Baker Administration Introduces FY 2017 Budget Recommendation & Separate Economic Development Legislation

Yesterday, Governor Baker unveiled his $39.6 billion FY 2017 budget proposal and this morning he filed an economic development bill, “An Act to Provide Opportunities for All,” seeking legislative authorization for nearly $1 billion in capital investments over the next five years.  There is a great deal of information to digest in these two proposals, and we will spend the next several days examining key items of interests to MACDC members.  For now, here is brief overview of various line items we will be tracking throughout the legislative process.

House 2 – FY 2017 Budget Recommendation from Baker / Polito Administration

  • Small Business Technical Assistance (SBTA) program:  proposed level funding ($2 million)
  • Urban Agenda Grant program:  proposed level funding ($3 million – combined economic development and housing grants)
  • Massachusetts Rental Voucher Program (MRVP):  proposed funding cut $8 million, to $82.9 million
  • Foreclosure Prevention Counseling:  proposed level funding ($2.35 million)
  • Alternative Housing Voucher Program (AHVP):  proposed level funding ($4.6 million)
  • Residential Assistance for Families in Transition (RAFT):  proposed level funding ($12.5 million)
  • Housing Preservation & Stabilization Trust Fund (HPSTF):  no proposed funding (- $11.5 million)
  • Community Preservation Act (CPA):  proposed level funding ($10 million – transferred from the state’s end-of-year budget surplus)

“An Act to Provide Opportunities for All” – Economic Development proposal seeking legislative authorization to fund over five years:

  • $500 million for MassWorks
  • $50 million for the Transformative Development Fund to enhance redevelopment projects in Gateway Cities
  • $75 million for the Brownfields Redevelopment Fund
  • $25 million for a new site assembly and pre-development fund, to support commercial and industrial development in regions outside of Boston
  • $25 million for the Smart Growth Trust Fund, combined with proposed changes and expansions to Chapter 40R, to meet Commonwealth’s need for smart growth housing development at higher density and development of “starter homes”.
  • Revision to the Housing Development Incentive Program (HDIP); allow new construction (in addition to rehabilitation) and raise reimbursement from 10% - 25%.