Senate lawmakers superior a Gov. Maura Healey proposal Thursday that may leverage the curiosity off Massachusetts’ huge wet fund to pay down the state’s debt and chase federal grants.
Beacon Hill Democrats have argued having cash in hand to match federal grant {dollars} will give Massachusetts a aggressive edge over different states pursuing the identical alternatives at a time when billions can be found.
Senate funds author Sen. Michael Rodrigues stated having a pool of funds available “will signal to the federal government that the commonwealth is willing and desires to partners on these projects.”
“By creating a dedicated pool of funds, the commonwealth can leverage this money to help unlock some of the $17 billion available in once-in-a-generation federal funding for investments in transportation, housing, climate, economic development and technology,” he stated.
The invoice the Senate handed on a 39-0 vote would enable Administration and Finance Secretary Matthew Gorzkowicz to switch curiosity earned on the $8 billion wet fund into a brand new account for the aim of paying money owed or supply up matching funds for federal grants.
Healey filed a model of the proposal in October, and argued on the time that the concept is “fiscally responsible” and one thing “we need to do.”
In a press release Thursday, Healey stated she was grateful to the Senate “for unanimously advancing this legislation that will strengthen Massachusetts’ ability to compete for federal funding that we can bring home to support critical projects in our cities and towns.”
The Healey administration beforehand stated the curiosity on the wet account, or stabilization fund, is predicted to generate about $250 million a 12 months.
The governor proposed combining earnings over the following three years with $50 million in income from a state surtax on incomes over $1 million to go after federal alternatives and assist municipal matching grants.
The invoice the Senate handed largely hues to what Healey filed final 12 months.
It carves out $750 million for matching federal grant {dollars}, $50 million for matching funds for native and regional authorities initiatives in search of federal funds, and $12 million for technical help to municipalities making use of for federal alternatives.
Rodrigues stated the Senate included minor variations, and their model is “more restrictive” than what Healey initially proposed. He stated the Senate permits using curiosity for federal match till 2026, when a federal infrastructure invoice “is done”
“Beyond that, if the stabilization fund remains healthy, i.e. more than 10% of our general revenue, and we have not dipped into it the year prior, we can continue to use that interest to pay off unfunded pension liabilities,” he instructed reporters earlier in th day.
Senate Minority Leader Bruce Tarr stated Massachusetts is getting into a second the place lawmakers must be “extremely cautious and navigate carefully” as income collections for fiscal 12 months 2024 are anticipated to return in $1 billion under unique expectations.
The Gloucester Republican stated it might “be a mistake” to not make some funds out there to leverage federal grant alternatives. But he stated the “historic” sum of money within the stabilization fund provides lawmakers confidence when getting into a difficult fiscal scenario.
“It’s our responsibility and our obligation to ensure that the stabilization fund be as healthy as it can possibly be. And not only does it remain at $8 billion dollars, but we do everything in our power to continue to grow it,” he stated.
Source: www.bostonherald.com”