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Good Wednesday morning.
Can you have too much in savings?
Senate leadership put forward a $49.68 billion annual state budget proposal for fiscal year 2023 that would boost the state's "rainy day fund" to $6.74 billion. In all likelihood that value will be larger given the expectation that Massachusetts will end the year with more in reserves than the $5.9 billion anticipated before tax revenues continued to pour in at a breakneck pace.
Not too long ago, state legislators committed themselves to rebuilding the stabilization account after Gov. Deval Patrick and the Legislature were forced to lean on reserves during the Great Recession. Policymakers held out what seemed like a lofty goal at the time - enough in reserves to cover 10 percent of the state budget.
Based on the math done by the Massachusetts Taxpayers Foundation, the Senate budget would push the balance in reserves to 13.5 percent of line-item spending - even higher than the House version.
MTF Vice President Doug Howgate worked in the Legislature during those lean years, and remembers MTF advocating for the 10 percent goal: "I don't think it was something we were overly sanguine that we would meet in the next few years," Howgate said told MASSterList Tuesday.
As my colleague Katie Lannan reports, Senate Ways and Means Chairman Michael Rodrigues continued to sound a note of caution Tuesday despite state savings exceeding even the most ambitious targets a decade ago: "We all know these economies are cyclical and we're riding a very good wave right now of revenues, but there are certainly storm clouds on the horizon and every economist that we speak to warned of, you know, the r-word in the next calendar year."
But the idea that Massachusetts might one day not need to keep saving has been contemplated before. A section of state law stipulates that when the fund balance hits "15 percent of the budgeted revenues and other financial resources pertaining to the budgeted funds....the amounts so in excess shall be transferred to the Tax Reduction Fund..." That fund calls for a temporary increase in the personal tax deduction, based on how much money is available.
Massachusetts is not alone. A new analysis released Tuesday by The Pew Charitable Trusts found that during fiscal year 2021 state's grew their rainy day funds by a collective total of $37.7 billion to a record high of $114.6 billion. Even the 14 states that relied on reserves in fiscal year 2020 as the pandemic took hold have been able to replenish those savings in part or in full, according to Pew. Wyoming, North Dakota, Alaska and New Mexico have the largest reserve accounts as a share of operating expenses.
Pew reports that the "rainy day fund" in Massachusetts has been growing steadily as a percentage of budgeted expenditures since fiscal year 2017, climbing from 4.3 percent to 12.5 percent in fiscal 2021.
Pew analysts project that stabilization fund balance increases are expected to slow as states close out fiscal 2022 and plan to spend down some of the larger than expected increases. While that is not the case in Massachusetts, the wealth of riches has led to calls, most notably from Gov. Charlie Baker, for tax relief.
After April tax collections beat expectations by roughly $2 billion for just that month, Senate President Karen Spilka has also jumped on board and directed some on her team to explore tax relief for consideration after debate on the budget this month.
"It's a very very health stabilization fund balance and one of the reasons we've been talking about the importance of providing tax relief, as proposed by the governor, and think through other things on the fiscal to-do list," Howgate said.
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10 a.m. | Gov. Charlie Baker, Boston Mayor Michelle Wu, U.S. Attorney Rachael Rollins and others attend a memorial service and celebration honoring philanthropist and civic leader Jerry Rappaport, who died late last year at age 94.
10 a.m. | Raise Up Massachusetts formally launches its ballot campaign for the proposed 4 percent surtax on annual household income above $1 million in a virtual statewide kickoff with educators, workers, small business owners, parents, faith leaders, municipal officials, drivers and transit riders, and other advocates.
10 a.m. | U.S. Senate Committee on Foreign Relations holds a hearing to consider a number of President Biden's nominations including Massachusetts' Alan Leventhal to serve as U.S. ambassador to Denmark.
11 a.m. | Voting reform advocates plan to visit lawmakers' offices to ask the Legislature to allow prospective voters to both register and cast a ballot on Election Day.
6 p.m. | The Boston Globe and the Asian American Journalists Association partner for a conversation on the simultaneous increase in AAPI representation and anti-Asian hate crimes. Moderated by the Globe's Shirley Leung, the panel features Ryan Doan-Nguyen, lead organizer of Stop Asian Hate, Tiffany Chu, chief of staff to Boston Mayor Michelle Wu, and actor Lawrence Chau.
7:30 p.m. | Republican gubernatorial candidate Geoff Diehl and lieutenant governor candidate Leah Cole Allen hold telephone town hall.
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More on the Senate's budget plan
The Senate's budget isn't all about socking away money for the eventual economic downturn. The spending plan invests heavily in early education and local aid, among other priorities. SHNS's Katie Lannan reports that the bill would double the increase next year in unrestricted local aid from what was proposed by both Gov. Baker and the House, a total of $63.1 million in new money.
"I think if I had words to describe this budget it would be 'inclusiveness' and 'sharing,'" Senate Ways and Means Chairman Michael Rodrigues said.
SHNS's Colin A. Young writes that municipal leaders were "very excited" by the proposed 5.4 percent increase in unrestricted local aid, but also urged Lt. Gov. Karyn Polito during a meeting to keep an eye on school transportation costs, which are rising and putting pressure on local budgets.
But like the House, the Senate did not include any tax relief in its annual spending plan, with leaders saying that debate will come in the "near future," the Globe's Matt Stout reported.
Senators have until Friday to file amendments, and Senate Minority Leader Bruce Tarr has signaled that's its the intention of the GOP caucus to push for targeted tax relief during the debate, though it's unlikely to go anywhere at this time.
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All weather, or all natural? The debate over turf fields
Grass or turf? Depends on your perspective. While turf fields, if a community can afford them, are more resilient in the harsh New England winters and rainy springs, allowing more youth athletes to get on the field, not everyone is ready to give up on grass. GBH News's Liz Neisloss looks at how different cities and towns have approached the question, including a project in Malden where neighborhood resistance has sprung up. In addition to wanting to preserve green space, turf opponents worry about environmental and health impacts of chemicals that have been traced to the synthetic fields.
GBH News
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New park planned for heart of Seaport
Speaking of grass, the Globe's Catherine Carlock reports that the developer of the final phase of Seaport Square in South Boston - WS Development - has filed new plans to replace a planned three-story, 30,000 square-foot building with open space. But that also means less room for housing. Carlock has more on the trade-offs in the new vision for the site.
The Boston Globe
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Chang-Diaz confident of convention success
She trails in both the polls and the money race. But the first thing she must do is qualify for the ballot. And on that front, Democratic gubernatorial hopeful Sen. Sonia Chang-Diaz said she "feels solid" about earning at least the 15 percent of delegates she will need at next month's party convention. “Even in this insider environment, we found that the vast majority of delegates were undecided, which is good for us,” Chang-Díaz said during an interview on GBH's Boston Public Radio Tuesday. The Globe's Samantha J. Gross has more from the interview and what Chang-Diaz has been up to trying to gain ground on Attorney General Maura Healey.
The Boston Globe
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Legislature prepares for post-Roe Massachusetts
Returning to the Senate budget one more time, Democratic leaders in that chamber have proposed $2 million for non-profits that help women access abortions. It would be a new line-item in the state budget, and exceeds the $500,000 the House put in its plan for the same purpose. With advocates bracing for the Supreme Court to strike down Roe v. Wade, CommonWealth Magazine's Bruce Mohl looks at what the fight for access will look like in a state like Massachusetts where abortion will remain legal regardless of how the court rules.
CommonWealth Magazine
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Healey pressed to back new courthouse for Hampden County
Thanks to her day job, Attorney General Maura Healey had to defend the state in the lawsuit brought against the state over working conditions in the Roderick Ireland Courthouse in Springfield. But now that the case has been settled, plaintiff and Hampden Register of Deeds Cheryl Coakley-Rivera is calling on Healey, the candidate for governor, to back the construction of a new courthouse in the county. The Springfield Republican's Jim Kinney reports that as of now Healey is only willing to support a feasibility study.
Springfield Republican
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Four western counties see spike in chronic homelessness
Chronic homeless is on the rise in western Massachusetts, and it's no secret why, the Berkshire Eagle's Greta Jochem reports. The pandemic, of course, took its tool, but the lack of housing and affordable housing is making finding stable shelter hard for families and individuals living on the edge.
The Berkshire Eagle
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Northampton schools bring masks back after COVID-19 case surge
Students in Northampton public schools will be required to wear masks again for the next two weeks as the district deals with a surge in COVID-19 cases. The Daily Hampshire Gazette’s Brian Steele reports Superintendent John Provost made the decision after meeting with his health advisory committee and that the order was immediately met with pushback from a local anti-masking group that says the order should be a recommendation instead. COVID-19 cases are back on the upswing, and Steele reports that from last Wednesday through Friday the number of cases in district schools detected through its pool testing program jumped from 64 to 139.
Daily Hampshire Gazette
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Finned summer tourists are starting to arrive
Will it ever be ever be safe to go back in the water? You're probably not even thinking about swimming in the ocean waters off Cape Cod yet, but the Herald's Rick Sobey reports that a 600-pound great white named Andromache has already arrived for the summer, detected off of Martha’s Vineyard.
Boston Herald
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Aid-in dying supporters press their cause
As we reported yesterday, new polling on the issue of allowing terminally ill residents to be prescribed life-ending medication has given advocates hope that lawmakers might finally take up their bill 10 years after a similar measured failed narrowly at the ballot box. GBH News's Sarah Betancourt has more on the push for a vote from an event yesterday that drew a host of supportive legislators.
GBH News
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No retraction: Judge sides with Warren in dispute over COVID book
A federal judge in Seattle has ruled that U.S. Sen. Elizabeth Warren won’t have to retract a letter she wrote slamming a book that called the coronavirus pandemic into question and suggesting that companies that promoted the work could face legal liability. Gene Johnson of the Associated Press reports that the publisher of the book – co-written by Robert F. Kennedy Jr.--had asked the court to order Warren to retract her original letter and ban her from making further comments.
Associated Press
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Complaints against police going online
An online database of complaints against law enforcement will go live to the public later this month, reports WBUR's Grace Ferguson. The database was required as part of the 2020 policing reform law passed in the wake of George Floyd's killing, but Ferguson reports that the data set is incomplete with at least 12 agencies yet to submit their information and some providing reports for only the last few years.
WBUR
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Two cases of child hepatitis under investigation
The Globe's Jessica Bartlett reports that Massachusetts is investigating it's first two cases pediatric hepatitis of unknown origin since the Centers for Disease Control and Prevention issued a nationwide health alert on April 21.
The Boston Globe
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Montague voters get the scoop – illegally
The Montague Board of Health has recalled a notice it sent residents reminding them of the importance of picking up after their dogs after realizing it included the name of a board member who is a candidate for reelection. The Recorder’s Julian Medoza reports a local journalist was the first to confirm the message violated rules set forth by the state’s Office of Campaign and Political Finance.
Greenfield Recorder
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Latinx communities lag other groups in opportunities
The state's Latinx community trails other groups when it comes to economic, educational, and health outcomes, according to a report released by Boston Indicators, UMass Boston’s Mauricio Gastón Institute for Latino Community Development and Public Policy, and the Latino Equity Fund. The Globe Tiana Woodard writes that the report recommends that the state fill the gap with job training, homebuyer assistance programs, and economic assistance to Latino-owned businesses.
The Boston Globe
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Creator of MBTA graphic dipping into NFT market
Are you an MBTA enthusiast and into NFTs? Do you know what an NFT is? If the answer to those questions is yes, or even if it's no, GBH's Morning Edition team may have an opportunity for you. They spoke to the creator of an animated NFT depicting the MBTA system through the years, and it could be yours.
GBH News
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