Week Ending July 1, 2011
House and Senate Pass FY2012 Budget, Send Bill to Governor’s Desk
On Thursday evening the six-member conference committee that is tasked with reconciling the House and Senate versions of the FY2012 $30.6 billion state budget filed their compromise bill with the House clerk’s office. The total budget amount is the largest in state history and was crafted without the assistance of $1.5 billion in federal stimulus funds the state accepted last fiscal year.
The FY2012 budget reverses a $65 million local aid cut that municipalities had anticipated by giving any unspent funds left over at the end of the current fiscal year back to the cities and towns. In addition, the budget makes major revisions to how municipalities negotiate and share health care costs, overhauls the state’s indignant counsel system, and anticipates large reductions in state health care spending. As a result of the FY2012 budget, $584 million will remain in the Commonwealth’s rainy day fund.
The House and Senate passed the budget this afternoon sending it to the Governor for his consideration. Under the Massachusetts Constitution, the Governor is granted 10 days to review a bill after the Legislature passes a bill and sends it to him for consideration. On Monday of this week, the Legislature passed a $1.25 billion ten day budget to fulfill state spending starting July 1st.
Municipal Health Reform Included in FY2012 Budget
While the House and Senate differed significantly on the issue of municipal health care reform, the compromise bill filed would allow municipalities to enact plan design changes to employee health care coverage following a 30-day bargaining window. It would also require that 25% of the savings that municipalities realize be redirected back to employees. Municipal health reform was the major sticking point in House and Senate budget negotiations.
Home Foreclosures Decrease Sharply in May
The Warren Group, which monitors home sales in the state, said initiated and completed home foreclosures in May were down 65% over the year, a 58% drop compared to May 2010. This is the first month since the beginning of the year that the number of foreclosure petitions (454) is below 500 for the year. Vincent Valvo of Banker and Tradesman magazine called the large decline in completed foreclosures encouraging, although he warned that delayed foreclosures may be masking the reality of the market.
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
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