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Senators on Thursday advanced Gov. Maura Healey’s proposal to use interest from the state’s massive rain fund to pay off the state’s debt and obtain federal aid. (Matt Stone/Boston Herald)
Senators on Thursday advanced Gov. Maura Healey’s proposal to use interest from Massachusetts’ massive rain fund to pay off the state’s debt and win federal aid.
Beacon Hill Democrats argue that having money on hand to match federal grants will give Massachusetts a competitive edge against other states pursuing the same opportunities at a time when billions of dollars are available. ing.
Sen. Michael Rodriguez, chairman of the Senate Budget Committee, said having a readily available pool of funding would “demonstrate to the federal government that it is willing and willing to collaborate on these projects.” .
“By creating a dedicated funding pool, the Commonwealth will leverage this funding to direct a portion of the $17 billion in once-in-a-generation federal funding to transportation, housing, climate, economic development, and technology. “It can be used for investment,” he said. He said.
The bill, passed by the Senate on a 39-0 vote, would allow Secretary of State for Administration and Finance Matthew Gorzkovich to use interest earned on the $8 billion rain fund to pay down debt and provide matching funds for federal aid. The content allows the transfer to a different account.
Mr Healey submitted a version of the proposal in October, arguing at the time that the idea was “fiscally responsible” and something “we need to do.”
Healey said in a statement Thursday that the Senate “unanimously advanced this bill that strengthens Massachusetts’ ability to compete for federal funds that can be brought home to support critical projects in cities and towns.” He said he was grateful for what he did.
The Healey government previously said interest on the rainwater account, or stabilization fund, was expected to generate about $250 million a year.
The governor will combine proceeds from the next three years with $50 million in revenue from state surcharges on incomes over $1 million to pursue federal opportunities and support matching grants for local governments. he suggested.
The bill passed by the Senate largely reflects what Healey introduced last year.
$750 million in matching funds for federal grants, $50 million in matching funds for local government projects seeking federal funding, and $12 million in technical assistance for local governments applying for federal opportunities. There is.
Rodriguez said the Senate includes minor differences and that the Senate’s version is “more restrictive” than what Healey originally proposed. He said the Senate is allowing access to federal interest until 2026, when the federal infrastructure bill is “completed.”
“If the Stabilization Fund remains healthy, meaning at least 10% of general revenue, and you haven’t sunk into the Stabilization Fund in the previous year, you can use that interest to repay unfunded pension obligations,” he told reporters. I can continue to use it.” Early in the day.
Senate Minority Leader Bruce Tarr said Massachusetts is at a time when lawmakers need to be “very vigilant and act with caution” as fiscal year 2024 revenue is expected to be $1 billion lower than originally expected. He said there was.
The Gloucester Republican said it would be a “mistake” not to make some funds available to take advantage of federal grant opportunities. But he said the “historic” amount in the stabilization fund would give lawmakers confidence in the face of difficult fiscal conditions.
“It is our responsibility and obligation to ensure that the Stabilization Fund is as healthy as possible. And not only does it stay at $8 billion, we do everything in our power to keep it growing.” I will do my best,” he said.
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