Gov. Baker’s New Budget Taps Rainy Day Fund

October 16, 2020 Pace LaVia

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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