Wednesday, May 8, 2024

POLITICO Massachusetts Playbook: What's not in the budget

Presented by

COMING UP SHORT — One of the most notable things about the three state budget proposals now in play is what’s not in them: enough money for the emergency shelter system and for the MBTA.

Gov. Maura Healey, the House and the Senate are all pitching spending plans that are hundreds of millions of dollars short of what officials say they’ll need to keep running the assistance program for migrant and homeless families over the next fiscal year.

All three proposals level-fund the emergency shelter system at $325 million in fiscal year 2025. Even with the extra $175 million Healey signed off on last week as part of a separate spending plan, the state would still be $415 million short of the $915 million bill officials estimate the program will rack up through next June.

What lawmakers are proposing should be enough to carry the shelter system through December, Senate Ways and Means Chair Michael Rodrigues told reporters on Tuesday. But he admitted budget writers will likely be back at the bargaining table early next year to try to plug the hole.

Senate Ways and Means Chair Michael Rodrigues (left) and Senate President Karen Spilka discuss their fiscal year 2025 budget. | Lisa Kashinsky/POLITICO

Rodrigues claims there’s a method to that seeming madness: “We want to keep the pressure on the [Healey] administration to make programmatic changes to [the shelter system to] make it more efficient and affordable,” he said. “And if you just throw all the money they want, there's no incentive.”

But that might be wishful thinking . Rodrigues said lawmakers are leaving it up to the Healey administration to come to them with proposals for how to decrease the cost of the overburdened system. Healey has said she wants to change the program, but she’s yet to say how beyond the time limits she’s already approved. And the congressional aid everyone is pining for could continue to be a non-starter, even after the election that top state Democrats are increasingly hoping will break Washington's gridlock.

It’s not just the shelter system potentially being shortchanged. None of the three budget plans cover the MBTA’s projected funding gap. The agency says it can fill that hole in fiscal 2025 by draining its cash reserves and finding another $93 million in savings, but it's projected to run hundreds of millions of dollars into the red after that. And none of the spending plans in play offer any longer-term solutions for stopping the T from riding off that fiscal cliff — though Healey’s set up a task force to tackle that.

“That gap is insatiable,” Rodrigues said. Still, top Senate Democrats contend, that doesn’t mean Beacon Hill can forget about transportation in other parts of the state. And so the Senate is pitching $214 million for regional transit authorities — higher than both the House and Healey — with $40 million specifically to eliminate fares for those riders. Cue the conference committee.

GOOD WEDNESDAY MORNING, MASSACHUSETTS . Dive deeper into the Senate’s budget plan and how it differs from the House and Healey’s with CommonWealth Beacon , GBH News and The Boston Globe . We've also got more below.

TODAY — Healey and Lt. Gov. Kim Driscoll host a roundtable on their housing agenda at 9:45 a.m. at Top of the Tower in Worcester. Healey attends a YWCA Greater Newburyport luncheon at 12:45 p.m. Rep. Ayanna Pressley holds a press conference on Haiti at 11 a.m. at the Capitol.

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

A message from NextEra Energy:

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

DATELINE BEACON HILL

BUDGET ODDS AND ENDS — No surprise here: The Senate still doesn’t like the idea of online Lottery sales, and didn’t follow the House and Gov. Maura Healey in calling to authorize the practice for the sake of balancing the budget (though they do want to let people purchase lottery tickets with debit cards).

— Like Healey, the Senate wants to let Bay Staters more easily change their birth certificates, marriage licenses, drivers licenses and other state-issued IDs to accurately reflect their gender identity. The chamber has repeatedly passed similar legislation, but it has yet to gain traction in the House.

— Senators also want to create a commission to “examine opportunities for collaboration and consolidation” among county sheriffs, the Department of Correction, the Parole Board and the Office of Community Corrections.

In layman’s terms: “Most of the [corrections] facilities in the state are under half capacity,” said state Sen. Will Brownsberger , who’s behind the policy rider. “We have a fiduciary responsibility to the taxpayers to not run facilities that are under capacity.”

So what could that look like? Reallocating responsibilities between the sheriffs and the state Department of Correction, and potentially even moving some inmates. But the commission has until September 2026 to issue its recommendations.

The Massachusetts Sheriffs’ Association seems to be on board. “We look forward to working with the Commission, highlighting the important programming and reentry work being done to improve outcomes for those returning to our communities,” the association’s president, Hampden Sheriff Nick Cocchi , said in a statement. "We look forward to working collaboratively on recommendations that balance the fiscal realities and the needs of the populations we serve."

WHEN IN ROME — Healey and her climate chief, Melissa Hoffer , are tacking on some trade talk to their trip to the Vatican next week, according to a schedule the governor’s office released Tuesday. Healey and Hoffer will hold a roundtable with members of the American Chamber of Commerce in Italy who are “considering establishing, growing, or expanding their footprint in Massachusetts,” the governor’s office said. (Italy is Massachusetts’ 10th-largest trading partner globally.)

Healey and Boston Mayor Michelle Wu , both Catholic Democrats, will also get an audience with Pope Francis.

FROM THE HUB

— “Boston City Hall sexual harassment lawsuit goes to trial Wednesday,” by Gayla Cawley, Boston Herald: “A six-year-old sexual harassment lawsuit against the city’s former health chief Felix G. Arroyo finally goes to trial Wednesday, with heavy-hitters in Boston’s political and legal circles, including then-Mayor Marty Walsh, expected to take the stand .”

— “Boston Mayor Michelle Wu used campaign funds for ‘electeds of color’ holiday party, records show,” by Gayla Cawley, Boston Herald.

— “Wu: Emerson protesters 'wanted to get arrested',” by Adam Reilly, GBH News: “Boston Mayor Michelle Wu on Tuesday defended the recent clearance of a pro-Palestinian encampment at Emerson College by Boston Police, saying a city ordinance prohibiting encampments can't be selectively applied and that the protesters there ‘wanted to get arrested.”

ACROSS THE RIVER — “MIT says it will suspend dozens of students who reclaimed pro-Palestinian encampment,” by Emily Maher and Veronica Haynes, WCVB: “Massachusetts Institute of Technology said it is suspending dozens of students who reclaimed a pro-Palestinian encampment on campus. MIT's chancellor sent an email to students Tuesday afternoon saying after the protest on Monday, dozens of interim suspensions and referrals to the committee on discipline are now in process.”

THE GOLD STANDARD OF POLICY REPORTING & INTELLIGENCE: POLITICO has more than 500 journalists delivering unrivaled reporting and illuminating the policy and regulatory landscape for those who need to know what’s next. Throughout the election and the legislative and regulatory pushes that will follow, POLITICO Pro is indispensable to those who need to make informed decisions fast. The Pro platform dives deeper into critical and quickly evolving sectors and industries—finance, defense, technology, healthcare, energy—equipping policymakers and those who shape legislation and regulation with essential news and intelligence from the world’s best politics and policy journalists.

Our newsroom is deeper, more experienced, and better sourced than any other—with teams embedded in the world’s most active legislative and regulatory power centers. From Brussels to Washington, New York to London, Sacramento to Paris, we bring subscribers inside the conversations that determine policy outcomes and the future of industries, providing insight that cannot be found anywhere else. Get the premier news and policy intelligence service, SUBSCRIBE TO POLITICO PRO TODAY .

YAHD SIGNS AND BUMPAH STICKAHS

— “John Deaton, Warren’s Republican challenger, visits border to ‘truly understand’ immigration,” by Chris Van Buskirk, Boston Herald: “John Deaton, a Republican U.S. Senate candidate, took a long flight south this week to visit the United States-Mexico border to ‘truly understand’ the root causes of immigration issues that have sparked contentious debates in both Washington and Massachusetts.”

FILING IN — Local clerks still have a few weeks to finish checking signatures, but here’s what we learned when Tuesday’s deadline to file nomination papers to municipal election officials came and went.

— Rep. Ayanna Pressley is the only member of the federal delegation who’s yet to qualify for the ballot, the secretary of state’s office said Tuesday.

— Sen. Elizabeth Warren's main Republican rivals, John Deaton and Ian Cain , both said they have enough signatures to get on the ballot (they need 10,000 certified), but it’s not official yet.

— Robert Burke, a Republican running against Rep. Stephen Lynch , has qualified for the ballot, per the secretary of state’s office.

— A potential pro-Palestinian primary challenger to House Democratic Whip Katherine Clark , who’s backed by the powerful American Israel Public Affairs Committee, said he failed to gather enough signatures. He was the only person to pull papers to run against the high-ranking Democrat.

— No one has pulled papers to run against Rep. Lori Trahan , though non-party candidates still can.

PLANES, TRAINS AND AUTOMOBILES

NOT-SO CRUEL SUMNER — This summer’s Sumner Tunnel shutdown is being slashed from two months to one. The tunnel will close Friday, July 5, for work on the road deck and is expected to reopen “no later than” Monday, Aug. 5, MassDOT officials said Tuesday. Rejoice! But not too much — the weekend closures will continue.

A message from NextEra Energy:

DAY IN COURT

— “SJC ponders environmental justice, East Boston substation,” by Bruce Mohl, CommonWealth Beacon: “A proposed electricity substation in East Boston has become a test case for how much energy infrastructure an environmental justice community should be forced to accept. ... At a hearing on the case Monday before the Supreme Judicial Court, the justices asked tough questions of both sides, but the prevailing sentiment was that a community’s environmental burden doesn’t necessarily trump the community’s need for energy.”

— “Supreme Court to rule on city's homeless encampment ban. What will it mean for Worcester?,” by Marco Cartolano, Telegram & Gazette: “With the U.S. Supreme Court expected to make a decision this summer over whether local governments may ticket homeless people sleeping on public property, some Worcester-area service providers for the homeless fear an outcome that could further criminalize homelessness.”

— "Stormy spoke. Trump fumed. Jurors were captivated — but also cringed," by Josh Gerstein, POLITICO.

FROM THE 413

PLOT TWIST — The third-place finisher in the Lenox School Committee race plans to decline the position to help her daughter start a scuba diving-instruction business in Hawaii, the Berkshire Eagle’s Clarence Fanto reports . Rebecca Miller had already withdrawn from the race, but she did so four days after ballots were printed. Town officials will be able to appoint someone to the seat — potentially incumbent Oren Cass , the former Mitt Romney adviser who Miller edged out for the last open seat.

— “Dozens arrested after UMass Amherst protestors once again set up encampment,” by Dusty Christensen and Sam Hudzik, New England Public Media: “Police clashed with and arrested dozens of protesters on the University of Massachusetts Amherst campus Tuesday night, after students reestablished an encampment in solidarity with Palestine. The Daily Collegian, tracking the protest into the early morning, reported at least 64 arrests. Those arrested included faculty, according to the UMass Students for Justice in Palestine. The group also posted video showing protesters pushed down and restrained by police.”

DON’T MISS POLITICO’S ENERGY SUMMIT : The future of energy faces a crossroads in 2024 as policymakers and industry leaders shape new rules, investments and technologies. Join POLITICO’s Energy Summit on June 5 as we convene top voices to examine the shifting global policy environment in a year of major elections in the U.S. and around the world. POLITICO will examine how governments are writing and rewriting new rules for the energy future and America’s own role as a major exporter. REGISTER HERE .

THE LOCAL ANGLE

A surprising history of how a bill became the MBTA Communities law

excerpt:

When then-Gov. Charlie Baker signed the bill in January 2021, much of the focus landed on a different zoning measure: a lower, simple-majority threshold for towns to adopt some zoning changes. That's in no small part because Baker had been trying to get that particular measure passed for years. In February 2021, Baker’s housing and economic development secretary Mike Kennealy called that change “the most significant zoning reform in decades.”

The zoning requirements — and the grant eligibility rules — had emerged in a late-night, last-minute compromise between House and Senate lawmakers before the curtain officially closed on their 2019-2020 legislative session. Before Baker signed it, the Massachusetts Municipal Association urged the governor to veto the MBTA Communities language, arguing it would "override local-decision making” and penalize communities that fail to meet the mandate.

But Baker wasn’t swayed. He told lawmakers that while he didn’t propose the section, he would still sign it into law because it gave his administration “considerable discretion to determine compliance.”

And now, three years later, Gov. Maura Healey and her administration are the ones tasked with determining the cost of non-compliance.

WGBH

— “Voters reject MBTA zoning changes at fiery Town Meeting,” by Marblehead Current staff: “Applause erupted as Town Meeting rejected Article 36 — the controversial zoning proposal aimed at complying with a state mandate — on a 377-410 vote. In doing so, Marblehead joined Wakefield, Milton, Marshfield, Wrentham and Holden in pushing back against the state’s Dec. 31 deadline to adopt zoning changes under the MBTA Communities Act.”

— “Bankrupt Steward hopes to sell Massachusetts hospitals by end of June,” by Aaron Pressman and Robert Weisman, The Boston Globe: “Bankrupt hospital chain Steward Health Care on Tuesday said it had agreed under pressure from its lenders to sell off all of its hospitals in Massachusetts and six other states by the end of June. But the company’s own lawyer warned a federal judge that deadline may be unfeasible.”

— “MIT quietly ends diversity statements in hiring as leaders try to manage protests on campus,” by WBUR.

— “Concord schools hit with cyber attack, officials say,” by Travis Andersen, The Boston Globe.

— “Billerica Town Manager John Curran takes sudden leave of absence,” by Peter Currier, The Lowell Sun.

— “DCU Center to keep name for three more years in $1.8 million deal,” by Mike Elfland, Telegram & Gazette.

A message from NextEra Energy:

Leading America with safe, reliable and affordable clean energy

The need for reliable, low-cost clean energy in America has never been greater – and NextEra Energy is ready to deliver it.

Millions of Americans depend on us to power their lives in good weather and bad. By investing in resilient, storm-tested infrastructure and harnessing innovative technology, we’re keeping reliability high and bills low.

We are also working toward securing America’s energy independence and security with clean and emission-free low-cost energy. We’ve virtually eliminated foreign oil from our power plants and, today, generate more electricity from the wind and sun than anyone in the world – while continuing lead in battery storage technology.

HEARD ‘ROUND THE BUBBLAH

TRANSITIONS — Elya Taichman is now a senior adviser in the State Department’s Bureau of Legislative Affairs. He previously was legislative director for Rep. Lori Trahan (D-Mass.), and is a Michelle Lujan Grisham alum.

HAPPY BIRTHDAY — to Francy Wade, Dana Sprole, Janis Lippman, Tom McCuin, Dave Lam, David Brade, Robert Horvitz and Kelley Greenman.

Want to make an impact? POLITICO Massachusetts has a variety of solutions available for partners looking to reach and activate the most influential people in the Bay State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness among this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com .

Follow us on Twitter