MMA asks Legislature for Ch. 90 funding in year-end budget

As the Legislature considers a fiscal 2021 closeout budget bill filed by Gov. Charlie Baker, the MMA is continuing to advocate for an additional one-time appropriation of $200 million for the Chapter 90 local roads program.

The MMA is also strongly supporting a $10 million allocation for the Community Preservation Trust Fund, as proposed by the governor, which would help cities and towns that have adopted the Community Preservation Act.

The bill that the governor filed in August would allocate a significant portion of a fiscal 2021 state surplus, which is expected to exceed $4 billion, but did not include additional spending for the Chapter 90 program.

The surplus is enabling the state to avoid a $1.1 billion withdrawal from its stabilization account, which had originally been anticipated to balance the fiscal 2021 budget. The surplus is also adding $1.1 billion from above-benchmark capital gains tax revenue to the fund. At the close of fiscal 2021, the stabilization fund balance stands at a record $4.63 billion, according to the administration.

The governor’s spending bill would add $1 billion to the Unemployment Trust Fund and $568 million for relief programs, mostly focused on housing insecurity and human services.

During the public health emergency, the administration and the Legislature used revenue estimates that reflected the uncertainty of the times to create the fiscal 2021 budget. Since then, state revenues far exceeded expectations, leading to a higher-than-usual budget surplus.

The bill is now before the House Committee on Ways and Means.