Category Archives: Information

Week Ending August 27, 2010

Governor Patrick, Senate President Murray and House Speaker DeLeo met last week to discuss how to allocate into the state budget the $450 million in Medicare reimbursement authorized for Massachusetts by the U.S. Congress earlier in the month. However, they did not make any announcement of a path forward.

Speculation has been rampant about whether the Legislature would convene in a special formal session this year or not to allocate the funding.  If they did reconvene, the Legislature could potentially take action on other legislation such as the expanded gaming bill.  In response to this debate, Speaker DeLeo said this week that a special formal session to take up the gaming bill is “not an option” mainly because Senate President Murray does not have enough votes to call a special session. Further, DeLeo said the $450 million in Medicaid funds could be appropriated in an informal session and does not necessarily require a formal session.

Complicating budget matters further, the office of Administration and Finance announced on Thursday that Massachusetts is already $300 million short in its Medicaid account and the deficit could be as much as $500 million below appropriations for the state’s Medicaid program. Whether or not part of the $450 million in federal funding will be used to help close that deficit remains under consideration by the Administration and the Legislature.

As part of the US House’s vote in mid-August, Massachusetts will also receive $204 million in education grant money. According to the Patrick Administration, the earmarks are as follows: $10.2 million for Boston, $5.2 million for Springfield, $3.1 million to Lawrence and $1.9 million to Worcester. Smaller amounts will be designated for local and regional school districts based on the state’s funding formula. Massachusetts was also selected this week as a winner of a share of $4.35 billion in education funds as part of the federal “Race to the Top” competition. As part of this program, the state’s school districts will be awarded $125 million for teacher training and evaluation, which they could receive as early as October.

The seasonally adjusted unemployment figures were released on Tuesday and provide an addendum to last week’s news that Massachusetts employers added more jobs in July than in any month over the past two decades. According to the new numbers, the statewide seasonally adjusted unemployment rate increased from 8.8% to 9.1% in July. The new statistics show that in the state’s 22 labor market areas, the jobless rate was up in 18 of these areas. Worcester, Fitchburg, Haverhill, Barnstable and Springfield all lost jobs compared to last year. Springfield was especially hard hit, with 8,900 fewer jobs in July compared to one year earlier. Boston, Cambridge and Quincy added a total of 10,400 jobs in the past year.

The Warren Group and the Massachusetts Association of Realtors both released reports this week which showed a dramatic decrease in single family home and condo sales in July. July had the lowest home sales volume of any month in the last 20 years and also saw the first drop for home sales in the last twelve months. Tim Warren, CEO of the Warren Group attributes the large drop in sales to the expiration of the homebuyer tax credit and said it could be a temporary dip or a potential sign of a declining market. Last month the median sale price for a single family home was still significantly higher than one year prior: $333,000, up from $310,000 in July, 2009.

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

Week Ending August 20, 2010

State tax revenue figures from the first month and a half of the fiscal
year were announced this week, and Massachusetts collected 6.9% more
over the comparable period from FY2010. Through July and the first half
of August, the Department of Revenue collected $611 million, an increase
of $24 million from 2009. The higher revenue figures can be attributed
in part to a $42 million increase in month-to-date withholding tax
collections. Revenue Commissioner Navjeet Bal also made clear that the
July and August numbers do not include the potential increase in
economic activity, along with decrease in tax revenue, attributed to the
sales tax holiday that took place last weekend.

The first gubernatorial issues debate, organized by MassINC was held at
Suffolk University on Monday. The four candidates participating in the
debate were Republican Charles Baker, Treasurer and Independent Tim
Cahill, Democratic Governor Deval Patrick and Dr. Jill Stein of the
Green-Rainbow party. Billed as an in-depth single issue debate on Cape
Wind, the candidates were asked to give a two minute summary of where
they stand on Cape Wind. Of the four candidates, only Governor Patrick
was in support of the Cape Wind project. Patrick said he was in favor of
Cape Wind, and strongly so because it represented an emissions free,
reliable, locally generated renewable energy source. Charlie Baker made
clear his opposition to Cape Wind because of the already high
electricity costs borne by ratepayers. Cahill said Cape Wind was the
wrong approach because out of state companies will receive the vast
majority of Massachusetts tax subsidies. Cahill also made clear his
support for on-shore wind development, saying that on-shore wind is much
more efficient use of resources. In their closing statements, Charles
Baker said that Cape Wind will raise utility rates, Tim Cahill called
Cape Wind the “wrong project at the wrong time” and Patrick pointed to
the reliability of a long term power contract with Cape Wind and its
effect on stabilizing energy prices. The Governor’s tentative support of
nuclear power also made headlines following the debate.

Massachusetts employers added more jobs in July than in any month over
the past two decades. According to the Office of Labor and Workforce
Development, employers in the state added 13,200 jobs in July. This
total reflects the 19,200 jobs that were added in the private sector,
minus the 6,000 government jobs lost last month. The government job
losses resulted from the temporary Census positions, which had driven up
the number of state jobs earlier this year. Governor Patrick was quick
to claim success from Massachusetts’s investment in biotech, clean
energy and film production. His opponents, Republican Charles Baker and
Independent Tim Cahill, noted the significant job losses since Patrick
took office and the overall number of lost jobs in the past year.
Despite these gains, the unemployment level in Massachusetts for July
remained at 9%, unchanged from last month.

Legislative action remained light this week as the Legislature continued
holding informal sessions with few attendees who act on
non-controversial legislation.

John Nunnari

Week Ending August 6, 2010

After much contentious debate in the Legislature, and attempts at reaching a compromise between the House, Senate and Governor on the number of resort casinos and slot facilities to be licensed under an expanded gambling bill, the Legislature sent Governor Patrick an expanded gambling bill in the final hour of legislative sessions on Saturday that called for three resort-style casinos and two slot facilities, with the licenses for the two slot facilities limited to bidding by Massachusetts’s two racetracks and two former dog tracks. The bill passed the House by a vote of 115-36 and the Senate with a vote of 25-15. Supporters of the bill said it would generate 15,000 jobs and roughly $400 million for the Massachusetts economy.  The final Senate tally was two votes short of the 2/3 majority needed to override any potential gubernatorial veto.

The Governor, who has maintained his opposition to slot machine parlors throughout the expanded gaming debate, said on Thursday of last week that he would compromise with the Legislature and support one slot parlor contingent on the Legislature passing a number of his other legislative priorities. When the final bill from the Legislature allowed for two slot facilities, Governor Patrick almost immediately signaled his opposition.  On Monday the Governor sent the bill back to the Legislature with an amendment that would not allow for any slot facilities.  Since the Legislature had ended formal sessions at midnight on Saturday, they are unable to take the necessary procedural steps to accept the Governor’s amendment, or further amend the bill, so the bill remains in limbo – with no parts of it going into law. In order to do so, the Legislature will need to convene a special legislative session. The prospect of this happening is slim as Senate President Murray has already said she does not think she has the necessary 2/3 vote to take up business in a special session.

In addition to the gambling bill, the House and Senate sent the Governor a CORI reform bill, an economic development bill and a health care reform bill designed to ease small business health insurance premiums. The criminal record information systems legislation restricts public access to criminal record files and grants certain drug offenders parole eligibility before serving mandatory minimums. The economic development legislation establishes a sales tax holiday in August, consolidates economic development agencies and sets up tax breaks for startup businesses. The Governor signed the economic development bill yesterday and is scheduled to sign the CORI bill today.

The U.S. Senate this week passed a state aid bill that would authorize one-time Medicare reimbursement funds to states for six months and provide additional stimulus funding to states. Under this bill, Massachusetts would receive $655 million in Medicaid funding and $205 million in education funding. In clearing the Senate 61-38, the bill received support from two Republicans, the two Senators from Maine, Susan Collins and Olympia Snow. The bill is expected to be taken up by the US House of Representatives as early as next week. In order for Massachusetts to take advantage of these funds, the Legislature will have to pass a supplemental budget.  At this point, legislative leaders are unsure if that action will require a roll call vote; thus, necessitating convening a special legislative session.  If this is the case, the opportunity for revisiting the expanded gaming bill and the Governor’s amendment may exist.

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

Boston Society of Architects/AIA
The Architects Building
52 Broad Street, Boston MA 02109-4301
www.architects.org

See the current Massachusetts Municipal Association’s summary of state actions, prepared for municipal officials – http://wp.me/pwOp1-3a

Week Ending July 30, 2010

The formal session for the two-year legislative session in Massachusetts ends tomorrow, July 31^st. With less than 33 hours before the midnight deadline, activity at the State House has been frenzied as legislators attempt to pass their legislative priorities before the end of the session. The House and Senate met in formal sessions on Tuesday, Wednesday, Thursday and today, and both will meet tomorrow. Many major bills are still in the works, including three conference committees trying to reach a compromise on the issues of: expanded gambling in the state, small business health insurance reform, and economic development. Conference committee reports must be filed with the Clerk by 8pm on Friday night in order to be considered by the Legislature on the last day of session.

On Thursday evening, the House and Senate reached a tentative agreement on the CORI reform legislation, a bill that would restrict public access to criminal record files after a Senate’s provision to offer early parole to non-violent drug offenders was removed.  They did not however reach a final agreement as a conference committee report was not filed. Also on Thursday, a compromise bill was filed that would streamline wind development in the state by consolidating the local and state approval process.  The House began debate on this compromise agreement Friday afternoon.

The bill that has garnered the most attention and still remains unresolved is the gambling bill. A very tentative agreement between House and Senate leaders was rumored on Friday. The rumored compromise bill would allow three resort style casinos in three geographic zones. It would also allow two slot parlors in-state, but restrict bidding on those two licenses to the four existing racetracks in the state. A final compromise bill needs to be filed with the Clerk before 8pm this evening to allow for a Saturday vote.

Governor Deval Patrick, after meeting with Senate President Murray and House Speaker DeLeo on Thursday, indicated that he would approve a single slot machine parlor as part of an expanded gaming bill. Patrick, who does not support slot machine parlors, said he would support one slot parlor contingent on the Legislature also passing bills on economic development consolidation, CORI reform, wind siting reform, and a health care cost control bill.  It is unknown at this point if, and in what form, a gambling bill will reach Governor Patrick’s desk.  It is also unknown if Governor Patrick will have line item veto authority and could possibly veto just the slot parlors provision and not the entire bill, if he disagreed with the slot parlor language.  This will be dependent on whether the conference committee deems the bill a spending bill or not.  There is also the possibility that Patrick will veto the entire bill if he does not agree with it.

Governor Patrick said earlier in the week that he was frustrated with the Legislature’s pace of action and said other bills should not be held up because the gaming bill has not been finalized yet.  He suggested that the Legislature should stay in session past July 31^st if they have not passed some of their major priorities.  Almost immediately, the Senate President said the Legislature will not stay in session after July 31^st.

According to Rasmussen Reports, a poll released this week shows that Governor Patrick is maintaining his lead over his two closest rivals in the race for Governor. In the most recent poll, Patrick receives 38%, Republican Charlie Baker receives 32% and Independent Tim Cahill receives 17%. The poll has a margin of error of 4.4%. 12% of voters remain undecided in the poll of 500 registered Massachusetts voters.  This 6% lead for Patrick is slightly less than previous polls.  Also announced this week was the next radio debate between the three candidates, which will take place on September 16^th.

John Nunnari, Assoc AIA