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The Massachusetts Senate moved last week to attach interest to the state’s $8.2 billion rainy day fund to help state and local governments compete for federal grants.
The Massachusetts Competitiveness and Infrastructure Investment Act would help the state compete for up to $17.5 billion in so-called “once-in-a-generation federal funding opportunities.” If approved by the House, it would also require the state comptroller to transfer interest, currently about $250 million a year, into the federal matching and debt reduction fund.
“I was proud to vote with the senators to strengthen Massachusetts’ competitiveness and ensure the Commonwealth’s fiscal security. This bill will strategically invest in the Commonwealth’s future while It doubles down on the state’s fiscal responsibility,” said Sen. Barry R. Feingold.
The bill would set aside more than $800 million over the next few years to help pay for state or local matching requirements for federal competitive grant opportunities and to help communities prepare applications for federal grants. It is expected that it will be available for work. Once the federal grant opportunity expires, the funds will be used to reduce long-term federal debt.
More than $2 trillion in federal funding is available through programs such as the Infrastructure Investment and Jobs Act, the Inflation Control Act, and the Creating Incentives to Help Semiconductor Manufacturing Act (CHIPS).
“Maintaining competitiveness, equity, and affordability requires thinking creatively about federal finances and resources, and that’s what we accomplished today in the Senate,” said Senate President Karen E.・Spilka said. “We have been fiscally prudent and created the largest Rainy Day Fund in Massachusetts history, and today we demonstrate fiscal responsibility by using the interest on that fund to compete for federal funding. You’ll double down and save even more of the Federation. Long run.”
“The bill approved by the Senate today provides the most prudent legislation available to effectively stretch and maximize taxpayer dollars to establish federal status,” said Sen. Michael J. Rodriguez, Chairman of the Senate Ways and Means Committee. “It will provide us with appropriate accounting measures,” he added. We are in the best position to compete for these lucrative federal funds, while also ensuring that we protect our rainy-days and continue to adhere to sound fiscal discipline. ”
The bill was originally introduced by Gov. Maura Healey last October.
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