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  • Manchester-by-the Sea Town Meeting backs senior center plan. lauinch service

    Manchester-by-the Sea Town Meeting backs senior center plan. lauinch service

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    MANCHESTER-BY-THE-SEA — Considering 21 articles on the warrant was no easy task but annual Town Meeting wrapped it up in about three hours.

    Town Moderator Alan Wilson banged the gavel to convene the meeting Wednesday at Manchester Memorial Elementary School precisely at 6:30 p.m. and adjourned it at 9:12 p.m. Midway through, Wilson reported a quorum of 317 voters present.

    The meeting approved financing for a new senior center, the operation of a launch service in Manchester Harbor, and a number of capital projects, including $7,550,000 to make capital improvements to the town’s water and wastewater systems.

    It also approved a fiscal year 2025 budget amounting to $42,336,058, with $16,818,112 for the town operating and enterprise budgets for water and sewer, and debts; $19,060,435 for town’s share of Manchester Essex Regional School District’s operating budget and debt service; $243,385 for the North Shore Agricultural & Technical School; and $2,642,740 for capital items.

    Each of the above articles passed by substantial margins with voters using electronic vote tallying devices.

    Finance Committee Chairperson Sarah Mellish said the budgets received much careful consideration.

    “The Finance Committee feels this budget is prudent and addresses the needs of the town,” she said. “This is a lean budget that meets the town’s needs.”

    Article 6 authorizing the Select Board to raise or borrow $1 million to buy the Masons’ 26,045 square foot parcel at 10 Church St. needed a two-thirds majority and was approved by a sizable margin, prompting a rousing cheer. Many applauding were senior citizens.

    Select Board member Brian Sollosy moved the measure, which was seconded by Select Board member John Round.

    Responding to a question about whether the building is the right place for a town-operated facility, being at the edge of Manchester Harbor, Town Administrator Gregory Federspiel said the elevation of the Masons’ building protects it from storm surge.

    “This building is in pretty good shape,” Federspiel said. An appraisal a few years ago estimated the building’s value to be about $800,000.

    “We do feel the price is appropriate,” he said.

    The town will start running a launch service in Manchester Harbor after Town Meeting voted 309-34 to purchase to two launch boats and fund operating expenses for this fiscal year and next.

    Select Board member Catherine Bilotta said town officials, including Harbormaster Bion Pike, put together a prudent business plan for the launch service.

    “All of these costs are going to be reimbursed by user fees,” she said. “The entire endeavor is to be funded entirely by user fees.”

    Mellish said the effort should eventually be self-sustaining.

    “If you want to use a launch, contact the harbormaster and he’ll gladly take your money,” she said.

    The meeting also approved paying the town’s share of the Manchester Essex Regional School District’s $16,339,528 gross operating and maintenance budget for fiscal 2025, $2,720,907 to cover its long-term debt, and $660,000 for a feasibility study for Essex Elementary School.

    Superintendent Pamela Beaudoin said the Manchester Essex Regional School Committee will eventually narrow its focus to considering possible renovation or new construction for the school, 12 Story St. in Essex.

    “We really lean heavily on community experts,” she said.

    Spending $481,670 of Community Preservation Fund money on restoration of the First Parish Church steeple and resurfacing of the Sweeney Park basketball court, among other things, was approved, but not before a motion was made to eliminate $200,000 to fund the Manchester Affordable Housing Trust. The motion was defeated 178-45.

    Here is a condensed version of the articles on the meeting’s warrant and votes:

    1 – Receive reports of the town’s boards and committees. APPROVED.

    2 – Fix the salaries of the town moderator and members of the Select Board at $0 per year. APPROVED.

    3 – Raise $243,385 as the town’s share of the budget for the Essex North Shore Agricultural and Technical School District. APPROVED.

    4 – Raise sums by taxation to pay town debts and charges — $42,336,058 — for the coming fiscal year, effective July 1. APPROVED.

    5 – Spend the following, all of which were APPROVED:

    — Road resurfacing — $550,000.

    — DPW facility siting, geotechnical analysis — $250,000.

    — Drainage and sidewalk improvements — $250,000.

    — Storm damage repair — $50,000. Not recommended.

    — General building upgrades — $50,000.

    — Backhoe replacement — $150,000.

    — IT and telephone upgrades at Town Hall — $30,000.

    — Planning and zoning studies — $20,000. Not recommended, in operating budget.

    — Library walkway repairs — $6,500.

    — Library building assessment — $43,500.

    — Fire engine replacement fund — $250,000. Not recommended.

    — Ambulance 2 replacement — $470,000.

    — Police tasers — $12,600.

    — Police administration vehicle replacement — $73,000.

    — Cardiac monitors and defibrillators — $54,000.

    — Fire Station repairs and upgrades — $30,000. Not recommended, in operating budget.

    — Dredging/engineering/permitting — $100,000.

    — No wake buoys — $9,500.

    — Plant upgrades/PFAS design — $2 million. $150,000 recommended.

    — Pipe replacement/improvements — $2 million. Not recommended.

    — Meter replacements (for “smart” meters) — $1.5 million. Not recommended.

    — Water truck replacement — $50,000.

    — Plant upgrades/Equipment replacement – $4.1 million. $550,000 recommended.

    6 – Raise or borrow $1 million and authorize the Select Board to use it to acquire, for a senior center and, or community center, all or a portion of the Masons’ 26,045 square foot parcel at 10 Church St. APPROVED.

    7 – Raise or transfer money to operate a town-sponsored launch service in Manchester Harbor including $9,500 for fiscal 2024 operating expenses, $125,000 for the purchase of two launch boats, and $41,000 for fiscal 2025 launch operating expenses. APPROVED.

    8 – Spend $7,550,000 — $4,100,000 on the town’s water system and $3,450,000 on the town’s wastewater system — for capital improvements. APPROVED, 290-33.

    9 – Spend Massachusetts Public Library Construction Program grant funds and re-appropriate $150,000 of the $200,000 previously appropriated for restroom renovations at Manchester-by-the-Sea Public Library. APPROVED, 200-19.

    10 – Create a Special Opioid Settlement Stabilization Fund and dedicate 100% of the opioid litigation settlement funds to the fund. APPROVED.

    11 – Raise or transfer money for the town’s assessment for the gross operating and maintenance budget of the Manchester Essex Regional School District. APPROVED.

    12 – Raise or transfer $660,000 for the town’s apportioned share of the Essex Elementary School feasibility study. APPROVED, 244-44 .

    13 – Raise or transfer $248,348 to fund the town’s share of the cost to refurbish the turf fields in town. APPROVED.

    14 – Hear and act on the report of the Community Preservation Committee on the fiscal 2025 Community Preservation budget and to appropriate $481,670 from the Community Preservation Fund money to meet the administrative and other expenses of the committee for fiscal 2025. APPROVED.

    Included in the $481,670 total amount is:

    – $200,000 for the Manchester Affordable Housing Trust Project funding.

    – $60,000 for restoration of the First Parish Church steeple.

    – $28,500 to resurface the Sweeney Park basketball court.

    – $25,000 for restoration of town cemeteries.

    – $24,400 for portico restoration at Hooper Trask House.

    – $20,000 for Power House Hill parking and access easement.

    15 – Authorize the Select Board to acquire an access and parking easement on property owned by the Manchester Housing Authority at Newport Park for access to Powder House Hill conservation lands.  APPROVED.

    16 – Raise or transfer $100,000 to supplement the fiscal 2024 Legal Expenses Account. APPROVED.

    17 – Raise or transfer $300,000 to be deposited into the town’s “Other Post Employment Benefits Trust Fund.” APPROVED.

    18 – Set fiscal 2025 imitations on expenditures by the town’s recreation programs at $400,000; and the town’s Board of Health Emergency Dispensing Sites and Clinics Programs at $50,000.  APPROVED.

    19 – Amend the Tobacco Products Regulations and Tobacco Use Regulations of the town’s General Bylaws as fines and enforcement are covered by other bylaws and state statutes/regulations.  APPROVED.

    20 – Amend Article X, Section 23 of the General Bylaw on non-accessory signs by adding the language: “The provisions of this section shall not apply to non-accessory signs located on town-owned property, subject to the approval by the Select Board, nor to non-accessory signs on town-owned property used for educational purposes, subject to approval by the Manchester Essex Regional School Committee.”  APPROVED.

    21 – Raise or transfer money to reduce the tax rate. NO ACTION TAKEN.

    Stephen Hagan can be reached at 978-675-2708 or at shagan@northofboston.com.

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    By Stephen Hagan | Staff Writer

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  • Lawmakers load up budget with earmarks

    Lawmakers load up budget with earmarks

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    BOSTON — Downtowns, youth sports programs, churches, food pantries and nonprofits are among the myriad interests angling for a piece of the state’s nearly $58 billion budget.

    State lawmakers loaded the spending package for next fiscal year with requests for money for local projects and programs, along with changes in public policy ahead of a debate on the bill in the House of Representatives this week.

    The fate of many of those requests will be decided upon in closed-door meetings with House Democratic leaders before the final budget comes up for a vote.

    Many of the local earmarks seek to divert more state money to local governments, schools, cash-strapped community groups and nonprofit organizations. Some restore unilateral budget cuts made by Gov. Maura Healey earlier this year in response to revenue shortfalls.

    That includes an amendment filed by Reps. Sally Kerans, D-Danvers, and Kristin Kassner, D-Hamilton, calling for $75,000 for the town of Topsfield to restore 9C budget cuts made by Healey and provide funding for the Downtown Economic Development plan.

    Kerans is also seeking $25,000 for the Topsfield Historical Society to build a parking lot, which was also cut by Healey.

    Rep. Frank Moran, D-Lawrence, is seeking $25,000 for the Dominican Carnival in the Merrimack Valley, $50,000 for a basketball club for low-income youth, $50,000 for Casa Dominicana to provide ESL classes, and $25,000 for the Andover Baptist Church for “structure repairs and maintenance costs,” among other funding requests.

    Other proposed earmarks, filed by Rep. Jerald Parisella, D-Beverly, seek $100,000 for Beverly’s 400th anniversary and $200,000 for Gillis Park renovations.

    House lawmakers filed nearly 1,500 amendments to the budget. Only a handful will likely make it into the final spending plan. Most will be withdrawn or consolidated by legislative leaders through the vetting process that largely happens behind closed doors.

    Overall, the House budget unveiled last week would increase state spending by about 3.3% next fiscal year, slightly less Gov. Maura Healey’s initial $56.1 billion package filed in January.

    State aid to cities and towns, used for everything from closing local budget gaps to fixing sidewalks, would come in at more than $1.25 billion. Education aid would increase to more than $6.86 billion under the spending plan.

    The House budget would divert $500 million to the state’s emergency shelter system, which is bursting at the seams amid a surge of migrants.

    The plan also calls for spending $1 billion in proceeds from the millionaires’ tax on a range of education and transportation programs, along with new initiatives. The new voter-approved law, which went into effect in January, set a 4% surtax on incomes above $1 million.

    But the final price tag for the budget is almost certain to be driven up by local earmarks during next week’s debate on the spending package.

    Critics of earmarks — including fiscal watchdogs — argue that they encourage patronage and government waste.

    Lawmakers defend the practice as a means to getting money for local projects, since the executive branch largely controls the budget for capital and one-time expenses.

    The requests for additional funding come as state budget writers urge fiscal responsibility following several months of lackluster tax collections and rising costs from a surge of asylum seekers.

    Healey wielded her executive powers in February to slash $375 million from the current fiscal year budget to close a gap between spending and revenue.

    Last year, Healey used her veto pen to slash a total of $272 million in spending in her first budget as governor. The Democrat also spiked an outside section of the $56 billion spending plan that called for another $205 million of one-time funding.

    Healey’s predecessor, Republican Charlie Baker, often feuded with lawmakers over earmarks in the budget, but his vetoes were usually overridden by the Democratic-controlled Legislature.

    Once the House wraps up its work on the budget, the spending package moves to the Senate for consideration.

    The new fiscal year begins July 1.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Northshoremen concert to benefit Samaritan Charitable Society of Salem

    Northshoremen concert to benefit Samaritan Charitable Society of Salem

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    SALEM — The award-winning Northshoremen Chorus will perform a benefit concert at 7 p.m. on Saturday, May 4, at the Tabernacle Congregational Church U.C.C., 50 Washington St., Salem, with all proceeds going to the Samaritan Charitable Society of Salem. Immediately following the concert, audience members are invited to a reception to sing with chorus members and enjoy some refreshments.

    Tickets are $20, with children 16 and under admitted for free. Tickets may be purchased prior to the concert through Eventbrite at https://tinyurl.com/SamaritansNSConcert. Tickets will also be available at the door. The church is handicapped-accessible.

    The Northshoremen Chorus was named the 2021 Patriot Division Small Chorus Champion, and twice in the past five years has won the Most Improved Chorus award in Northeastern District division competition. The chorus has been spreading the joy of four-part harmony to appreciative audiences locally and throughout New England for 75 years.

    The chorus also has several quartets who will perform, including past Patriot Division Senior Quartet Champions “Essex County 4,” and 2022 Patriot Division Novice Champions “Forte.”

    The Samaritans is one of Salem’s oldest charities and provides one-time assistance to Salem residents facing a financial crisis, often partnering with other local social service providers. In the course of the organization’s work, the Samaritans have seen new and different needs arise and become more widespread. Those who are struggling and require assistance are often working parents, or senior citizens living on social security.

    The Samaritan Charitable Society of Salem has provided funding for a multitude of needs, including “camperships” for children to attend the YMCA and Boys and Girls Clubs summer camps, helping stock the Salem Food Pantry, paying tuition for a 12-week job training program, and helping elderly residents moving into subsidized housing with the purchase of refrigerators and mattresses.

    To learn more about the organization, visit thesamaritansociety.org.

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  • Schools face loss of 41 positions due to $3.1M budget gap

    Schools face loss of 41 positions due to $3.1M budget gap

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    The inability of the city of Gloucester and its schools to fully close a $6.1 million shortfall between the cost of a level-service budget and increased funding provided by the city may mean the loss of 41 positions across the school district.

    Driven by skyrocketing out-of-district special education tuition and transportation costs, inflation, and the ending of federal COVID-19 relief funding, the schools administration says what costs $49.74 million to provide to Gloucester students this school year will cost $55.85 million next school year.

    The change represents an increase of nearly 12.3%, or $6.1 million, in the fiscal 2025 school operating budget.

    Superintendent Ben Lummis told the School Committee the city has indicated it can fund $3 million of the proposed $6.1 million increase.

    The city plans to do so through a combination of a $1.5 million supplemental appropriation and some one-time funding for the current fiscal year, which is money that can be used to offset prepaid tuition and special education costs for next year, and a $1.5 million increase in the schools’ operating budget for fiscal 2025 that begins July 1.

    However, the funding shift would still leave a $3.1 million gap to maintain level services.

    Facing a $2 million to $3 million shortfall, Lummis told the School Committee the effects could include:

    A loss of the house structure at O’Maley Innovation Middle School.

    Increased class sizes at O’Maley and Gloucester High coupled with reductions to areas of performing and visual arts, business, technology and physical education.

    Elementary art, music and physical education specialists and some social emotional learning supports.

    “So again, we don’t know if we are here yet,” Lummis said. “Yeah, well, we are here right now, OK, whether we end up here, we don’t know, we are still working on it.

    “It doesn’t mean all these areas are affected. We have to look at all of those and see where we can make changes.”

    He said the effect on social emotional learning programs will not mean all of those supports will go away “but some will.”

    With 83% of the schools’ operating costs tied up in personnel expenses, Lummis said cost reductions are found through staff cuts.

    For the first time, he outlined those cuts by school building, the number of positions and reduction in salary costs:

    Preschool, four positions, $225,000.

    Beeman, four positions, $200,000.

    East Veterans, five positions, $275,000.

    Plum Cove, three positions, $125,000.

    West Parish, four positions, $200,000.

    O’Maley, nine positions, $550,000.

    Gloucester High, eight positions, $550,000.

    District, four positions, $275,000.

    This adds up to cost savings of $2.3 million. Lummis said the reductions are made up of a broad range of positions, not just teachers. Some positions can be moved to grants and positions of staff who leave or retire will not be filled.

    More savings would come through savings from benefits of laid-off employees, moving services and supports to grants, and reductions in instructional supplies and materials.

    The process to finalize notifying staff was scheduled to wrap up last week.

    This week, the administration will meet with Gloucester Teachers Association leaders as dictated by contracts to go over expected cuts of teachers with professional status. Principals and supervisors would then inform staff and provide information on the process and next steps for each individual.

    The week of April 29, the administration would have to determine if further cuts would be necessary based on talks with the city administration. The schools have until May 7 to inform any additional teachers with professional teacher status whose positions are planned for elimination.

    Waiting to inform staff may keep everyone on edge, with the vast majority of the schools’ staff not at risk of losing their jobs, Lummis said.

    “So we are trying to balance speed with the best information we have, our obligation in terms of our contracts and at the same time treating folks with compassion as well,” he said.

    During the School Committee meeting, Lummis presented a slide showing areas of reductions including Tier 2 interventions, which support students in small groups, at all levels.

    At the preK-5 level, the reductions would affect social emotional learning and mental health supports; at the middle school, it would mean the loss of the house structure; and at Gloucester High the loss of preparation and support for post-secondary success.

    School Committee member Melissa Teixeira Prince asked what was meant by the inability to maintain the house structure, asking if this just meant larger class sizes. She said the loss of the house structure at the middle school was “scary.”

    “Parents don’t want to hear that,” she said.

    “It’s in jeopardy,” Lummis said. He said the house structure, while it adds to a sense of belonging with the same students sharing the same teachers, it constrains flexibility in terms of staffing.

    Breaking apart the house structure allows flexibility in terms of fully loading all the classes. He said while the house structure is crucial, it’s something the administration has to look at given the level of cuts.

    “It doesn’t mean at this point it’s definitely going to go away,” Lummis said.

    He also outlined cuts to programs at a $1 million to $2 million level that would not be as deep. This list included delaying the medical assisting exploratory launch as part of the high school’s Career/Vocational Technical Education program until September 2025, along with specialists and electives, reduced staff in one or more core academic areas in the middle and high schools, along with delays in IT infrastructure improvements, among other things.

    Prince said she was sensing the schools were facing at least $2 million in reductions.

    “I don’t want any of this conversation to sugarcoat, like, there’s going to be a happy ending here because I don’t believe there is going to be a happy ending,” she said. “There are going to be cuts. There are going to be cuts that are going to hurt and this is a place we haven’t been in many years.”

    Financial resources from the city “don’t appear to be there to make us whole at this day and time,” Prince said

    A School Committee vote on a public hearing for the budget is scheduled for Wednesday, with a public hearing on the budget scheduled for May 8. The School Committee would then vote May 22 to submit the school budget to the mayor and City Council. Lummis said those dates could change.

    Ethan Forman may be contacted at 978-675-2714, or at eforman@northofboston.com.

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    By Ethan Forman | Staff Writer

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  • Lawsuit targets MBTA over train safety system

    Lawsuit targets MBTA over train safety system

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    BOSTON — A Japanese high-tech corporation has filed a $158 million federal lawsuit against the MBTA, claiming the public transit agency violated the terms of a contract to install a new safety system on the commuter rail network.

    The lawsuit filed in U.S. District Court alleges that the T made changes to the contract to install a Positive Train Control system along the commuter rail tracks that drove up the cost of the project by hundreds of millions of dollars, but refused to compensate the company for the additional costs.

    “Despite Hitachi Rail’s repeated demands and attempts to resolve the claims detailed below, Defendant MBTA has failed and refused to issue Change Orders, to acknowledge delays, or to compensate Hitachi Rail for the costs and other impacts incurred by Hitachi Rail in connection with the same, in breach of the Contract,” the complaint states.

    The T is under a federal mandate to install the system on all of its 15 commuter rail lines. The technology uses antennas on locomotives, radio towers and track sensors to monitor train speeds and locations to prevent collisions.

    Hitachi’s predecessor, Ansaldo STS, was awarded a $338 million contract in 2015 for the work but alleges that the MBTA required the company to perform additional work “beyond the contractual obligations” and then later “refused to pay for it.”

    The company cited the example of the Gloucester Drawbridge Project, alleging that the MBTA failed to issue a change order or pay for the additional work to install safety systems along that new section of commuter rail track.

    The MBTA said it is reviewing the complaint but argues it has “no impact on the MBTA’s ability to work closely with the contractor and deliver a project that improves safety for both customers and employees of the commuter rail system.”

    “While the MBTA continues its efforts to resolve any outstanding issues with the contractor, the work of accomplishing these important safety enhancements is in its final stages, and both parties are firmly committed to ensuring the project is successfully completed,” the T said in a statement.

    The project is part of a long-delayed federal mandate to equip the nation’s rail lines with the Positive Train Control system, which is designed to prevent train-on-train collisions, speed-related derailments and other safety issues.

    In 2008, Congress approved the mandate in response to a series of deadly train crashes involving speed and other rail safety issues.

    Initially, the federal government set a 2015 deadline for freight railroads covered by the law to implement it, but under industry pressure congressional lawmakers have pushed back the deadline several times.

    In the lawsuit, Hitachi claims that in Massachusetts the safety upgrades have been plagued by problems stemming from the MBTA’s handling of the project.

    “These include delays driven by the aforementioned changes to the contractually agreed work, ongoing lack of MBTA supplied flagger support necessary for Hitachi Rail to perform work in the right of way, MBTA track access denials, MBTA mandated re-sequencing and COVID-19 impacts,” the complaint states.

    The T is also under a congressional mandate to install the Automatic Train Control system on all of its commuter rail lines by this year.

    Similar to PTC, the system uses satellites and wayside radio signals to monitor trains. If any problems are detected — such as excessive speeds — on-board computers can take over to slow a train or bring it to a complete stop.

    Nationwide, the rail industry has spent nearly $14 billion installing train control equipment over the past several years, according to the Federal Railroad Administration.

    The National Transportation Safety Board says the technology could have prevented 145 railroad accidents, saved an estimated 300 lives and averted more than 6,700 injuries over the past 45 years.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Bay State ranked poorly on financial literacy

    Bay State ranked poorly on financial literacy

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    METHUEN — Financial illiteracy is an unfortunate plague among Americans, with only 57% equipped to make informed financial decisions, according to MarketWatch.

    While April may be financial literacy month, Massachusetts has earned a C grade by MarketWatch, marking the importance of education-related bills like the one state Rep. Ryan Hamilton, D-Methuen, is proposing.

    “When it comes to anything on education in Massachusetts, a C is not good enough,” Hamilton said. “We have to work to get to that A.”

    Hamilton is fighting to require financial literacy education for all Massachusetts high school students.

    His bill, an act relative to student financial literacy, was reported favorably by the Joint Committee on Education on April 1. It has since been referred to the Senate Committee on Ways and Means.

    “There’s still a lot of bars that we need to clear,” Hamilton said. “There’s still a lot of work for us to accomplish.”

    The act would require all public high school students to complete a standalone financial literacy course prior to graduation.

    Students would study a variety of topics, like investments, managing debt and building good credit.

    The bill calls for a financial literacy trust fund, which would provide funding to underserved school districts. The act also directs the Department of Education and Secondary Education to create professional development training standards for educators.

    The act’s language, however, says school districts “may incorporate the financial literacy standards” into existing curriculum.

    Other topics students would learn in the course include earning and spending income, charitable giving, methods of payment, consumer protection, balancing ledgers and checkbooks, budgeting, the role of banks, long-term savings, credit, investments and emerging technology like crypto.

    Students would be required to take at least a half of a semester’s credit of coursework on the topic.

    Pennsylvania became the most recent state to guarantee a standalone half-credit course in financial literacy. The Keystone State became the 25th in the country.

    Other states that have passed regulations for some form of financial literacy course within the high school level include Wisconsin, Oregon, Louisiana, New Hampshire, Connecticut and West Virginia.

    “I think we have a good shot at becoming that 26th state,” Hamilton said. “I’m not the only one working on it. We’ve been really working together.”

    States that have passed financial literacy regulations, including West Virginia, Oregon, Minnesota, Indiana, Florida, and Nebraska, all have A grades from MarketWatch.

    “Financial literacy is crucial nationwide as it empowers individuals to achieve financial stability, avoid pitfalls that lead to hardship, and participate in economic activities like investing,” said David Straughan, personal finance writer with MarketWatch Guides.

    Massachusetts received a C because the state has some standards for financial literacy, but nothing is required or necessarily offered as a standalone course. Hamilton said the C is an improvement from an F grade a few years ago, but that he still would like to see the state get to an A.

    A recent MarketWatch Guides survey found that more than half of Generation Z were unfamiliar with CDs, high-yield money market accounts and Roth IRAs. The average American lost $1,506 in 2023 due to financial illiteracy in credit card interest and fees, overspending and fraud.

    “Implementing a stand-alone financial literacy course requirement in high schools is a proactive step that could significantly benefit students and their communities,” Straughan said.

    “While it may not be the end-all solution, equipping students with personal finance knowledge and skills could contribute to improved financial resilience and decision-making within families over time, as these abilities are passed down generationally.”

    Follow Monica on Twitter at @MonicaSager3

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    By Monica Sager | msager@eagletribune.com

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  • Shelter money fading but new funding explored

    Shelter money fading but new funding explored

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    BOSTON — State dollars for the emergency family shelter system are dwindling, and restaurateurs who for years enjoyed expanded outdoor dining and the ability to sell drinks to go remain “in limbo” amid a sustained period of legislative disagreement.

    House and Senate Democrats broke for another long weekend Thursday without announcing any deal on a spending bill that would replenish shelter funding for the remainder of the fiscal year.

    While negotiators remain at odds over how much they want to draw from state savings and exactly what kind of time limits to place on shelter stays — plus whether restaurants should resume takeout drink sales — funding could run out in less than two weeks, a Healey administration official confirmed Thursday.

    “Direct funding for emergency assistance shelters has been expected to be exhausted early this spring. It’s possible that could occur as soon as this month,” Matt Murphy, a spokesperson for the Executive Office for Administration and Finance, said in a statement. “We are both grateful to the Legislature for the work they have done so far to advance our supplemental funding request and hopeful that legislation can be finalized quickly for our review to address this time sensitive need.”

    “If we do exhaust the direct funding available for shelters, we have some flexibility to shift other available funds as a short-term measure to avoid any disruption in services until the supplemental budget passes,” he added, referring to “additional money from the last (emergency assistance) supp that wasn’t direct shelter funding that can be used.”

    Murphy said the administration “continues to call on the federal government to address this federal problem, including by providing additional funding to states.”

    Both branches have already approved competing versions of a mid-year spending bill that would steer more money to the shelter system, but they cannot send it to Gov. Maura Healey’s desk until they iron out differences.

    The House and Senate adjourned with plans to return Monday, April 22, which is the earliest they could act to send a compromise to the governor — if top Democrats can strike an agreement by then.

    Sean Fitzgerald, a spokesperson for Senate Ways and Means Committee Chair Michael Rodrigues, declined to make the senator available for an interview Thursday, but said the conference committee is “continuously engaged and remains focused with ongoing and productive conversations.”

    “We remain optimistic that we’ll have an agreement soon,” Fitzgerald said.

    A spokesperson for House Ways and Means Committee Chair Aaron Michlewitz did not reply to a News Service request.

    Legislative leaders have said for months the money currently propping up shelters is set to run out by spring, though they and the Healey administration have been less than forthcoming about when exactly that might be.

    Michlewitz was the first to identify the “early spring” timeline, way back in November when his chamber approved the last multi-million dollar injection into the state’s emergency family shelter system.

    That supplemental budget, signed in December, steered $250 million to the emergency shelter crisis, with $50 million set aside for overflow shelter and $75 million targeted for school funding relief related to the shelter crisis.

    “From what we gather, this would take us through the winter, neatly through the winter, and probably early into the spring,” Michlewitz said at the time. “Then it will all depend at that point moving forward on how many families we have in the system.”

    Since Michlewitz’s remarks last fall, the number of families looking for a spot in shelters has only grown, with 713 families as of Wednesday on a waitlist set up by Healey.

    Healey got the ball rolling on the next funding injection for the overburdened system on Jan. 28, saying the additional supplemental budget would have enough money to keep the shelters running through the end of June.

    Michlewitz said again in February that they were “managing with that timeline” that “the (Emergency Assistance) shelter money will run out in the spring.”

    When asked at that point exactly when in the spring the funding was set to run out, the chairman and House Speaker Ron Mariano laughed.

    “When are the crocuses?” Mariano quipped. Michlewitz jumped in, “What, is March 21 the first day of spring?” as the speaker chuckled.

    The House approved its version of Healey’s supplemental budget bill on March 6, and the Senate took its vote on March 21. Now, almost a month later and nearly a third of the way into spring, it still has not emerged from negotiations.

    Rodrigues said last week that the administration told him family shelter money could run out “sometime mid- to end of April” and that the administration has “other flexible funds that they can use,” which Murphy appeared to confirm Thursday. Mariano said Sunday on WCVB that he “never got a date from the governor as to when it was gonna run out,” only that “sometime in the spring, it would run out.”

    Republican Sen. Peter Durant of Spencer told the News Service on Thursday that the conference committee’s delay could indicate the money is not needed as urgently as some Democrats have said.

    “We’ve also heard that the governor has said that she has a few more levers to pull somewhere, so we can finance it,” Durant said. “So I’m not sure it’s as critical as everybody might think that it is. Certainly as this drags on, it would appear that it’s not as critical as it’s made out to be.”

    He said financing the emergency family shelter system through supplemental budgets over the course of the year, rather than a lump sum through the annual budget — which could be the approach Democrats take again in fiscal 2025 — leads to uncertainty.

    “That’s a real challenge for the leadership here. How exactly are we going to pay for it, how does it look going forward? And I just don’t think that we have a lot of really good answers to that yet,” Durant said. “Even when the speaker says, ‘We’ll fund this budget for half the year and then we’ll see what happens in December, maybe we’ll have the same president, maybe we’ll have a new one’ — there’s just so many unanswered questions. Everybody’s just playing it by ear.”

    Sen. Nick Collins of South Boston, a Democrat, said there’s not “too much concern just yet” about shelter funds running out, as “the indications from the administration tell us that we’re not at the end of the line here.”

    “The number-one issue in the state of Massachusetts on taxpayers’ minds is the cost of this. So there’s a lot to think about,” Collins said. “And I think that’s what’s taking the time.”

    The lack of consensus on the legislation does not only impact the emergency assistance shelter system. Legislative leaders opted to use the supplemental budget bills as the vehicle for revisiting some pandemic-era policies that have been in place on a temporary basis for years, like a streamlined process for restaurants securing permission to serve patrons in certain outdoor spaces.

    Both branches voted in favor of making permanent the outdoor dining overhaul and a graduate student nursing program, but they were split on whether to allow restaurants to continue selling alcoholic beverages to go. The House is in support and the Senate is in opposition.

    Because the branches still have not found compromise on the underlying bill, all of those provisions — including the ones both the House and Senate back — expired March 31, pushing many restaurants back toward a pre-COVID status quo.

    “Marathon Monday is always the first sign of the weather turning the corner in Boston and around Massachusetts. That day has come and gone, and I think I speak for most people that we are ready to welcome some great weather,” Steve Clark, president of the Massachusetts Restaurant Association, said in a statement. “With great weather, comes the want and desire to eat outside. Unfortunately, a number of restaurants across the state are in limbo without extended outdoor dining authorization, hopefully we are able to get this issue resolved quickly.”

    Clark added that many of his members have asked about the prospects of bringing back takeout drinks.

    “Menu evolution is always happening, but it takes time and effort to remove items off of menus; at the same time, license holders take their responsible service of alcohol seriously and do not want to run afoul of the laws that come with it,” he said.

    However, the policy might be up against a major hurdle, as one of the lead negotiators has come out against the idea.

    “I personally do not support cocktails to go. I believe we have cocktails to go, it’s called package stores,” Rodrigues said earlier this month. “We have bricks and mortar businesses, retail establishments, that that’s what they provide.”

    The chairman said he has not heard about to-go alcoholic drinks from one restaurant. “I’ve heard a lot from inside the building, I hear a lot from the media, but from restaurants, they want outdoor dining,” he said.

    Mariano, asked on WCVB’s “On The Record” to respond to Rodrigues’ comments, gave a vague endorsement of the idea.

    “It was something we came up with during the pandemic to help restaurants. It seemed to be successful, some people liked it. It didn’t really cause any problems that we were aware of. So we just thought if restaurants want to do it, we’ll let them do,” he said.

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    By Sam Drysdale and Chris Lisinski | State House News Service

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  • Student loan providers make millions of billing errors

    Student loan providers make millions of billing errors

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    Private companies overseeing the federal government’s college loan programs made “millions” of errors implementing new repayment plans, costing student borrowers time and money, according to a new congressional report.

    The report, released by Massachusetts Sens. Elizabeth Warren and Ed Markey, along with two other Democratic lawmakers, said the major loan servicers under contract with the U.S. Department of Education made more than 3.9 million “billing-related errors” once repayment of federal student loans resumed last fall.

    “The four student loan servicers that were under contract with ED at the end of the payment pause had ample time, clear contractual requirements, and sufficient funding from the federal government,” the report states. “Yet, they still made a series of mistakes that harmed millions of borrowers when payments restarted.”

    The report is based on data from the U.S. Education Department and federal audits that detailed delayed billing statements, “miscalculations” for borrowers converting to the new SAVE income-driven repayment plan, and payment miscalculations on borrowers’ income, family size or marital status.

    The loan servicing companies – EdFinancial Services, Higher Education Loan Authority of the State of Missouri, Maximus Education and Nelnet Diversified Solutions – responded to the allegations in a series of letters to the lawmakers that detail how they were challenged once loan repayments resumed.

    In a January letter, MOHELA said it has struggled to adjust to “evolving” loan servicing requirements from the U.S. Department of Education’s office of Federal Student Aid when millions of borrowers resumed repayments after a multiyear pause. A lack of federal funding compounded the efforts, the company said.

    “FSA has allocated only limited funding for servicing during the unprecedented event and throughout the ‘on-ramp’ period, funding which pales in comparison to the enormity of work associated with assisting millions of borrowers in a condensed time frame,” the company wrote.

    Nelnet blamed the federal government, in part, for the bungled resumption of student loan repayments and said it could “have avoided foreseeable borrower impacts and created a better customer experience.”

    “Unfortunately, borrowers were instead met with confusing and conflicting announcements of program changes, were told no payments were required, that interest would not accrue, indefinitely, and were promised their loans would be discharged,” Jeffrey Noordhoek, NelNet’s CEO, wrote to Warren.

    It’s not clear if the congressional report will lead to sanctions against the loan servicers. Last year, the Education Department released guidelines outlining steps it could take to punish servicers who fail to fulfill their contractual obligations, including withholding pay and transferring borrowers to other loan servicers.

    But the lawmakers said in the report that more should be done to help borrowers impacted by the errors, and called on the Biden administration to provide debt relief for those who were overbilled on loan repayments.

    “To remedy servicers’ historic failures and protect borrowers from future harms, there must be a path for debt relief for borrowers harmed by their servicers,” they wrote.

    Federal student loan servicing companies have been under intense scrutiny from Congress, which has held oversight hearings grilling education officials on efforts to reduce student debt. More than 43 million borrowers in the United States are carrying an estimated $1.6 trillion in student loan debt, according to federal data.

    Overall, the lawmakers said loan servicing companies have a “decades-long pattern of failures” and said the COVID-19 pandemic exacerbated a lack of accountability in the system that “allowed abuses to go unchecked and caused harm for borrowers crushed by student loan debt.”

    “These failures have resulted in borrowers being unable to properly manage their loans and take advantage of long standing student debt relief programs,” they wrote.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Fundraiser to benefit Beverly man diagnosed with ALS

    Fundraiser to benefit Beverly man diagnosed with ALS

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    BEVERLY — Friends of a Beverly man diagnosed with ALS are organizing a fundraiser on behalf of him and his family.

    The event, called “Mugs for Mike,” will benefit Mike Marcinkowski, who at the age of 53 was recently diagnosed with amyotrophic lateral sclerosis, also known as Lou Gehrig’s disease.

    The fundraiser is scheduled for May 23 from 6-11 p.m. at the Italian Community Center in Beverly. It will include the chance to win gift cards and merchandise donated by local sponsors.

    John Frates, one of the organizers, said the fundraiser will help Marcinkowski’s family deal with the range of expenses caused by the disease, including medical bills, equipment and home modifications.

    Frates is the father of Pete Frates, the Beverly man who inspired the Ice Bucket Challenge that raised millions of dollars for ALS research. Pete Frates died in 2019 at age 34.

    John Frates said he was introduced to Marcinkowski through Paul LeBel, a mutual friend who is organizing the fundraiser.

    “I met the (Marcinkowski) family in January and I have to say he’s now part of our family too,” John Frates said. “You automatically have to say that you love that person because this is a man given a terminal diagnosis.”

    Frates said “Mugs for Mike” is modeled on the “Pints for Pete” events that were held for Pete Frates. He said he’s hoping that people who came out to support Pete will do the same for Marcinkowski.

    ALS is a progressive neurological disease that affects nerve cells in the brain and spinal cord, leading to paralysis. There is no cure. Marcinkowski was diagnosed with bulbar-onset ALS, which primarily affects muscles in the face, head and neck and is considered one of the most devastating variants of ALS, according to the National Institutes for Health.

    For more information on “Mugs for Mike” or to donate, go to www.gofundme.com/f/donate-to-help-mike-marcinkowski.

    Staff Writer Paul Leighton can be reached at 978-338-2535, by email at pleighton@northofboston.com, or on Twitter at @heardinbeverly.

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    By Paul Leighton | Staff Writer

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  • House seeks more money for MBTA upgrades

    House seeks more money for MBTA upgrades

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    BOSTON — House Democrats are seeking hundreds of millions of dollars more for MBTA upgrades and workforce needs as part of their annual spending plan.

    The House’s version of the budget unveiled Wednesday calls for spending what legislative leaders described as a “record” $555 million for the Massachusetts Bay Transportation Authority in the next fiscal year and an additional $184 million for regional transit systems that operate across the state.

    House Speaker Ron Mariano said the “historic” level of spending “will allow the new leadership at the T to meet the immense challenges that they face head on.”

    “Given the workforce recruitment and training challenges that have plagued the MBTA, I am particularly proud of the House’s proposal to establish an MBTA Academy that would help to bolster their workforce development efforts,” the Quincy Democrat said in a statement.

    House leaders said the spending plan for the fiscal year that begins July 1 would be funded in part by revenue from the state’s new “millionaire’s tax,” a voter-approved law that set a 4% surtax on incomes above $1 million.

    “Having a well-run transit system is critical to the success of the commonwealth,” House Committee on Ways and Means Chair Aaron Michlewitz, D-Boston, said in a statement. “This record amount of funding shows the House’s commitment to improving our transportation infrastructure in every area of the commonwealth.”

    The House plan earmarks $314 million for direct operating costs at the MBTA, $184 million for the state’s 15 regional transit authorities, and $75 million for MBTA capital investments.

    The plan also calls for spending $40 million to create an MBTA academy to oversee recruiting and training efforts, and create a pipeline for skilled workers.

    An additional $20 million would be set aside for reduced fares for riders with low incomes, which was recently approved by the MBTA’s board of directors.

    The low-income fare program is expected to cost $60 million a year and Gov. Maura Healey has proposed $45 million in funding from the “millionaire’s tax” in her fiscal 2025 budget proposal. Members of an advisory board that recommended approval of the plan also cautioned that the state does not have a dedicated source of funding.

    The move to pump more taxpayer money into the state’s beleaguered public transit system comes as the MBTA wrestles with projected budget deficits driven by a mountain of debt, some dating back to the Big Dig project.

    T officials estimate the transit agency’s operating deficit for the next fiscal year is $182 million, which is projected to grow to $859 million by 2029.

    Meanwhile, the MBTA said it would need about $24.5 billion to bring the system into a state of “good repair” by replacing tracks, facilities, power equipment, trains and other infrastructure.

    Healey attributes the deficit to a lack of investment in the system over decades and said she wants to make “transformative investments” to improve service and reliability. She touted $250 million in MBTA funding in her $56.1 billion budget proposal unveiled in January.

    Lawmakers are expected to file hundreds of proposed amendments to the House’s spending package, the fate of which will be debated in closed-door leadership negotiations.

    The budget would also need to be approved by the state Senate before heading to Healey’s desk for review.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Teachers rally for paid parental leave

    Teachers rally for paid parental leave

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    BEVERLY — When Kellie Moulton gave birth two years ago, she used eight weeks of sick time to stay home with her newborn son. When that ran out, the McKeown Preschool special education teacher took another month off without pay.

    Moulton wanted to stay home longer, but the lack of a paycheck made that option unrealistic.

    “I definitely felt I had to come back sooner than I was ready,” she said, “because I wasn’t getting paid.”

    The lack of paid parental leave has become a point of contention for teachers across the region. On Wednesday morning, Beverly was the latest public school district on the North Shore to hold a demonstration demanding paid parental leave as part of their contract negotiations.

    More than 600 teachers and paraprofessionals stood outside all eight of the city’s public schools before they began the school day, holding signs, playing music and waving to people driving by.

    “This is a huge issue for us,” McKeown School paraprofessional Judy Martin said during the rally in front of the school on Balch Street. “Everybody should have this as a benefit.”

    The “walk in” event, as the teachers called it, was part of a coordinated series of demonstrations by more than 5,000 teachers and staff in 11 North Shore school districts this week, according to the Massachusetts Teachers Association.

    The union says although teacher unions were among the strongest advocates for the state’s Paid Family and Medical Leave Act that was approved in 2018, the law excluded municipal workers, including public school employees, leaving unions to negotiate for the benefit independently.

    Beverly Teachers Association President Julia Brotherton said the lack of paid parental leave forces teachers to use sick time, if they have it. The union has asked the Beverly School Committee for several years for paid parental benefits in contract negotiations, and is asking for 12 weeks paid leave in its current negotiations.

    “As more and more education unions win paid parental leave benefits in their contracts, Beverly cannot be left behind. I hope the School Committee sees our commitment, does the right thing, and agrees to fair and just paid parental leave for our members at the bargaining table,” she said in a news release issued by the Massachusetts Teachers Association.

    In an interview outside Beverly Middle School during Wednesday morning’s demonstration, Brotherton, who is a history teacher at Beverly High School, said she was “confident the School Committee will do the right thing about paid parental leave.

    “We all care about kids, and this issue is obviously all about kids and giving kids the right start.”

    Beverly School Committee President Rachael Abell said she could not comment directly, out of respect for the negotiating process.

    “But we look forward to our continued work with the BTA on a fair, equitable, and affordable solution that benefits all Beverly students,” she said in a prepared statement.

    At Beverly Middle School, where about 100 teachers took part in the rally, several teachers spoke about how the lack of paid leave has affected them.

    Casey Fiore said he took two months of unpaid leave when his daughter was born last August.

    “I would not trade a moment of it for the world,” he said. “But it would have been great if I would have been able to be with my daughter without being worried about bills.”

    Taylor Cross, who is due to have her first baby in May, said she has not taken time off during a difficult pregnancy — even to the point of fainting in class one day — because she is saving up sick days for after the birth.

    “I’m not giving my 100% because I’m not feeling well,” Cross said. “I’m a special education teacher and it’s a demanding job. It’s physically taxing. It’s mentally taxing.”

    Allison Nichols, who is pregnant with her second child, said being pregnant or post-partum “should not be considered the same as being sick.

    “I think it’s really insulting that in a profession where we go above and beyond to care for other children that we’re not afforded the same right to care for our own during the most vulnerable time of a child’s life.”

    Other districts participating in the demonstrations this week include Salem, Danvers, Marblehead, Ipswich, Hamilton-Wenham, Masconomet Regional, Gloucester, Revere, Georgetown and Chelsea, according to the Massachusetts Teachers Association.

    Ann Berman, president of the Salem Teachers’ Union, echoed these sentiments, noting that if both parents of a newborn child are teachers in the same district that causes further complications.

    “This all means that the child is going into daycare much earlier than is really healthy and beneficial. A lot of moms experience postpartum depression — there’s scientific evidence about that, and they’re being forced to come back to work too soon. They’re not ready, their bodies and minds are not healed,” she said.

    “Pregnancy is really, really tough. and then you have this little bundle of joy and you’re handing them over to somebody to care for your child, while you come into work to care for other people’s children. There’s something wrong in the whole dichotomy.”

    “I’m proud of the way that we, in the North Shore, have come together to work towards this goal as a coordinated effort,” Danvers Teachers’ Association President Kathleen Murphy said.

    “It’s something that we all recognize needs to change. I think that the bottom line is that when teachers feel valued, their needs are met, and they can take the time they need, then they will be better employees and teachers.”

    Staff Writer Michael McHugh contributed to this report.

    Staff Writer Paul Leighton can be reached at 978-338-2535, by email at pleighton@northofboston.com, or on Twitter at @heardinbeverly.

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    By Paul Leighton | Staff Writer

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  • Their View: Bring respect into tough political year

    Their View: Bring respect into tough political year

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    With a rematch brewing between President Joe Biden and ex-President Donald Trump, the build-up to Nov. 5 is shaping up to be among the most divisive elections ever. The us-versus-them rhetoric on both sides is disturbing.

    For employers and their workers, welcome to a minefield. The divisions evident in the electorate inevitably will show up in workplaces across the country.

    At Walgreens’ corporate annual meeting earlier this year, a shareholder proposal anticipating potential trouble ahead called for special protections for politically conservative employees. The company, based in suburban Chicago, urged voting against it, saying its existing protections are sufficient, and the proposal went down with just 8.2 million votes in favor, and almost 600 million cast against it.

    Walgreens is among many companies dealing with today’s partisan political divisions, and, despite the lopsided shareholder vote supporting the status quo, this year is unlikely to be business as usual. From the top down, it’s best for people to be cautious about flaunting their political convictions, be they center, right or left.

    That gets harder when companies are dragged into political controversies, as Walgreens is with its decision, along with rival pharmacy chain CVS, to sell abortion pills in Illinois and other states where it’s legal to do so.

    As much as companies would like to sidestep political controversies, today’s fevered discourse can make it impossible. High-profile examples such as Disney’s recently settled legal dispute with Republican Gov. Ron DeSantis of Florida hint at many less-visible controversies at companies nationwide.

    The Environmental, Social and Governance programs common to Walgreens, CVS, Disney and many other leading companies have become targets of far-right attacks.

    On the left, activists have threatened to boycott companies they perceive as caving in to pressure from the right, as when California Gov. Gavin Newsom joined a chorus of Walgreens critics upset last year when the company said it would not sell abortion pills in states where the medications are prohibited by law.

    For employees working under conditions that feel fraught, we humbly suggest restraint. Be circumspect about sharing political viewpoints at work. Tread lightly. Be respectful.

    We recognize this advice runs counter to a trendy philosophy of workplace behavior. For a decade now, employees at many companies have been encouraged to “bring their whole selves to work.” Especially for younger workers, the ability to express their authentic selves has become an important factor in job satisfaction.

    Still, every worker should be aware that being personally outspoken can come with risks.

    Private employers have a lot of leeway in employment decisions. And unlike gender, race or other demographic characteristics, a particular political viewpoint is not a protected class under federal law — though political affiliation can’t be used as a pretext for illegal employment discrimination.

    Some states and cities have more specific protections, as do many public employees and other union workers.

    California is notable for a state law protecting workers who express their political beliefs and engage in lawful political activities, and Illinois provides some spotty support.

    But good luck enforcing those protections: If an office meeting veers into politics, would Illinois then intervene? That’s a nonstarter, in our view. For good reason, the law continues to favor the rights of private employers to make their own decisions about hiring, firing, promoting and disciplining their workers.

    In its response to the shareholder proposal asking it to make special provisions for its conservative employees, Walgreens repeated its long-standing commitment to respecting diversity of expression and refusing to tolerate harassment or discrimination.

    We agree with the company that no special provision was needed to expand on those and other state-of-the-art policies that it has publicly championed.

    At the same time, each of Walgreens’ roughly 330,000 employees needs to use good judgment to do their jobs without prompting any mini-insurrections — and that goes for the rest of us too. This upcoming election will be tough, no matter how it turns out. Let’s meet it with some self-discipline and our best instincts.

    This piece originated with the Editorial Board of the Chicago Tribune.

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  • House unveils $57.9 billion budget plan

    House unveils $57.9 billion budget plan

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    BOSTON — More money for public transportation, education, housing, and workforce development are among the highlights of the House of Representatives’ version of next year’s state budget, which was rolled out Wednesday.

    The $57.9 billion House budget — which is about $150 million more than Gov. Maura Healey’s preliminary budget — boosts local aid in the fiscal year that begins on July 1 to more than $1.25 billion. It also calls for spending $6.86 billion on Chapter 70 school aid, also an increase over the current fiscal year.

    House Ways and Mean Chairman Aaron Michlewitz, D-Boston, said the plan will “allow the commonwealth’s economy to grow, while remaining competitive, and also recognizing the financial realities” facing the state government following several months of declining revenue.

    “This budget aims to do that with major investments in housing, education and workforce development … all while keeping Massachusetts a competitive engine,” he told reporters at a briefing where he touted the state’s fiscal outlook. “We still have the ability to navigate through these choppy waters and meet the needs of our residents.”

    House Democrats shrugged off Healey’s calls to cap spending increases at 2.9% over the previous fiscal year, proposing to hike spending by 3.3% next fiscal year.

    House Speaker Ron Mariano said despite the increased spending, the Legislature will need to tighten the state’s fiscal belt in the next year amid economic uncertainty and diminishing revenue collection.

    “This fiscal year is not going to be like the past few,” the Quincy Democrat said in remarks Wednesday. “And there will be an ever greater demand for fiscal responsibility throughout this budget cycle.”

    A key provision of the plan calls for spending what House leaders described as a “record” $555 million for the Massachusetts Bay Transportation Authority in the next fiscal year to cover the cost upgrades and training new workers at the beleaguered agency.

    If approved, the House plan would earmark $314 million for direct operating costs at the MBTA, $184 million for the state’s 15 Regional Transit Authorities, and $75 million for MBTA capital investments.

    The plan also calls for spending $40 million to create an MBTA Academy to oversee recruiting and training efforts, and create a pipeline for skilled workers.

    Another $20 million would be set aside for reduced fares for riders with low incomes, which was recently approved by the MBTA’s Board of Directors.

    The plan also calls for spending $1 billion in proceeds from the millionaires’ tax on a range of education and transportation programs, along with new initiatives. The new voter-approved law, which went into effect in January, set a 4% surtax on incomes above $1 million.

    The House plan calls for $475 million to continue the Commonwealth Cares for Children program, which has provided grants to about 7,500 child care providers to help them keep their doors open during the pandemic.

    It also recommends spending $35 million to provide “unlimited” free phone calls for inmates at state prisons, correctional facilities and county jails.

    Increased funding for job training, housing, higher education, and expanding behavioral health services also are part of the proposal.

    Healey unveiled a $56.1 billion budget in January that called for capping spending increases at 2.9% across the board, citing the state’s declining revenue collections.

    Debate on the spending plan comes amid concerns about the state’s finances with taxes and other revenue coming in below benchmarks in recent months despite a slight uptick in the previous month, as well as federal pandemic aid drying up.

    Healey wielded her executive powers in February to slash $375 million from the current fiscal year budget to close a gap between spending and revenue.

    The so-called 9C cuts, which didn’t require legislative approval, hit a variety of state agencies and departments, with one of the largest reductions being a $294 million cut at the state’s Medicaid program for fee-for-service payments.

    Lawmakers are expected to file hundreds of proposed amendments to the House’s spending package, the fate of which will be debated in closed-door leadership negotiations.

    The budget also needs to be approved by the state Senate before heading to Healey’s desk for review.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Panel shows the power of nonprofits in Gloucester

    Panel shows the power of nonprofits in Gloucester

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    No matter what you hear, nobody’s gotten to where they are totally on their own.

    That’s what Cape Ann nonprofit leaders said during a panel discussion held Friday on the state of local social justice work following the COVID-19 pandemic. and it’s why their nonprofits are so important, they added.

    “Even being able to get to work, you didn’t do that alone,” said Jill Brown, a SNAP advocate for The Open Door and panelist at the event. “You did that because there’s an infrastructure in place, which happened because of a whole bunch of people working together.”

    Held at the Backyard Growers headquarters off Maplewood Avenue, the panel was largely attended by students of moderator Shoshana Madmoni-Gerber, a Suffolk University professor and Gloucester resident.

    It’s been an uphill battle to help locals in need since the start of the pandemic, panelists said. Prior to 2020, 44% of Gloucester residents were low-income and 66% were cost-burdened, meaning more than 30% of their income goes toward housing, Brown said.

    “Things before the pandemic were not good, and a lot of people who were teetering on the edge just got pushed off it,” said panelist Leah Briere, a client services coordinator for The Open Door.

    “People were not affected equally,” she said. “Those who were already experiencing inequalities, that got even worse.”

    Poverty disproportionately affected people of color during the pandemic, and more than half a million women left the workforce at the time, mostly to care for children during online schooling and missing out on career advancement as a result. Children in poverty experienced higher learning losses than their more well-to-do classmates, Briere said.

    Creating food pathways

    The Open Door reported a dramatic increase in its number of clients during the pandemic. Requests for help are still far from pre-pandemic levels, but there’s more opportunities for those in need, Brown said.

    The Open Door started an online grocery ordering system during the pandemic that allows clients to choose what food they want from the organization, instead of receiving pre-packed bags that might include food they don’t like or can’t eat.

    There’s a new translating service that connects clients with someone who speaks their language when placing an order or requesting other types of assistance from The Open Door, rather than relying on Google Translate as the nonprofit did in the past, Briere said.

    Backyard Growers is starting a farmers market at Burnham’s Field this year that’s focused on providing healthy, affordable food from local farmers. The new spot is easier to walk to for many of the area’s low-income residents, and the market will accept SNAP benefits, said Alison DiFiore, executive director of the organization.

    Valuing skillsets

    Nonprofits have placed a larger emphasis on fostering equity since the pandemic. But creating equity doesn’t just mean promoting diversity, said Andy Allen, director of education and career pathways for Wellspring House in Gloucester.

    Equity is about valuing the skillsets of those with different backgrounds — including immigrants who are learning English, a fair share of Wellspring’s clients who take part in its housing, education and job training assistance programs.

    These clients often feel ashamed of their budding English skills even when they have degrees or worked as lawyers, doctors, engineers or in other high-paying careers back in their old countries.

    “I turn it and say, ‘You know more than one language already. You’re a valuable entity — your qualities are far beyond mine’,” Allen said.

    “You can get a much better job. Yeah, you need to have some English to help you get there, but as soon as (employers) find out that you know eight languages or three, you might be making $50 an hour,” he said.

    Being the change

    The last few years have been overwhelming for the nonprofit sector, even in Gloucester. Yet, as Allen said during the panel, “If you want to make a change, you have to be the one to make change, and you can’t do it by yourself. You need a group of people to stand up.”

    That’s what Susan Erony did when Seham Awad and her family, all Syrian refugees, arrived in Gloucester in 2016. Having fled dictator Hafez al-Assad’s regime prior to staying in overcrowded refugee camps in Turkey, the Awads came to America with next to nothing.

    Erony brought together her friends and other Gloucester residents to raise $35,000 for the Awads and a family of Afghani refugees at the time. The effort turned into The Friends of Cape Ann Refugees, and “friends” is the best way to describe what the unofficial group has become.

    Members celebrate birthdays together and bond over Seham Awad’s delicious cooking, which she’s taught to local schoolchildren through the group. Madmoni-Gerber acts as a translator, speaking both Arabic and English.

    “She loves all the people that helped her along the way,” Madmoni-Gerber said Friday, translating for Awad. “This is beyond an organization. We really love each other and it’s just a wonderful friendship.”

    Contact Caroline E nos at CEnos@northofboston.com.

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    By Caroline Enos | Staff Writer

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  • Meet the man who has tasted everything on the Cheesecake Factory’s ridiculously long menu

    Meet the man who has tasted everything on the Cheesecake Factory’s ridiculously long menu

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    LOS ANGELES — and jabbed his fork into a chunk of glistening cashew chicken.

    He closed his eyes for a moment, considering the texture of the dish, a longtime staple that, after a couple-year hiatus, would soon return to the chain’s menu.

    “Not as soft as I’d like it,” he told the executive chef, who nodded.

    Next, he turned to the seared ahi tuna salad, but he doesn’t like fish, so he took a single bite of lettuce and radish before confidently setting down his fork.

    “Nicely dressed. Great crunch!”

    Third up was Cajun salmon with mashed potatoes and corn. He dredged a spoonful of potatoes through the sauce and his lips wiggled from side to side. He nodded twice.

    “OK, delicious.”

    In the 46 years since he opened the first Cheesecake Factory restaurant in Beverly Hills and grew it into the behemoth of casual dining with locations across the globe, David Overton — the company’s official taster, but also its chief executive and co-founder — has built a deep trust in the profitability of his own palate.

    Overton has tasted and approved every one of the menu’s more than 250 items, which despite the factory in its name, the company likes to emphasize are prepared from scratch on site or at the company’s two bakeries.

    “What I like, millions of people like,” Overton, 77, said on a recent morning at the company’s Calabasas Hills headquarters as he weighed in on new offerings. “I have the taste buds of the common man.”

    ■■■

    Over the last few decades, as Cheesecake Factory locations popped up at malls and suburban plazas, they brought to each new corner of the country a sense that you were now in on some universal slice of Americana — a slice, it turns out, that provokes impressively fierce reactions.

    It didn’t matter if you were Tucson, Tampa or Tulsa, you, too, could now laugh with family and friends as you collectively gorged yourselves on the chain’s iconic brown bread. Before long, you, too, would come to associate the restaurant’s decor — a mashup of Egyptian-style columns, dark-wood wainscoting and ethereal murals that, when combined, exude the same over-the-top-yet-somehow-appealing vibe as a Vegas casino — with a sense of nostalgia. This would become the backdrop of birthdays and graduations and late-night meals after prom.

    You were now part of the collective experience shared by doctor and author Atul Gawande, who penned a sprawling ode to the Cheesecake Factory in the New Yorker, a Los Angeles Times food columnist, who, in a viral review in 2019, called his love of the chain “irrational and possibly pathological,” and rapper Drake, who sings about his love for the Cheesecake Factory, christening it as “a place for families that drive Camrys and go to Disney.”

    But not all of the attention is fawning.

    The chain made national headlines in 2017, when a man detonated a homemade explosive device inside a Cheesecake Factory in Pasadena. The FBI said the case remains unsolved.

    Late last year, a video went viral on TikTok of a woman refusing to get out of the car during a first date.

    “This is the Cheesecake Factory,” she says, filming herself, in what some viewers suggested was a staged scene.

    “What’s the problem with that?” he asks.

    “This is a chain restaurant.”

    Before long, someone compiled a list, which also circulated on social media, of places women should refuse to go on first dates, listing Cheesecake Factory as No. 1. (No. 2, Applebee’s; No. 15, the gym; No. 16, church.) The discourse swept the internet, earning two separate pieces in the Washington Post, and loyal fans soon swarmed to the brand’s defense on X.

    “WHO THE HELL DOES NOT WANNA GO TO THE CHEESECAKE FACTORY? BRO IF I WAS TAKEN THERE I WOULD PROPOSE,” one person posted on X (formerly Twitter).

    “I literally met my husband at the bar of a Cheesecake Factory 10 years ago,” Rachelle Tomlinson tweeted. “Stop all the slander!”

    Tomlinson, 30, was on a girls trip to Honolulu in 2014 when she visited the chain for the first time. Tomlinson recounted in an interview how she can still visualize the moment the double doors opened and she locked into a gaze with a man with hazel eyes.

    “Legit love at first sight,” her husband, Sam, recalled, saying the other thing he remembers from that night is that he drank a bunch of Mai Tais.

    Exactly a year from their Cheesecake meet cute, they got married.

    ■■■

    Growing up in Detroit, Overton said, his family could afford to eat out only once a week, usually Sundays at a deli or Chinese spot.

    His father worked at a department store and his mother sold cheesecakes she baked in the family’s basement based on a recipe found in a newspaper. Back then, there were only two varieties — original and original with strawberry topping — and Overton said he and his sister earned a penny for every bakery box they helped their mother fold.

    Years later, when Overton was in his 20s and chasing dreams of becoming a rock ‘n’ roll drummer in San Francisco, his parents, Evelyn and Oscar, tired of Detroit and a string of business ventures that never took off, decided to move west.

    They opened a small, wholesale bakery in North Hollywood, expanding their cheesecake options to include several more flavors, but the Cheesecake Factory Bakery floundered. They were in their mid-50s, working long hours and struggling to find customers who would buy in bulk.

    “I was really getting tired of all these restaurateurs that wouldn’t buy the cake,” Overton said, recalling the frustration that inspired him to start a restaurant of their own.

    On the day they opened in Beverly Hills in 1978, they began welcoming patrons at 2 p.m. and, by 2:10 p.m., Overton said, they were so busy that people had to wait to be seated — an immediate rush he attributes to divine intervention.

    “God was really watching over us,” he said. “I like to say that we had a line in 10 minutes, and it’s really never stopped for the last 45 years.”

    The company opened its second location in Marina del Rey in the early ‘80s and, in 1991, opened the first out-of-state location in Washington, D.C. The next year, the company went public — ticker symbol: CAKE — and today has more than 200 locations in the U.S., as well as several in the Middle East, Mexico and Asia.

    Cheesecake Factory locations brought in $2.5 billion of the company’s $3.3 billion in revenue in 2022, an average of about $12 million in sales at each restaurant, according to the company’s latest annual report to shareholders. (The company also owns the growing chain North Italia, acquired in 2019, as well as Fox Restaurant Concepts, whose upscale, fast casual restaurants the chain sees as a vehicle for expansion.)

    A key growth point, the report notes, has been an increase in takeout and delivery orders, which accounted for about 25% of total sales that year.

    Last year was bruising for a restaurant industry still recovering from pandemic shutdowns and buffeted by rising costs and labor shortages. But during the first nine months of 2023, the Calabasas Hills company racked up increased sales and income, and continued to expand.

    They’ve differentiated themselves with ample portions, a variety of “craveable” dishes difficult to replicate at home and the fact that they, unlike some competitors, still prepare everything from scratch at each restaurant, said Joshua Long, who follows the company in his role as managing director of the financial services firm Stephens.

    “The brand,” Long said, “has really found a spot in the hearts of consumers.”

    ■■■

    As the company grew, so did the length of the menu.

    It started as a single page, front and back, of items simple enough that, if a chef walked out on him, Overton could make them himself — a factory burger, which sold in the early days for $2.10, the Avocado Delights sandwich for $1.75, a slice of cheesecake for $1.25.

    For several years, Overton’s taste buds kept him from adding fish to the menu, and he also dragged his feet on selling steak, because of its price tag.

    “If you went on a date,” he said, “I didn’t want anybody ordering the steak and you couldn’t afford it.”

    Whenever he ate at a rival restaurant, he kept an eye out for dishes he could simplify or transform. During a meal at the Peninsula Beverly Hills years ago, he saw a menu item of cheese straws with avocado, which inspired the idea for avocado egg rolls, now a top seller.

    “How did I let the menu get so big?” Overton said. “I didn’t know what the heck I was doing. If I knew what I was doing and understood the restaurant business, it probably wouldn’t have turned out this way.”

    But it worked — and today, it’s become a key marketing tactic.

    The sheer size of the multi-page, spiral-bound menu has earned a ribbing from Ellen DeGeneres and inspired Halloween costumes and a Buzzfeed list of jokes, including one that, given the menu’s girth, and cultural relevance, compared it to the Bible.

    “We get so much PR just cause of that big menu,” Overton said, smiling. “I always say that our greatest difficulty is the size of the menu, but our greatest defense against competition is the size of our menu.”

    The menu items themselves are a cacophony of calories.

    Every year, the Center for Science in the Public Interest, a nonprofit health advocacy group, releases an “Xtreme Eating Awards “ list of single restaurant dishes that contain around a full day’s worth of calories. Two Cheesecake Factory items made the latest list — an Italian combo plate at 2,800 calories and a French Dip cheeseburger with fries at 2,200.

    But when you bring up calories with Overton, he looks unfazed — decadence is part of the brand and besides, he says, people rarely finish a dish in a single sitting.

    “We’re the king of doggy bags,” he says. “I don’t pay a lot of attention to calories, because we let people choose what they want.”

    But if there’s one thing America wants more than delicious, fattening food, it’s the idea — the vow — that they will soon eat less of it. Enter: SkinnyLicious, the brand’s name for menu items with fewer than 600 calories, which they added to the menu in 2011.

    SkinnyLicious items, Overton said, account for around 15% of sales.

    ■■■

    In the winter of 1993, David Gordon, now the company’s president, was looking for a job as a restaurant manager.

    He had applied to two different places, including a Cheesecake Factory on the Westside, but was more interested in the other small chain — until he had his Cheesecake Factory interview.

    The people interviewing him ate a burger in the middle of the interview — “a little strange,” Gordon says — and steered the conversation toward the intricacies and caliber of french fries. Over 20 minutes, they discussed everything from starch levels to how hollow the fries felt when you bit into them.

    “It intrigued me,” Gordon said. “This is somewhere where quality is incredibly important.”

    Early in his career at the company, Gordon recalled asking the person in charge of operations if there was a chance he would be transferred. He was planning to buy a house in Redondo Beach, Gordon explained, but didn’t want to if he might be moved.

    “No, no, fantastic, things are great,” he recalled being told.

    But a few months later, the man in charge of operations asked him to move to Woodland Hills, promising Gordon that, within a year, he would get him back to the location closest to his home. As the year mark approached, the boss kept his commitment.

    “He cared about me as a person,” Gordon said, noting that the company still works hard to live out that ethos.

    Cheesecake Factory locations are notoriously busy, so if you’re going to ask workers to be slammed all day and prepare and serve more than 200 different items from scratch, the workers need to feel a connection to the restaurant and the people they work for, Gordon said.

    Last year, the Cheesecake Factory, whose restaurants employ about 35,000 people, was one of only two restaurant chains — Panda Express’ parent company was the second — to earn a spot on both Fortune’s 100 Best Companies to Work For and People’s Companies that Care lists, which survey employees about company culture, pay, retention, opportunities and fairness.

    Their reputation for conscientiousness took a hit in 2018 when the California Department of Industrial Relations held the company and two janitorial contractors jointly liable for more than $4 million in wage theft violations after an investigation found the contractors’ employees assigned to eight Southern California Cheesecake Factory restaurants didn’t get proper rest or meal breaks, and weren’t paid overtime while waiting for kitchen managers to review their work at the end of a shift. Although Cheesecake Factory didn’t directly employ the workers, state law dictates that companies relying on subcontractors for labor can be held liable for workplace violations.

    In January, the California Labor Commissioner’s Office announced that it had reached a $1 million settlement against the company and both contractors.

    Sidney M. Greathouse, the vice president of legal services for the Cheesecake Factory, issued a statement that said “the company denies any wrongdoing and no longer utilizes the services of the janitorial companies at issue in the case.”

    ■■■

    Today, the company sells more than 30 varieties of cheesecake, but a massive painting of one of the originals — a simple slice topped with strawberry filling — hangs above Overton’s desk in his office that looks out on the hills of Calabasas.

    Sprawled across his desk are several stacks of folders each about a foot high. He’s a few years from 80, but between work and spending time with his wife, children and grandchildren, he doesn’t have much down time.

    “I have no time for hobbies,” he says. “I don’t play golf. I don’t do any of that.”

    He thought back on his 20s, around the time he started the business, when he first learned that you didn’t have to print your signature literally, but could sign it however you wanted.

    He played around with it and, as he wrote, let emotion guide him, creating a flowing capital D, which then exploded into 14 looping, semi ovals that start big and trail off.

    “It’s an emotion,” he said. “I just felt like I was moving forward.”

    Through the years, a few people had mocked his signature, he said, including someone who wrote to him saying, “I’m so sorry, with a signature like that, I won’t be investing in your company.”

    But he stuck with it. His gut hadn’t failed him yet.

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    By Marisa Gerber | Los Angeles Times

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  • Lawmakers seek FEMA funds, longer work permits for migrants

    Lawmakers seek FEMA funds, longer work permits for migrants

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    BOSTON — Members of the state’s congressional delegation are calling on the Biden administration to provide more funding to cover migrant costs and extend the time frame for federal work permits amid delays in processing extensions.

    In a letter to Homeland Security Secretary Alejandro Mayorkas, Sens. Ed Markey and Elizabeth Warren call on the agency to “immediately” distribute Federal Emergency Management Agency funding through its Shelter and Services Program to Massachusetts and other states that “are in desperate need of federal support” amid a surge of migrants.

    “Now is a critical moment to provide federal relief to Massachusetts as the Commonwealth continues its steadfast efforts to care for new arrivals and existing residents alike, as well as ensure the state’s long-term financial stability,” they wrote. “Given the far-reaching extent of this need, we also ask you to provide ample funding to locations such as Massachusetts, which are experiencing particularly notable increases in new arrivals.”

    Congress earmarked $650 million in a recently approved federal supplemental spending bill for the Federal Emergency Management Agency to provide grant money to municipal governments and nonprofit groups to assist the homeless and newly arrived migrants.

    The lawmakers called on the Biden administration to begin distributing the FEMA funding “expeditiously and equitably” to Massachusetts and other states wrestling with increased migrant costs. They noted that the state expects to spend nearly $1 billion over the next year to provide housing, food and other necessities to migrants.

    “Over the past two years, families have been arriving in Massachusetts at a dramatic rate, which spiked in the second half of 2023,” they wrote. “The last round of SSP funds allocated to Massachusetts was in August 2023 and was based, in part, on a formula that did not fully capture the exponential growth of new arrivals in Massachusetts.”

    Last year, FEMA awarded more than $3.1 million to Massachusetts nonprofit organizations to provide shelter, food and other services for the homeless through the program. That included $408,915 for Essex County and $640,137 for Middlesex County groups.

    Meanwhile, Warren is leading a group of Democratic lawmakers in calling on the Biden administration to take “immediate action” to extend federal work permits for migrants.

    In a letter to Biden and senior administration officials, the lawmakers urge the U.S. Department of Homeland Security to lengthen the automatic extension period for Employment Authorization Documents from 180 to 540 days. They also call on the federal agency to enact the proposed rules without a sunset date, or for at least three years.

    The lawmakers, who included other members of the state’s delegation, said the move is essential to prevent the loss of employment authorization for hundreds of thousands of migrants amid paperwork processing delays by the federal government.

    “Many lose their jobs, income, and access to driver’s licenses because of bureaucratic delays outside of their control,” the lawmakers wrote. “This severely limits their ability to pay rent, buy food, and support themselves and their families.”

    “If they continue to work without authorization, they can also become removable from the United States, and their employers can be subject to civil penalties,” they added.

    Massachusetts is dealing with a historic influx of thousands of migrants over the past year amid a surge of immigration along the U.S.-Mexico border.

    Gov. Maura Healey, a first-term Democrat who declared a state of emergency last year amid a surge of asylum seekers, has also pushed the Biden administration for more federal funding and expedited work authorization.

    Under Massachusetts’ right-to-shelter law, the state is required to provide emergency housing to people regardless of their immigration status. Healey and Democratic legislative leaders has resisted calls from Republicans and others to scale back or temporarily lift the requirements amid claims that it is drawing more asylum seekers to the state.

    The state is spending about $75 million a month – or roughly $10,000 per family – to provide housing and other needs for 7,500 migrant and other homeless families in emergency shelters.

    House and Senate leaders are negotiating a supplemental spending bill that would provide hundreds of millions of dollars to cover migrants costs and set limits on the length of stay in state-run shelters, which now averages about 18 months.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com

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    By Christian M. Wade | Statehouse Reporter

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  • Free trade flaws fueled Trump’s rise in 2016 — and the problems remain, top economist says

    Free trade flaws fueled Trump’s rise in 2016 — and the problems remain, top economist says

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    Former U.S. President Donald Trump speaks after attending a wake for New York City Police Department (NYPD) officer Jonathan Diller, who was shot and killed while making a routine traffic stop on March 25 in the Far Rockaway section of Queens, in Massapequa Park, New York, U.S., March 28, 2024. 

    Shannon Stapleton | Reuters

    Decades of trade deficits and a strong dollar created too many “losers” in the U.S. economy who turned to Donald Trump’s protectionist policies, according to Richard Koo, chief economist at the Nomura Research Institute — and those conditions remain.

    Trump’s “America First” economic policies led his administration to institute a slew of trade tariffs on China, Mexico, the European Union and others, including slapping 25% duties on imported steel and aluminum.

    As the Republican nominee for the 2024 presidential election, Trump has proposed a baseline 10% tariff on all U.S. imports and a minimum levy of 60% on imported Chinese products.

    These policies have drawn widespread criticism from economists, who argue that tariffs are counterproductive, as they make imported goods more expensive for the average American.

    Speaking to CNBC’s Steve Sedgwick on the sidelines of the Ambrosetti Forum on Friday, Koo said protectionism was a “horrible thing,” but that Trump’s approach “does have some economic logic.”

    “When we studied economics and free trade, in particular, we were taught…that free trade always creates both winners and losers in the same economy, but the gain that winners get is always greater than the loss of the losers, so the society as a whole always gains. So that’s why the free trade is good,” he noted.

    Koo nevertheless argued that this rests on the assumption that trade flows are balanced or in surplus, while the U.S. has been running huge deficits for the last forty years, which have expanded the number of “losers.”

    “By 2016, the number of people who consider themselves losers of free trade, were large enough to elect Trump president, and so we have to really go back and say to ourselves: what did we do wrong to allow this many people in United States to view themselves as losers of free trade?” he said.

    For Koo, the key problem was the exchange rate, as the strength of the U.S. dollar incentivized foreign imports and hurt U.S. companies exporting around the world.

    “We kind of let the exchange rate be decided by so-called market forces, speculators, my clients, Wall Street types, but the foreign exchange rate has to be set in a way that the number of losers does not grow to a point where the free trade itself is lost,” Koo said.

    He pointed to a similar pivotal moment in 1985, when President Ronald Reagan faced the same issue of a strong dollar and rising protectionism. At the time, Reagan responded by facilitating the Plaza Accord with France, West Germany, Japan and the United Kingdom to depreciate the U.S. dollar against the respective currencies of these countries through intervention in the foreign exchange market.

    This Fed is 'overly data-dependent,' says Allianz chief economic advisor

    “That’s the kind of thing we should have been more conscious of doing. Instead of allowing [the] dollar to go wherever the market takes [it], and then these people who are not as fortunate as we are in the financial markets, end up suffering and end up voting for Mr. Trump,” Koo added.

    He argued that economists need to move beyond the idea that the trade deficit is simply down to “too much investment” and “too few savings” in the U.S., as this means deficit can only be reduced by remaining in recession until domestic demand weakens so much that U.S. companies can export more goods, which would not be possible in a democracy.

    Koo again pointed to past dealings with Japan, suggesting that if the argument held that overseas companies are just filling in where U.S. companies cannot satisfy domestic demand, then the American companies fighting Japanese firms in the 1970s and 70s should have recorded huge profits due to excess demand.

    “But that did not actually happen. It’s the opposite that happened. So many of them went bankrupt, so many losers of free trade were left in the streets, because it was not savings and investment issue, it was the exchange rate issue,” he said.

    “The dollar should have been much weaker, and Reagan understood that that’s why he took that action.”

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  • Denver International Airport adds new nonstop destination — the longest direct flight from DIA

    Denver International Airport adds new nonstop destination — the longest direct flight from DIA

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    A new nonstop Turkish Airlines flight from Denver International Airport will carry travelers 6,152 miles between Denver and Istanbul — the longest flight from DIA.

    The recruitment of Turkish Airlines brings the number of airlines at DIA to 26. Flight searches on Google on Thursday morning showed round-trip flights available starting June 11 for around $1,329 roundtrip.

    Denver Mayor Mike Johnston and DIA chief executive Phil Washington planned to announce the flight Thursday morning. The new service is expected to bring a $54 million annual economic impact in Colorado and support the creation of about 350 new jobs around the state. The flight will take about 13 hours, longer than the 12-hour direct flight between Denver and Tokyo.

    DIA officials in recent years have prioritized “expanding our global connections” as part of their strategic plan for serving 100 million passengers a year by 2027 and more than 120 million by 2045, the airport’s 50th anniversary. A primary goal is to “expand the air networks to the continent of Africa and other disconnected destinations.”

    A 21-person delegation of airport, city government, and business officials from Denver visited Ethiopia in February 2023 on a trade mission to build relationships. They offered economic incentives as part of their efforts to persuade Ethiopian Airlines and, eventually, Egypt Air to commit to starting service to Denver with several flights a week. Another delegation visited Turkey in October 2022 to explore possibilities for starting a Turkish Airlines flight between Denver and Istanbul.

    The new flight announced Thursday “does not diminish in any way our desire” to line up a flight to other cities, said Denver Metro Chamber of Commerce president J.J. Ament, who joined both delegations.

    “A flight to Istanbul opens up India, and it also opens up Africa for us,” Ament said.

    “The imperative is that we continue to increase Denver’s global reach and the reach of Colorado and the Rocky Mountain West with DIA as the gateway airport,” he said. “Being able to reach new parts of the world, growing parts of the world, is what is going to keep Colorado globally relevant.”

    DIA is the largest airport in the United States by size, covering 53 square miles of land. It also ranks among the busiest airports in the world. A record 77 million passengers went through DIA in 2023, up from 69 million in 2019.

    The airport offers flights to 217 destinations, predominantly domestic. But international air travel, including air cargo operations, has grown steadily and in 2023 brought more than 4 million travelers, up 21% since 2022.

    Earlier this year, airport officials announced new nonstop flights from DIA on Aer Lingus to Dublin, Ireland, starting on May 17. Other cities that DIA travelers can reach nonstop include London, Paris, Zurich, Reykjavik, Iceland, Munich, Frankfurt, Tokyo, and a dozen cities in Mexico and Central America.

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    Bruce Finley

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  • Healey officials push affordable housing plan

    Healey officials push affordable housing plan

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    BOSTON — Healey administration officials urged lawmakers to approve the governor’s affordable housing plan, arguing the $4.1 billion borrowing bill would spur the construction of thousands of homes and generate tens of billions of dollars in economic activity.

    The Affordable Homes Act plan, filed by Gov. Maura Healey in October, includes a range of tax breaks, changes to state laws and borrowing to help spur construction of new housing.

    Lt. Gov. Kim Driscoll said passage of the bill is an “economic imperative” for Massachusetts as it struggles to build more homes to fill a critical shortage of market-rate and affordable housing.

    “The bottom line is we can’t wait,” Driscoll, Salem’s former mayor, told members of the Legislature’s Committee on Bonding, Capitol Expenditures and State Assets during a hearing Tuesday on the bond bill. “We have to act with urgency and scale. Our residents, our communities and our employers are depending on it.”

    Housing Secretary Ed Augustus said the plan, if approved by the Legislature, would have a “catalytic impact” on the construction of housing in the Bay State while making it more competitive and attractive to new families and businesses.

    “We need a Herculean response to our housing crisis,” he told the panel. “Housing builds a stronger economy, housing generates good jobs and housing strengthens competitiveness.”

    A key plank of Healey’s affordable housing plan would create tax credits to spur the development of homes over the next five years for those with low and moderate incomes. It also calls for expanding the state’s community investment tax credit, which provides funding to community development corporations.

    The plan would allow communities to add a transfer fee up to 2% to property tax bills. If a community votes to accept the tax, it would exempt the first $1 million on a home sale.

    Healey’s plan also calls for giving single-family homeowners the right to build so-called “accessory dwelling units” of less than 900 square feet on their lots.

    Economic impact

    Affordable housing advocates called on lawmakers to approve Healey’s plan, arguing that the state needs to take aggressive steps to boost the amount of housing in the state.

    “It’s really not an exaggeration to say that we’re facing the greatest housing crisis in the commonwealth’s history,” said Clark Ziegler, executive director of the Massachusetts Housing Partnership, a quasi-public agency that works with banks to finance affordable housing projects.

    “We’re consistently ranked as the most expensive place in the U.S. to live, our chronic housing shortage goes back decades and when the final data is tallied, it looks like last year we’ll see a roughly 30% reduction in new housing starts over 2022,” Ziegler told the panel. “It’s a really serious problem.”

    A report released by the Healey administration said passage of Healey’s plan, when combined with two recently reauthorized programs from the tax cut package, could create $24.8 billion in total economic impact over five years.

    The study, conducted by the University of Massachusetts Donahue Institute, estimated the act could generate 29,700 jobs in the development, construction, finance and associated industries.

    Economic activity from the Affordable Homes Act would also allow the state to recoup $750 million in tax revenue over five years, the report’s authors said.

    But the transfer tax plan has prompted pushback from the real estate industry, which says the so-called transfer tax would compound the problem as housing prices and mortgage rates continue to rise, pricing people out of the market.

    Healey and legislative leaders are trying to spur more home building amid the shrinking inventory that is edging first-time buyers out of the market. The prolonged housing crunch is affecting the state’s economic growth, making it much harder to attract new families and companies, they say.

    A $1 billion tax relief package signed by Healey in October included reauthorization of a low-income tax credit program and housing development incentive program, also aimed at spurring housing production.

    Healey has filed a bond bill for capital projects, which needs approval from the Legislature, that includes $1.6 billion to repair and modernize state-run public housing units.

    The state faces a pressing shortage of affordable housing, with more than 184,000 people on the waiting list for state public housing units.

    Housing prices

    Amid the shortages, housing costs are continuing to increase to new records in the state as home sales remain largely flat.

    The latest monthly report from The Warren Group found the median price for a home in the state increased by 10% to $548,250 in February over the same month last year, setting a new monthly record. Meanwhile, the number of closed sales on single-family homes remained largely unchanged from the same month last year, according the report.

    During the hearing Tuesday, several lawmakers raised concerns that Healey’s plan does not go big enough on financial investments to ensure there is enough housing to meet demand.

    “One of my fears is that we are creating generations that perhaps will never have an opportunity for home ownership,” state Sen. Pavel Payano, D-Lawrence, a member of the bonding committee, said in remarks. “I know we are doing some investments here, but I wonder if that is enough.”

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com

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    By Christian M. Wade | Statehouse Reporter

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  • North Shore towns weigh MBTA zoning law

    North Shore towns weigh MBTA zoning law

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    Hamilton, Ipswich, Topsfield and several other North Shore communities have until Dec. 31 to adopt zoning that complies with the MBTA Communities Law requiring multifamily zoning districts of at least 50-acres in size with at least 15 units per acre.

    After the law was first passed in 2021, communities have spent the last few years formulating action plans, identifying potential districts for rezoning, collecting and considering public input and hiring consultants. They’ve also been creating MBTA task forces made up of local municipal leaders, resident volunteers, architects, and other stakeholders.

    All the communities that submitted an action plan to the state and had it approved — including Topsfield, Wenham, Ipswich and Hamilton — are technically in compliance with the MBTA Communities Law, as they have demonstrated an effort to rezone districts that follow the bylaw. However, they still have to vote to approve the newly zoned districts at Town Meeting this year, the majority of which will take place in the fall.

    As such, many North Shore communities have made an effort to involve affected residents in the decision-making process and hold public meetings to explain what the bylaw requires, how the community will handle the effect on services and infrastructure, and listen to and act on residents’ concerns.

    “We’re trying to maximize our public outreach on this for the community. The typical reaction to this is hesitancy and some opposition, because it’s not well understood,” Wenham Planning Board Vice Chair Dan Pasquarello said. “What we tried to make clear in our (previous info session) was that this is a zoning exercise, it’s not necessarily a building exercise. and I think that’s really important for people to understand.”

    In Danvers, Special Town Meeting in February approved a measure to amend zoning bylaws to come into compliance with the housing law. This didn’t come without opposition.

    “I’m aware of emails circulating saying that (this bylaw) should be opposed because it will ruin our town. This article is not going to ruin Danvers Square or result in any taller or bigger buildings than what has been envisioned in existing zoning,” said Danvers Select Board Chair David Mills at the time. “It will simply adjust the minimum density of our downtown to ensure that we are in compliance with a new state law. Non-compliance will cost us money.”

    Also that month in Milton, proposed zoning for that town was rejected at Town Meeting, leading to Milton losing out on grant funding, and prompting a lawsuit from Attorney General Andrea Campbell who has stated that compliance is mandatory.

    “The housing affordability crisis affects all of us: Families who face impossible choices between food on the table or a roof over their heads, young people who want to live here but are driven away by the cost, and a growing workforce we cannot house,” said Campbell in a press release on the lawsuit. “The MBTA Communities Law was enacted to address our region-wide need for housing, and compliance with it is mandatory.”

    To achieve compliance in Wenham, the town needs to adopt zoning to allow 365 units, with 73 of them within a half-mile of the train station. Wenham and Hamilton, which share a train station, are classified as “commuter rail communities” with more strict zoning guidelines, presenting a unique challenge to the towns.

    “We have to be within the half-mile radius (of the Hamilton/Wenham Station),” Margaret Hoffman, Wenham’s planning coordinator said. “So one of the unique challenges that Wenham and Hamilton face is that we have to share this station and we essentially only have a small half-circle radius to zone within.”

    Hamilton, which has to zone for 731 units, plans to utilize “form based zoning” to ensure that any potential developments follow specific building form and architectural design standards.

    “The bigger lift is going to be when developers actually look at the property to see what’s attainable and workable, and how much infrastructure they’re going to have to create to make it viable,” Patrick Reffett, Hamilton’s director of planning & inspectional services, said. “I think there’s a great deal of angst about the notion of this level of growth. and I totally get it — it’s scary if you don’t understand that the onus is really on the developers.”

    Cities and towns without a commuter rail station that are classified as “adjacent communities” or “adjacent small towns” have a lesser obligation to zone for multifamily and mixed-used development, but still required to allow developments within this zone “by-right” without the need for a special permit.

    In Topsfield, which is an adjacent small town and must zone for 118 multifamily units, Planning Board members have worked with consultant Ezra Glenn to identify areas in town where multifamily zoning would allow the town to comply with the bylaw.

    The town also plan to diversify its housing stock and make use of underutilized properties, a goal the town had previously set in its master plan.

    One option Topsfield is looking at is the 15.8 acres at the intersection of Central Street and Route 1, an area with easy accessibility to the highway and the rail trail.

    “We want to be clear amidst all this talk about how nothing is actually required to be built, that this isn’t to be taken as having no purpose. (The Planning Board) did not design the zone in a way in which nothing would be built,” Topsfield Selectboard Chair Marshall Hook said during a recent public info session.

    “I think there are towns that have tried to do that, but that was not the intent here,” he said. “I think we all see this as an opportunity and hope that things actually do get built.”

    Ipswich, which has a train station, is required to zone for 971 multifamily units. It has put significant effort into identifying potential districts for rezoning and collecting feedback from residents on their preferred location.

    The town is attempting to aggregate the feedback received in task force meetings open to the public, and from surveys about traffic, infrastructure, and design concerns that will lead up to a Special Town Meeting in the fall where a plan will be proposed.

    “(In the last survey) there’s 10 or so guiding principles that residents identified,” Director of Planning and Development Brendan Conboy said. “The top ones would be emphasizing green construction, encouraging mixed use downtown, elevating the quality of the design, and directing growth to infrastructure.

    “A little further down the line on preferences, but still relevant, was the affordability, consistency with previous plans, and encouraging diversity in town,” he said.

    Ipswich is scheduled to hold a task-force meeting on April 3 at 7 p.m. in Town Hall, and another on April 25 at the same place and time, with a broader community meeting in May. In Hamilton, Town Meeting will be asked on April 6 to approve funds to hire a consultant. Wenham plans to hold an info session about the work done thus far in May.

    Further information about the housing law can be found at mass.gov/info-details/section-3a-guidelines.

    Michael McHugh can be contacted at mmchugh@northofboston.com or at 781-799-5202

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    By Michael McHugh | Staff Writer

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