Senator Eldridge Offers Recommendations on the Appropriation of the American Rescue Plan funds
The Honorable Michael J. Rodrigues
Chair, Senate Committee on Ways & Means
State House, Room 212
Boston, MA 02133
Dear Chair Rodrigues,
I am writing to offer my recommendations on where the Senate Ways and Means Committee should appropriate the American Rescue Plan (“ARP”) funds to make investments in Massachusetts communities. Before I lay out my priorities, I am offering three preliminary thoughts on the broader context for this particular opportunity to appropriate one time funds to invest in Massachusetts.
First, I stand firmly behind you, the House Ways and Means Chair, the Senate President and the House Speaker that it is the constitutional power of the Legislature — not the sole prerogative of Governor Baker— to appropriate these funds. Legislators are closer to their constituents. They know the needs of Massachusetts better than the Governor does. Moreover, Article 30 of the Massachusetts Constitution mandates that the Legislature appropriate funds, not the Governor. This is Civics 101.
Second, it is a modest accomplishment that unified Democratic control of the Presidency, the U.S. House and the U.S. Senate allowed for the passage of ARP. ARP provided $5.29 billion for Massachusetts to spend on much needed investments over a 5-year period (2021-2026). This amounts to spending of slightly more than $1 billion per year that will abruptly end on December 31, 2026. Moreover, the amount pales in comparison to the decades of neglect of our infrastructure. Our water and sewer infrastructure alone requires $40 billion in investment. Our public housing stock has $3 billion in deferred capital repairs and maintenance. One billion per year also pales in comparison to the ability of Massachusetts billionaires to pay their fair share towards our public infrastructure. In 2021, the 25 billionaires in Massachusetts are worth more than $104 billion combined. A billion dollars is more than any person reasonably can spend in a lifetime. At the same time, it is a modest amount for our public needs.
Third, the disparity between public need and private wealth provides a compelling case for the need for more progressive revenue sources. I was proud to vote for the Fair Share Amendment, which would provide $2 billion annually for education and transportation. I also am the lead sponsor of the HERO bill (S. 1853), which would provide $300 million in new revenue for climate change mitigation and adaptation and affordable housing production. Half of the new revenue would be dedicated to climate mitigation and resiliency through the Global Warming Solutions Trust Fund. The other half would go to aid working-class homeowners through the Affordable Housing Trust Fund and low-income renters and the homeless through the Housing Preservation and Stabilization Fund. Together, the HERO bill and the Fair Share initiatives would provide permanent sources of revenue to address the needs of Massachusetts families.
In short, ARP is not a silver bullet. It is not sufficient to cover the needs of the most vulnerable among us in Massachusetts. That being said, the remainder of this letter sets out a plan for what ARP can do in the areas of housing (Part I), establishing a public bank (Part II), protecting the environment (Part III), improving education (Part IV), preserving our public health (Part V) and working towards criminal justice reform and civil access to justice (Part VI).
I. Affordable Housing & Public Housing
The COVID-19 pandemic has exacerbated a years-long housing crisis that has made it exceedingly difficult for middle-class and low-income families to afford housing. Here are my housing priorities:
1. New Public Housing ($250 Million) – This item would provide funding to public housing authorities for building new public housing and purchasing land to buy new public housing. This amount of funds would create approximately 675 new units of public housing. As the past Chair of both the Joint Committee on Housing and the Chair of the Acton Public Housing Authority, I know firsthand that public housing is the best place for many people experiencing homeless. Subsidized housing operated by for-profit companies effectively serves some populations, but not the most vulnerable among us. Moreover, tenants of public housing are afforded greater protection from eviction than tenants of subsidized housing. Thus, I support an investment in new public housing.
2. Public Housing Capital Improvements ($285 Million) – These funds would be used for planned public housing capital programs, such as accessibility improvements, health and safety projects, and kitchen and bathroom updates, among other critical capital projects.
3. Public Housing Water and Sewer Line Upgrades ($100 Million) – These funds would replace existing failed and beyond-useful-life sewer lines, water lines, heating lines, electrical lines and electrical transformers. These are health and safety projects that are of the utmost importance.
4. Public Housing Fire Safety ($50 Million) – These funds would be used to replace the old technology zone systems with modern addressable fire alarm systems.
5. Public Housing Climate Resiliency ($15 Million) – These funds would be used to build infrastructure to mitigate problems caused by climate change, such as upgrading electrical services.
6. Affordable Housing Acquisition ($200 Million) – These funds would be used to purchase housing at risk of becoming unaffordable for current tenants. In my district, a real estate developer is engaging in the mass eviction of residents in Ayer. Funds like these would allow the town or the local public housing authority to purchase the property and preserve housing for the long-term residents.
7. Affordable Rental Housing Production and Preservation ($200 Million) – We need funding for rental affordable housing production and preservation for more homes that are climate resilient, energy efficient, and accessible to disproportionately impacted populations, including BIPOC communities, persons with disabilities, seniors, LGBTQ+ populations, and others.
II. Public Bank
1. Public Bank ($100 Million) – As the longtime lead sponsor of the public bank legislation (S. 665), I am thrilled that ARP provides the needed investment funds to establish a public bank to support underserved communities of color throughout Massachusetts. The public bank’s lending can sustain our Main Streets and small businesses and expand economic opportunities by lending that will support small and medium-sized businesses, especially those that pay a living wage and operate in underserved neighborhoods or rural communities, among other lending priorities.
III. Environmental Protection & Water Infrastructure
1. Climate Resiliency ($300 Million) – This funding would be for climate resiliency projects and programs, to support implementation of the State Hazard Mitigation and Climate Adaptation Plan and other state and local climate resilience plans and to make funds available to municipalities, regional planning bodies, watershed organizations, land trusts, and conservation and community-based nonprofits. This item should explicitly include nature-based solutions to climate resiliency.
2. Clean Water Trust Fund ($400 Million) – An investment of this size in the Massachusetts Clean Water Trust will enable the Trust to provide grants to meet the needs of communities across the state – many of them Gateway Cities and environmental justice communities. Potential projects in the pipeline include: lead identification and outreach in drinking water systems; PFAS remediation in drinking water systems; combined sewer overflow remediation; and sewer expansion for housing development. These projects are essential to provide safe drinking water and to protect water resources from contamination.
3. Open Space Funding ($100 Million) – This item defines “open space” broadly. It would provide funding for waterfront parks, urban parks, trails, bike paths, playgrounds, urban farms, community gardens and green spaces designed to absorb heat and reduce flooding impacts. Funding should be prioritized for environmental justice communities and those that have been disproportionately affected by the pandemic.
4. Purchase Conservation Land and Agricultural Restrictions ($25 Million) – This funding would allow state government to acquire conservation land and agricultural preservation restrictions on working farms and forests.
5. Local Meat Industry Infrastructure ($3 Million) – These funds would provide grants for the local meat industry to develop infrastructure.
6. Park and Trail Maintenance ($100 Million) – Funding for programs to maintain, restore and improve public access on state, municipal, and nonprofit parks, trails, and conservation land. Funding mechanisms can include direct appropriations to EEA agencies and to non-profits. These funds can be used for deferred maintenance, recreation, and wildlife habitat restoration efforts, as well as grants to nonprofits to improve the condition of, and public access to, lands and waters in all communities.
IV. Education
1. College Savings Accounts ($10 Million) – The BabySteps Savings Plan is the state’s first statewide seeded savings account program, designed to empower all families to save for their child’s future. This public-private partnership provides a $50 seed deposit to children born or adopted in Massachusetts after January 2020. To date, the Office of Economic Empowerment (“OEE”) within the Treasury has secured grants and worked with private donors to fund seed deposits. Appropriating $10 million to a matching grant account will enable OEE to effectively leverage private funds, ensuring the program’s sustainability. This investment would also allow the Treasury to increase seed deposits from $50 to $100 and would assist in our efforts to increase enrollment among low income families and communities of color. A one-time infusion of $10 million would permanently increase the seed from its current level of $50 to $100 without requiring additional funds after December 31, 2026.
2. Public School and Higher Ed Building Rehab ($100 Million) – The COVID-19 pandemic has exacerbated the poor state of our public schools in Massachusetts. Funding for the Massachusetts School Building Authority to seal windows, add insulation and replace failing ventilation systems is critically necessary. In my district, the town of Maynard requires substantial funds for asbestos abatement in its schools.
V. Public Health
1. Integrated Public Health Data Systems ($118.4 Million) – The COVID-19 pandemic has revealed the inadequacies of our public health infrastructure. These funds will support the establishment of statewide, integrated 21st century data systems to collect and report local public health data. It includes the development, set-up, and maintenance of a statewide system that will generate comprehensive reports and track standard responsibilities of boards of health.
VI. Criminal Justice Reform & Civil Access to Justice
1. Right to Counsel in Eviction Cases ($78 Million) – As a former legal services attorney, I strongly believe that any person facing eviction should have a lawyer by their side to advocate for them. Connecticut implemented a right to counsel program using ARP funds. Massachusetts should do the same.
2. Acquisition Fund for Adult Residential Reentry Housing ($10 Million) – I am a supporter of reentry programming for the early release of incarcerated persons. In 2019, I visited the Brooke House Reentry Center in Fenway. I was impressed with how the Reentry Center connected its clients with jobs and community supports. Thus, I support this funding for the purchase of 4 buildings for reentry housing. The buildings would have 200 beds and serve 400 people over the course of a year based on a 6-month stay.
3. CPCS Billing IT Infrastructure ($1.5 Million) – This modest request for CPCS would allow the state agency to contract with an outside vendor to modernize and simplify our electronic billing systems. CPCS currently uses an antiquated IT system for billing. CPCS strongly believes its billing system must be modernized to attract and retain attorneys and expert vendors.
Sincerely,
James B. Eldridge
State Senator
Middlesex & Worcester District