ReportWire

Tag: government budget balance

  • Beverly faces nearly $4 million budget shortfall this spring

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    BEVERLY — The city is facing a nearly $4 million shortfall in funding the fiscal 2027 operating budget.

    That number — $3,921,385, to be exact — was in a report by Beverly’s Financial Forecasting Committee released this month.

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    By Caroline Enos | Staff Writer

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  • Healey signs $2.3B closeout budget

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    BOSTON — Gov. Maura Healey signed a $2.3 billion supplemental budget Tuesday that plugs revenue gaps from the previous fiscal year and buoys the state’s Medicaid program with federal funding cuts looming on the horizon.

    The spending plan, approved by the Legislature before it recessed last week for winter break, calls for closing out the previous fiscal year’s books by providing more money for health care, education and the state’s life sciences industry.

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    By Christian M. Wade | Statehouse Reporter

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  • Report: Slips in employer optimism tied to Trump tariffs

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    BOSTON — The state’s economy may be on solid footing but employers are becoming increasingly pessimistic about the impact of President Donald Trump’s tariffs on their bottom lines, according to a new report.

    The latest Business Confidence Index, which is compiled by the pro-business group Associated Industries of Massachusetts, shows overall enthusiasm among employers “grew darker” after slipping 1.4 points to 47.5 on a 100-point scale in September.


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    By Christian M. Wade | Statehouse Reporter

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  • Turning a corner: T tries to regain public trust as service improves

    Turning a corner: T tries to regain public trust as service improves

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    BOSTON — Does it seem like your T ride is improving? It actually might be.

    More than two years after a federal investigation into the MBTA outlined a pattern of “systemic failures,” leadership unfamiliar with basic safety procedures, and infrastructure that was actively deteriorating, data show that the T is now showing signs of real improvement as the current crop of leaders tries to earn back the public’s trust.

    The T is turning the corner on some major improvements — subway slow zones expected to be eradicated by the end of the year, speeds on the Blue and Orange Lines faster than before federal intervention, the largest workforce in years — and even advocates who previously hadn’t hesitated to criticize the T are now singing its praises.

    However, there are financial problems on the horizon that are threatening to undo all that progress and send the T spiraling, unless state officials can agree on some potentially expensive solutions.

    “It would be more than a backslide. It would be a wipeout, a deletion, of many of the positive steps the T has taken in the last year and a half under Phil Eng, eliminated in one fell swoop,” said Brian Kane, executive director of the watchdog MBTA Advisory Board. “You’re going to lose lots and lots of momentum gained by growing the workforce.”

    Through Aug. 13, before the latest Red Line work began, MBTA officials said they had lifted more than three-quarters of the speed restrictions that once plagued the system and shaved a collective 45 minutes off subway travel time as a result.

    Tracks support speed

    With tracks now able to support higher-speed travel, trains are moving faster, albeit not quite at the same levels they once hit. Over the past 18 months, average train speeds have increased 33 percent on the Red Line, nearly 25 percent on the Blue Line and 12.5 percent on the Orange Line, according to a News Service analysis of TransitMatters data.

    Eng attributed the upward trajectory to a combination of factors, especially an extensive repair campaign this year and a hiring blitz that pushed T staffing to the highest level in more than a decade.

    “Talking with Green Line operators, for example, the track work that we’ve accomplished on the Green Line has allowed them to better adhere to their schedules. Better adherence means we can run more trains, and you can run more trains now because we have more operators,” Eng said in an interview with the News Service. “They go hand in hand.”

    Bus driver hiring is up, leading to fewer dropped trips, Eng said. and on the commuter rail, ridership has been so strong in recent years that it’s basically returned to pre-pandemic levels — something no other MBTA mode comes close to achieving.

    A high point, Eng said, was the June 21 championship parade for the Boston Celtics. The T ran rush-hour service across the subway system all day, plus boosted some commuter rail offerings to accommodate the crowds of fans who flooded into the city to celebrate.

    “We could not have done that a year ago. The number of trains we ran all day long and the level of service we provided was something that would not have been able to have been done,” he said. “We would not have been able to allow those folks to enjoy that parade in the manner that they did, getting in and even leaving as early as they wanted to or throughout the day.”

    $300M worth of work

    The contracted repair work for all of the year-plus track improvement campaign cost roughly $300 million altogether, according to a T spokesperson, who stressed that figure does not include additional costs of shuttle buses, materials and some other factors.

    Kane, whose organization represents cities and towns that help fund the MBTA, said the agency has “turned a corner” during Eng’s tenure.

    “It’s a proverbial battleship turning in the ocean. You’ve got to start the turn way in advance. The building blocks were put in place by the (Fiscal Management and Control Board), the end of the Baker administration, and certainly this current Healey-Driscoll administration have been critical,” Kane said. “The lion’s share of credit has to go to Phil Eng and the governor for hiring him.”

    Crews have also grown much more efficient and successful at the actual repair work, Eng said.

    Asked if he had any idea why shutdowns are so much more productive today than two years ago, Kane replied, “Nothing that I’d like to say on the record.”

    Matté described the Orange Line fire, followed by the month-long shutdown that yielded few tangible results, as the peak of public distrust in T.

    “Things had not improved. Speeds had not gotten better,” Matté said. “So I think there was a big expectation among people that these shutdowns don’t do anything.”

    Reflecting on closures

    Eng himself compared the shutdowns happening under his tenure to the ill-fated 2022 Orange Line closure, though he held back from disparaging his predecessors. He pointed out the extra 38,000 feet of rail his team has already replaced during the first week of the Red Line shutdown, and when asked what has made the project so much more productive, he said it’s all about communication and pre-planning.

    “I always believe that the technical stuff is not the hard part. It’s the people skills, the communication,” he said.

    Eng said he thinks the biggest hurdle on the horizon for the T is the enormous backlog of work needed to bring the entire system into a state of good repair. Last year, the agency put a $24.5 billion price tag on fixing every asset that’s currently not in a state of good repair.

    In addition to the track program, Eng said there’s a number of things on his to-repair list: upgrading the subway’s signals, getting new Orange and Red Line cars on the tracks, eventually replacing Green Line trolleys with new Type 10 cars, modernizing stations, and improving accessible service.

    For everyday riders, Matté said he hopes the T will focus next on shortening headways.

    “You want to be able to just show up at the stop and know that it’s not going to be that long until your next train if you miss one. You don’t have to plan around a schedule, you’re not late because of the T. You just know you have to get up, get to the T, and know how long it’ll take you to get to your destination,” Matté said. “For everyday riders, it’s about dependability.”

    Financial chasm looming

    Unlike the public campaign to eradicate slow zones by the end of 2024, Eng didn’t identify any one specific area among the $24.5 billion state of good repair backlog as his primary goal for the upcoming year.

    “All of these go hand in hand, and then where are the bigger things that we need to look at? and there’s a lot of desire to see: where do we envision taking the T in the future?” Eng said, identifying “workforce, safety and accessibility” as key components of what he sees as the T’s roadmap.

    There’s another, more immediate financial chasm looming that has Kane especially worried. The MBTA continues to spend significantly more money than it brings in through combined state and local assistance, fares and other sources of revenue, and the agency plans to drain a final tranche of stashed-away federal aid this year.

    In fiscal year 2026 — which begins in July — T budget-writers expect to face a roughly $700 million budget shortfall, and they forecast the gap will grow in subsequent years. Without additional assistance or major cuts, the MBTA could run out of cash in the first quarter of fiscal 2026, the latest agency-produced forecast suggests.

    Kane said a solution will need to emerge quickly, especially because the T would need to notify workers in the spring about hypothetical layoffs — putting at risk much of the improvement accomplished.

    “In 2021, the T put a series of draconian service cuts on the table,” he said. “They expected to net $142 million from that. This deficit is five times greater than that deficit. There isn’t five times more service to be cut and still call themselves a public transportation agency. It’s an existential crisis.”

    Warnings about the T’s financial outlook are a perennial feature on Beacon Hill, and some skeptics might view them like a modern-day boy who cried wolf.

    Lingering pandemic effects

    Kane insists that the situation is worse now because of lingering effects from the pandemic. Ridership — and the fare revenue it brings with it — still remains stuck well below pre-COVID levels, and commuters who have come back appear more likely to pay for individual trips rather than the weekly or monthly passes that steer more money to the T.

    Eng said MBTA officials are talking about potential cost savings, and he suggested he is not “panicking” about the potential shortfall. He stressed that “we’re not going to be able to find all of those savings on our own,” seemingly hinting that the T might look for an infusion of state aid.

    T officials in recent months have cast heightened attention on the agency’s funding history, delivering lengthy public presentations about the “forward funding” system that dedicates a portion of the state’s sales tax revenue to the agency.

    “We saw the disinvestment in our infrastructure, we saw the disinvestment in our workforce, and that absolutely was the wrong direction. That’s why we want to make sure that we continue to talk about how we got to where we were just a year and a half ago, and where we’ve come from from that point,” Eng said.

    He continued, “That is just to show, starkly, that we don’t want to go back there. Nobody wants us to go back there.”

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    By Sam Drysdale and Chris Lisinski | State House News Service

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  • Rising above flood waters: A year of perseverance for flooded businesses

    Rising above flood waters: A year of perseverance for flooded businesses

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    NORTH ANDOVER — A year after two extreme rainstorms hit the Merrimack Valley, local businesses persevered through a trying year to rebuild themselves — and one, owned by a Gloucester man, continues to do so.

    Aug. 8 marked the one-year anniversary of a storm that engulfed local businesses and homes with flash flooding. A total of 6 inches of rain fell in a matter of hours that day in the Merrimack Valley. Ten days later, two more inches fell on the region after another intense rainstorm caused additional flooding.

    Town Manager Melissa Murphy-Rodrigues estimated North Andover sustained $20 million in damages from the two storms.

    Last year, the Federal Emergency Management Agency turned down an assistance package. Instead, the town used gas disaster settlement funds to help some residents.

    The state provided North Andover with $725,000 in flood relief funds to cover some costs associated with the storms, but it didn’t even come close to cover all the costs. The town used the money to offset deficit spending which the state had authorized it to spend on related costs to the Aug. 8 storm. But North Andover had $1.6 million in costs and needed to use $400,000 from its budget surplus to cover the remaining deficit, Murphy-Rodrigues said.

    This month, the town received another $133,150 as part of the Massachusetts Municipal Vulnerability Preparedness Program to study and manage the Cochichewick Brook floodplain.

    High Street is situated adjacent to the brook. Most of the businesses in the East and West Mill Complex on High Street that were hit by the rising water did not have flood insurance.

    A rollercoaster year

    A year later, one last reminder of the floods remained: Jaime’s Restaurant is still closed — for now.

    “I wasn’t going to come in today,” Jaime’s co-owner Jaime Faria, of Gloucester, said on the flood’s one-year anniversary. “But when the furniture is ready to come in, you just show up and take the delivery. “

    Jaime’s Restaurant, which has operated at 25 High St. for 14 years, is the last unit in the mills to reopen. Faria hopes to be back in business within a month as he and his staff begin to put the new furniture back into the renovated space. Faria owns the restaurant with Wally Santos.

    “It’s been a long year,” Faria said.

    He reflected on the rollercoaster year he and Santos have experienced, filled with positives such as strong community support but coupled with many challenges in-between.

    On the morning of Aug. 8, 2023, Faria recalled getting the first phone call about water in the basement of the business. He didn’t think much of it other than it was going to require a little cleaning.

    An hour later, another staff member informed him the water had crept up to the basement’s second step.

    “By the time I got here, you couldn’t even get into the basement as it was already waist deep,” Faria said.

    He said the focus shifted to trying to salvage what he could, but there was only so much he could do with the amount of water flooding his business.

    “You break windows so the water could get around and then you sit there,” Faria said. “I was just watching mine and Wally’s lives literally run down the river.”

    Faria said for about a month and a half after the flood, he was overwhelmed by what had happened to his restaurant.

    “I’m not going to lie, there was a period of depression where I had no desire to get out of bed,” Faria said.

    Community support, however, helped him focus on how to reopen. The staff came together over lunch during those hard months and came up with a game plan

    A GoFundMe page also raised more than $164,000 for the restaurant to cover some expenses in the trying year.

    Most of Jaime’s staff will return. Jaime’s is in the process of hiring more workers as well. Loyal customers would stop by and ask if they could help and now they stop by to share their excitement for the reopening, Faria said.

    “I tell people at the end of the day, my mom and dad are alive and my kids are doing great. This too shall pass and I’m excited to get people back in here eating burgers,” he said.

    Back on track

    The businesses in the area have also come together over the last year.

    “The storm has made us a family,” Brides Across America CEO and Founder Heidi Janson said.

    In the storms, Janson lost 80% of the inventory for her nonprofit organization. She had estimated $7 million in losses.

    Brides Across America’s hub is located at 40 High St., where a warehouse stores the wedding dresses and formal wear given as gifts to military families and first-responders across the country.

    Janson said she wanted to call it quits after the flood.

    “I don’t even know how I had the energy to just keep moving on,” Janson said. “It was devastating.”

    Brides Across America received a $5,000 grant for supplies.

    “I was happy with that as we got some things we needed,” Janson said. “But we really got nothing. It’s like we didn’t exist anymore.”

    Every time it rains, Janson said she thinks about her storefronts which now includes the relocation of her Tulle bridal store and Brides Across America outlet to High Street.

    The nonprofit moved into its new home in a vacant space in West Mill. Janson said after the floods, some of the businesses moved to temporary spaces and stayed in their new spots.

    While the charity endured challenges and a depletion of inventory for a bit, she said the nonprofit is back on track with donations to be able to hold its annual dress gifting events.

    As the new store gets finishing touches, Janson said the future is bright for the nonprofit and hopes to work with a local winery to gift a military wedding soon.

    “You have a vision and you know it’s going to work, but it took a lot of sleepless nights,” Janson said. “We persevered and kept pushing.”

    Help along the way

    Across the street, Good Day Cafe owner Gregg Lindsay and his cafe staff also persevered through the year.

    Good Day Cafe, 19 High St., reopened on a limited basis in December and full time with their complete menu in January, five months after the flood.

    “It’s been great to be open,” Lindsay said.

    “There is always a bit of digging out of holes though because we were closed for so long.”

    Lindsay said his business, along with others on High Street, did not initially receive any state or federal funding to help with the cleanup and rebuilding.

    “Apparently our area didn’t meet the threshold,” Lindsay said. “It was disappointing because it was just out of nowhere.”

    His restaurant received a small grant from the town. North Andover established a grant program through American Rescue Plan Act (ARPA) funds specifically for businesses affected by the floods. Murphy-Rodrigues said the town awarded $82,307 to 20 businesses.

    But largely self-funding and community support through GoFundMe allowed Good Day Cafe to get back on track, he said.

    The North Andover community came together to help the businesses and Lindsay said he experienced it firsthand as the Andover/North Andover YMCA allowed his staff to use its kitchen to fulfill catering orders while they waited to reopen.

    “It would have been a lot more difficult to reopen because at least I was able to cover some bills through those months,” Lindsay said, adding they were closed during their busiest months.

    Lindsay remembered Aug. 8, 2023 like it was yesterday.

    “It was an extraordinarily rainy day,” Lindsay said. “It was coming down in buckets, but the cafe was filled with people.”

    Water rose from the basement and made its way through the cafe.

    “The hallway here and the street looked like a river,” Lindsay said.

    But the plan was always to get back up and running.

    “How we did it, that we kind of just made it up as we went along,” he said.

    As he sat in the restaurant a year later, Lindsay had a smile on his face seeing the place just as full as it was on the day of the flood, with regular customers enjoying their meals.

    This time around though, the skies were clear.

    Staff Writer Angelina Berube may be contacted at aberube@gloucestertimes.com.

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    By Angelina Berube | Staff Writer

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