Nine-month shelter limit, millions in funding, permanent cocktails-to-go feature in compromise bill

Gear up for double-barreled budget action in the House today, and prepare for a fourth bill to join the Senate agenda. Democrats reached a deal on a fiscal year 2024 supplemental budget weeks after talks began, and today it will go before both chambers for final approval.

Beacon Hill has been waiting with bated breath for this supp, which provides a potential temporary solution to the quickly-diminishing pot of cash allocated to the state’s emergency assistance shelter spending system.

Just how this supp will be received remains a question, as both Republicans on the conference committee — Sen. Patrick O’Connor and Rep. Todd Smola — declined to give their support to the compromise, forecasting more frustration might be aired today.

The negotiated accord allocates $251 million more toward shelter spending for the remainder of fiscal year 2024, and allows another $175 million boost to flow to the system in fiscal year 2025, in both cases tapping into a state savings account known as the transitional escrow fund.

By putting that $175 million for fiscal 2025 into play in the supp, House Democrats signaled they no longer see a need to advance an identical funding boost through the annual state budget currently under debate. They plan to make some kind of amendment before that process wraps up.

Under the proposal, families in the shelter system would face stay limits of nine months starting June 1, with up to two separate 90-day extensions available for those employed or in a training program and those who are veterans, pregnant or disabled. 

It’s unclear what will happen to shelter-seekers after those two extensions run out. “We have the hardship option, which is still available to folks after the two 90-day extensions,” House Ways and Means Committee Chair Aaron Michlewitz told reporters, referencing the bill’s push to offer a “hardship waiver” through the Executive Office of Housing and Livable Communities.

“We also want to continue to stress that this is supposed to be a transitional program, not a permanent program, and in order to keep it sustainable, long term, we had to find parameters around it,” he added. 

The compromise calls on the administration to provide individual rehousing plans and case management for all families and pregnant women receiving benefits through the EA program, with compliance checks every 60 days. The supp would also require the governor to seek federal approval for a waiver to permit expedited, temporary and provisional work authorizations. 

In another compromise feature, expanded outdoor dining and takeout cocktails are set to return permanently — restaurants would be able to sell cocktails to-go, but not beer and wine, which will be restricted to package store licenses. — Ella Adams

Day One: FY25 House budget debate begins

Warnings about the financial standing of the state after low tax revenues colored initial House statements as the chamber began debate on its fiscal year 2025 annual budget. Republicans said the revenues are a warning sign, meaning fiscal responsibility is a must, and a top House Democrat said proceeding with caution is necessary — though high rainy day fund levels and a bond rating increase show promise that the state can handle itself in the midst of a shaky future. The decisions over the next couple of days will mostly happen behind closed doors, as is usual practice during budget debates. — Boston Herald

Health care hearing speaks to high demand, capacity issues in SE Mass. hospitals

Health care industry leaders testified Wednesday before the Senate Post Audit and Oversight Committee about southeastern Mass. and Cape & islands health care, affordability and staffing. Leaders representing Steward Health Care hospitals showed up — and noted that while their facilities are for-profit, they face similar issues as nonprofit hospitals, including massive upticks in demand and operational strain. Hospital CEOs noted capacity crunch is intertwined with staffing shortages, and Health and Human Services Secretary Kate Walsh said the state should use current challenges to transform care, reports the News Service’s Chris Lisinski.— State House News Service

Milton wants its grant funding back

The Milton Select Board voted to send letters to Gov. Healey and other officials asking for the town’s grant funding back — dollars and opportunities the town lost when it voted to refuse to comply with zoning required by the state’s MBTA Communities Act. The board was divided Tuesday night, some saying the town shouldn’t lose funding until the court decides its fate; others saying the town was warned of this before its decisive vote. — CommonWealth Beacon

Boston protest encampments in action 

Emerson College officials warned students camping out in a public alleyway on the school’s downtown Boston campus in protest of the ongoing war in Gaza to be prepared for “imminent law enforcement action,” reports Charlie McKenna for MassLive. School officials said tents violate city ordinances.

Across the city in Cambridge, Harvard students crowded the publicly-shut Harvard Yard in protest of the university’s suspension of its Palestine Solidarity Committee. Protesters set up tents, and even some faculty members attended to call for Harvard’s disclosure of its financial ties to Israel, cutting those ties and not punishing student protesters, WBUR reports. — MassLive | WBUR

Drivers rally, union leaders speak to employment status issue

Drivers and union members rallied outside the State House Wednesday with union leaders supporting legislation providing app-based and delivery drivers the option to unionize and access guaranteed minimum wage and paid sick time. That rally was one of two this week — the other in Worcester — showing the momentum building on the opposing sides of the fight over app-based driver conditions. In the meantime, a legislative committee is determining whether the issues will reach voters in the fall. — State House News Service | Telegram & Gazette

Real estate group ready to spend to block transfer-tax legislation 

The Greater Boston Real Estate Board says it has launched an effort to block legislation that would enable cities and towns to levy transfer fees on property sales, a component of Gov. Healey‘s housing bond bill that the group says will actually drive housing prices higher. Chris Lisinski of State House News Service reports the board is ready to invest as needed to keep the measure from passing and has launched a direct-to-voters effort to rally opposition just as lawmakers prepare to take up the bill. — State House News Service

Poll shows Black small business leaders rejected at higher rate during finance application

A recent MassINC poll suggested that Black small business leaders in Mass. report being rejected when applying for financing at a disproportionate rate, James Sanna reports for Banker & Tradesman. The survey, sponsored by the Coalition for an Equitable Economy, found that 31 percent of Black-owned firms received capital they applied for, compared to 47 percent of white-owned, 35 percent of Asian-owned, and 34 percent of Latino-owned firms. — Banker & Tradesman

Attleboro mayor’s balanced budget comes with warning of ‘structural deficit’

Attleboro Mayor Cathleen DeSimone has sent a $183M fiscal year 2025 spending plan to the City Council but is warning that while the budget is balanced, the city continues to face a structural deficit. The Sun Chronicle’s George Rhodes reports the budget has big increases for health care costs but doesn’t include a contribution to the stabilization fund or money to support the city-owned Capron Zoo. — Sun Chronicle

Weed sales hit new one-day high, blow past $6B benchmark

More than $6 billion worth of adult-use cannabis has now been sold since the state’s legal market went live late in 2018, the Cannabis Control Commission says, and last week’s unofficial pot holiday of 4/20 saw the state set a new one-day sales record of $8.5M — a full million dollars more than the previous high. Eric Casey of the Worcester Business Journal has all the numbers and notes that despite the continued growth, the industry is experiencing its share of growing pains. — Worcester Business Journal

Quincy’s Cain formally enters Senate race, setting up GOP primary to challenge Warren 

Quincy City Councilor Ian Cain formally launched his anticipated bid to unseat U.S. Sen. Elizabeth Warren, calling the 74-year-old two-term senator a ‘non-performing asset’ and making it clear he would emphasize generational differences. Cain, a former startup founder who is 41, joins fellow Republican John Deaton in the race to face Warren in November. — Boston Globe

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