Middleboro Review 2: POLITICO Massachusetts Playbook: The $2.5 billion question

Tuesday, October 31, 2023

POLITICO Massachusetts Playbook: The $2.5 billion question

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SPOOKY INVOICE SEASON — The state is running out of money for its emergency shelter system. Lawmakers are running late in delivering a supplemental budget to close out the last fiscal year. And hanging over it all is the $2.5 billion that Massachusetts might have to pay back to the federal government over a jobless-benefits mixup.

Yes, that’s still a thing.

Five months after the state disclosed that the Baker administration erroneously paid $2.5 billion in pandemic-era unemployment benefits using federal rather than state funds, it’s still unclear whether — and how much — the state will have to pay back.

A Labor Department spokesperson told Playbook the Biden administration is “actively engaged with Massachusetts on this issue” but declined to elaborate on where negotiations stand.

The state said much the same: “Our goal remains focused on reaching a resolution that minimizes impact to the Commonwealth, especially Massachusetts employers,” a spokesperson for Gov. Maura Healey’s labor office said.

Over in the Legislature, both chambers’ Ways and Means chairs insisted to Playbook that the ominously large (potential) bill isn’t holding up the close-out supplemental budget — even as lawmakers are delaying the state comptroller from filing a key financial report and keeping state employees from getting agreed-upon raises as talks over the budget bill drag on.

There’s a chance the federal government decides to forgive the state's pricey unemployment mistake. But that’s unlikely, Michele Evermore, a former policy director at DOL’s Office of Unemployment Modernization, told Playbook.

“If Massachusetts gets away with not spending their [unemployment insurance] dollars on their UI program, then other states are gonna say: ‘Hey, wait a minute, that's not fair,’” Evermore said. “You have to balance as little pain to the state as possible, but also something that won't cause consternation in terms of fairness.”

And if and when the bill comes due, business groups continue to say it should be up to the state, not their members, to pay it. “If indeed the feds decide that the money has to be paid back, the state needs to come to grips with a way to pay for that other than just telling employers that they have to pay for it,” Retailers Association of Massachusetts President Jon Hurst told Playbook.

GOOD TUESDAY MORNING, MASSACHUSETTS . As if a $2.5 billion bill isn’t spooky enough, happy Halloween! Think you have the best costume this year? Send us your pics for a chance to be featured in tomorrow's newsletter: kgarrity@politico.com and lkashinsky@politico.com .

TODAY — Healey is on WBUR’s “Radio Boston” at 11 a.m. Senate President Karen Spilka tours Sanofi in Framingham at 10 a.m. Boston Mayor Michelle Wu attends a pep rally at New Mission High School at 1 p.m. Rep. Jim McGovern makes local stops in Worcester and hands out candy to trick-or-treaters at Hill-O-Ween at 5 p.m.

A message from Conservation Law Foundation:

Conservation Law Foundation is separating fact from fiction when it comes to the role of bioenergy in cutting climate-damaging pollution and transforming our economy to one built on clean energy. The economic, environmental, and public health of our communities and businesses demand that we invest in energy efficiency and clean energy sources while moving with caution and care on bioenergy resources.

MIGRANT MOVES

COUNTDOWN TO CAPACITY — Uncertainty abounds about what will happen to families who apply for the state’s emergency shelter program after it hits the Healey administration’s self-imposed 7,500-family limit, as the Legislature sits on the governor’s request for more financial aid and a Superior Court judge prepares to hear a legal challenge to the cap this afternoon.

The contours of the state’s new triage system are taking shape, with officials saying that families will now go through medical and safety risk screenings to determine their priority level for shelter. The Boston Globe reports that families with infants under 9 months old and pregnant women in their third trimester will be among those prioritized for placement.

But service providers and advocates still can’t say where families who are put on the waitlist — which takes effect when the shelter system, which was housing 7,332 families on Monday, reaches 7,500 — will go if the state can no longer offer them shelter on the spot. The Healey administration continues to press the federal government for help standing up an overflow site where families can stay until a shelter unit becomes available, but that has yet to come to fruition. State officials are also giving rental vouchers to some 1,200 families that have been in the system for more than 18 months to help free up space.

“Everybody is committed to not having families on the street , no one wants that,” one service provider, who requested anonymity to speak freely, told Playbook. But “everybody’s truly scrambling right now.”

As for that $250 million Gov. Maura Healey wants to prop up the shelter system? The House “continues to evaluate the need for additional funding,” Speaker Ron Mariano said in a statement. More than 100 organizations, including housing advocates and service providers for the homeless, wrote a letter to Mariano and Senate President Karen Spilka urging them to pump more money into the shelter program to buy state officials more time to “consider policy solutions to the surge in demand.”

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FROM THE HUB

— “‘They’re throwing us out’: Boston begins clearing encampment at Mass. and Cass,” by Tori Bedford, GBH News: “Boston city workers began to clear tents Monday morning near the troubled intersection of Melnea Cass Boulevard and Massachusetts Avenue as part of an effort to enforce a new encampment ban across the city. Monday marked the beginning of a three-day clearing. Outreach workers, police officers and city employees are working to take down the more than 75 tents, place personal items in storage and move some 90 people in the area into shelters.”

— “‘Slap in the face:’ Boston veterans still fuming at City Council over budget cut,” by Gayla Cawley, Boston Herald: “Two city councilors are trying to repair the damage caused by their colleagues’ vote to cut nearly $1 million from the veterans’ services budget, a move that was vetoed by the mayor but still has Boston veterans fuming months later. Council President Ed Flynn and Councilor-at-Large Erin Murphy filed a resolution ahead of the body’s Wednesday meeting, to commemorate Veterans Day. The measure 'honoring all those who served our country' is aimed at helping to mend a relationship that remains strained by last June’s budget vote."

MEANWHILE IN MAINE

LOOKING FOR ANSWERS IN LEWISTON — Maine officials are facing intensifying scrutiny as more details emerge about Robert Card , the man accused of killing 18 people and injuring 13 others in a shooting rampage last week.

Gov. Janet Mills abruptly ended a press conference yesterday after reporters pressed her about reports that Maine officials had been alerted to Card's mental state months before the deadly shooting. A timeline released by the Sagadahoc County sheriff later revealed that Card’s family first went to police with concerns about his mental health in May.

Meanwhile, friends and family of the victims are continuing to mourn the lives lost. And in Congress, Rep. Jake Auchincloss praised fellow New Englander Rep. Jared Golden, who reversed his stance on assault rifles in the wake of the tragedy.

A message from Conservation Law Foundation:

THE RACE FOR CITY HALL

— “Mayoral candidate Peter Marchetti named in lawsuit by former colleague alleging 'hostile work environment' at Pittsfield Cooperative Bank,” by Meg Britton-Mehlisch, Berkshire Eagle: “A former Pittsfield Cooperative Bank executive has filed a federal lawsuit alleging that male executives at the bank, including Pittsfield mayoral candidate Peter Marchetti, created a 'hostile work environment' — among other claims. ... Marchetti said that while he 'disputes many of the allegations,' he’s been advised not to comment by the bank because 'it’s a pending legal matter.'”

FROM THE OPINION PAGES — The Daily News of Newburyport says Amesbury Mayor Kassandra Gove deserves another term . She faces former City Councilor Richard Marggraf next Tuesday.

FROM THE DELEGATION

DATELINE, UKRAINE — Rep. Stephen Lynch met with Ukrainian President Volodymyr Zelenskyy on Monday as Congress debates additional aid for the country that continues to battle Russia. Lynch joined Rep. Mike Quigley (D-Ill.) and Rep. French Hill (R-Ark.) on the bipartisan trip, during which the leaders discussed “frontline developments” and Ukraine’s “key defensive needs,” according to Zelenskyy’s post on X . — Mia McCarthy

IT'S NOT EASY BEING GREEN

— “Quebec-New England transmission line gets Biden backing,” by Bruce Mohl, CommonWealth Magazine: “The Biden administration on Monday pledged financial support for a two-way transmission line capable of carrying hydroelectricity from Quebec into New England and eventually offshore wind and solar power from New England to Quebec.”

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THE LOCAL ANGLE

— “Right-leaning groups opposed to diversity efforts find unlikely allies in Newton parents,” by Meg Woolhouse and Phillip Martin, GBH News: “A small but vocal group of parents are spreading the idea that declines in standardized test scores in Newton are the result of diversity, equity and inclusion, or DEI, programming in the schools. And they are drawing from the rhetoric of national far-right groups that have sprung up in the past few years to push an ‘anti-woke’ agenda that’s being highlighted in the Republican 2024 presidential campaigns now taking flight.”

— “In court filing, police officer describes chaotic scene after Worcester State shootings,” by Craig S. Semon, Telegram & Gazette: “In a court filing, a police officer described a chaotic scene on the Worcester State University campus early Saturday morning, with a large crowd of 150 people screaming and yelling after a shooting that left a Southbridge teenager dead. A second person was also shot, but is expected to survive.”

MEANWHILE IN NEW HAMPSHIRE

WRITTEN IN INK — Key Democrats have launched a write-in campaign for Joe Biden after the president passed on putting his name on the state’s primary ballot amid a standoff over the party’s 2024 nominating calendar. The website .

Meanwhile, Bill Shaheen, the husband of Sen. Jeanne Shaheen (D-N.H.), appeared in Dover on Monday with Rep. Dean Phillips (D-Minn.), who launched a primary challenge to the president last week and is staking his campaign in no small part on the Granite State. Video via NHPR’s Josh Rogers .

Biden’s attempt to demote New Hampshire in the primary lineup also isn’t stopping big-name Democrats from politicking in the state. The state Democratic Party said yesterday that House Minority Leader Hakeem Jeffries (D-N.Y.) will headline the Eleanor Roosevelt dinner on Dec. 1. Pennsylvania Gov. Josh Shapiro and Rep. Ro Khanna (D-Calif.) have also headlined events for the state party amid the primary squabble.

MEANWHILE IN RHODE ISLAND

— “McKee fires City Council member from governor’s office over Israel comments,” by Ted Nesi, WPRI: “Gov. Dan McKee has fired one of his State House staffers following days of controversy over the ex-employee’s public statements about the Israel-Hamas war. … Like McKee, [Miguel] Sanchez is a Democrat, but unlike the governor, he is a member of the party’s progressive wing. He has accused Israel of committing ‘genocide’ against Palestinians in the Gaza Strip by its military actions since Hamas terrorists massacred Israelis on Oct. 7.”

A message from Conservation Law Foundation:

Conservation Law Foundation is working to fight climate change and secure a livable and healthy future for all New Englanders. We know New England needs to end its reliance on fossil fuels, and that presents a pressing question: What role will bioenergy play in the region’s energy system as we move toward 2050? The fossil fuel industry is leaning hard on selling biofuels such as renewable natural gas as viable options to meet state mandates for cutting climate-damaging emissions. On the face of it, alternative fuels sound good. But what’s beneath the surface is more of the same climate-damaging fuels. We don’t have time or resources to waste on costly and ineffective solutions. Conservation Law Foundation is sorting fact from fiction. Bioenergy’s role in New England’s clean energy future is a limited and targeted one.

HEARD ‘ROUND THE BUBBLAH

WEDDING BELLS — Faith Simon , executive coordinator at Dana-Farber, and Tim Cronin , a hospital clean-energy lobbyist, were married Oct. 13 on a covered bridge in Shirley. Assistant director of Norfolk County Bill Buckley officiated. Guests at the small ceremony included Weymouth Councilor Greg Shanahan , Marshfield School Committee Chair Sean Costello and State House aide Joe Russo .

HAPPY BIRTHDAY — to Samantha Ormsby , POLITICO’s Michael Kruse, Alexandra Pigeon and Boston Globe columnist Yvonne Abraham . Happy belated to state Rep. Ryan Hamilton , who celebrated Monday.

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