MA Senate Unanimously Approves Bill for Progressive Tax Relief

Provides Significant Housing, Dependent Care, and Estate Tax Assistance  

The Massachusetts Senate unanimously approved on Thursday (6/15/23) a $590 million Tax Relief bill which delivers support to low- and middle-income earners and chips away  at the headwinds that threaten Massachusetts’ competitiveness. Focusing on providing relief to residents across Massachusetts while upholding fiscal responsibility, the Senate's tax relief package will provide relief to renters, seniors, and parents struggling with high early education costs while also increasing much-needed housing production. With the recent passage of the FY24 budget last month, the Commonwealth is now poised to secure and strengthen its economic foundation to weather future uncertainty. 

“As I have said from the outset, tax relief should go to the workers, families, and elderly residents of the Commonwealth who need it most,” stated Senate President Karen E. Spilka (D-Ashland). “Massachusetts doesn’t need just any tax relief; we need permanent, progressive, smart, and sustainable tax relief. Too many families have been caught between the rising costs of healthcare, housing, education, and basic goods. While we advance reforms to lower these costs and shore up our social services, meaningful tax relief is another tool in our kit to encourage people to live and raise their families in Massachusetts. I want to thank each of my Senate colleagues who contributed to this proposal, especially Senator Rodrigues and Senator Moran for their leadership in developing this strong package.” 

“While there has been calls for the Senate to act more swiftly on tax relief, my colleagues and I took a deliberative and practical approach to tax relief, centering our proposal on what we saw as major areas of concern to individuals and working families of the Commonwealth. Namely, providing critical housing assistance to the demographic that is most affected by housing instability and unaffordability; the 25-40 age group who are being priced out of the Commonwealth at an alarming rate. We need this group to remain in Massachusetts, put down roots, and buy a home of their own.” said Senator Michael J. Rodrigues, Chair of the Senate Committee on Ways and Means (D-Westport). 

“Consistent with the views of the Senate membership, our Senate tax package is forward-looking, fiscally sustainable, comprehensive, and progressive. It puts money back into the pockets of our residents, providing permanent tax cuts for low-income workers, families, renters, seniors, persons with disabilities, while focusing on the largest issue that is undercutting our Commonwealth’s overall competitiveness – which is the affordability and availability of housing. Thank you to my colleagues in the Senate, especially my colleagues on the Committee, whose advocacy, collaboration, and dedication helped to inform and shape this comprehensive tax relief proposal. A sincere thanks to the Ways and Means staff, whose seamless transition from the budget to this tax relief bill was truly remarkable. Lastly, a very warm and genuine thank you to Senate President Spilka for her determined and compassionate leadership as we work together to rebuild our economy and bolster our state’s long-term economic health.” 

"Working families aren’t leaving the Commonwealth because of taxes on day-traders," said

Senator Susan Moran, Chair of the Joint Committee on Revenue (D-Falmouth). "They are leaving because they can’t find housing they can afford. This package aimed at growing housing will also grow our workforce and the Commonwealth’s competitiveness." 

This package includes a variety of initiatives as tax relief for the residents of Massachusetts.

The bill: 

• increases the Earned Income Tax Credit (EITC), which provides critical support to working families, from 30% to 40% of the federal credit   
• merges existing credits into a new and enhanced Child and Dependent Tax Credit (CDTC), increases the amount of the credit from $180 to $310 per child/dependent, and eliminates the current cap of two children/dependents 
• increases statewide cap for the Housing Development Incentive Program (HDIP) from $10 million to $57 million on a one-time basis and then to $30 million annually 
• increases the cap on the rental deduction from $3,000 to $4,000 
• raises annual authorization of the Low Income Housing Tax Credit, which directly supports the production of affordable housing units across the Commonwealth, from $40 million to $60 million  
• doubles the maximum senior circuit breaker credit, which supports elderly residents who struggle with high housing costs, from $1,200 to  $2,400  
• excludes homes valued at under $2 million from the Estate Tax and eliminates the “cliff effect” by allowing a uniform credit of $99,600 for all estates 
• triples the maximum credit under the Title V Tax Credit, which supports families who must replace failed septic systems, from $6,000 to $18,000, and lifts the amount claimable to $4,000 per year 
• increases the statewide cap for the Dairy Tax credit from $6 million to $8 million 
• expands eligible occupations for the Apprenticeship Tax Credit  
• doubles the credit for lead paint abatement to $3,000 for full abatement and $1,000 for partial abatement 
• expands the types of alcoholic drinks which qualify for a lower tax rate as part of the cider tax 

Notably, this legislation ensures that student loan payment assistance offered by employers will not be treated as taxable compensation. The bill also adds regional transit fares and bike commuter expenses to the allowable commuter expenses eligible for favorable tax status.  

To encourage affordable housing, the bill gives municipalities the option of adopting a local property tax exemption for real estate that is rented to a person below a certain area-dependent income level. 

Additionally, the bill also directs the following studies: 

• A study by the Executive Office of Administration and Finance on the feasibility of making advance quarterly payments of the Child and Dependent Tax Credit 

• A study by the Department of Revenue on the efficacy of an additional, elective entity-level tax of up to 4 percent on a portion of qualified taxable income in the Commonwealth, coupled with a refundable credit, for eligible pass-through entities 

As different versions of this legislation have passed the Senate and the House of Representatives, a conference committee will now be appointed to resolve differences between the two bills.  

MA Senate Unanimously Approves Bill for Progressive Tax Relief

Senate President Spilka Statement on Tax Relief Package

Below, please find a statement from Senate President Karen E. Spilka (D-Ashland):

"As promised, the Senate's tax relief package is progressive, smart, sustainable and permanent—and it centers equity while chipping away at the headwinds that threaten our competitiveness," stated Senate President Karen E. Spilka (D-Ashland). "Everywhere I go, the two pressing issues I hear about the most, from employers and residents alike, are workforce and housing. Our tax relief package intentionally targets housing affordability so we can not only maintain our economic competitiveness but ensure our residents can stay where they want to work, live, raise families and pursue their dreams. I'm proud this proposal—which will help seniors, renters, parents with young children, and low-income workers and many others—is fiscally responsible and squarely focused on the hardworking people of the Commonwealth."

CommonWealth Magazine has covered of the Senate tax relief package ->

https://commonwealthmagazine.org/economy/senate-tax-plan-has-different-take-on-competitiveness/

Direct link to the Senate proposal -> https://malegislature.gov/Bills/193/S2397

 

Senate President Karen Spilka and Senate Ways and Means Chair Michael Rodrigues. (Photo by Bruce Mohl)

MA Senate Overwhelmingly Approves Fiscal Year 2024 Budget

The Massachusetts Senate approved on Thursday a $55.9 billion budget for Fiscal Year 2024 (FY24). Following a robust, spirited, and engaging debate process, the Senate approved 478 amendments, adding $82.2 million in spending to the budget. As the Commonwealth continues to emerge from the COVID-19 pandemic, the Senate’s budget prioritizes upholding fiscal discipline and responsibility, and supports the long-term economic health of the state. The Senate budget delivers historic levels of investment in education, housing, regional transportation, health care, workforce development, climate preparedness, and much more, while centering equity and opportunity as part of a broader, more comprehensive strategy to make Massachusetts more affordable, inclusive, and competitive.

“I am so proud that this chamber voted resoundingly for a transformative budget built on the simple principle that our success as a Commonwealth is tied to the success of every single person who calls Massachusetts home,” stated Senate President Karen E. Spilka (D-Ashland). “Massachusetts will be competitive so long as people from all over the world can come here to fulfill their dreams – whether by going back to school, advancing their career, starting a business, or finding affordable housing and child care to raise a family. At a time when our world-class educational institutions are more needed now than ever, this budget adds a new chapter in Massachusetts’ storied tradition of making education accessible to all through our Student Opportunity Plan. I want to thank Chair Rodrigues, Vice Chair Friedman, Assistant Vice Chair Comerford, the Committee and all my Senate colleagues for their thoughtful and collaborative work on this budget.”

“In my five years as Chair of Ways and Means, I’ve never experienced a smoother or more democratic process than the Fiscal Year 2024 budget the Senate just approved here today,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “The chamber focused on an overarching goal to meet (and in many cases exceed) the pressing needs of our communities, and the Commonwealth at large. This budget is a forward-thinking and responsive proposal that greatly facilitates our long-term economic health and expands access to opportunities to reinvigorate and reinvest in our workforce economy, lessen the wealth-income divide, and empower our communities as we build an inclusive post-pandemic future that equitably benefits all. Focusing on shared priorities and upholding fiscal responsibility, the Senate specifically targeted investments collectively in education, transportation, local aid, health care, housing assistance, workforce development, greatly strengthened the social service safety net. The Commonwealth’s economic foundation is now positioned to deftly deflect ongoing challenges and weather future uncertainty. Thank you to my colleagues in the Senate, especially my colleagues on the Committee, whose advocacy, collaboration, and dedication helped to inform and shape this comprehensive budget plan. A special heartfelt thank you to the Ways and Means staff, whose diligent work over the last several months was largely responsible for producing this budget, their tireless efforts did not go unnoticed! Lastly, a huge and sincere thank you to Senate President Spilka for her resolute and compassionate leadership as we work together to rebuild our economy and bolster our state’s long-term economic health.”

“I am proud of the Senate’s proposed budget for Fiscal Year 2024, which builds off prior fiscal year investments to deliver a comprehensive, impactful set of services and programs for the residents of the Commonwealth,” said Senator Cindy F. Friedman (D-Arlington), Vice Chair of the Senate Committee on Ways and Means. “I am particularly proud of the provisions that safeguard preventive health care services like cancer screenings and access to medications for chronic conditions, in the wake of a partisan federal court ruling that threatens access to these important, life-saving health care services. In Massachusetts, we will continue to protect access to commonsense health care for all our residents.”

“Historic investment in food security and the Commonwealth's food system. Record investment in regional transit authorities. Transformative levels of higher education funding,” said Senator Joanne Comerford (D-Northampton), Assistant Vice Chair of the Senate Committee on Ways and Means and Senate Chair of the Joint Committee on Higher Education. “I am proud of the many ways that this budget rises to meet the need of the Commonwealth’s people while strategically stoking opportunity and growth, maximizing equity, tackling pressing challenges, and seizing the promise of our time. Thank you to Senate President Karen Spilka and Chair Michael Rodrigues for their leadership in crafting this compassionate and responsible budget proposal.”

The Committee’s budget recommends a total of $55.8 billion in spending, a $3.4 billion increase over the Fiscal Year 2023 (FY23) Budget. This spending recommendation is based on a tax revenue estimate of $40.41 billion for FY24, representing 1.6 per cent growth with an additional $1 billion from the new Fair Share surtax, as agreed upon during the Consensus Revenue process in January.

Remaining vigilant about the current fiscal environment, the Committee’s FY24 budget adheres to sound fiscal discipline and builds up available reserves for the state’s Stabilization Fund. The fund has grown to a record high of $7.16 billion and is projected to close FY24 at $9.07 billion. ensuring that the Commonwealth continues to have the means to uphold fiscal responsibility during a time of ongoing economic volatility.

The Senate’s FY24 budget also sets aside $575 million to pay for a progressive tax relief package that will center equity and chip away at the headwinds that threaten Massachusetts competitiveness. This tax package will be discussed and debated following the conclusion of the FY24 budget process.

Fair Share Investments

Consistent with the consensus revenue agreement reached with the Administration and House in January, the Senate’s FY24 budget includes $1 billion in revenues generated from the Fair Share ballot initiative voters approved in November 2022, which established a new surtax of 4 per cent on annual income above $1 million and invests these new public dollars to improve the state’s education and transportation sectors.

To safeguard this new source of revenue, the Senate’s FY24 budget also establishes an Education and Transportation Fund to account for these Fair Share funds in an open and transparent manner. This will ensure the public is visibly informed about how much revenue is collected from the new surtax and how much of this revenue is being dedicated to improving public education and transportation systems in accordance with the ballot initiative.

Notable Fair Share Education investments include: 

• $125 million for Higher Education Capital Funding, focused on reducing backlog of deferred maintenance projects
• $100 million for Financial Aid Expansion to expand financial aid programs for in-state students attending state universities through MASSGrant Plus, bringing the total proposal for this program to $275 million, more than doubling the amount of scholarship funding provided by the state just two fiscal years prior
• $100 million for Massachusetts School Building Authority Capital Supports for cities, towns and school districts experiencing extraordinary school project costs impacted by post-COVID inflationary pressures
• $30 million for Student Support Services to ensure students in the Commonwealth have success on the post-secondary level through wraparound supports, bringing the total program investment to $44 million
• $25 million to reduce the waiting list for the income-eligible child care assistance program, which will create approximately 2,200 new slots for children
• $25 million for capital investments in early education and care programs to build capacity and ensure the ability of programs to safely accommodate additional slots
• $20 million for Mass Reconnect, as a first step toward free community college in the Commonwealth for those aged 25 and older
• $20 million for a Free Community College Program for nursing students as a pilot to support a high-need workforce area and build toward universal free community college in the fall of 2024
• $15 million for Free Community College Implementation Supports to collect necessary data, develop best practices, and build capacity for free community college in the fall of 2024
• $15 million for the Commonwealth Preschool Partnership Initiative, which empowers school districts to expand prekindergarten and preschool opportunities through public-private partnerships; this funding is on top of an additional $15 million in non-Fair Share funding for this initiative
• $15 million to expand upon the Senate-championed program that supports early education and care staff members with paying for their own personal child care
• $10 million for Early College and Innovation Pathways

 

Notable Transportation investments include:

• $190 million for MBTA Capital Investments for critical capital resources for both the subway and commuter rail systems
• $100 million for Regional Transit Funding and Grants, which will exclusively be used to support the work of the Regional Transit Authorities that serve the Commonwealth, more than doubling the total funding for RTAs to $194 million, including:
• $56 million to be distributed to RTAs for operating assistance, with special attention paid to those RTAs with historically low state operating assistance
• $25 million for an innovation grant program for transportation providers across the Commonwealth for initiatives such as electrification, infrastructure, capital investments, new and innovative service delivery models, expanded service hours or weekend service, rural connectivity, and connectivity improvements across regional transit authority service areas
• $15 million for fare-free pilot program grants to provide six months of fare-free RTA service across the Commonwealth
• $4 million through the Community Transit Grant Program to support expanded mobility options for older adults, people with disabilities and low-income individuals
• $100 million in supplemental aid for roads and bridges, half of which will be expended consistent with the Chapter 90 program, while the other half will be spent with a focus on the total mileage of participating municipalities
• $50 million for a reserve to provide matching funds for transportation projects that are eligible for federal funds, which will help the state better compete for increased federal transportation funding made available by the Biden Administration
• $50 million for Highway Bridge Preservation, to ensure that consistent funds are provided to make sure that critical infrastructure does not fall into disrepair
• $5 million for MBTA Means-Tested Fares, which will cover initial exploration of the feasibility of implementing a means-tested fare program at the MBTA
• $5 million for Water Transportation, which will cover one-time expenses for a pilot program covering operational assistance for ferry services

Education

The Senate Ways and Means FY24 budget proposal takes the first step toward implementing the Senate’s Student Opportunity Plan by making high-quality education more accessible and by making record investments to support students across the full breadth of the Commonwealth’s education system, from Massachusetts’ youngest learners to adults re-entering higher education. 

Recognizing that investments in our early education and care system support the underlying economic competitiveness of the Commonwealth, the Senate’s budget makes a historic $1.5 billion investment in early education and care. This is the largest-ever proposed annual appropriation for early education and care in Massachusetts history. For context, this area of the budget has increased by more than 77 percent (more than $660 million) over the budget from three fiscal years prior. The FY24 budget will maintain operational support for providers, support the early education and care workforce, and prioritize accessibility and affordability throughout our early education and care system.

Notably, this will be the first fiscal year in which the annual state budget includes a full year of funding for C3 grants, signaling a historic commitment to maintain this crucial lifeline for our early education and care sector. Funded at $475 million, this program, which is open to all early education and care providers, provides monthly payments to programs throughout Massachusetts. These grants, which are received by 88% of early education and care programs in the Commonwealth, have empowered programs to raise salaries, to hire additional staff, to maintain their enrollment levels, and to avoid tuition increases. Without the continuation of these grants, 751 providers (which serve over 15,000 children) have indicated that they would have to close their doors.

Other notable funding includes:

• $45 million for the center-based childcare rate reserve for reimbursement rates for subsidized care, including:
• $20 million in line-item appropriations, and
• $25 million in expected leftover funds from Fiscal Year 2023
• $30 million for the Commonwealth Preschool Partnership Initiative, which empowers school districts to expand prekindergarten and preschool opportunities through public-private partnerships. This is double the amount that was appropriated for this initiative in FY23.
• $25 million in new funding to reduce the waiting list for income-eligible child care assistance program, which will create approximately 2,200 new slots for children
• $25 million in new funding for capital investments in early education and care programs to build capacity and ensure the ability of programs to safely accommodate additional slots
• $17.5 million for grants to Head Start programs, which provide crucial early education and child care services to low-income families
• $15 million, an increase of $5 million over FY23, to assist early education and care staff members with paying for their own personal child care
• $10 million for professional development and higher education opportunities for early educators, to assist with recruitment and retention challenges in the workforce
• $5 million, an increase of $1.5 million over FY23, for mental health consultation services in early education and care programs
• In addition to these appropriations, the Fiscal Year 2024 budget includes a policy section that will allow subsidized early education and care programs to provide child care discounts to their own staff members.

For K-12 education, the Senate commits once again to fully funding and implementing the Student Opportunity Act (SOA) by FY 2027, investing $6.59 billion in Chapter 70 funding, an increase of $604 million over FY 2023, as well as doubling minimum Chapter 70 aid from $30 to $60 per pupil. This investment ensures that the state remains on schedule to fully implement the Student Opportunity Act by FY2027 and ensures that all school districts are equipped with the resources to deliver high quality educational opportunities to their students.

In addition to these record investments in early education and public K-12 education, the Committee’s budget expands pathways to affordable public higher education for all by building capacity for free community college for all students in Fall 2024. Laying the groundwork for this momentous change to make higher education more accessible, the Senate budget includes $275 million for the scholarship reserve, $55 million to accelerate and build up capacity to support free community college across all campuses by fall of 2024, and $40 million for free community college programs for students aged 25 or older and for students pursuing degrees in nursing starting in the fall of 2023, thereby addressing a critical need felt across the state.

The Committee’s budget also welcomes students regardless of their race, national origin, citizenship, or immigration status, making clear that all high school students who attend for three years and graduate from a Massachusetts high school are eligible to receive in-state tuition at our public institutions of higher education.

Other education investments include:

• $503.8 million for the special education circuit breaker
• $230.3 million for charter school reimbursements
• $97.1 million to reimburse school districts for regional school transportation costs, representing a 90% reimbursement rate
• $15 million for Rural School Aid supports
• $15 million for Early College programs and $12.6 million for the state’s Dual Enrollment initiative, both of which provide high school students with increased opportunities for post-graduate success
• $5 million to support implementation of the Massachusetts Inclusive Concurrent Higher Education law, including:
• $3 million for grants offered through the Massachusetts Inclusive Concurrent Enrollment initiative to help high school students with intellectual disabilities ages 18–22 access higher education opportunities, and
• $2 million for the Massachusetts Inclusive Concurrent Enrollment Trust Fund
• $2.5 million for the Civics Education Trust Fund, after an increase of $1 million through the amendment process, to promote civics education and civic engagement throughout the Commonwealth.
• $2 million for the Genocide Education Trust Fund, continuing our commitment to educate middle and high school students on the history of genocide.
• $1 million, adopted through the amendment process, for the Department of Higher Education to support Hunger-Free Campuses for both two- and four-year public institutions of higher education and minority serving institutions

Health, Mental Health & Family Care

The Senate budget funds MassHealth at a total of $19.93 billion, providing more than 2.3 million people with continued access to affordable, accessible, and comprehensive health care services. Other health investments include:

• $2.9 billion for a range of services and focused supports for people with intellectual and developmental disabilities
• $597.7 million for Department of Mental Health adult support services, including assisted outpatient programming and comprehensive care coordination among health care providers.
• $582 million for nursing facility Medicaid rates, including:
• $112 million in additional base rate payments to maintain competitive wages in the Commonwealth’s nursing facility workforce
• $213.3 million for a complete range of substance use disorder treatment and intervention services to support these individuals and their families
• $119.8 million for children’s mental health services, after an increase of $500K through the amendment process for the establishment of Behavioral Health Pilot Program for K-12 Schools
• $71.2 million for domestic violence prevention services
• $42.9 million for Early Intervention services, ensuring supports remain accessible and available to infants and young toddlers with developmental delays and disabilities
• $33.8 million for Family Resource Centers to grow and improve the mental health resources and programming available to families
• $26.3 million for grants to local Councils on Aging to increase assistance per elder to $14 from $12 in FY 2023
• $25 million for emergency department diversion initiatives for children, adolescents, and adults
• $21.5 million for family and adolescent health, including:
• $9.2 million for comprehensive family planning services, and
• $6.7 million to enhance federal Title X family planning funding
• $20 million to recapitalize the Behavioral Health, Access, Outreach and Support Trust Fund to support targeted behavioral health initiatives
• $19.2 million to support student behavioral health services at the University of Massachusetts, state universities, community colleges, K-12 schools and early education centers
• $15 million for grants to support local and regional boards of health, continuing our efforts to build upon the successful State Action for Public Health Excellence (SAPHE) Program
• $12.8 million for Elder Nutrition Meals on Wheels, after an increase of $1 million through the amendment process
• $6 million for Social Emotional Learning Grants to help K-12 schools bolster social emotional learning supports for students, including $1 million to provide mental health screenings for K-12 students
• $5 million for Children Advocacy Centers to improve the critical supports available to children that have been neglected or sexually abused
• $4.6 million for the Office of the Child Advocate
• $3.8 million for the Massachusetts Center on Child Wellbeing & Trauma
• $2 million for grants for improvements in reproductive health access, infrastructure, and safety
• $1 million, adopted through the amendment process, for the Public University Health Center Sexual and Reproductive Health Preparation Fund for the purpose of reimbursements to public universities for abortion medications
• $1 million, adopted through the amendment process, for the development, expansion and operation of freestanding birth centers and support for community-based maternal health services

The Senate’s FY24 budget codifies into law the federal Affordable Care Act’s (ACA) provisions that protect access to preventive services. By enshrining the ACA protections into state law, insurance carriers across the Commonwealth will be required to provide coverage for preventive services without imposing cost-sharing such as co-pays and deductibles. With this vital step, the Senate is protecting access to preventive health care services for millions of our residents, including screenings for cancer, diabetes, HIV, and depression, as well as preventive medications such as statins, immunizations, and PrEP (pre-exposure prophylaxis for HIV), and further protecting the rights and freedoms of residents to make their own health care choices without federal interference.

Through the amendment process, the Senate also took a crucial step toward expanding access to reproductive health by allowing pharmacists to dispense hormonal contraceptives. 

Expanding & Protecting Opportunities

The Senate remains committed to continuing an equitable recovery, expanding opportunity, and supporting the state’s long-term economic health. To that end, the Committee’s budget includes a record investment in the annual child’s clothing allowance, providing $450 per child for eligible families to buy clothes for the upcoming school year. The budget also includes a 10 per cent increase to Transitional Aid to Families with Dependent Children (TAFDC) and Emergency Aid to the Elderly, Disabled and Children (EAEDC) benefit levels compared to June 2023 to help families move out of deep poverty.

Economic opportunity investments include:

• $444.7 million for Transitional Assistance to Families with Dependent Children (TAFDC) and $201.4 million for Emergency Aid to Elderly, Disabled and Children (EAEDC) to provide the necessary support as caseloads increase and to continue the Deep Poverty increases
• $60 million for adult basic education services to improve access to skills necessary to join the workforce
• $36 million for the Massachusetts Emergency Food Assistance Program, after an increase of $1 million through the amendment process
• $20 million for the Workforce Competitiveness Trust Fund to connect unemployed and under-employed workers with higher paying jobs
• $21 million in Healthy Incentives Programs to maintain access to healthy food options for households in need
• $15 million for a Community Empowerment and Reinvestment Grant Program to provide economic support to communities disproportionately impacted by the criminal justice system
• $15.4 million for Career Technical Institutes to increase our skilled worker population and provide residents access to career technical training opportunities
• $5.8 million for the Innovation Pathways program to continue to connect students to trainings and post-secondary opportunities in the industry sector with a focus on STEM fields
• $5 million for community foundations to provide emergency economic relief to historically underserved populations
• $5 million for the Secure Jobs Connect Program, providing job placement resources and assistance for homeless individuals
• $2.5 million for the Massachusetts Cybersecurity Innovation Fund, including $1.5 million to further partnerships with community colleges and state universities to provide cybersecurity workforce training to students and cybersecurity services to municipalities, non-profits, and small businesses
• $600,000 through the amendment process for the Massachusetts Downtown Initiative, which will provide municipalities with technical assistance to promote compact, walkable downtowns that have a vibrant mix of commercial and residential uses, cultural and recreational amenities, and access to public transportation.

Housing

As the Senate puts in motion plans to make the Commonwealth  more inclusive, home affordability remains on the top of residents’ minds. To that end, the Senate’s FY24 budget makes a historic $1.05 billion investment in housing, dedicating resources programs that support housing stability, residential assistance, and homelessness assistance.

The budget prioritizes relief for families and individuals who continue to face challenges brought on by the pandemic and financial insecurity, including $324 million for Emergency Assistance Family Shelters and $195 million for Residential Assistance for Families in Transition (RAFT), which will provide rental assistance that a household can receive at $7,000. Other housing investments include:

$200 million for the Massachusetts Rental Voucher Program (MRVP), including $20.4 million in funds carried forward from FY 2023, creating more than 750 new vouchers and allowing the program to move to a payment standard with a benefit of 110% of the federal small-area fair market rental price, significantly broadening housing options for those served by the program

• $110.8 million for assistance for homeless individuals
• $107 million for assistance to local housing authorities
• $39.6 million for the HomeBASE diversion and rapid re-housing programs, bolstering assistance under this program to two years with a per household maximum benefit of $20,000
• $26 million for the Alternative Housing Voucher Program (AHVP), including $9.1 million in funds carried forward from FY 2023. This funding increase will create 250 new vouchers and will pair with $2.5 million for grants to improve or create accessible housing units. Both programs will also benefit from the inclusion of project-based vouchers in AHVP, which will stimulate the building of new deeply affordable and accessible homes
• $7.6 million for sponsor-based supportive permanent housing
• $6.4 million for the Home and Healthy for Good re-housing and supportive services program, including:
• $250,000 for homeless LGBTQ youth
• $500,000 through the amendment process for a matched savings, coaching, and support program for first-generation, first-time homebuyers across the Commonwealth

 

In addition to these record supports, the budget makes permanent a COVID-era renter protection that slows down the court process in eviction proceedings when the tenant has a pending rental assistance application. 

Community Support

The Committee’s budget – in addition to funding traditional accounts like Chapter 70 education aid – further demonstrates the Senate’s commitment to state-local partnerships, dedicating meaningful resources that touch all regions and meet the needs of communities across the Commonwealth. This includes $1.27 billion in funding for Unrestricted General Government Aid (UGGA), an increase of $39.4 million over FY 2023, to support additional resources for cities and towns. In addition to traditional sources of local aid, the Committee’s budget increases payments in lieu of taxes (PILOT) for state-owned land to $51.5 million, an increase of $6.5 million over FY 2023. PILOT funding is a vital source of supplemental local aid for cities and towns working to protect and improve access to essential services and programs during recovery from the pandemic. Other local investments include:

• $194 million for Regional Transit Authorities (RTAs) to support regional public transportation systems, including $100 million from Fair Share funds to support our RTAs that help to connect all regions of our Commonwealth.
• $47.3 million for libraries, including $16.7 million for regional library local aid, after an increase of $750,000 through the amendment process, $17.6 million for municipal libraries and $6.2 million for technology and automated resource networks.
• $25 million for the Massachusetts Cultural Council to support local arts, culture and creative economy initiatives.

The FY24 Senate Budget will soon be available on the Massachusetts legislature’s website: https://malegislature.gov/Budget/FY2024/SenateBudget. 

A conference committee will now be appointed to reconcile differences between the versions of the budget passed by the Senate and House of Representatives.

MA Senate Overwhelmingly Approves Fiscal Year 2024 Budget

CommonWealth Magazine: "Split-in-two committee to hold dueling hearings this week"

"Those interested in testifying on bills dealing with offshore wind and energy storage may have to do double-duty this week.

The feuding House and Senate chairs of the Legislature’s Telecommunications, Utilities, and Energy Committee are splitting the panel in half, with the House members taking testimony on bills dealing with offshore wind and energy storage on Thursday and Senate members holding their own “parallel hearing” on the same bills on Friday.

The two feuders – Rep. Jeffrey Roy of Franklin and Sen. Michael Barrett of Lexington – both say they are acting on principle in a fight about the rules that govern their legislative committee.

Roy said his concerns trace to the end of the legislative session last year, when Barrett used the powers provided under the rules to control which bills were released from committee. He said action on major energy legislation was delayed and hundreds of other bills were blocked, which means they ended up with the label “ought not to pass.”

Barrett said he is refusing to engage in any legislative business with Roy until the House chair either agrees to new rules or abides by the rules that were in force last year, which require the consent of both chairs to schedule a hearing or an executive session where legislation is acted on."

Continue reading the article online ->  https://commonwealthmagazine.org/economy/split-in-two-committee-to-hold-dueling-hearings-this-week-2/ 

The golden dome of the State House. (Photo by Andy Metzger)

MA Senate releases their FY 2024 budget

May 9, 2023

Dear Members of the Massachusetts State Senate,

     For the fifth time as Chair of the Senate Committee on Ways and Means, I have the honor to present the Committee’s annual recommendations for the General Appropriations Act—the Fiscal Year 2024 (FY 2024) Budget. 

     Thank you to Senate President Karen Spilka for her ongoing friendship, sage counsel, steady leadership, and continued confidence in me to lead the Committee as we work together to move Massachusetts forward towards a more inclusive and resilient post-pandemic future. 

     I would like to also thank our partners in the House, Chair Aaron Michlewitz and his team in the House Committee on Ways and Means, and in the Healey-Driscoll Administration, Secretary Matthew Gorzkowicz and his team in the Executive Office for Administration and Finance. Without their collaboration, cooperation and partnership throughout the budget development process, support for our residents, our communities, and our long-term economic health would not be possible. 

     Together, over these last four years, we have carefully navigated the COVID-19 pandemic and its many challenges. Adapting to a new normal utilizing an approach rooted in collaboration with our partners across state government, we addressed urgent needs and protected our most vulnerable populations. We maintained stability, built up our reserves, and made meaningful investments to support an equitable recovery for our people. 

     It was an approach that worked. Today, our Rainy Day Fund is projected to close FY 2024 with a historic balance of $9 billion, and we have $1.7 billion in surplus resources available for future use. More recently, Standard & Poor’s (S&P) ratings agency upgraded our state’s bond rating, a recognition that our long-standing adherence to sound fiscal discipline and efforts to reinforce the Commonwealth’s economic foundation is paying dividends.

Continue reading the Message from the Chair - Michael J. Rodrigues, Chair, Senate Committee on Ways and Means online =>    https://malegislature.gov/Budget/SenateWaysMeansBudget 

Mass Municipal Assoc covers the budget release ->  https://www.mma.org/senate-budget-committee-releases-fiscal-2024-proposal/

Common Wealth Magazine covers the budget release ->    https://commonwealthmagazine.org/state-government/senate-budget-embraces-in-state-tuition-for-undocumented-students/

Senate President Karen Spilka and Senate Ways and Means Chair Michael Rodrigues. (Photo by Bruce Mohl)

"making RTA buses free attracts more riders, improves service, and is easy to implement"

THE STATE’S 15 regional transit authorities, long considered a transportation afterthought on Beacon Hill, are suddenly all the rage.

RTAs, which operate local bus networks across the state outside the MBTA’s service territory, have long had a line item in the state budget. After adjusting for inflation, however, the state’s basic operating support for the RTAs actually declined 5 percent between fiscal 2016 and 2023, according to the left-leaning Massachusetts Budget and Policy Center.

But now the RTAs are poised to get a chunk of the $1 billion in projected revenue from the millionaire tax. In her budget proposal, Gov. Maura Healey proposed using $25 million from the millionaire tax money to support the RTAs. The House upped that number to $70 million, and the proposed Senate budget contains $100 million, a tenth of all projected funding from the new tax.

The $100 million in the Senate proposal includes $56 million for direct operating support, $25 million for innovation grants, $4 million for accessibility grants, and $15 million so each of the RTAs can launch six-month, fare-free pilots on their bus systems.

Continue reading the article at CommonWealth Magazine ->

https://commonwealthmagazine.org/the-download/senate-budget-boosts-rta-funding-backs-fare-free-buses-2/ 

Why does this matter? GATRA is our regional transit authority (RTA)

https://www.gatra.org/

GATRA GO United Is An On-Demand, Same Day, Affordable, And Accessible Public Transit Service Serving Franklin

CommonWealth Magazine: "Mass. House approves unaltered tax plan"

"THE HOUSE OF REPRESENTATIVES voted overwhelmingly on Thursday to pass its $1.1 billion tax relief bill exactly as pitched earlier this week. A provision that would adjust an obscure tax giveback law dominated most of the tax plan debate but ultimately made it through to the final bill unchanged.

The mid-afternoon vote, which approved the package, 150-3, advances a measure that top House Democrats say will bolster the state’s competitiveness and affordability and bring tax rates in line with those in other states. Its top-line features are cuts in the short-term capital gains tax from 12 percent to 5 percent and raising the estate tax exemption from $1 million to $2 million, along with tax deductions targeting parents, caregivers, seniors, and lower income renters. 

“Let’s hope it makes us more competitive and people will hesitate before moving,” House Speaker Ron Mariano said earlier in the week about the tax package. “We don’t want you to leave. We want you to stay here.”

The tax debate will now move to the Senate."

Continue reading the article online at CommonWealth Magazine -> 

https://commonwealthmagazine.org/state-government/mass-house-approves-unaltered-tax-plan/ 

The legislation text can be found online ->  https://malegislature.gov/Bills/193/H3770

CommonWealth Magazine: "Mass. House approves unaltered tax plan"

MASS Senate Passes Legislation creating Secretary of Housing and Livable Communities

Dedicated Secretariat designed to assist the administration in prioritizing housing for all residents

The Massachusetts State Senate on Thursday (4/13/23) passed a reorganization plan to create a state Secretary of Housing and Livable Communities, a cabinet-level position which will assist the Commonwealth with meeting its long-term goals in addressing the housing crisis and expanding safe, accessible, and affordable housing for residents.

"As a state, we must work towards a creating a sustainable and inclusive future, where no one is prevented from calling Massachusetts home simply because of the cost of housing," said Senate President Karen E. Spilka (D-Ashland). "I am grateful that Governor Healey has brought this legislation before us, and we in the Legislature look forward to continuing to partner with the administration to support housing that is affordable and livable, vibrant communities. I'd also like to thank Senator Collins and Senator Edwards for their attention and hard work to ensure that the Senate could reach consensus on this issue in a timely fashion."

In Massachusetts, housing-related issues are currently addressed by the administration through the Executive Office of Housing and Economic Development. The reorganization plan passed in the Senate today would elevate housing issues to a separate executive agency tasked with supporting housing availability and assessing the Commonwealth's progress in this area.

"I want to thank Senate President Spilka for prioritizing this legislation's passage in the Senate today," said Senator Nick Collins (D-Boston), Chair of the Senate Committee on State Administration and Regulatory Oversight. "The creation of a new Secretariat will bring a cabinet-level focus to the Commonwealth's housing crisis.  I would like to congratulate Governor Healey as well, who will now be able put her vision for housing and livable communities into action."

In response to ongoing concerns over housing availability, last session, the Massachusetts Legislature allocated over $1 billion in direct appropriations to support affordable housing in Massachusetts. This followed a session that saw the long-awaited 'housing choice' legislation become law with important housing production incentives, including requiring multi-family zoning near transit.

"I am excited about Governor Healey's newly established Secretary of Housing and Livable Communities, which offers Massachusetts a clear steward in the mission to ensure dignified housing for all residents," said Senator Lydia Edwards (D-Boston), Chair of the Senate Committee on Housing. "We need a dedicated think tank for housing justice, generational wealth, and eradicating discrimination."

The reorganization plan is also in the House of Representatives for consideration.

MASS Senate Passes Legislation creating Secretary of Housing and Livable Communities

"The site operates as 'a nonpartisan, open source, and nonprofit project;”

"ONE OF THE most well-worn complaints among political watchers in Massachusetts is that the government can be, well, hard to watch. The state Legislature is one of the least transparent lawmaking bodies in the country – exempt from public records laws, with decisions often made in closed committee sessions with little revelation about who voted for or against a given piece of legislation.

Being generally outraged about local government on Twitter, Facebook, or other social media sites may be cathartic, but is perhaps not the most efficient way to push for change. Now a team of volunteers is taking a swing at making online engagement with the Legislature feel a bit more civil, structured, and achievable for individuals and organizations.

The website MAPLE (the Massachusetts Platform for Legislative Engagement) launched this month, focused on encouraging and facilitating public testimony on legislation. The Legislature does collect and post some public testimony already, but the MAPLE group is trying to improve what they see as an imperfect system. A motivating question for the co-creators was whether the online spaces where the public gathers to express views online could “be designed better to allow us to channel our energy for productive improvements for the communities that we touch?”

Continue reading the article online at Commonwealth Magazine ->

https://commonwealthmagazine.org/the-download/a-digital-push-for-more-legislative-participation-2/

Check out the MAPLE site yourself here ->  https://www.mapletestimony.org/

 

"The site operates as 'a nonpartisan, open source, and nonprofit project;” 

MASS Senate Passes Legislation Authorizing Chapter 90 Funding

The Massachusetts State Senate on Thursday (3/30/23) passed a bill that includes $350 million in bond authorizations for transportation needs across the state, including $200 million for the state’s Chapter 90 program, which provides municipalities with a reliable funding source for transportation-related improvements, including road and bridge repairs.

“This legislation will maintain and improve our state’s infrastructure, ensure that residents have safe and reliable transportation options, and support sustainable, regionally equitable economic development in communities across the Commonwealth,” said Senate President Karen E. Spilka (D-Ashland). “I’d like to thank Senator Crighton for his work in crafting this legislation, Senator Kennedy for his help in advancing it, and all of my Senate colleagues for working collaboratively to ensure the transportation needs of our cities and towns are addressed in a regionally equitable manner.”

"Our transportation system is the backbone of our Commonwealth, connecting us to our jobs, families, and communities," said Senator Brendan P. Crighton (D-Lynn), Chair of the Senate Committee on Transportation. "This investment is not just an investment in infrastructure, but an investment in the future of our Commonwealth, enabling our cities and towns to make the necessary improvements to promote efficient and safe travel for all."

“I’m pleased to see this crucial investment in the Commonwealth’s roads and bridges move towards fruition,” said Senator Edward J. Kennedy (D-Lowell), Chair of the Senate Committee on Bonding, Capital Expenditures and State Assets. “The cities and towns of Massachusetts depend on this necessary funding to maintain their transportation infrastructure.”

This legislation also authorizes $150 million in programs that will assist municipalities with various transportation-related projects. This includes $25 million for each of the following:

• the municipal small bridge program;
• the complete streets program;
• a bus transit infrastructure program;
• grants to increase access to mass transit and commuter rail stations;
• grants for municipalities and regional transit authorities to purchase electric vehicles and the infrastructure needed to support them;
• and new funding dedicated to additional transportation support based on road milage, which is particularly helpful for rural communities.

“By dedicating a $25 million fund to rural communities for road and culvert work, the Senate has once again demonstrated a commitment to regional equity,” said Senator Jo Comerford (D-Northampton). “Rural towns do not have large municipal budgets like some Commonwealth cities, yet with much smaller municipal budgets, they have been expected to maintain many hundreds more miles of roads than their urban counterparts. They have culverts in need of repair and a significant number of gravel and dirt roads. This rural program recognizes and begins to address these pressing, inequitable realities for rural communities and I'm deeply grateful.”

“Today's bill includes $25 million that is intended to help our most rural communities that are consistently struggling to keep afloat financially,” said Senator Paul W. Mark (D-Becket). “In a district of 57 cities and towns, 54 of which have populations of fewer than 10,000 people, and in some cases communities as small as 120 residents, we live firsthand every day how difficult it can be to undertake road repairs, invest in new equipment, or have our voice heard in Boston.  I am grateful to the Senate President, the Chair of Ways and Means, and the Chair of Transportation for the time they have taken to visit rural communities in my district, work collaboratively with me and our rural caucus members, and deliver for our small towns in a way that will produce tangible benefits and results this calendar year.”

A different version having previously been passed in the House of Representatives, the two chambers will now reconcile differences before sending the bill to the Governor’s desk.

MASS Senate Passes Legislation Authorizing Chapter 90 Funding

MMA: "Legislature passes supplemental budget with pandemic-era extensions, key investments"

The House and Senate both passed a compromise supplemental 2023 budget bill today that includes a majority of the governor’s proposed “immediate needs” bond bill as well as extensions of pandemic-related authorizations related to public meetings and outdoor dining.

The bill was originally filed by Gov. Maura Healey in January, and both chambers had passed slightly different versions earlier this month.

The final bill (H. 47) includes extensions to pandemic-related authorizations that were set to expire next week.

The bill would:

• Allow remote and hybrid meeting options for public bodies through March 31, 2025

• Allow remote and hybrid participation options for representative town meetings through March 31, 2025

• Permit reduced quorums for open town meetings through March 31, 2025

• Extend the expedited outdoor dining permit process through April 1, 2024

Continue reading the MMA article online ->
https://www.mma.org/legislature-passes-supplemental-budget-with-pandemic-era-extensions-key-investments/

The legislation started as H.47 and ended up on the Governor's desk as  H.58 ->  https://malegislature.gov/Bills/193/H58

MMA: "Legislature passes supplemental budget with pandemic-era extensions, key investments"

Senate Passes $368.7 Million Supplemental Budget; now to Reconcile Cmte before going to Governor Healey

Bill funds essential services relied on by vulnerable populations, extends COVID-era measures, authorizes public works bonding to support cities and towns

The Massachusetts State Senate on Thursday passed a $368.7 million supplemental budget for Fiscal Year 2023 (FY23). The legislation funds vital services that support vulnerable populations and address food insecurity, housing instability, the state's long-term COVID-19 response, economic development, essential support services for incoming immigrants and refugees, and more. Notably, the bill extends initiatives first implemented during the COVID-19 pandemic, such as outdoor dining, remote public meeting access, and support for assisted living residences. The bill further authorizes $814.3 in bonding to bolster the Commonwealth's clean water and other public works projects for cities and towns, as well as to support the Commonwealth's ability to compete for competitive federal grant funds. 

"This supplemental budget ensures that our Commonwealth continues to support the most vulnerable among us while also building on the lessons we learned during the COVID-19 pandemic," said Senate President Karen E. Spilka (D-Ashland). "I'm proud to say that this body has proven once again that it has the courage to chart a course that leaves no place or person in the Commonwealth behind. As I have said since the start of the pandemic, we must go 'back to better,' not 'back to normal.' With today's supplemental budget, I am pleased to see the Senate take one more step toward this goal. I would like to thank my colleagues, especially Chair Rodrigues and his dedicated team at Senate Ways and Means, for their hard work and contributions to this supplemental budget."

"As we continue to emerge from the pandemic, the Legislature has taken the necessary steps to keep the economy of the Commonwealth on a firm footing. The passage of this supplemental budget today utilizes robust tax revenues to its fullest effect, making substantial investments in economic development, housing, education, and the social service safety net. Those investments, along with a forward-thinking long-term bond authorization, will keep Massachusetts as a leader in the key economic sectors for decades to come," said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. "Thanks to the strong leadership of Senate President Spilka, and the commitment of my colleagues in the Senate, we sent a clear message to the people that we will always look to protect our marginalized communities, support our education and health care workforce, and invest in local infrastructure as the Commonwealth continues to recover from the impact of the pandemic."

The bill invests $368.7 million to address several time sensitive needs for an array of programs relied on by some of the most vulnerable residents of the Commonwealth, including $130 million for SNAP food assistance benefits to provide a glide path for families who were receiving enhanced SNAP benefits during the COVID-19 pandemic, $68 million for the Early Education C3 stabilization grant program, $65 million for the continuation of free school meals, $45 million for emergency shelter assistance, and over $40 million to support affordable housing for immigrants and refugees. Other measures funded in the bill include:

• $8.3 million for judgments, settlements, and legal fees
• $7 million for coordinated wraparound services for incoming immigrants and refugees
• $2 million for the reimbursement of SNAP benefits for victims of benefit theft
• $2 million for the preparation and execution of the 114th National NAACP conference, which is taking place in Massachusetts in 2023, which was adopted via an amendment from Senator Liz Miranda
• $1 million for a public awareness campaign to educate the public about the misleading tactics of so-called crisis pregnancy centers and their lack of medical services
• $250,000 for Reproductive Equity Now's free abortion-related legal hotline

The bill also authorizes $814.3 billion in capital expenditures to support economic development projects. Notably, these include $400 million for the MassWorks Infrastructure Program, which provides grants to cities, towns, and other public entities for infrastructure projects, and $200 million for state matching funds to compete for federal grant opportunities, including those funded through the CHIPS and Science Act, which encourage innovation in Massachusetts. Other bonding items authorized by the bill include:

• $104 million for the Clean Water Trust Fund
• $34 million for a program to revitalize underutilized properties
• $30 million for state matching funds to compete for federal broadband expansion grants and improve state broadband infrastructure
• $15 million for the Massachusetts Manufacturing Innovation Initiative, which supports innovation within the state's manufacturing industry, including by offering technical assistance to manufacturers and attracting talent from outside of the state
• $14 million for the Massachusetts Manufacturing Accelerate Program
• $9.3 million for broadband middle mile supports
• $8 million for the Smart Growth Housing Trust Fund

Reorganizing the societal shifts that have taken place during the pandemic, the bill also addresses several pandemic-era related measures, including:

• Permanently allowing public corporations and nonprofits to hold meetings by means of remote communication
• Permanently allowing notaries public to conduct remote online notarization using communication technology
• Extending the ability of graduates and students in their last semester of nursing education programs to practice nursing in accordance with guidance from the Massachusetts Board of Registration in Nursing
• Extending the ability of municipalities to allow outdoor dining services
• Extending the ability of public bodies to allow remote participation by members in public meetings
• Extending flexibilities given to cities and towns that allow for town meetings to be held in hybrid or fully remote capacities and that ease the threshold for a quorum
• Extending the ability of nurses employed by assisted living residences to provide skilled nursing care in accordance with valid medical orders, provided the nurse holds a valid license to provide such care

Senator Liz Miranda (D-Boston) and Senator Robyn K. Kennedy (D-Worcester) both gave their inaugural Senate speeches during consideration of the supplemental budget. Senator Miranda spoke on behalf of her amendment for $2 million to support the NAACP's 114^th national conference, which will be taking place in Massachusetts in 2023. The amendment was subsequently unanimously adopted. Senator Kennedy highlighted how the supplemental budget's $68 million investment in C3 early education grants will provide crucial stability to the early education sector.

As a previous version of this legislation has passed the House of Representatives, the two branches will now reconcile the differences between the bills.

As near as I can tell, the House version is H.58 -> https://malegislature.gov/Bills/193/H58

and the Senate version (as per this press release) is S.23 ->  https://malegislature.gov/Bills/193/S23

Senate Passes $368.7 Million Supplemental Budget