Monthly Archives: February 2011

Week Ending January 21, 2011

Governor Patrick held a press conference this afternoon to discuss reforms aimed at helping municipalities deal with the rising costs of providing health insurance to their employees. The Governor announced a health insurance plan design proposal that would require cities and towns to join the Group Insurance Commission (GIC) or a program of similar cost. Patrick said that municipalities would also be required to move eligible retirees into Medicare. According to the Patrick administration, this would save cities and towns an estimated $15-30 million annually. Patrick indicated that the budget he releases next week will reduce local aid by $65 million from FY11, but that he anticipates that the cuts will be offset by efficiencies created in his proposal.

According to a Patrick administration jobs report, Massachusetts lost 2,100 jobs in December while the unemployment rate remained at 8.2%. Prior to this month, the unemployment rate had decreased for two consecutive months. The Executive Office of Labor and Workforce Development announced that accommodation and food services sector lost 4,100 jobs, while the arts community gained 2,500 jobs. The unemployment rate in Massachusetts is still below the national rate of 9.8% and also represents a drop from the Commonwealth’s peak rate of 9.5%.

Yesterday Senate President Therese Murray (D-Plymouth) announced her leadership team and the new Senate Committee chairs for the 2011 session. The most significant appointment was Sen. Stephen Brewer (D-Barre) who was named Chair of the Senate Ways and Means. Sen. Brewer was formerly vice-chair and he will be succeeded by the new vice-chair Senate Sen. Steven Baddour (D-Methuen). Much of Senate President Murray’s leadership team will stay the same: Sen. Fred Berry (D-Peabody) as Majority Leader, Sen. Stan Rosenberg (D-Amherst) as Senate President Pro Tem; Sen. Steven Tolman (D-Brighton) will serve as the new assistant majority leader and Sen. Jack Hart (D-South Boston) will serve as Majority Whip. House Speaker Robert DeLeo (D-Winthrop) has not named the corresponding House Committee chairs but is expected to do so either next week or the following week.

Additional Senate Committee Chairs are listed below:

Chair, Senate Ways and Means: Sen. Stephen Brewer (D-Barre)

Vice Chair, Senate Ways and Means: Senate Sen. Steven Baddour (D-Methuen)

Asst Vice Chair, Senate Ways and Means:  Sen. Jennifer Flanagan (D-Leominster)

Joint Committee on Steering and Policy: Sen. Jennifer Flanagan (D – Leominster)

Senate Committee on Ethics and Rules:  Sen. Fred Berry (D – Peabody)

Joint Committee on Election Laws:  Sen. Barry Finegold (D-Andover)

Joint Committee on Financial Services: Sen. Anthony Petruccelli (D-Boston)

Joint Committee on Tourism, Arts and Cultural Development: Sen. Eileen Donoghue (D-Lowell)

Joint Committee on Labor and Workforce Development: Sen. Daniel Wolf (D-Harwich)

Joint Committee on Telecommunications, Utilities and Energy: Sen. Benjamin Downing (D-Pittsfield)

Joint Committee on Transportation: Sen. Thomas McGee (D-Lynn)

Joint Committee on Education: Sen. Sonia Chang-Diaz (D-Boston)

Joint Committee on Municipalities and Regional Government: Sen. James Welch (D-West Springfield)

Joint Committee on Health Care Financing: Sen. Richard Moore (D-Uxbridge)

Joint Committee on Elder Affairs: Sen. Patricia Jehlen (D-Somerville)

Joint Committee on the Judiciary and the Senate Committee on Bills in Third Reading: Sen. Cynthia Creem (D-Newton)

Joint  Committee on Public Safety: Sen. James Timilty (D – Foxborough)

Joint  Committee on Public Health: Sen. Susan Fargo (D-Lincoln)

Joint Committee on Public Service: Sen. Katherine Clark (D-Melrose)

Joint Committee on Higher Education: Sen. Michael Moore (D-Millbury)

Senate Committee on Redistricting: Sen. Stanley Rosenberg (D-Amherst)

Joint Committee on Veterans and Federal Affairs: Sen. Michael Rush (D-West Roxbury)

Joint Committee on Children, Families and Persons with Disabilities: (Sen. Michael Rodrigues- Westport)

Joint Committee on Community Development and Small Business: Sen. Sal DiDomenico (D- Everett)

Joint Committee on Bonding, Capital Expenditures and State Assets: Sen. Brian Joyce (D-Milton)

Joint Committee on Mental Health and Substance Abuse: Sen. John Keenan (D-Quincy)

Joint Committee on Environment, Natural Resources and Agriculture: Sen. Marc Pacheco (D-Taunton)

Joint Committee on Consumer Protection and Professional Licensure: Sen. Thomas Kennedy (D-Brockton)

Joint Committee on State Administration and Regulatory Oversight: Sen. Ken Donnelly (D – Arlington)

Joint Committee on Revenue: Sen. Gale Candaras (D-Wilbraham)

Senate Committee on Post Audit and Oversight: Sen. Mark Montigny (D-New Bedford)

Joint Committee on Housing: Sen. James Eldridge (D-Acton)

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John Nunnari, Assoc AIA
Executive Director, AIA MA
jnunnari@architects.org
617-951-1433 x263
617-951-0845 (fax)

MA Chapter of American Institute of Architects
The Architects Building
52 Broad Street, Boston MA 02109-4301
www.architects.org

Week Ending January 14, 2011

This Saturday marks the deadline for Governor Patrick and the Senate and House Democratic leadership to reach a consensus on the tax revenue collection estimate that will inform the FY2012 budget. The estimate will be used to allocate funds for the upcoming fiscal year that starts on July 1, 2011. Tax revenues for the current fiscal year are $750 million above benchmarks. However, since FY2011 began, the Governor and the Legislature have authorized about $750 million in supplemental spending. Further, it has been estimated that the state is facing a $1.5 – $2 billion budget deficit for FY2012.  According to Senate President Murray, an agreement on tax revenue collection estimates is expected by next week. The Governor will file his FY2012 budget the week after next.

Following up on his speech during the swearing in of new members last Wednesday, Speaker DeLeo elaborated on his legislative priorities in greater detail this week. According to DeLeo, before tackling major spending issues such as health care payment reform and the state budget, the Legislature should take up reforms to the Massachusetts probation and parole systems.   Speaker DeLeo said that in light of recent controversies with the Probation Department and the state’s Parole Board, regaining the public’s trust in these institutions is of paramount importance to the Legislature.

On Thursday, Governor Patrick accepted the resignations of five members of the Massachusetts Parole Board, including the board’s chairman, Mark Conrad. The five members of the board resigned after Dominic Cinelli, who they had all voted to grant parole to in 2008, attempted to rob a bank and murdered a police officer last month. This sparked an investigation into why Cinelli was granted parole in the first place. According to a report conducted by the Undersecretary of Public Safety John Grossman, the Parole Board did not receive complete information prior to granting Cinelli parole. In response to this, Governor Patrick made his intention clear this week to file legislation that would strengthen sentencing guidelines for habitual offenders. This would include a requirement that a third serious felony conviction would mean an offender receives the maximum prison term.

The Associated Industries of Massachusetts (AIM) released the findings of the survey they use to measure business confidence in the state this week.  The survey showed a .3% rise since November, bringing the confidence level to 52.4%. A score of 50 is considered neutral and any rating above 50 signifies generally positive sentiments about business confidence in the state. For the 4^th quarter of 2010, the average reading was 53.3, compared to 47.9 for same period in 2009. If the business confidence in the state stays at its current level, it will be at its highest level since the end of 2007. The index reached its all time low in February 2009.

John Nunnari, Assoc AIA
Executive Director, AIA MA
jnunnari@architects.org
617-951-1433 x263
617-951-0845 (fax)

MA Chapter of American Institute of Architects
The Architects Building
52 Broad Street, Boston MA 02109-4301
www.architects.org

Week Ending December 30, 2010

The Massachusetts House of Representatives passed a $330.1 million spending bill earlier today. The spending bill is in response to unexpected growth in the state’s Medicaid program (MassHealth). In addition to the $194 million allocated for MassHealth, $50 million will be allocated for children’s behavioral health services and $8.5 million for operations at the State Legislature. In terms of the breakdown, $172.8 million will come from the state of Massachusetts while the remaining $157.3 will be paid with federal reimbursements. State tax collections are presently $500 million above projections for the fiscal year, although the sales tax holiday in August resulted in $20 million less in tax revenues. Only a small number of members were on hand to vote for the spending bill and no debate was conducted. The Senate is expected to take up the spending bill later this afternoon.

The blizzard that blanketed Massachusetts with two feet of snow on Sunday and Monday will cost the state $14 million to clean up. According to the Massachusetts Department of Transportation, the total cost for the cleanup through Tuesday of this week was $14.4 million. The bulk of the cost is attributed to keeping almost 4,000 pieces of equipment on the roads during the peak overnight hours. MassDOT said that $2.8 million went to pay for materials such as salt and sand while $650,000 paid for overtime costs to employees. 8,000 residents lost power through mid-morning on Tuesday while another 3,000 did not have power restored until after Tuesday evening. Boston reportedly received 18.2 inches of snow, the 10^th largest snowfall since 1892. MassDOT allocated $59.3 million for snow and ice removal in its fiscal 2011 budget.

John Nunnari, Assoc AIA
Executive Director, AIA MA
jnunnari@architects.org
617-951-1433 x263
617-951-0845 (fax)

MA Chapter of American Institute of Architects
The Architects Building
52 Broad Street, Boston MA 02109-4301
www.architects.org

The U.S. Census bureau confirmed on Tuesday that Massachusetts will lose one of its 10 Congressional seats during the 2012 election cycle. Although the population in the state grew from 6,349,097 to 6,547,629 in the last 10 years, a gain of 3.1%, nationwide 12 Congressional seats will shift to faster growing states in the southern and western parts of the U.S. Beacon Hill lawmakers oversee the redistricting process which lawmakers fear may result in lower levels of federal aid for transportation and education. The Census bureau’s announcement also set off a scramble among Massachusetts Congressional Representatives. The 10 Democratic Congressmen now face the unappealing prospects of retirement, running for another office or a putting up a primary challenge to one of their current colleagues. A number of the US Reps such as Michael Capuano, Stephen Lynch and Ed Markey have been mentioned as potential candidates to run against US Senator Scott Brown in 2012. The loss of the Massachusetts seat is the first time that the size of the Massachusetts Congressional delegation has changed since 1992.

The seasonally adjusted unemployment figures were released this week and showed that the unemployment rate was significantly higher in certain geographic regions in the state. According to the new numbers, the statewide seasonally adjusted unemployment rate increased from 7.6% in October to 8.2% in November. The new statistics show that the jobless rate was up in all 22 of labor market areas. Fall River, Leominster-Fitchburg-Gardner, and Lawrence-Methuen-Salem in particular registered unemployment rates over 10%. The unemployment rate in the Boston, Cambridge and Quincy area was lower, at 7.2%.

On Monday, the Massachusetts Department of Revenue released the tax collection figures for the first half of December.  The state collected $782 million during this period, a $53 million drop from the same period one year earlier. Navjeet Bal, the state revenue commissioner attributed the decrease to a one-time tax settlement of $120 million that Massachusetts received in December 2009. She said that Massachusetts typically collects the majority of its tax revenue for the month during the second half of December.

The Warren Group, which monitors home sales in the state, said single family homes sales in October were down 30% compared to October 2009. This is the fifth straight month that the number of single family homes sales (2,903 in November) decreased measured year-over-year.  Tim Warren, CEO of the Warren Group, said home sales were up in the first half of the year due to a homebuyer tax credit that ended in June. The median price of a single-family home was up 7.3% from last year to $294,000.

John Nunnari, Assoc AIA
Executive Director, AIA MA
jnunnari@architects.org
617-951-1433 x263
617-951-0845 (fax)

MA Chapter of American Institute of Architects
The Architects Building
52 Broad Street, Boston MA 02109-4301
www.architects.org

Week Ending December 17, 2010

On Tuesday, the state’s Secretary of Administration and Finance and members of the House and Senate Ways and Means Committees held their annual consensus revenue hearing – held to examine the state’s economy as the Administration and Legislature prepare their FY2012 annual budget.  Although the state’s tax receipts have exceeded projections for the first half of FY2011, Administration and Finance Secretary Jay Gonzales stated at the hearing that he is expecting a $1.5 billion deficit in the state budget next year. With federal stimulus aid expiring and increasing pressure brought by the state’s subsidized health care system (MassHealth), the Administration expects they will have to fill the $1.5 billion gap.  Additionally, a $700 appropriations shortfall for the Massachusetts pension system could add to the budget gap. Governor Patrick is expected to file his FY2012 budget in January.

As the 2009 – 2010 legislative session nears its end on January 4^th, members of the House who are moving to the Senate, leaving the chamber or were defeated in their campaigns gave their farewell speeches on Thursday. The incoming class in the House is the largest in recent memory with 44 new members.

According to a Patrick administration jobs report, Massachusetts lost 8,600 jobs in November and the unemployment rate in the state rose from 8.1% to 8.2%. Prior to this month, the unemployment rate had decreased for two consecutive months. The Executive Office of Labor and Workforce Development announced the state lost 1,800 information jobs, 1,100 in professional and scientific services and 900 jobs in transportation and utilities jobs. The unemployment rate in Massachusetts is still below the national rate of 9.8% and also represents a drop from the Commonwealth’s peak rate of 9.5%.

John Nunnari, Assoc AIA
Executive Director, AIA MA
jnunnari@architects.org
617-951-1433 x263
617-951-0845 (fax)

MA Chapter of American Institute of Architects
The Architects Building
52 Broad Street, Boston MA 02109-4301
www.architects.org

Week Ending December 3, 2010

On Wednesday, the Massachusetts Department of Revenue released the tax collection figures for the month of November.  The state collected $1.43 billion last month, $101 million above the monthly benchmark. Navjeet Bal, the state revenue commissioner said that tax collections for the first five months of the year are up $698 million, an increase of 10.2% over the same period in FY2010. Despite the good news, the Patrick administration anticipates an additional $500 million in appropriations will be needed this fiscal year, because of the increased use of Medicaid in Massachusetts.

The U.S. Bureau of Labor released job statistics today that showed the national unemployment rate rose an additional .2% to 9.8% in November. For the previous three months, the unemployment rate has held steady at 9.6%. 15 million residents in the US are currently unemployed, with 42% of those classified as long-term unemployed (jobless for 27 months or more).

Legislative leaders met this week to discuss follow-up from the Ware report, which detailed systemic abuse and corruption within the Massachusetts Probation Department. On Tuesday, Kevin Martin, deputy to independent counsel Paul Ware, said that Ware’s report does not accuse any politician of criminal conduct. On Thursday Governor Patrick again reiterated his desire to merge the probation department into his administration, arguing that housing the probation and parole boards under one roof would provide prisoners re-entering society with a smoother transition. The state’s top judges, members of the legislature and independent counsel Paul Ware are opposed to the Governor’s proposal.

Two of Governor Patrick’s top aides announced that they would not stay on for Governor Patrick’s second term. The Governor’s current chief of staff Arthur Bernard will be replaced by incoming chief of staff William “Mo” Cowan. Since Cowan was formerly the chief legal counsel in the Governor’s office, he will be replaced by Mark Reilly, a deputy chief legal counsel in the administration. The Governor’s Energy and Environment Secretary Ian Bowles also announced that he will leave the Patrick administration by the end of December. Secretary Bowles will be succeeded by Rick Sullivan, the current commissioner of the Department of Conservation and Recreation.

The Public Policy Institute released a poll this week that showed US Senator Scott Brown with a significant lead over his potential challengers. According to the Public Policy poll, Brown would beat US Representative Mike Capuano 52% to 36%, US Representative Barney Frank 52% to 39%, Victoria Kennedy, wife of the late Senator Ted Kennedy, 48%-41% and UMass Lowell Chancellor Martin Meehan 52% to 36%. The poll was conducted between November 29^th and December 1st and has a margin of error of 4.4%. Senator Brown is up for re-election in 2012, although no Democrat has announced an intention to run.

John Nunnari, Assoc AIA
Executive Director, AIA MA
jnunnari@architects.org
617-951-1433 x263
617-951-0845 (fax)

MA Chapter of American Institute of Architects
The Architects Building
52 Broad Street, Boston MA 02109-4301
www.architects.org