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On Budgeting in a Pandemic

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It would be a massive understatement to say that it’s challenging to ascertain an accurate annual budget for a Commonwealth the size of Massachusetts when there’s a global pandemic raging and literally no one knows what the future holds. The state has been running on a stopgap budget since the beginning of Fiscal 2021 (beginning of July) while lawmakers fumble with vacillating revenue projections. 

The much-dreaded second wave of Covid-19 cases is blowing up the state’s unemployment numbers once again. And there’s talk of another statewide shutdown casting increased uncertainty about whether or not revenue projections are accurate. 

Nonetheless, both houses of the state legislature have finally passed a $46 billion budget for fiscal 2021. 

Also now in question is the ambitious Transportation and Climate Initiative. In its current state, the proposed measures were based on pre-pandemic travel statistics. But travel in the state has plummeted due to emergency measures — and more are on the horizon.

The initiative, intended to reduce carbon emissions, was this close to being signed, sealed, and delivered. However, Governor Baker and some of the other governors of the Northeast and Mid Atlantic states taking part in the pact are now questioning the wisdom of passing a program that was based on an economy that now seems like a past life. 

It’s a mad, mad world. 

Let’s have a look at this and other news from around the state. 

Politics

Senate Approves $46B Budget

Last week, the Mass. House of Representatives approved a $46 billion budget proposal. This week, the Senate has approved its version of the budget. According to Senate leaders, the proposed budget — an increase of about 5.5% over the prior fiscal year —  is centered around an effort to build a more equitable economic recovery by making investments in early education and childcare, food security, housing support, and public health.

Although the budget is for the fiscal year that began back on July 1, due to uncertainty of the economic impacts of the pandemic, the state has been running on a temporary budget. 

Governor Baker is expected to sign off on the final budget. 

Massachusetts Officially Breaks Turnout Record by Nearly 300,000 Votes

All of the ballots for the 2020 election have been tallied and certified and the grand total of voters fell just short of a record-breaking 3.7 million. To be exact, 3,657,972 ballots were cast in the election — or about 76 percent of the number of registered voters — busting the previous record set in 2016 by about 300,000 votes. 

Earlier this year, in response to the pandemic, lawmakers expanded early and mail-in voting, methods which accounted for almost 2.6 million ballots. Secretary of State Bill Galvin has voiced his support for making expanded mail-in voting options permanent.

Economy

Unemployment On the Rise Again

This past October, the Massachusetts unemployment rate fell to its lowest level since June — down to 7.4 percent, from 17.7 percent in June. However, along with Covid-19 cases, unemployment claims are again on the rise. 

According to the latest data from the U.S. Labor Department, more than 60,000 Mass. residents filed first-time claims last week. That number, which is more than 10,000 higher than the previous week, includes both traditional unemployment claims as well as independent contractors and gig workers who have been filing under emergency rules.

The higher numbers are being attributed to business closings due to new restrictions imposed in early November including a stay-at-home advisory and a 9:30 p.m. curfew for most activities.

More than six percent of the Massachusetts workforce was receiving unemployment compensation at the end of last month. That’s one of the highest rates in the country.

More Economic News:

Transportation

Baker Voices Pessimism on Transportation and Climate Initiative 

Gov. Charlie Baker and fellow governors taking part in the Transportation and Climate Initiative are reevaluating support of a controversial carbon tax. The program is a regional pact between 11 Northeast and Mid-Atlantic states designed to reduce greenhouse gas emissions. 

Last Tuesday during a press conference at the State House, Baker pointed out that travel patterns have shifted as more people work from home. 

Baker stated:

"We're living at a point in time right now that's dramatically different than the point in time we were living in when people's expectations about miles traveled and all the rest were a lot different… Modeling, I think, is an import part of figuring out how people feel about the cost-benefit associated with the program and the product and it's certainly something that we think is an important part of helping states make decisions." 

Meanwhile, advocates of the measure are still urging its passage. Earlier in the day, more than a dozen Massachusetts environmental, health and transportation groups joined 200 organizations in penning a letter to Northeast governors, including Baker, urging them to launch the Transportation and Climate Initiative program. Additionally, Mass. Director of Transportation Chris Dempsey said the program would "address climate change and improve the quality of life of Massachusetts residents."

Paul Craney, of the conservative Massachusetts Fiscal Alliance, on the other hand, called the initiative "elitist" stating, quote: "Climate alarmists that are still pushing the regressive TCI gas tax scheme need to understand that the world we live in now is not the same world we lived in when TCI was first introduced."

Studies have shown transportation is the largest source of air pollution in Mass. accounting for more than 40 percent of the state’s greenhouse gas emissions. However, with a massive reduction in travel, Baker believes those numbers need to be reevaluated.

Official estimates put the increase in gas prices due to the measure at between 5 and 17 cents per gallon in the first year. 

Governors in New Hampshire, Connecticut, and Vermont are also voicing concerns about the plan. An agreement was originally expected by the year's end. However, with support waning, the fate of the initiative is unclear. 

Read all about it at MassTransitMag.com.

More Transportation News

Energy

At the Third Annual MassEVolves Recognition Ceremony, held this week, several companies and higher education institutions across Massachusetts were recognized for their work in promoting the expanded use of electric vehicles in their communities and across the state.

To receive recognition, MassEVolves participants are required to create and execute an EV Action Plan. The plan must outline steps being taken to help Massachusetts residents gain greater access to electric vehicles. 

Participants Recognized for 2020 MassEVolves program:

  • Analog Devices

  • AstraZeneca

  • Bard College at Simon's Rock

  • Boston University

  • Braintree Electric Light Department

  • Bristol Community College

  • EMD Serono Research

  • Energy New England

  • Hampshire College

  • Holyoke Community College

  • Millipore Sigma

  • Tufts University

  • University of Massachusetts Amherst

  • University of Massachusetts Dartmouth

  • University of Massachusetts Boston

  • University of Massachusetts Medical School

  • Woods Hole Oceanographic Institution

  • Worcester Polytechnic Institute

  • Worcester State University

Read more at Yahoo Finance. 

Videos from the event are accessible at massevolves.org/2020-recognition-event.

More Energy News

Real Estate

The median home prices for single-family properties and condos in Massachusetts hit record highs for October. According to a report released Tuesday by The Warren Group, single-family home sales are up 27 percent and the cost of a single-family home rose 17 percent. The median price of a home in Mass. is now $455,000. The median price of a condo went up 10.8 percent to $410,000 with a rise in sales of 17 percent year-over-year.

Tim Warren, CEO of The Warren Group had this to say about that:

“Despite higher COVID-19 infection rates, consumers across Massachusetts continued their real estate buying binge in October. Strong demand from buyers, scant supply from sellers, and rock bottom interest rates continued to push the median single-family home price higher, and it has now been above $450,000 for four consecutive months.”

Read all about it in Real Estate News.

More Real Estate News

Business

Although the House of Representatives approved sports betting in its economic development bill, the Senate has nixed the notion. The proposed amendment to legalize sports betting in the state was expelled without a roll call vote. 

The amendment, proffered by Minority Leader Bruce Tarr would have allowed licensed casinos, racetracks, and online operators to take bets on sporting events. 

Experts estimate the annual revenue from sports betting in Massachusetts might have ranged from about $20 million to $35 million. For comparison, casino and slot parlors in the state currently average about $21 million in revenue each month. 

The dead amendment had earmarked revenue from application fees to be used to create a new economic recovery fund.

More Business News

Cannabis 

Hemp Farmers Eyeball Marijuana Dispensary Sales 

The 79 licensed hemp farmers and 19 hemp processors in Massachusetts are anxious to get their products onto marijuana dispensary shelves in the state. They’ve been lobbying for the inclusion of a budget amendment to allow them to do just that. 

However the proposal “carries complex policy implications that highlight the unusual regulatory system governing different aspects of the cannabis plant,” according to Commonwealth Magazine. 

Currently, the FDA prohibits the use of CBD in foods and dietary supplements. Furthermore, the state Department of Agricultural Resources prohibits the sale of raw hemp flower which is commonly used for smoking, vaping, and cooking because it could easily be confused with marijuana (which is now legal for all adults).

On a related note, as we reported last week, earlier this month it was announced that state-licensed dispensaries had passed the $1 billion mark in cannabis sales. 

Commonwealth Magazine has more on this story.

More Cannabis News

More of the Latest Massachusetts News

Video: Mass. Gov. Charlie Baker's coronavirus update Wednesday, Nov. 18

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No End In Sight

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We’re not even going to talk about the election. There’s a much more pressing matter for the residents of Massachusetts this week. A ghastly resurgence of Covid-19 now threatens the lives and livelihoods of all of us here in the Bay State. We were hoping to be done reporting on this months ago. 

One of the institutions hit hardest by pandemic-related emergency measures is the MBATA — which is considering massive cuts to services early next spring that will inevitably and adversely affect untold numbers of commuters and the carless. 

Meanwhile, over at the Boston Herald, contributor David Gahl has pointed out a major loophole in the state’s hallmark climate bill, ‘Creating a 2050 Roadmap to a Clean and Thriving Commonwealth.’ Language in Section 15 could be exploited to end the longstanding separation of utilities and power generation companies — with potentially dire consequences.

On a debatably brighter note, the state recently passed the $1 billion mark in legal cannabis sales bringing in over $200,000 in tax revenue. However, that news is sullied by the fact that the state’s social equity programs are sorely lagging.

Let’s talk about these things...

A Grim Milestone: 10,000 Covid-19 Deaths

Back in late winter and early spring when everyone was freaking out about the specter of the “novel coronavirus,” who would have guessed that ten months later the problem would be far worse but that far less would be being done about it? It seems more is being done to manage the economic and financial fallout than is being done to prevent a humanitarian disaster of epic proportions. 

The number of confirmed Covid-19 cases in Massachusetts is screaming past 175,000 as you read this. And 10,000-plus Mass. residents are now dead since the first confirmed passing back in mid-March — an 87-year-old veteran. This past April, around 2,000 people a day were being diagnosed with the virus. After a brief summer downturn, that number has since doubled to 4,000 statewide.

Boston Mayor Marty Walsh is warning that a second shutdown of the economy would be "far worse" than the first. Here’s what he had to say:

"What we're seeing in Tennessee and other parts of the country and other parts of the world, honestly, we cannot afford to have that in Boston. If we do, we're going to have to shut everything down again. The first one was bad on business. I think the second one will be far worse."

Boston.com has some Mass. Covid-19 charts and graphs for those who are interested in following along as the crisis continues to unfold.

MBTA Slashing Services as Funds “Fall Off Cliff”

Over the past couple of weeks, this column has bemoaned the MBTA’s budget woes and pondered possible courses of action. Fare revenues have been razed by pandemic response measures. And now the agency is proposing to cut $142 million from its spending by summer 2022.

As reported by the Boston Globe, here are just a few of the changes being proposed:

  • All bus and subway service would end at midnight rather than 2am.

  • Subway frequency would decline by about 20 percent.

  • The most frequent bus routes would be reduced by an average of 5 percent.

  • A number of bus routes would be consolidated or shortened.

  • 25 bus routes would be eliminated.

  • Ferry service between downtown Boston and Hingham, Hull, and Charlestown would stop operating as soon as March.

  • Commuter rail service would no longer operate on weekends.

  • Six commuter rail stops would be closed.

Needless to say, not everyone agrees on whether or not these changes are a good idea, but the consensus seems to be that there is no other choice. 

Just take a look at some of these headlines:

Information about changes to specific routes is available online at mbta.com/forging-ahead. The MBTA’s plan will go out for public comment over the next month, before the agency’s oversight board votes in December.

Solar Industry Wary of “Poison Pill” provision

In a Boston Herald op-ed by David Ghal, “Poison pill provision undermines Massachusetts climate legislation,” that deserves to be quoted at length, the author writes:

“Buried deep within a hallmark climate bill, ‘Creating a 2050 Roadmap to a Clean and Thriving Commonwealth’ (H.4993), is an anti-competitive provision that would allow electric and gas utilities to construct, operate and own solar projects. On its face, it appears helpful but in reality, it’s a time machine back to the 1990s when utilities had a monopoly on energy services and left customers with inflated, artificially high energy bills.”

Gahl goes on to state that the current law enabled solar to go from .002% of the Commonwealth’s in-state electricity generation in 2010 to over 17% today with powering being generated by more than 400 solar companies that employ over 10,000 Massachusetts residents. 

According to Gahl:

“The [existing] law was specifically designed to separate the duties of electricity generation from power delivery. Utilities would focus on delivering power, while encouraging private companies to compete in electricity markets to supply power to residents, helping us incorporate clean energy sources while also building a local economy to support these businesses.”

Gahl then makes an even better point: Section 15H of the climate bill would end the longstanding prohibition on utilities owning power plants and permit them to “get back into the power plant business under the auspices of serving local governments.” The move, says Gahl, could allow profit-motivated utilities to “resume their reign over both electricity delivery and production.” 

According to Gahl, there is no evidence that utilities can serve municipal customers better than the independent market. “In fact,” says Galh, “the utility industry’s record is the exact opposite… and that there is already a successful program in place that “encourages independent solar companies to serve local governments by offering them low-cost clean power to meet their energy goals.”

Unlike nearly all of the bill’s major provisions, says Gahl, Section 15H “was never part of stand-alone legislation; nor was it subject to a hearing or testimony from stakeholders. Instead, it takes advantage of the pandemic to tacitly reintroduce vertically integrated monopolies at the expense of our local solar industry and Commonwealth residents.”

Gahl is calling on lawmakers to drop Section 15H, from any final legislation.

You can read the entire op-ed here, but our summary does it justice.

Cannabis Sales Blast Past the $1 Billion Mark

While much of the state’s economy is feeling the crush of Covid, there is arguably at least one bright spot. Massachusetts has officially surpassed $1 billion in adult-use cannabis sales. And, so far, legal marijuana has brought in about $200 million in tax revenue.

Exactly four years after Mass. voters chose to legalize marijuana for medicinal use, and two years after retail pot shops opened, the Massachusetts Cannabis Control Commission reported exactly $1,000,521,905 in sales.

Commission Chairman Steven J. Hoffman had this to say about the momentous milestone:

“This sales milestone represents licensees’ ability to successfully support a safe, accessible and effective adult-use industry, and I am pleased the resulting tax benefits will have a significant impact on communities throughout the commonwealth. These numbers also speak to commission licensing and enforcement staff working around the clock to make sure these businesses and their products comply with all of our regulations, especially the health and safety provisions.”  

However, not all aspects of the state cannabis program are full steam ahead. One of the most important pieces of the puzzle — social equity programs — are severely lagging behind goals set by the Mass. legislature and the CCC. 

Still, to this day, people of color and people from communities disproportionately harmed by the Failed War on Drugs are grossly underrepresented in the state’s cannabis industry. That is according to Shanel Lindsay, who has served on the Cannabis Advisory Board and is the CEO of Ardent Life. Lindsay said:

“Despite the fact that we worked tirelessly for over five years, minority ownership is almost non-existent. So yes, we should be angry and offended when, as we’re starting to make small steps towards equity in these delivery licenses, that like clockwork the same corporate interests focused only on preserving their unearned monopoly come in to push back on equity and to crush us.” 

VIDEO: Equity advocates tired of waiting on marijuana delivery framework

The state’s adult-use cannabis industry has employed nearly 6,000 workers making Massachusetts one of the leading states for cannabis employment. Nationwide, legal cannabis operations now employ nearly a quarter of a million Americans.

On Election Day 2020, another four states joined the ranks of those with recreational marijuana programs bringing the total number of states with legal cannabis to 15. Voters in Arizona, Montana, New Jersey, and South Dakota all passed adult-use cannabis ballot initiatives. Mississippi joined the ranks of the now 34 states with medical marijuana programs. 

Also this week, Gallup released a poll that showed that 68% of Americans now support state and federal marijuana policy reforms. How long will it be before the Federal government stops dragging its feet on this issue? Someone needs to tell Senate Republicans to concede on this matter. Let’s face it. They lost the war on drugs. And at great cost to the American people. 

More of the Latest Massachusetts News

Election Day Rundown

All the votes are in — and counted — in Massachusetts. And the good news is, except for one close race, no candidates are contesting the results. 

By Friday, according to the Secretary of State’s office, 43.8 percent of all registered voters in Massachusetts had already voted. More than 2.1 million ballots were returned by mail. That’s equal to about 62-percent of all the ballots cast in the 2016 election in the state.

The whole world knows by now that Biden has passed the threshold of Electoral College votes to be deemed the winner of the race for POTUS. 

Mass voters filled an open seat, approved an expansion of the state’s “right to repair” law, weighed ranked-choice voting, and decided the fate of some congressional incumbents. And, as many of you know, Senator Markey has been reelected. 

Let’s take a look at how this all shook out - including some of the down-ballot races. 

POTUS Vote: A Biden Landslide

Massachusetts was “well ahead of the curve on Election Day,” according to MassLive.com. By around 8 p.m. Tuesday, the results of the main event were in and Mass. voters had given the nod to Democrat Joe Biden.

According to The Associated Press, by 10:23 a.m. Wednesday, Biden had garnered more than 2.1 million votes to President Donald Trump’s 1 million-plus — a margin of victory of about 33%. 

At that time, several big communities including Brockton, Everett, Fitchburg, New Bedford, Revere, and others had not yet to report their results. However, Biden’s win had already become a mathematical surety. 

Biden’s victory was no surprise as only one Republican — Ronald Reagan in 1980 and 1984 — has won in Mass. in half a century.

Here are some statistics according to MassLive.com:

  • With 1,966 of Massachusetts' 2,173 precincts reporting, amounting to 90.47% of the total ballots cast Trump had only won a couple of dozen communities. 

  • More than 40 of the state’s 351 cities and towns went for Trump.

  • Trump only won 10 communities by more than 300 votes.

  • Roughly half of the communities that voted for Trump over Biden were in Hampden and Worcester counties in Western and Central Massachusetts.

  • Biden’s turnout outperformed Clinton’s 2016 effort in Massachusetts with nearly 110,000 more ballots cast.

  • Biden flipped several communities that Clinton lost to Trump four years ago, including Athol, Barre, Bourne, Bridgewater, East Longmeadow, Granby, Groveland, Kingston, Lynnfield, Mendon, Pembroke, Saugus, Sutton, Tyngsborough, Uxbridge, and multiple other towns.

Markey Reelected

After beating Rep. Joe Kennedy III in the September primaries, Senator Ed Markey bested Republican challenger Kevin O’Connor. The 74-year-old Markey has served for decades in both the U.S. House of Representatives and the Senate. 

In a live post-election video address, Sen. Markey touched on the hot issues vowing to fight for action on climate change and to work toward racial justice and immigration reform. In the address, Sen. Markey credited the win to young activists and talked about rejecting incremental change in favor of thinking big: 

“Massachusetts voted to affirm our movement’s mandate for change, and I am grateful for that. The age of incrementalism is over. The time to be timid is over. Now is our moment to think big, build big, be big.”

Meanwhile, In the 4th Congressional District, the Democratic Newton City Councilor Auchincloss became the newest member of the state’s all-Democratic congressional delegation by defeating Republican Julie Hall. The open seat was held by Kennedy, who opted not to seek reelection after deciding to challenge Markey.

Congressional Incumbents Reelected

Six Democratic House incumbents defeated Republican and independent challengers:

  • Rep. Jim McGovern, who represents the state’s 2nd Congressional District, beat GOP challenger Tracy Lovvorn.

  • Rep. Katherine Clark, 5th Congressional District Rep. defeated Republican Caroline Colarusso. 

  • Rep. Seth Moulton, a former presidential candidate bested GOP challenger John Paul Moran, in the 6th Congressional District.

  • Rep. William Keating, of the 9th Congressional District, won over Republican Helen Brady and independent Michael Manley.

  • Rep. Ayanna Pressley, 7th Congressional District  defeated independent Roy Owens

  • Rep. Stephen Lynch, 8th Congressional District defeated independent challenger Jonathan Lott.

Two Democratic incumbents ran unopposed:

  • Rep. Richard Neal, 1st Congressional District 

  • Rep. Lori Trahan, 3rd Congressional District

Harrington Demands Recount in 7th Hamden District

A recount has been demanded in the 7th Hampden District state representative by Republican James “Chip” Harrington after losing to Democrat Jake Oliveira by a narrow margin. 

After the Associated Press reported on election eve that Harrington had won by 324 votes, the contest flip-flopped overnight due to a typo in results reporting. An amended count put Oliveira up by 134 votes.

In the end, 11,128 votes went to Oliveira (50.3%) and 10,994 to Harrington (49.7%) narrowly missing the threshold for an automatic recount. Harrington, who is collecting signatures for a recount petition, said in a statement:

“I fully understand the reality of gaining enough votes to overtake him is highly unlikely … but because the clerk of Belchertown has had a consistent lack of attention to detail … I feel it warrants checking her work.”.

The 7th Hampden District encompasses all of Ludlow, narrow strips of Springfield and Chicopee, and three precincts in Belchertown.

Read more on this story at MassLive.com. 

Women Set Record for Legislative Seats

The number of women in the state legislature has reached a new high with this election with seven new female state representatives winning seats bringing the total number of women to 62, or 31% of the seats. That includes 12 in the Senate and 50 in the House beating the previous record of 57. No female incumbents lost their reelection bids this year. Lowell Democrat Vanna Howard unseated Rep. David Nangle, in the September primary.

Meanwhile, six female representatives-elect, all Democrats, claimed open seats including: 

  • Jessica Giannino of Revere

  • Erika Uyterhoeven of Somerville

  • Patricia Duffy of Holyoke

  • Brandy Fluker Oakley of Boston

  • Meg Kilcoyne of Northborough 

  • Sally Kerans of Danvers

According to the Massachusetts Caucus of Women Legislators:

  • The first women elected to the Massachusetts House were Reps. Sylvia Donaldson of Brockton and Susan Fitzgerald of Jamaica Plain in 1923.

  • Sen. Sybil Holmes of Brookline was the first woman elected to the state Senate, 14 years later.

  • There are now 44 Democrats and five Republican Women on Beacon Hill.

  • The last Republican woman to hold a state Senate seat in Massachusetts was Jo Ann Sprague of Walpole, who opted not to seek reelection in 2004.

“Right To Repair” Law Reinforced

Voters approved expanding the state’s “Right to Repair” law. The legislation gives car owners and auto shops greater access to vehicle maintenance and repair data.

According to repair shops and car parts stores, the measure helps to guarantee car owners access to the repair information. Automakers claim that the measure is a “data grab” by third parties who want to gather personal vehicle information. Tommy Hickey, director of the Massachusetts Right to Repair Coalition, called the law a boon for the “modern age of connected cars.” 

Ranked Choice Initiative Comes Up Short

Another ballot question that would have changed the way ballots are cast and tallied in future elections was defeated. Had it passed, voters would be able to rank candidates in order of their preference. 

“We came up short in this election, and we are obviously deeply disappointed,” campaign manager Cara Brown McCormick said in a statement.

Republican Gov. Charlie Baker has been a vocal opponent of ranked-choice voting.

More of the Latest Massachusetts News

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The Historic Week Before Another Historic Week

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If the pundits are to be believed, we are nearing the most consequential election of our lifetimes next Tuesday. But Massachusetts made its own history this week, with the nomination of Supreme Judicial Court Justice Kimberly Budd to become the next Chief Justice, replacing the late-Chief Justice Ralph Gants. And with home prices skyrocketing, Massachusetts set another September record for median single-family home prices rising to $472,000. Before election-pocalypse gets to all of us, let’s take a look back at what caught our eye this week.

DPU Orders Utilities to Develop Plans to Phase Out Natural Gas

In order for Massachusetts to reach its goal of net-zero greenhouse gas emissions by 2050, the Massachusetts Department of Public Utilities has ordered the state’s natural gas utilities to come up with plans to phase out their businesses over the next 30 years “while simultaneously safeguarding ratepayer interests; ensuring safe, reliable, and cost-effective natural gas service; and potentially recasting the role of LDCs [local distribution companies] in the Commonwealth.” 

In an Oct. 29 press release, DPU Chairman Matthew Nelson said:

"As the Baker-Polito administration has committed to an aggressive goal of net zero emissions by 2050, this investigation will analyze the future role of natural gas as part of Massachusetts' energy system… The commonwealth continues to lead the nation on climate change mitigation, and this order will help assess how to best achieve deep emissions reductions while ensuring a safe, modern and cost-effective heating distribution system for Massachusetts ratepayers."

National Grid, which has 925,000 natural gas customers in Massachusetts issued this statement:

”We know this cannot be achieved by maintaining the status quo. Though we do not have all the answers, we believe our electric and gas networks, which play a vital role in the lives of our customers, can be useful in achieving net zero emissions.  We are eager to collaborate on solutions and look forward to expanding on our many decarbonization initiatives in pursuit of a cleaner and fairer energy system that leaves no customer or community behind.”

The DPU said the investigation could recast the role of gas utilities in the state. And Attorney General Maura Healey, who asked the DPU to reevaluate their future plans in early June, said that the investigation is “nation-leading.” 

Here are some figures related to the state’s energy supply as of this week:

  • 68% of the region’s electricity came from plants powered by natural gas.

  • 17% came from nuclear power

  • 8% came from hydro

  • 7% came from renewable energy sources such as solar and wind

  • 51% of Massachusetts households heat their homes with natural gas

  • 27% heat their homes with oil

  • 15% heat their homes with electricity

  • 3% heat their homes with bottled gas

The DPU order requests that gas utilities provide status updates on their progress on March 1 and again on September 1, 2021, and to submit proposals, recommendations, and plans for achieving state climate goals by March 1, 2022.

The Baker administration is expected to release roadmaps for achieving greenhouse gas emission targets before the end of this year. 

Commonwealth Magazine has a full report. 

Three Alternatives to East-West Rail Being Considered

Three alternatives to an east-west passenger rail have been proposed by Mass. officials in an attempt to speed up Springfield to Boston commutes. The three alternatives are a combination of using existing tracks and building new rails.

One of six original alternatives to build high-speed passenger rail service on the Mass Pike, was abandoned due to projected high costs.

Maureen Mullaney, Program Manager for the Franklin Regional Council of Governments Transportation and GIS called the final three alternatives are exciting and revolutionary but added that it could take “quite a while” before any of the plans come to fruition but that it will be worth the wait. A proposed high-speed passenger rail could cost several billion dollars and take a decade or more to complete and would require state, federal, and local agencies to be on board with the plan.

The proposed projects will require federal investment and partnership between the Federal Railroad Administration, Amtrak, Massachusetts Department of Transportation and others, according to Mullaney. 

Read more at Athol Daily News.

Fenway Sports Group Announces Real Estate Development Plans

Fenway Sports Group Real Estate and WS Development have announced plans to redevelop four properties surrounding Fenway Park. The properties are located on Jersey, Lansdowne and Van Ness streets, and Brookline Avenue. Also being considered is a plan to build out over the Massachusetts Turnpike behind Lansdowne Street.

The developments may include housing, retail, office, and lab space, and possibly a hotel, including new office space for the Boston Red Sox organization.

Planning for the redevelopment has been ongoing for years. However, developers said that while extensive planning has begun, many details are still being considered such as cost, square footage, building heights, and the exact mix of what they intend to build. 

Click here to read more on this story by Ballpark Digest.

Supreme Judicial Court Nixes Workers’ Comp for Medical Marijuana

In other SJC news, justices ruled on Tuesday that employees who use medical marijuana to treat work-related injuries cannot be reimbursed through workers’ compensation. According to the ruling, workers’ comp insurers could, in theory, be charged with a federal crime to aid or abet cannabis use. 

According to the ruling by Justice Scott Kafker: “It is one thing to voluntarily assume a risk of federal prosecution, it is another to involuntarily have such a risk imposed upon you.”

Maine’s highest court issued a similar ruling two years ago. However, six states have allowed workers’ comp reimbursement to some extent: Connecticut, Minnesota, New Hampshire, New Jersey, New Mexico and New York. 

According to the Mass. Cannabis Control Commission, as of last year, there were more than 60,000 medical marijuana patients in the state and nearly 1.3 million ounces of cannabis were sold to medical patients.  

Read more at Courthouse News.

Boston Biz Journal Posts 4-Year Recreational Cannabis Retrospective

Boston Business Journal has published a retrospective timeline of the past four years of legal recreational marijuana sales in Massachusetts. The report lists some of the highlights from the past four years of recreational marijuana sales in the state. 

After four years in operation, here are some current facts about Mass. recreational marijuana:

  • As of Oct. 9, a total of 689 licenses have been approved in Massachusetts

  • 268 are licensed dispensaries

  • The CCC has received 904 completed applications to operate in over 160 municipalities

  • As of Oct. 10, 77 dispensary locations have commenced operations in the state

  • In the past two fiscal years ending June 2020, the state collected $122 million in taxes (far below expectations)

  • Of the 900-plus applicants only 42 identified as women-owned and 73 identified as minority-owned

  • Only 67 social equity participants and 46 economic empowerment participants had submitted completed licenses

To read the full four-year retrospective visit MassLive.com.

More of the Latest Massachusetts News

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Massachusetts Launches its Own Economic Recovery Plan

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The big news for Massachusetts this week is Gov. Baker’s release of a $774 million economic recovery plan as a second wave of coronavirus cases continues to spike. Meanwhile, N.H. Governor Sununu is suing the state over its remote worker income tax policy, threatening to reduce Mass. revenue projections. Let’s get into it….

In expectation of failed negotiations on a federal economic recovery plan, Massachusetts Governor Charlie Baker has announced a $774 million economic recovery plan of his own this week. 

A fair amount of the newly announced spending is coming from prior federal relief funds. The plan also includes a $171 million eviction diversion initiative announced last week. The other $600 million is coming from what Baker termed “a giant quilt of funds coming from a whole bunch of different places.”

Another $175 million is part of a revised budget and a separate $275 economic development bill mentioned in last week’s news that is not part of the plan.

In the plan, $115 million is earmarked for new investments including $50.8 million in grants for small businesses hit hard by the pandemic. Grants of up to $25,000 will be offered to businesses with five or fewer employees. Also, grants up to $75,000 will be available to companies with up to 50 workers. 

The larger grants can be used for payroll and benefits, rent or mortgage payments, utilities, and interest on debt. Spending on the smaller grants is discretionary.

The governor attempted to manage income expectations by stating: “To be clear, there’s no substitute for the size and scope that a federal aid package could deliver. But that doesn’t seem to be in the offing, and we certainly don’t believe that we can wait.”

Applications for grants must be submitted by noon on Nov. 12.

Boston.com has more on this story.

COVID-19 On the Rise

Meanwhile, some are questioning whether the current revenue and spending plans will be enough to stave off economic calamity as a second wave of coronavirus cases continues to spike in Mass. 

The number of confirmed coronavirus cases in the state jumped by nearly 1,000 on Thursday setting a five-month record. Currently, more than 20 percent of the state’s cities and towns are designated “high-risk.”

In addition to actual case counts, the Massachusetts Water Resources Authority’s weekly study found the highest amounts of viral RNA since the pandemic’s surge in the spring. Recent samples surpassed 300 viral RNA copies per milliliter — the highest levels since April.

Federal health agencies and officials have been warning about this second wave since before the first wave peaked. Gov. Baker has recently acknowledged the spike but said the state is prepared.

New Hampshire Gov. Sununu Sues Bay State Over Taxation of Remote Workers

New Hampshire Gov. Chris Chris Sununu has filed a lawsuit that accuses Mass. lawmakers of a “direct attack” on his state. The so-called attack is an attempt to stop a revenue leak caused by a shift to working at home by the Massachusetts Department of Revenue. 

Under the new rule, instituted with pandemic emergency measures, remote workers who are residents of other states are still subject to Massachusetts’ 5.05% income tax rate. 

The rule set to expire Dec. 31 or 90 days after the coronavirus state of emergency in Massachusetts is lifted. However, Sununu’s administration fears the policy could become permanent and called the move an “aggressive attempt to impose Massachusetts income tax” beyond its borders.

About the lawsuit, Gov. Sununu said:

"Massachusetts cannot balance its budget on the backs of our citizens, punish our workers for making the decision to work from home and keep themselves and their families and those around them safe. New Hampshire has no choice but to seek relief in our nation's highest court. We're going to fight this unconstitutional attempt to tax our citizens every step of the way. And we are going to win."

The action not only seeks to prohibit Massachusetts from taxing N.H. telecommuters but also to refund taxes already collected — with interest.  

Roughly 80,000 N.H. residents working for Mass. businesses now work at home. 

Resolving the issue could take some time. The Supreme Court is set to decide whether to take the case by the end of the year.

You can read the lawsuit at the NBC Boston website. 

Cannabis Control Commission Moves Forward with Delivery-Only Dispensaries

The Mass. Cannabis Control Commission has decided to move forward with plans to allow delivery-only dispensaries in the state. The plan has received quite a bit of pushback in recent weeks. 

Home delivery of marijuana is already permitted in Massachusetts. Recreational marijuana delivery was approved last year. However, only existing brick-and-mortar dispensaries are permitted to offer deliveries. 

The CCC claims that the plan will help tax-paying businesses to compete with black-market dealers while also boosting the state’s mission to support minority-owned cannabis companies.

This CCC began accepting applications for a “courier” license for adult-use marijuana delivery last spring. But that license type only allowed third-party companies to deliver purchases from brick-and-mortar dispensaries.

The new delivery license permits non-brick-and-mortar shops to buy inventory from wholesale cannabis suppliers, store products in their own warehouse, and take delivery orders directly.

For the next three years, courier and delivery licenses will only be available to applicants in the CCC’s equity programs.

Read more at the Mass. CCC website.

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Gov. Baker’s New Budget Taps Rainy Day Fund

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Massachusetts Governor Charlie Baker is considering all his options in hopes of balancing a budget badly tilted by the state’s response to a global pandemic. As we reported last week, extreme measures have caused a projected drop of $3 billion in tax revenue compared to pre-pandemic projections. 

Before the pandemic Baker approved a $44.6 billion state budget for fiscal 2021 (which began July 1). The new proposal adds another billion on top of that. 

In addition to federal relief funds, the centerpiece of Baker’s plan to avoid deep cuts into core services is to break open the state’s proverbial piggy bank and pull $1.35 billion from the “rainy day” fund. The proposed drawdown would leave the fund with about $2.2 billion in the reserve.

“The rainy day fund is there to support services when it is raining and I think most people would agree it’s raining.” - Gov. Charlie Baker

Boston.com has a more comprehensive report on this subject. 

In other budget news, due to budget shortfalls brought on by low ridership during the pandemic, the MBTA ferry connecting Hingham and Hull to Boston could see service cuts or be canceled entirely due to budget cuts. Also the commuter rail could have reduced service as well. 

Read all about it at MassTransitMac.com.

Massachusetts Announces Comprehensive $171 Million Eviction Diversion Initiative

A current moratorium on evictions and foreclosures expires this weekend (Saturday, October 17th). In order to stem a potential tidal wave of homelessness, The Baker-Polito Administration has created the “Eviction Diversion Initiative.” The idea of the plan is to provide a safety net for tenants and landlords until the Covid-19 state of emergency is over.

This plan, developed by the Administration in coperation with the Massachusetts Trial Court, “is making a $171 million total commitment this fiscal year, with $112 million of new funding to support new and expanded housing stability programs during the remainder of the fiscal year,” according to a post in Boston Real Estate Times.

Governor Charlie Baker had this to say about the plan:

“The pandemic has created financial challenges for many individuals and families who are struggling with rent payments, and today we are pleased to announce a $171 million initiative to promote household stability, and provide more support for tenants and small landlords. This strategy has been designed to be user friendly and easily accessible for tenants and landlords in need, and is comprised of new or expanded programs to help people stay in their homes. This would not be possible without the Legislature’s foresight in granting flexibility for the RAFT authorization. I am grateful to the Court System and all stakeholders for their partnership in this effort in keeping all families and households stable throughout this pandemic.”

Included in the plan:

  • $100 million to expand the capacity of the Residential Assistance for Families in Transition (RAFT) 

  • $48.7 million to HomeBASE and other rapid rehousing programs

  • $12.3 million to provide tenants and landlords with access to legal representation

  • $6.5 million for Housing Consumer Education Centers (HCECs)

  • $3.8 million for the Tenancy Preservation Program (TPP)

The Administration believes the programs will help thousands of homeowners and renters stay put including up to 18,000 households expected to receive direct financial support. 

Recreational Cannabis Expanding Throughout New England

The Massachusetts recreational marijuana market now has more competition with both Maine and Vermont stepping up their games. As Vermont begins its journey down the path of legal marijuana, Maine’s recreational cannabis operations are finally getting fired up after navigating several stumbling stones. 

Maine is the second New England state to begin selling recreational marijuana after Massachusetts dispensaries opened their doors in 2018 and the 10th U.S. state to sanction the sale of marijuana for recreational use by adults. 

It has been four years since the passage of a voter referendum in November of 2016. Since then, legalization legislation has gone through two rewrites, two vetoes by the former governor, and a pandemic, which caused further delays. 

So far there are only a handful of licensed manufacturers and one marijuana testing laboratory. A total of eight recreational dispensaries have been given the green light, but only six of them were open as of last Friday, Oct. 9. And those that are open for business are experiencing severe shortages. However, there is no supply shortage for the state’s  87,000 or so medical marijuana patients. The state’s medical marijuana program brought in more than $111 million in sales last year.

Maine’s adult-use marijuana laws permit adults 21 and older to purchase up to 2.5 ounces (70 grams) of cured cannabis flower or up to 5 grams (0.18 ounces) of cannabis concentrates.

In related news, Vermont’s governor stayed out of the way as recreational marijuana legislation became law last week — without his signature. Like Maine, Vermont legislators seem to be in no rush to launch a recreational market. It’s expected to be a couple years before cannabis lovers in the Green Mountain State can purchase the drug. In the meantime, the personal possession and cultivation of marijuana is already legal in Vermont as is medical marijuana.

Boston.com has more on this story.

Cannabis Cultivators to Benefit from New Energy Efficiency Services

Two groups going by the names of Resource Innovation Institute (RII) and American Council for an Energy-Efficient Economy, are working together with two government agencies and eight energy efficiency program administrators on a project to provide intelligence to Massachusetts cannabis cultivators. 

Resources produced in the effort will be designed to help Mass. cannabis operations navigate new regulations placed on the energy-intensive industry.

According to their press release, the groups’ plan is to develop and deliver three projects:

1. Best practices guides – Energy Efficiency Best Practices for Massachusetts Marijuana Cultivators, the first state-level guide assembling regionally-specific advice on designing and operating efficient cultivation facilities, which pairs with RII’s LED Lighting for Cannabis Cultivation and HVAC for Cannabis Cultivation Best Practices Guides

2. Cultivation workshops – Efficient Yields workshop series, featuring experts who contributed to, and content from, the best practices guides

3. Simplified energy and water reporting – The Cannabis PowerScore benchmarking platform was upgraded to enable cultivators to comply with Cannabis Control Commission rules on providing annual resource consumptionThe following press release was posted at Cannabis Business Times. 

Read the full press release here.

Drought Conditions Declared “Critical“ by State Environmental Agency

And finally, this week — as if a global pandemic, budget shortfalls, evictions, and record unemployment weren’t enough — drought conditions in the southeast region of the state have been declared critical by the Massachusetts Executive Office of Energy and Environmental Affairs (EOEEA) announced Friday.

The other six regions across the state (Western, Connecticut River Valley, Central, Northeast, Cape Cod, and Islands) are nearing critical conditions according to the EOEEA. 

NBC Boston has a report on this story.

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Substantial Budget Shortfalls Predicted for Next Year

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Even with better-than-expected revenue during the past three months, economists are warning Massachusetts lawmakers that tax collections could fall below projections by as much as 12 percent for this fiscal year ending July 1, 2021. 

According to Revenue Commissioner Geoffrey Snyder, tax collections are expected to fall between $1.2 billion and $3.6 billion below projections. Moreover, those figures are based on lowered projections made after the coronavirus crisis started. 

Snyder's and other economists presented their projections at a hearing this past Wednesday. 

Compounding the problem is the fact that Mass. unemployment currently remains among the highest in the nation at 11.2 percent. 

As Eileen McAnneny, president of the business-backed Massachusetts Taxpayers Foundation pointed out, most of those gains realized so far this fiscal year have come from federal aid including the expanded unemployment benefits to the tune of $15.8 billion.

To help close the gap, President of Massachusetts Budget and Policy Center, Marie-Frances Rivera, along with a coalition of Mass. workers’ unions are imploring lawmakers to raise taxes on the state's wealthiest residents.  

Patch.com has more on this story.

Tight Budgets Expected to Put a Drag on Commuters

In the wake of revenue shortfalls, commuters in Massachusetts can expect increased fares, reductions in services, and slowed pace of repairs to the state’s transportation infrastructure. 

Like many agencies across the country, the MBTA is experiencing lower than expected fare revenue as a result of the pandemic. While ridership levels are slowly increasing, the agency expects continued uncertainty. 

The Massachusetts Bay Transportation Authority is considering a number of budget cuts including reducing and potentially eliminating some services after seeing a decline in ridership of up 95%.

Despite the fact that the MBTA has received more than $800 million as part of the CARES Act, the agency has been unable to balance its 2020 budget. The agency is estimating a budget deficit between $308 and $577 million for the 2022 fiscal year (which begins next October). 

A fare cap was instituted in 2016 by Gov. Charlie Baker that limits fare hikes to no more than 7 percent in a two-year period. Fares were increased in 2019 and cannot be raised again until 2021. 

Some of the proposed cuts include:

  • Ending subway service at midnight

  • Reducing train frequency

  • Eliminating commuter rail service on weekends and after 9 p.m. on weekdays

  • Eliminating some “non-essential” bus routes

Meanwhile,  according to data from the Massachusetts Department of Transportation, toll revenue has also declined by roughly one-third during the pandemic putting at risk repairs to the state’s roadways and infrastructure projects including repairs to the Tobin Bridge, highway system tunnels in Boston, and maintenance on I-90.

Here are some facts and figures as reported by MassLive.com.

  • For the first eight months of 2019 MassDOT brought in roughly $245 million in revenue. 

  • Toll revenue during the first eight months of 2020 is down approximately $80 million, to $163 million as of August.

  • Revenue from the Western Turnpike dropped to $60 million for  January 2020 to August 2020 compared to $92 million for the same period last year.

  • State highway extension and the tunnel system toll revenue totaled $129.6 million between January and August 2019. That number fell to $77.3 million during the first eight months of 2020.

  • Toll revenue on the Tobin Bridge of $24.3 million between January and August 2019 fell to $17.3 million for the same period in 2020.

  • In March, trips on the Massachusetts Turnpike, the tunnel system and the Tobin Bridge combined were down to fewer than a million a day compared to 1.5 million per day prior to the pandemic.

Learn more at the Daily Free Press, MassLive.com, and Mass Transit Magazine.

Curaleaf Receives CCC Approval for Acquisition of Alternative Therapies Group

The Massachusetts Cannabis Control Commission has approved Curaleaf Holdings, Inc.’s acquisition of Alternative Therapies Group.

Curaleaf is one of the leading vertically integrated cannabis operations in the country.

Joseph Lusardi, Chief Executive Officer of Curaleaf, said in a statement:

"We appreciate the work of the Commission, and we are pleased to have secured the final regulatory approval for our acquisition of ATG's Amesbury cultivation and manufacturing licenses and facility, paving the way for a successful completion of the transaction, and we thank the Commission. As we look ahead, the integration of ATG's cultivation and processing facility will expand our cannabis grow capacity in Massachusetts by 60%, allowing us to better address the rising demand we continue to see among medical and adult-use customers as well as expand Curaleaf's wholesale market presence. Overall, these enhanced production capabilities will provide a powerful growth engine for our business in 2021 and beyond as new harvests come online."

ATG operates a 53,600 square foot cultivation and processing facility in Amesbury, Massachusetts with dispensaries located in Amesbury, Salisbury, and Salem. Curaleaf also operates dispensaries in Provincetown and Ware, as well as a co-located medical and adult-use dispensary in Oxford, and a medical dispensary in Hanover. 

Read the company press release here.

Business is Still Booming For Cannabis

The Massachusetts marijuana industry has generated $273 million in sales since reopening roughly four months ago, after a short closure due to pandemic-related restrictions. And according to data from the Cannabis Control Commission, more than the $217 million in sales were generated in the four months prior to the shutdown. 

The WBUR website has more on this story.

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State Budget Closes with $700 Million Deficit

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Gov. Charlie Baker filed a proposed closeout budget with the Legislature Wednesday that shows the state is ending fiscal 2020 with a close to $700 million budget gap claiming that the deficit is due to the COVID-19 pandemic and resulting lower-than-anticipated sales tax revenues, deferral of business taxes, lower gaming revenue, and lower gasoline taxes. 

To cover costs, Baker proposes to bridge the budget gap by diverting money from excess capital gains taxes which are currently earmarked for the state’s $3.5 billion rainy day fund, and that $108 million that was not spent in fiscal 2020 be carried over into fiscal 2021. Further, the governor proposes $424 million in new spending to cover costs incurred by the state Medicaid program. 

The bill now goes to the House for consideration. 

Read more about the proposal at Commonwealth Magazine.

The High Cost of the Coronavirus Response 

Massachusetts has spent $838 million of the $1.1 billion supplemental budget bill appropriated for combating the Covid-19 virus, according to a report released on Wednesday.

The biggest expenditure, according to the report from Secretary of Administration and Finance Michael Heffernan to the House and Senate Ways and Means Committees was $350 million for personal protective gear — slightly less than lawmakers’ earlier projection of $356 million.

The report includes a breakdown of expenditures incurred by the state:

  • $20 million designated by the Baker administration to “address racial disparities in health during the 2019 coronavirus pandemic,” has yet to be released

  • Also, an additional $111 million meant for health providers, hospitals, and nursing home payments has yet to be released

  • Only $29 million of the projected $44 million budget assigned for a contract tracing program has been utilized by the state

  • $47 million spent on field hospitals by the state is considerably less than the anticipated $85 million

Other Local Aid

The supplemental budget bill also allocated funds to cities and towns in Massachusetts to aide programs with the following grants:

  • $846,000 for virtual learning programs

  • $1 million to local boards of health

  • $2.5 million to re-open schools

  • $7.2 million for food distribution

  • $25.7 million mostly channeled through the state’s rental assistance program, for housing programs

The remaining funds may be utilized by the state for Fiscal Year 2020, as the books have yet to be closed on the year ended June 30th.

Delve deeper at the Boston Patch.

Eviction Protection Bill Clears Housing Committee

The Joint Committee on Housing has cleared a path for an eviction protection bill just 18 days before the state’s eviction ban is set to expire. The bill’s authors seek to extend the current eviction moratorium. Should the bill pass, rent increases would be frozen until one year after the official end of the state of emergency.

According to the report in Commonwealth Magazine, all 14 Democrats on the panel voted to advance the bill while Republican Reps. David DeCoste and Will Crocker voted no, and Republican Sen. Patrick O’Connor of Weymouth abstained. 

Several changes were made to the initial draft that was filed at the end of  June including an allowance for landlords to apply for a tax credit from the state that would be equal to the amount of rent owed. In order to receive the credit, landlords would have to forgive the debt of tenants who can’t pay because of COVID-19–related financial hardship.  

Moreover, the bill would allow landlords with fewer than 15 units to pause mortgage payments for up to six months. Those payments would then be added to the end of their loan. 

Also, under the bill, eligibility for the Residential Assistance for Families in Transition program would be expanded to make low-income households that would be eligible to receive up to $10,000 to be used to pay rent.

Revised Ridership Estimates Put Federal Funding of East-West Rail Service In Jeopardy

A recent presentation to the East-West Passenger Rail Study Advisory Committee has revealed more details about the project. Consultants for MassDOT stressed in the presentation that the latest estimates of ridership might put required federal funding at risk at only about one-tenth of the level required to be considered “competitive.” 

Ethan Britland, the study’s project manager had this to say:

“Federal funding rules say that a (benefit-cost analysis) of 1.0 or higher makes it more competitive for federal funding, so we’re only at about 10 percent. As we all know, these are very expensive cost estimates, so federal participation, we feel, is key for any future project development that may happen. But with BCAs this low, it would be challenging for federal competition.”

And Kimberly Robinson, executive director of the Pioneer Valley Planning Commission stated:

“It is imperative that we look at the economic benefits of this type of infrastructure development. It is key to really understanding the full picture, because what we’re building, I believe, is opportunity and opportunities in many different ways.”

New projections suggest that passenger rail expansion into Palmer, Springfield, Chester and Pittsfield Massachusetts would attract 278,000 to 469,000 riders per year at a cost ranging between $2.4 billion and $4.6 billion.

Currently, the MBTA does not offer rail service west of Worcester. However, existing tracks currently carry freight and Amtrak trains all the way to Chicago.

The project team will submit a draft report summarizing its findings and the advisory committee’s recommendations Oct. 16. The document will then be released for a 30-day public comment period.

‘Cultivating Talent’ Cannabis Industry Job Fair 

On Oct, 9th from 2-4:30 pm, the “Cultivating Talent” job fair, aimed at those seeking employment in the cannabis industry will be held outdoors at Cambridge’s Starlight Square.

Employment opportunities include patient services, customer service, cultivation, security, logistics, retail, and quality assurance.

Attendees must be at least 21 years old, wear face masks and maintain a 6-foot distance from others. Do NOT attend if feeling ill. Capacity will be monitored. 

Interested parties may register online. Resumes are preferable, but not required.

Register online for the Cultivating Talent cannabis industry job fair. 

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