Construction Outlook October 2020

Page 9

Mark Molloy, Esq., Cascade Strategies LLC

Massachusetts Legislature Returns; Budget and Conference Committee Reports to Come

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aving extended its formal legislative session past its July 31 deadline due to the impacts of COVID-19, the Massachusetts legislature continues to juggle two significant topics: the fiscal year 2021 budget and five conference committee reports. Operating under an interim budget that essentially level-funded all services, the Commonwealth will need a fiscal year 2021 budget sooner rather than later. Unfortunately for the Massachusetts legislature, it is easier said than done. As widely reported, COVID-19 severely impacted the Commonwealth’s revenue picture. In comments made to the media in early October, Speaker of the House Robert DeLeo expressed concern that the Commonwealth’s revenue gap may approach a range of $2 billion to $6 billion, with the likelihood towards the higher end. While media reports indicate that the Senate Ways and Means Chair Michael Rodrigues echoes a similar theme, Senate President Karen Spilka has remained optimistic that Congress will put partisan bickering aside to provide relief to states. On October 7, the respective Ways and Means Chairs hosted another economic forecast hearing where public and private sector economists painted the potential fiscal year 2021 picture. On October 15, Governor Charlie Baker presented a new revenue model for the Massachusetts legislature to use as a projection for the remaining fiscal year 2021 OCTOBER, 2020

budget. Without federal assistance, the Massachusetts legislature faces the unenviable task of implementing budget cuts or revenue increasing measures. At the same time, the Massachusetts legislature anxiously awaits a series of five conference committee reports being negotiated by groups of six legislators, three from the House and three from the Senate. Comprehensive proposals addressing police reform, economic development, green energy, health care, and transportation bonding are in the process of being reconciled. It is unclear whether the proposals will make an appearance before the general elections, but it appears that the House and Senate intended to finish each of the bills. While the police reform legislation has garnered the most interest, the economic development, transportation, and health care reform bills may end up having a bigger impact within the Commonwealth. Per standard process, little to no information about the Conference Committee process is made public until the negotiations are completed and a final bill is presented to the House and Senate, respectively, for a simple “yes” or “no” vote. UCANE will continue to advocate for the inclusion of language favorable to the construction industry in the fiscal year 2021 budget and, where applicable, in each Conference Committee report. continued on page 9

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