#2022-19 September 2, 2022

Governor Baker Files New Spending Bill that Includes $2.94 Billion in Tax Relief

On Wednesday, Governor Charlie Baker filed a $1.6 billion supplemental budget to close the books on fiscal year 2022.  The bill proposes another $200 million in aid for the MBTA and includes $2.94 billion in set asides for tax relief required under Chapter 62F.  The measure, H 5260, leaves the Legislature $1.5 billion of last budget year’s surplus to potentially put towards their own agreed-to tax relief efforts and other spending initiatives that remains stalled after legislators adjourned formal sessions on July 31 without reaching an agreement.

In announcing the supplemental budget, the Department of Revenue indicated that it has informed Auditor Suzanne Bump that it believes $2.941 billion is required to be returned to taxpayers under Chapter 62F, the 1986 voter law that requires excess state tax collections be refunded.  Under the statute, the Auditor is required to certify the amount by September 20.  Governor Baker’s office said the state will still have a fiscal year 2022 surplus of $2.3 billion -- up from the administration estimate of $1.9 billion earlier this month – even without the $2.94 billion in tax relief.

The legislation also includes $1.622 billion in spending and will contain the almost $40 million school safety plan that Baker announced last week.  In addition, $108 million will be provided for a COVID-19 cost reserve account and an outside section mandating the appointment of a guardian ad litem in every Juvenile Court proceeding in which a child is alleged to have been abused or neglected will also be part of the bill.

Among the bill’s other policy sections is a “correction” to allow DOR to intercept sports wagering winnings for outstanding child support and tax debts as the agency already does with Lottery and casino winnings; authorization for the Department of Veterans’ Services to access the FBI national criminal database prior to hiring employees for the soldiers’ homes in Chelsea and Holyoke; and the creation of a trust fund to support the construction, development and capacity of new provider-operated community housing for people discharged from skilled nursing facilities and psychiatric, chronic and rehabilitation hospitals.

The Legislature will need to act on Baker’s budget bill during informal sessions, when opposition from any single member can slow a bill down or stop its progress entirely.

To review the supplemental budget, click here.

FDIC, OCC, and Boston Fed Hosting Webinar on Economic Challenges and Opportunities for Latinos in Massachusetts on September 8

The Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and the Federal Reserve Bank of Boston are hosting a webinar on the Economic Challenges and Opportunities for Latinos in Massachusetts: Q3 2022 Boston AEI Meeting on September 8 at 10:00 a.m.

The webinar will provide insights into the socio-economic challenges and opportunities facing Latinos in Massachusetts, and offer solutions to address Latino, low- and moderate-income, and underbanked communities, such as partnering with community-based organizations to support community development lending, services, and investment opportunities that may garner favorable Community Reinvestment Act (CRA) consideration.  Details and registration information are below:

When: Thursday, September 8, 2022 from 10:00 AM to 11:30 AM ET
Where: Webinar, WebEx,

Who should attend: Bank Presidents and Chiefs, CRA Officers, Financial Institutions, CDFIs, Non-profit Organizations, other Community-based Organizations, State and Local Government, and stakeholders interested in the availability of capital serving low- and moderate-income families in diverse populations to promote economic inclusion and mobility.

Registration Information: To register online, please click here. You will receive a confirmation email once completed.