Source: State House News Service

Authors: Katie Lannan, Chris Lisinski and Chris Van Buskirk

 

Leaderships Sees Issues ‘To Work Out’ With Senate

A major spending bill allocating federal COVID-19 relief funds and surplus state tax revenues cleared the House on Friday evening by a vote of 159-0 after lawmakers added nearly $174 million via the amendment process.

The bill began with a bottom line of $3.65 billion and representatives took a handful of votes to add on tens of millions of dollars more, much of it earmarked for local programs and projects, through four mega-amendments compiled outside of public view based on the 1,126 individual amendments filed earlier in the week. The bill’s final bottom line increased to $3.82 billion.

House and Senate leaders have already agreed on two key features of the bill — a $500 million deposit into the state’s unemployment trust fund and another $500 million for one-time bonus payments to low-income essential workers who remained on the job in-person throughout the COVID-19 state of emergency.

Otherwise, it’s unclear how closely aligned the spending will be between the House plan and the proposal that Senate Democrats are expected to soon put forward, and how much negotiating will need to take place before lawmakers can ship a final version to Gov. Charlie Baker.

Baker had prodded lawmakers to quickly put the state’s billions of dollars in American Rescue Plan Act money to work, but the Legislature opted to gather public input at a series of hearings before crafting a bill.

With formal sessions for the year set to end Nov. 17 under joint legislative rules, House and Senate leaders have not indicated if they aim to get a final bill on Baker’s desk or into private conference committee negotiations before the winter recess.

“We have been continuing to talk with our Senate counterparts and I think that there are some things we will have to work out and we’ll see what proposals they put to the floor maybe next week or whatnot,” House Ways and Means Chair Aaron Michlewitz told the News Service. “I think that after they get done we’re going to try as hard as we can to get it to the governor’s desk as quickly as we can.”

Michlewitz said lawmakers received feedback and testimony from nearly 400 people and organizations, including the governor. Rep. Dan Hunt, who chairs the House Committee on Federal Stimulus and Census Oversight, cited more than 300 meetings with advocates.

Michlewitz, a Democrat from Boston’s North End, called the resulting bill “a truly equitable spending package.”

“A consistent theme we heard from these hearings was the need for this one-time revenue to go toward areas and communities that have been disproportionately impacted by this pandemic,” he said. “These communities that were hardest hit by COVID, and it is only appropriate that the lens with which we view these funds be toward filling the needs of these communities.”

Before amendments were tacked on, the bill contained $777 million in economic development spending, $765 million for health and human services, $750 million towards workforce development, $600 million for housing and homeownership, $350 million toward environmental and climate change mitigation, and $265 million for education.

Rep. Kate Lipper-Garbedian, a Melrose Democrat, addressed her colleagues for the first time to highlight a provision, backed by $10 million, that will expand eligibility for special education services to students who turned 22 during the pandemic. She said students with disabilities are eligible for K-12 services until they turn 22, but the disruption and suspension of those services left some young adults cut off from programs like vocational and life-skills training.

Elected last year in a special election, Lipper-Garabedian was sworn in during a socially distanced State House ceremony on March 25, 2020.

“Many of us in this chamber have had COVID babies. Some of us have had COVID puppies,” she said Thursday. “I’m pleased to have been your first COVID rep.”

The House Ways and Means Committee’s bill features $200 million in tax relief for small-business owners who paid personal income taxes on state or federal relief money, $12 million to aid the resettling of Afghan refugees, and $5 million for Inspector General Glen Cunha’s office to create a public website and database tracking the number of contracts awarded to minority-owned businesses and the flow of funding to disproportionately impacted communities.

The bill included $20 million to improve technical infrastructure at community health centers, and through the amendment process representatives added $15 million for “programs that promote primary care workforce development, recruitment and retention at community health centers.” Other health investments lawmakers noted included $250 million for financially strapped hospitals and $70 million for nursing homes.

Environment and climate spending represents another sizable chunk of the bill with more than $400 million total following the adoption of a mega-amendment. Rep. Carolyn Dykema said areas that will see new investments include combined sewer overflow issues, climate resiliency, offshore wind development and PFAS mitigation.

“Water infrastructure upgrades and the mitigation of contaminants like PFAS can be extremely costly for our municipalities, and providing this relief to cities and towns who are already facing challenging financial times is badly needed,” Dykema, who co-chairs the Joint Committee on Environment, Natural Resources and Agriculture, said Friday.

The Massachusetts Fiscal Alliance criticized what it called a “closed doors” negotiating process on the four mega-amendments that House lawmakers added to the spending bill. Spokesman Paul Craney said the branch “once again proved to the rest of the world why they maintain the top spot as the most secretive and opaque legislative body in America.”

“Regular people have no way of knowing the deliberations behind how their tax dollars are spent in the Massachusetts House of Representatives,” Craney said in the statement released Friday afternoon.

Lawmakers held six public hearings ahead of crafting the $3.82 billion proposal where hundreds of people and organizations, including Baker, testified on areas where the funds should be spent.

House leaders left themselves a sizable pot of money to be spent at a future date. The base bill left unallocated about $2.4 billion in ARPA money and roughly $350 million of the state’s fiscal year 2021 surplus.

With nearly $174 million added to the bill, Michlewitz said “most of the work that was done” via the amendment process did not touch the additional ARPA funds the House had left aside and primarily drew from the fiscal 2021 surplus revenue.

Seventeen men and women, sponsored by area companies as up and coming employees and future leaders in our community, have been accepted into the North Central Massachusetts Chamber of Commerce’s Community Leadership Institute.  CLI is dedicated to providing participants with individual leadership skills and a deep understanding of the region.  The nine month program focuses on education, government, health care, social services, justice system, media, arts and culture, environment and history.  The Chamber created the Institute to inspire a new generation of men and women to enthusiastically assume important roles in their community.   The program challenges individuals from diverse backgrounds to be influential in our region’s future.

Professor Mike Greenwood, business professor at Fitchburg State University and chairman of the Institute steering committee, is enthusiastic about this year’s participants and the meaningful professional, personal and community development they will take part in.  “I have been with the class since it’s reintroduction in 2011.  Each year, I am amazed and impressed with the dedication of the participants.  Programs like this are an important asset within the community to ensure one that continues to thrive, even after our current leaders retire.”

Marty Connors, president of Rollstone Bank & Trust and past chairman of the Institute steering committee, led the Institute’s revival in 2010.  “I was in the 1991 class of the Institute and it was an integral part of my success in the community.  As Chairman of the Chamber’s Board of Directors in 2010, I felt we needed the program back to once again support our needs for leadership and succession planning. Rollstone Bank & Trust’s participants have enjoyed the program and become leaders here in their workplace and in the community.  We could not be prouder of the work they have done.”

Participants in the Class of 2022:

Daisy Ayala, Enterprise Bank

Joshua Bedarian, RCAP Solutions, Inc

Austin Brooks, TD Bank

Joseph Ferguson, Fitchburg State University

Justin Goettsch, The Arc of Opportunity

Ramon Gonzalez, Mount Wachusett Community College

Brittany Haley, Leominster Credit Union

Megan Heffernan, UMass Memorial Health HealthAlliance-Clinton Hospital

Kimberly LeBlanc, Resource Management, Inc

Bea Lee, North Central Massahusetts Economic Development Corp

Christian Lopez, Sponsored by AIS

Stephanie LoSasso, Avidia Bank

Hannah Pollan, Aging Services of North Central Massachusetts

Andrea Sampson, Aging Services of North Central Massachusetts

Melanie Sauvageau, Rollstone Bank & Trust

Patricia Wayrynen, Workers Credit Union

Marcus Williams, Mount Wachusett Community College

Administration Highlights First-Year Success of One Stop for Growth Program

Governor Charlie Baker, Lt. Governor Karyn Polito and Housing and Economic Development Secretary Mike Kennealy were joined by state and local officials from Lowell to announce $66.5 million in 2021 MassWorks awards to 50 communities. The Administration also kicked off the first series of grant awards made through the Community One Stop for Growth program, which total a combined $88 million for projects in 122 communities across the Commonwealth, including MassWorks awards.  First launched in January 2021, the Community One Stop for Growth replaced multiple application processes for separate grant programs that support local economic development initiatives with a single application portal that includes a streamlined, collaborative review process. The Administration also announced $1 million for 16 communities through the Department of Housing and Community Development’s Community Planning Grant Program, one of the many programs available through One Stop.

In One Stop’s inaugural round, the Executive Office of Housing and Economic Development received 267 Expressions of Interest from 178 communities through the new, simplified process.  For this year’s awards, 196 grant applications received a total of $88.7 million for projects in 122 communities.  Of the 196 projects awarded, nearly one-third were located in a rural or small town, half were located in a Housing Choice Community; and one-third were located in a Gateway City. Learn more about the programs that are part of the Community One Stop for Growth application process.

“MassWorks and the programs accessed through One Stop support local infrastructure projects that spur housing, workforce development and private investment,” said Governor Charlie Baker.  “We appreciate the partnership with the Legislature and local leaders to make these investments possible and look forward to our continued collaboration.”

“One Stop has transformed the Commonwealth’s role from simply a patchwork of funding sources into a true partnership that puts the economic and community development goals for more cities and towns within reach,” said Lt. Governor Karyn Polito.  “By enhancing access to key programs like MassWorks, One Stop allows us to bring a heightened sense of urgency to our efforts to rebuild the economy.”

“In addition to a single application portal, the One Stop’s collaborative review process involves multiple agencies and direct referrals to programs across a number of agencies, all in an effort to get more communities closer to their economic development goals, faster,” said Housing and Economic Development Secretary Mike Kennealy.  “As well, cities and towns can now submit Expressions of Interest, which opens up a dialog allowing communities to work with members of our team to refine and improve upon their ideas.”

“Locally driven planning efforts are critical for communities to take charge of their growth and meet the needs of diverse cities and towns,” said Housing and Community Development Undersecretary Jennifer Maddox. “We are thrilled to be part of the One-Stop program, which better coordinates our expansive programming to support community development, affordable and market-rate housing development, and resilient neighborhoods.”

MassWorks, a competitive program that offers cities and towns flexible capital funding to support and accelerate housing production and job growth, is the largest program among the One Stop portfolio. This year, the Administration is awarding 56 grants from the infrastructure program – the largest number of awards in a single year in six years – totaling $66.5 million to 50 communities.

Among this year’s MassWorks’ projects, 29 are reactivating underutilized sites, 27 are supporting transit-oriented developments, 29 have a mixed-use component. Additionally, 14 communities are receiving their first ever MassWorks award.

Including this year’s round, the Baker-Polito Administration has awarded 326 MassWorks grants to 181 communities, investing over $608 million in public infrastructure projects throughout the state. These grants have directly supported the creation of 21,000 new housing units, tens of thousands of construction and new permanent jobs, while also leveraging over $13 billion in private investment. 

At today’s event, Administration officials announced that Lowell, which applied for several grants through One Stop, is receiving a $1.72 million MassWorks Infrastructure Program grant to support the design and construction of sidewalks, lighting, and landscaping that will improve vehicular and pedestrian travel in the area adjacent to a private development known as Acre Crossing.

Lowell’s MassWorks award will support Acre Crossing, which is a mixed-use development, consisting of over 34,000 square feet of office and retail space, and parking.  The project also includes 32 condominiums for sale to first-time homebuyers with household incomes ranging from 70 to 100 percent of the Area Median Income.  The project is a result of a $27 million private investment, supporting approximately 200 jobs throughout construction, and 40 full-time jobs once fully built out.

“The Merrimack Street corridor between City Hall and University Crossing is the major link connecting the UMass campus to the Lowell Central Business District. As such, it presents many opportunities for economic development and rejuvenation such as the Acre Crossing Project,” said State Senator Ed Kennedy. “The Governor’s announcement of the Mass Grants award today will help provide a big step in that direction.”

“The MassWorks grant for the Acre Crossing development and the Community Planning grant to support Lowell’s new TOD Overlay District are both vital to the expansion of affordable housing and job creation in Lowell,” said State Rep. Rady Mom.  “I would like to thank Governor Baker and Lieutenant Governor Polito for their continued efforts to improve our city and the Commonwealth.”

“The City of Lowell is thrilled to receive a $1,720,000 MassWorks Infrastructure Program Grant for Acre Crossing,” said State Representative Thomas A. Golden, Jr.  “This generous funding will allow us to make the area around the new development easier to navigate for both pedestrians and vehicles and will also help us to make the area safer and more beautiful with the addition of lighting, landscaping and a small park.  The city of Lowell is also grateful to receive a $75,000 Community Planning Grant, which will allow the city to increase opportunities for new housing near the Gallagher Terminal.”

“Thank you, Governor Baker and Lt. Governor Polito, for your invaluable assistance in securing these vital funds to support the continued economic development for the City of Lowell and throughout our Commonwealth,” said State Rep. Vanna Howard. “The MassWorks Infrastructure funding will help support our commitment to job creation, which will benefit the entire community for years to come. I am proud to support this economic development bill for the future good of our Commonwealth.”

“The investments that the Baker-Polito Administration continues to make through the MassWorks Infrastructure Program enabled cities and town across the Commonwealth to overcome financial hurdles standing in the way of development,” said City Manager Eileen Donoghue. “We are confident that the Acre Crossing project will mark a continuation of the high-quality development that has been supported in Lowell through MassWorks.”

“Acre Crossing represents a transformative project that will expand Jeanne D’Arc Credit Union’s presence in The Acre, create new jobs, provide adequate parking, and offer homeownership to those that may not otherwise be able to fulfill that dream,” said Mark S. Cochran, President and Chief Executive Officer at Jeanne D’Arc Credit Union.  “We are honored to be chosen as a recipient of the MassWorks Grant to help support our efforts.”

The full list of this year’s MassWorks grant recipients can be found here.

In addition to MassWorks funding, today the City of Lowell was also awarded two additional grants through the One Stop process.

As a designated Housing Choice community, Lowell was awarded a $250,000 grant to update its 2012 Master Plan to address housing affordability issues in the City and assess how new policies can be aligned with the sustainable growth of the City.

In addition to receiving MassWorks and Housing Choice awards, Lowell was one of 16 communities that were awarded a combined total of $1 million through the Department of Housing and Community Development’s Community Planning Grant Program.  This program, also new this year, is one of the multiple programs in One Stop and provides technical assistance for activities related to land use, including: assisting communities in the development of a Master Plan, Housing Production Plan, Zoning Review and Updates, Urban Renewal Plan, Land Use Plan, Downtown Plan, Parking Management Plan, Feasibility Study, or Other Strategic Plan. 

Lowell’s $75,000 grant through the Community Planning Grant Program will assist in the creation of a new transit-oriented development district for the area surrounding the Gallagher Terminal which serves as Lowell’s central transportation hub with connections to MBTA commuter rail service to and from Boston, and bus service through 19 local and regional bus routes. The City’s goal is to further the recommendations of the Lowell Gallagher Terminal TOD Study by modifying the zoning code to increase opportunities for new housing near the Gallagher Terminal.

The full list of Community Planning Grant Program awards can be viewed here.

Supply chain disruptions and labor shortages are continuing to hold back economic growth, but index readings released Monday show the Massachusetts economy in expansionary territory for a sixth straight quarter and four straight quarters of growth for the U.S. economy.

Citizens said its national Citizens Business Conditions Index finished the third quarter at 57.1, down from the second quarter reading of 57.4. The state economy’s third quarter reading was 55, up from 53.1 in the second quarter. Readings above 50 reflect an economy in expansionary mode.

“Despite ongoing challenges from the pandemic, the third quarter was a period of strong demand across most sectors of the economy,” Citizens said. “With the continued support of low interest rates and fiscal spending initiatives, most sectors seem to have established a healthy trajectory of growth. Concerns over higher inflation have increased, and the employment sector still has ground to cover to reach pre-COVID status.”

The index draws from a pool of metrics, including manufacturing data, consumer spending, commercial banking data, initial jobless claims, commodity prices, and new business applications.

“Business activity is incredibly strong and confidence levels are quite high,” said Tony Bedikian, head of global markets at Citizens. “We haven’t fully exited the pandemic yet, but at this stage most parts of the economy have established some normalcy given the benefit of vaccines and the fiscal and monetary stimulus that continue to provide support towards full recovery. Many companies are doing well and would be doing even better if it weren’t for headwinds such as supply chain disruption and labor shortages.”

The new index readings were released as House and Senate leaders on Beacon Hill gear up to put $3.65 billion in one-time funds to work across Massachusetts, part of efforts over the next few weeks to allocate large chunks of American Rescue Plan Act funds and the state’s fiscal 2021 budget surplus. – Michael P. Norton/SHNS