According to the 2020 federal census, the Massachusetts population has passed the seven million mark. Bay State residents now account for 0.1% or one one-thousandth of all humans on earth. And that number doesn’t include the state’s massive student population.

Things are looking up for most of those seven million as the state’s economy came roaring back in the first quarter of 2021, and at a much faster pace than the national average. That is according to economic analysts at MassBenchmarks. “Real gross domestic product in Massachusetts increased at an 11.3 percent annualized growth rate in the first quarter, compared to the 6.4 percent growth rate in the nation's economy,” they say.

This trend is expected to continue into the foreseeable future for a number of encouraging reasons. For starters, CDC data shows that New England is a national leader in vaccination rates. Witness the fact that mass vaccination sites are beginning to tear down as the state moves to a community outreach-style vaccination program. All the hard work is paying off as more than one-third of residents have been fully vaccinated and the state has seen its lowest single-day covid case count since November.

Citing progress in the Battle of the Bend, Gov. Baker lifted the outdoor mask mandate on April 30th. And by May 10th amusement parks, water parks, and theme parks will be allowed to reopen at 50% capacity, and ballparks, indoor stadiums, and arenas will be permitted up to 25 percent capacity — as long as social distancing is maintained. Road races and other large outdoor organized group athletic events will also be permitted, Baker said on Tuesday. The governor is gunning to have COVID restrictions fully lifted by Aug. 1.

Also happening this past week, the House passed its version of the state budget, and Massachusetts continues to be a national leader in alternative energy technology and cannabis banking. And, strangely, who would have ever guessed that the Commonwealth would actually welcome news of increasing traffic in Boston? File under “The New Normal.”

Now, let’s get on with this week’s Policy Note.

Politics

Massachusetts House Approves Its Version of Fiscal 2022 Budget

Last week we told you about the Mass. House of Reps. deliberation over more than 1,100 proposed amendments to the fiscal 2022 state budget. They seem to have ironed it all out and passed the plan on to the Senate for further deliberation.

The proposed $47.7 billion spending plan aims to set the state on a path toward post-pandemic economic recovery and the shoring up of the state’s education systems plus $94 million in funding for regional transit authorities.

One of the amendments to the budget raises the state’s existing requirement for 4,000 megawatts of offshore wind power to at least 5,600 megawatts and requires electric companies to enter into long-term contracts for offshore wind power by June 30, 2027. The budget also includes $10 million in offshore wind career training. which takes effect July 1.

Read all about it at MassLive.com.

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Business

$28.6 Billion in Restaurant/Service Grants Up For Grabs — But Hurry!

Massachusetts restaurants and service businesses are now eligible for grants up to $10 million via the state’s new $28.6 billion Restaurant Revitalization Fund. The program is part of President Joe Biden’s $1.9 trillion American Rescue Plan.

According to the National Restaurant Association, about 93% of Mass. restaurant workers were let go in more than 211,000 layoffs and furloughs. That’s about a 20% to 25% drop in 2020 according to Stephen Clark, vice president of government affairs for the Massachusetts Restaurant Association.

The following businesses are eligible to apply for the grants:

Restaurants
Food stands, food trucks, food carts
Caterers
Bars, saloons, lounges, taverns
Snack and nonalcoholic beverage bars
Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.

With so many Mass. businesses in need of relief, the $26 billion is expected to dry up quickly. Applicants need to visit the Small Business Administration website.

Also of note, included in the House budget is an added $2 million for the Massachusetts Tourism Trust Fund. If the line item makes its way into the final budget it would bring the total to $7.2 million more than the previous year. It would also loosen restrictions on how much government funding regional tourism councils could receive.

Again, MassLive.com has more on this story as well.

Also read: How Massachusetts Restaurants Fared in the First Quarter of 2021 and Massachusetts tourism, cultural groups could see funding boost from Mass. House lawmakers

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Energy

Biden’s Moonshot Offshore Wind Ambitions Could Cut Electric Costs In Half by 2050

With President Biden floating a moonshot offshore wind project, researchers at the U.S. Department of Energy and the University of Massachusetts Amherst estimate that the future costs of onshore and offshore wind combined could be cut by a third by 2035 and nearly halved by 2050.

“We’re on the precipice of a revolution that we’ve been waiting for, for too long,” says Bill White, head of offshore wind at Avangrid Renewables, a partner in Vineyard Wind, the first scheduled major offshore wind farm on this side of the Atlantic.

According to developers, Vineyard Wind will generate enough power for 400,000 homes and cut emissions equivalent to taking 325,000 cars off the road each year. Combined with Mayflower Wind, another 800 MW project south of Martha’s Vineyard, ratepayers will save $3.8 billion over the 20-year life of their contracts.

Take a long breath for a deep dive into this topic here: Biden’s new moonshot: An offshore wind industry to rival Europe’s

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Transportation

When Increasing Boston Traffic Is Good News

Who would have ever suspected that increasing traffic in Boston could be welcome news? It’s all part of the so-called “new normal” brought on by a global pandemic and subsequent emergency lockdowns. While sitting in traffic is never fun, the uptick in traffic is another promising sign that the Mass. economy is on the road to recovery.

Although traffic has been increasing in the Bay State and in Boston, in particular, it hasn’t yet U-turned to pre-pandemic levels. Between March 29 and April 11, traffic volume was down between 5 and 14 percent from 2019 levels. That is according to the state Department of Transportation. Although that sounds bad, compare it to last April when traffic plummeted by about 60 percent.

The Boston Globe has this report: Traffic is getting worse in Massachusetts (but it's not back to pre-pandemic levels... yet)

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Real Estate

Home Prices Continue to Rise

Just when you think stock and crypto prices can’t go any higher… they do. And the same is now true for residential real estate here in Massachusetts. We’ve been telling readers for weeks now about how the Commonwealth’s homes market is blasting off. Home prices in the state are now well on their way to the moon.

According to data from the Massachusetts Association of Realtors (MAR), the median sale price of a single-family home launched to $485,000 in March, up 16.9 percent from 2020. Condo prices are also on the rise, up nearly 7 percent, to $459,450. March saw 3,385 single-family home sales closed (up from 2,779 in Feb.) and 5,804 new properties listed in February (up from 3,393 in Jan.). Also, 1,922 condos were sold in March (up from 1,298 in Feb.). That’s 26 percent more than were sold in Mar. 2020.

President of MAR, Steve Medeiros said in a statement. “We're seeing a very busy, competitive spring market this year as more buyers line up and sellers are feeling more comfortable putting their homes on the market compared to this time last year,” adding, “While prices are increasing along with mortgage rates, we're encouraged by the increase of new listings and seeing some more inventory come on the market."

WBUR has this report: Frenzied Real Estate Bidding Drives Mass. Home Prices Up

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Cannabis

Massachusetts Banks Lighten Up To Marijuana

Last week we told you how the U.S. House had passed the SAFE Banking act — again. Should it survive the Senate and be signed by President Biden, the measure would make it far less risky for banks to do business with marijuana-touching businesses by preventing federal agencies from penalizing those that offer financial services to cannabis concerns.

While the fate of the bill remains uncertain, banking is already becoming easier for Mass. marijuana. That is according to a report at the Boston Business Journal which says at least six financial institutions are now servicing the sector with at least one lending directly to cannabis clients.

Cases in point:

In 2018, only three Mass. banks were open for business to the cannabis industry — Medford-based Century Bank, Swansea’s BayCoast Bank, GFA Federal Credit Union in Gardner.
Last month, Eastern Bank announced it would acquire Century and take over its cannabis division.
Recently, Northern Bank & Trust in Woburn announced it would be hiring a security deposit relations manager who would be tasked with growing the bank’s cannabis clientelle.
Hudson-based Avidia Bank which is affiliated with a hemp and CBD payment company out of Arkansas has begun working with cannabis clients.
Several financial institutions including BayCoast, GFA, and Century have been lending to real estate companies involved in the cannabis sector.

Steven Hoffman, chairman of the Mass. Cannabis Control Commission says that he continues to discuss the matter with at least three more banks starting due diligence around entering the industry.

“I know any bank that is servicing the cannabis business is taking some risk, given federal law,” Hoffman said. “I’m grateful for those who have stepped up because they have made an incredible contribution to public safety.”

The Boston Business Journal has more on this story.

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A Newer Normal