Legislative Update

Mark Molloy, Esq., Cascade Strategies LLC

Legislature to Hold ARPA Hearings

As detailed in last month’s Construction Outlook Legislative Update, the Massachusetts legislature pumped the brakes on the Governor’s plan to immediately spend the Commonwealth’s $5.3 billion share of the America Rescue Plan Act (ARPA). While the state's ARPA funds were delivered in mid-May, House and Senate leaders sent a veto-proof bill to the Governor shortly thereafter, which prevented the funds from being released without legislative approval. In response, the Governor filed his spending proposal as legislation, House Bill 3922, to outline his plans for allocating $2.915 billion of the state's total.

In July, the respective Committees on Ways and Means and the House Committee on Federal Stimulus held the first in a series of public hearings to gauge potential areas of need for the ARPA funding. At the initial hearing, Governor Baker outlined his plan to put more than half of the state's ARPA allocation to work now on housing and homeownership supports, job training, water and sewer infrastructure, addiction treatment, and other areas. As drafted, the Governor's plan calls for $1 billion for housing and homeownership supports; $1 billion for infrastructure investments, specifically $400 million to water infrastructure; $450 million for economic development; $240 million for workforce development, and $225 million for health care. Under Governor Baker's proposal, $2 billion would be deposited in the federal COVID-19 Response Fund that lawmakers created for purposes of future project decisions.

The Baker-Polito Administration has been urging the legislature to act immediately in releasing the federal stimulus money. Of the Commonwealth’s $5.3 billion allocation under ARPA, about $400 million of these funds have already been used, including $109 million in local aid for Chelsea, Everett, Methuen, Randolph, and $75 million to subsidize the state's new COVID-19 emergency Sick Leave Law. That said, the legislature has made it clear that the ARPA funding, which can be committed and spent on projects until 2026, is more than a fleeting “shot in the arm.” In talking about its “generational” impact and “once-in-a-lifetime” impact on the state’s economy and various industries, House and Senate leadership have argued for a more deliberative approach to the distribution of these funds – one that identifies short, mid- and longterm needs.

The respective Committees on Ways and Means and the House Committee on Federal Stimulus recently announced that they will hold four more public hearings after Labor Day. Of note, the public hearings will be focused on the following topics: (a) health care/public health/ mental health/human services; (b) economic development/transportation/arts & tourism/climate/ infrastructure; (c) education/social equity/safety/ families and; (d) an open public hearing for all and any interested parties to weigh in. UCANE plans to closely monitor and participate in the ARPA funding process to ensure that water infrastructure investment remains a significant part of the discussion. In the meantime, to review Governor Baker’s proposed funding plan, HB3922, An Act Relative to Immediate COVID Recovery Needs, please visit: https://malegislature.gov/ Bills/192/H3922.

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Legislative Update continued from page 7 FY22 Budget Passed; Clean Water Trust’s Contract

Assistance Line-Item Survives Potential Cut

The Conference Committee on the FY2022 budget reported its negotiated agreement in early July. Of particular note to UCANE members, the Conference Committee supported the Clean Water Trust’s (CWT’s) contract assistance line-item (1599-0093) by funding the lineitem at $63.8 million, which represents level funding from fiscal year 2021. The line-item, which provides the CWT with funding to address debt service, provides an indicator of sorts for the Commonwealth’s efforts to tackle its $18 billion to $21 billion water infrastructure gap.

After the final Senate FY22 budget funded the contract assistance line-item at slightly over the $39 million, a number of concerned organizations began advocating for including the House’s FY22 appropriation, $63.8 million, within the final Conference Committee report. Given that the Governor’s original budget allocation was lower than proposed by the Conference Committee, a number of stakeholder organizations advocated for Baker-Polito’s support for the line-item. Accordingly, the American Council of Engineering Companies of Massachusetts (ACECMA), Massachusetts Water Works Association (MWWA), Massachusetts Water Environment Association (MWEA), Massachusetts Coalition for Water Resources Stewardship (MCWRS), the Massachusetts Municipal Association (MMA), the Massachusetts Water Resources Authority Advisory Board (MWRA Advisory Board), and UCANE, all weighed in with the Governor in a joint letter.

The letter urged the Governor to level fund the lineitem. In particular, the seven organizations wrote:

“A well-maintained water infrastructure system is key to maintaining economic growth and creating new jobs. To this end, the future of the Commonwealth’s water infrastructure depends on increasing, not reducing, our investment in drinking water, wastewater, and stormwater systems. Returning the funding for the contract assistance line-item to an amount last seen in

FY02 is a step backwards. Accordingly, we respectfully request that you approve the funding ($63,383,680) for line-item 1599-0093 contained in HB4002 to ensure that we continue to move forward.”

Governor Baker signed the Massachusetts legislature’s FY22 budget proposal with relatively few vetoes. With respect to the matter at hand, Governor Baker approved the legislature’s appropriation for the contract assistance line-item. UCANE appreciates both the legislature’s and the Governor’s continued commitment to this important line-item. continued on page 11

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Legislative Update continued from page 9 Baker-Polito Administration Awards Over $17 Million in Funding for Dams and Coastal Infrastructure

Late July saw the Baker-Polito Administration announce that they made over $17.3 million in grants available to address failing dams, coastal infrastructure, and levees across the Commonwealth. According to a press release from the Office of the Governor, the “official” announcement was made by Governor Charlie Baker, Lt. Governor Karyn Polito, Energy and Environmental Affairs Secretary Kathleen Theoharides, and state and local officials at Haskell Pond Dam in the City of Gloucester.

The grants, which were awarded by the Executive Office of Energy and Environmental Affairs’ (EEA) Dam and Seawall Program, will support permitting and construction projects in Acton, Ashfield, Braintree, Brockton, Chicopee, Dracut, Dudley, Essex, Gardner, Gloucester, Hull, Ipswich, Leominster, Marshfield, New Bedford, Northborough, Oxford, Peabody, Quincy, Salem, Saugus,Somerset,Stow,Springfield,Wareham,Weymouth, the Wildlands Trust (Kingston), and Worcester.

With these 32 new grants, the Dam and Seawall Program has now provided over $95 million in grants and loans to address deficient dams, seawalls, and levees since the program began in 2013. The Administration also used the occasion to tout its ARPA funding plan. As part of the Administration’s proposal to jumpstart the Commonwealth’s economic recovery and support residents hardest-hit by COVID-19, such as lower-wage workers and communities of color, Governor Baker would also direct $900 million to key energy and environmental initiatives, including $300 million to support climate resilient infrastructure. The funding would be distributed through programs like EEA’s Municipal Vulnerability Preparedness Program and would fund priority climate adaptation projects and investments aligned with the priorities identified in the state hazard mitigation and climate adaptation plan

To learn more about the projects awarded funding under this eight year old program, please visit: https:// www.mass.gov/news/baker-polito-administrationawards-over-17-million-in-funding-for-dams-and-coastal-infrastructure. continued on page 13

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Legislative Update continued from page 11

Massachusetts Unemployment Trending Down and Job Estimates Trending Up

The Massachusetts Executive Office of Labor and Workforce Development (EOLWD) announced in mid-July that the state’s June total unemployment rate was down one-tenth of a percentage point at 4.9 percent following a revision to the May unemployment rate of 5.0 percent. The analysis, based on the United States Bureau of Labor Statistics (BLS) revised modeling, indicates preliminary job estimates in Massachusetts of 9,400 jobs in June. This follows last month’s gain of 9,200 jobs. Over the month, the private sector added 5,400 jobs as gains occurred across six sectors, led by Leisure and Hospitality, and Education and Health Services. Since December 2020, Massachusetts has gained 101,200 jobs.

From June 2020 to June 2021, BLS estimates Massachusetts gained 292,800 jobs. Gains occurred in all sectors led by Leisure and Hospitality, and Trade, Transportation and Utilities. According to a press release from EOLWD, the June unemployment rate was 1.0 percentage point below the national rate of 5.9 percent reported by the Bureau of Labor Statistics. The labor force increased by 4,900 from 3,702,100 in May, as 8,000 more residents were employed and 3,000 fewer residents were unemployed over the month. Over the year, the state’s seasonally adjusted unemployment rate was down by 9.9 percentage points.

The state’s labor force participation rate, the total number of residents 16 or older who worked or were unemployed and actively sought work in the last four weeks, was up 0.1 percentage point at 65.7 percent following a revision to the May rate of 65.6 percent. Compared to June 2020, the labor force participation rate is up 0.5 percentage points. Of particular note: • Construction lost 800 (-0.5%) jobs over the month. Over the year, 14,900 (+10.2%) jobs were added. • Professional and Business Services gained 900 (+0.1%) jobs over the month. Over the year, 39,300 (+7.0%) jobs were added. • Trade, Transportation, and Utilities lost 200 (0.0%) jobs over the month. Over the year, 62,300 (+12.6%) jobs were added.

Overall, the June estimates, the most complete figure to date, shows 3,526,500 Massachusetts residents were employed and 180,500 were unemployed, for a total labor force of 3,707,000. The unemployment rate dropped one-tenth of a percentage point over the month after a revision to the May unemployment rate of 5.0 percent. Over the month, the June labor force was up by 4,900 from 3,702,100 in May, with 8,000 more residents employed, and 3,000 fewer residents unemployed. The labor force participation rate, the share of the working-age population employed and unemployed, was 65.7 percent. The labor force was up 23,300 from the 3,683,700 June 2020 estimate, as 387,800 more residents were employed and 364,500 fewer residents were unemployed.

For more information, the detailed labor market information is available at www.mass.gov/lmi.

continued on page 15

Legislative Update continued from page 13 News in Brief

• Turco Leaves EOPSS; Reidy Named Acting

Secretary. Secretary of the Executive Office of

Public Safety and Security Secretary, Tom Turco, ended his tenure within state government on the last Saturday of July after a public service career that began in the 1990s. The Governor’s Office announced Undersecretary for Law Enforcement Terrence Reidy has been named the Acting

Secretary. Secretary Reidy has served as undersecretary for law enforcement since 2019. Prior to his work at EOPSS, Reidy was an Assistant

Attorney General in the Massachusetts Attorney

General’s Office and Assistant District Attorney in Worcester and Suffolk Counties. His experience included supervising the Attorney General’s

Enterprise, Major Crimes, Cyber Crime Unit, and the Worcester District Attorney’s Gang Unit. In

Suffolk County, Reidy was promoted from District Court Prosecutor to Superior Court where he served in the Gang and Safe Neighborhood

Initiative Units. Reidy also dedicates time to volunteering as a coach for several youth sports organizations. He completed his undergraduate studies at Colby College and earned his juris doctor from New England School of Law.

• Tesler Removes “Acting” Title; Names New

Transportation Secretary. July saw Governor

Baker make the formal appointment of Mr. Jamy

Tesler as the Secretary of the Massachusetts Department of Transportation. Mr. Tesler, previously the Registrar of Motor Vehicles, was named “acting” Secretary after former Secretary Stephanie

Pollack left the Baker-Polito administration for a job with the federal government. Secretary Tesler has worked more than 16 years in the public sector, including stints as the General Counsel to the Massachusetts State Lottery, Deputy General Counsel in the Office of the Governor and

Deputy General Counsel for the Massachusetts

Bay Transportation Authority (MBTA). Secretary

Tesler is a graduate of the University of Pennsylvania and received his law degree from the University of Michigan.

• Legislature Passes; Governor Signs $300

Million Chapter 90 Funding. The Legislature passed the annual “Chapter 90” road and bridge funding bill in July after several weeks of negotiation. The bill contains the now familiar amount of $200 million in annual financing for local road and bridge repairs,with$150millionspreadacrosssix grant programs to pay for bus lanes, electric vehicles and other municipal transportation projects.

In particular, the bill also includes grant funding in the amount of $25 million in additional borrow-

ing for the municipal small bridge program, $25 million for the bottleneck relief program, $25 million for transit-supportive infrastructure, $25 million for municipal bus transit grants, $25 million for municipal mass transit access, and $25 million for electric vehicles and electric-vehicle infrastructure that would be available to cities and towns, as well as regional transit authorities, was included in the legislation.

• More Municipalities Seeking Input into ARPA

Funds Use; City of New Bedford the Latest.

The City of New Bedford has launched a website, along with a public survey, to solicit input from city residents and organizations about the ARPA funds awarded to the City. Through a survey on the City website, residents, business owners, and nonprofit organizations in the city can weigh in with their priorities on the best way ARPA funds can be used to benefit New Bedford. The

City will also announce various further options for public input to ensure all voices are heard. As additional opportunities are scheduled, they will be posted on the City’s ARPA website. The City of

New Bedford’s ARPA website can be found at: www.newbedford-ma.gov/arpa. n

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