter 11 of the US bankruptcy code, Steward will become a ‘debtor in possession,’ continuing to operate its 32 hospitals in eight states while it seeks to restructure its debt under court supervision. Steward has eight hospitals in eastern Massachusetts, though its Norwood Hospital remains closed following a flood.”

“Facing uncertainty over Steward hospital crisis, Massachusetts prepares for fallout,” by Robert Weisman, The Boston Globe.

“Conservative radio host blasts Massachusetts Democrats and migrant shelter policy at State House rally,” by Chris Van Buskirk, Boston Herald: “A local conservative radio host went on multiple profanity-laced diatribes against Gov. Maura Healey, Beacon Hill Democrats and migrants arriving in Massachusetts during a Saturday rally outside the State House that drew hundreds of people.”

Former GOP gubernatorial nominee Geoff Diehl and former MassGOP Chair Jim Lyons were also at the rally that was promoted in part by Lyons’ new Massachusetts Freedom Fighters group. So was Quincy City Council President Ian Cain, who's running against Sen. Elizabeth Warren as a Republican.

“Massachusetts will no longer keep federal benefits meant for foster children,” by Jason Laughlin, The Boston Globe.

 

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YAHD SIGNS AND BUMPAH STICKAHS

HEALEY HITS BACK — New Hampshire gubernatorial hopeful and former Sen. Kelly Ayotte has made bashing Massachusetts — and Gov. Maura Healey, who’s backing Democratic candidate Joyce Craig — a key component of her campaign to succeed GOP Gov. Chris Sununu.

On Friday, Healey hit back. During a GBH interview at UMass Boston, host Jim Braude pointed out Ayotte’s fixation on the Bay State while asking Healey about a recent comment from the Republican candidate dragging Healey as “soft on crime.”

“It’s kind of interesting because I’m not running in New Hampshire, I’m just trying to run the state [of Massachusetts] to the best of my ability,” Healey replied, before touting her experience as attorney general in defense.

But she didn’t stop there. “By the way for New Hampshire, that race is important and if you don’t want to be a state like Florida right now with extreme abortion laws, you better get out and vote for the Democrat in New Hampshire in this gubernatorial election, because abortion and democracy, so much is on the line,” Healey said.

FIRST IN PLAYBOOK — Rep. Seth Moulton is endorsing former Methuen City Councilor Eunice Zeigler for the District 5 Governor’s Council seat.

ALSO FIRST IN PLAYBOOK — Boston-based criminal defense attorney Rosemary Scapicchio — whose high-profile clients have included former Patriots player Jack Jones and Sean Ellis, whose overturned murder conviction was the subject of a Netflix documentary — is endorsing longtime attorney Allison Cartwright for Suffolk County Supreme Judicial Court clerk.

PLANES, TRAINS AND AUTOMOBILES

“Monica Tibbits-Nutt looks to ‘move forward’ after controversial remarks,” by Chris Van Buskirk, Boston Herald: “Transportation Secretary Monica Tibbits-Nutt just wants to ‘move forward’ after remarks she made last month at an advocacy event generated bipartisan backlash and even a rare rebuke from her boss, Gov. Maura Healey. … She fully reemerged into public view at an event in Melrose Friday with Healey, where the pair touted the annual roads and bridges funding bill. Tibbits-Nutt said the controversy surrounding her comments, which included floating tolls at the border to pay for transportation projects, ‘just shows how passionate people are about the topic.’”

“Boston made some of its busiest MBTA bus routes fare-free. Why hasn’t Cambridge?” by Spencer Buell, The Boston Globe: “Officials now say they do not anticipate waiving fares on any bus routes in the city, which would require reimbursing the T for the cost, for at least another year.”

 

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MARIJUANA IN MASSACHUSETTS

“Disciplinary hearings for suspended cannabis chair will extend a third day,” by Walter Wuthmann, WBUR: “The closed-door disciplinary hearings into suspended Cannabis Control Commission Chair Shannon O'Brien ... will extend into a third day at the end of the month. ... [Treasurer Deb] Goldberg told reporters this week she's keeping an 'open mind' to the facts and her future decision. But O'Brien's lawyer, Max Stern, in an interview Friday said Goldberg has presented only anonymous allegations from two investigative reports."

ISRAEL-HAMAS WAR

“One arrested during demonstration at Northeastern commencement Sunday,” by John Hilliard, The Boston Globe: “Northeastern University’s undergraduate commencement at Fenway Park was briefly interrupted by a pro-Palestinian protest Sunday, as one graduating student was arrested by police after he left his seat and yelled at administrators early in the ceremony.”

“Healey supports police response at Emerson and Northeastern,” by Hannah Loss, GBH News.

“Newton mayor concerned West Bank photo exhibit at library is ‘hurtful and divisive’,” by Lance Reynolds, Boston Herald.

 

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FROM THE 413

“‘We can just be who we are’: Thousands show support for LGBTQ community at Hampshire Pride,” by Elise Linscott, Daily Hampshire Gazette: “While the focus was on celebrating and supporting the LGBTQ community on Saturday during Hampshire Pride, there were also calls for Palestinian liberation, disrupting the mayoral proclamation with chants calling for a cease-fire and speaking out against defense contractor L3 Harris.”

WHAT ELSE YOU SHOULD BE READING

“Kerry blasted for secrecy, and receives Presidential Medal of Freedom,” by Joe Dwinell, Boston Herald: “Former climate envoy John Kerry was among the 19 just bestowed the Presidential Medal of Freedom, as a watchdog group called him out for his serial secrecy. The pro-energy advocacy group Power The Future accuses Kerry of ‘hiding the truth’ about who worked for him in the Climate office he just left.”

“Truro town meeting OKs $26.4 million town budget, approves Walsh property housing plan,” by Walker Armstrong, Cape Cod Times: “After nearly six months of delay, roughly 600 Truro voters turned up Saturday and Sunday at the Truro Central School field for a back-to-back town meeting inside a heated tent to vote on 57 warrant articles.”

“Potential conflicts of interest widespread at Mass. special ed schools,” by Patrick Madden, WBUR.

 

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EX-PATS

BURN NOTICE — Tom Brady’s no chicken, but he sure got roasted like one during his three-hour Netflix special on Sunday. It seemed like nothing (well, except for one joke about Bob Kraft) was off limits as famous friends (Ben Affleck, Will Ferrell as his “Anchorman” character Ron Burgundy, the evening’s emcee Kevin Hart) and former teammates and rivals (Drew Bledsoe, Julian Edelman, Rob Gronkowski, Randy Moss, Peyton Manning) poked fun (read: savaged) everything from his failed marriage, to his oddly close relationship with his trainer, to his Super Bowl losses.

“You’re an example to future generations that if you work hard, eat right, film the other team’s practices, deflate the balls and have the NFL make new rule just for you, then you, too, can be the third most famous guy in a Dunkin’ Donuts commercial,” is just about the only joke we can safely print.

Brady got the last laugh. But it was a smiling (!) Bill Belichick who stole the show with a set that served as a redemption arc after his recent portrayal as the villain of Foxborough. Don’t worry though — coach was back to his regular grumpy self by the time he was forced to take a shot with Kraft on live TV.

HEARD ‘ROUND THE BUBBLAH

WHO’S SHIPPING UP TO BOSTON — Britney Spears, maybe.

TRANSITIONS — Boston Teachers Union President Jessica Tang was unanimously elected president of American Federation of Teachers Massachusetts, making her the first person of color to hold the role.

HAPPY BIRTHDAY — to Paul Clark, Daniel Jick, David Rogers, Lori Lefkowitz, Meg McIntyre, Amanda Drane and Cara Philbin.

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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