Putting up some cash will assist the state make more cash, apparently.
House lawmakers held a listening to on Tuesday over a plan to leverage the curiosity made off the state’s well-stuffed “Rainy Day” fund towards makes an attempt to compete for billions in federal grant cash, once they discovered their window of alternative gained’t stay open ceaselessly.
An Act to supply competitiveness and infrastructure funding in Massachusetts will give the state an edge when the federal authorities decides the place to dole funds already approved underneath federal regulation, the Committee on Federal Stimulus and Census Oversight discovered.
“With over $17 billion in federal grants out there for us to compete for and win, we have to be aggressive. We know other states will go after the money if we don’t,” Administration and Finance Secretary Matthew Gorzkowicz informed the committee.
Under the proposal, the state might use as much as $750 million in curiosity made on the Commonwealth Stabilization Fund because the matching funds required to ensure that municipalities or different organizations to go after obtainable grants.
The state Senate handed a model of the invoice earlier this 12 months, after Gov. Maura Healey floated the thought final October.
The Stabilization fund is flush with money at current — holding round $8.2 billion — and solely California and Texas maintain extra money underneath their mattresses, in keeping with Phineas Baxandall of the Massachusetts Budget and Policy Center. Offering up the curiosity made on that cash whereas we compete towards the opposite states is a matter of “financial prudence,” Baxandall stated. The invoice wouldn’t shrink the steadiness of the Rainy Day fund, solely sluggish its continued development when it’s already fairly full, he defined.
“The bill both protects the strength of the Commonwealth Stabilization Fund and leverages its funding for further growth and stability,” he stated.
Methuen state Rep. Francisco Paulino questioned the knowledge of spending cash in gentle of current tax income shortfalls. Just as a result of one thing is on sale, Paulino famous, doesn’t imply you spend cash you don’t have.
However, the $1.4 trillion made obtainable to states, municipalities, tribal governments, nonprofits and companies by the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the CHIPS and Science Act symbolize greater than only a sale, lawmakers had been informed.
“We have a unique, once-in-a-generation opportunity that’s created by pieces of federal legislation,” Federal Funds and Infrastructure Director Quentin Palfrey informed the committee. “We have a historic opportunity to seize funds that the federal government has made available on a short-term basis.”
Source: www.bostonherald.com”