Massachusetts legislative committees have until mid-June to complete work on various bond proposals totaling $9.15 billion that would help finance infrastructure upgrades for higher education institutions, public buildings, bridges, and other state capital projects.
Gov. Deval Patrick last week signed into law a five-year, $1.27 billion housing borrowing plan, yet another five bond bills that total an additional $9.15 billion are still in committee.
Legislative officials anticipate potentially moving a 10-year, $2 billion higher education bond bill out of the Joint Committee on Bonding, Capital Expenditures, and State Assets as early as next week, according to Jay Newsome, House director for the Bonding Committee.
A five-year, $1.4 billion energy and environment bond bill could follow, along with a $2.5 billion public buildings borrowing plan that would finance upgrades at courthouses and other government facilities over five years.
The Bonding Committee has until June 12 to move the bills out to the legislature's agenda. From there, lawmakers have until the end of July to vote on any borrowing proposals, as all bond bills in the commonwealth must be voted on in a formal session, with a two-thirds rollcall. In this two-year legislative time frame, which ends Dec. 31, formal sessions will end on July 31.
The Bonding Committee is also evaluating a fourth initiative, a $3 billion bridge repair bill, that would finance capital projects on 300 structurally deficient bridges over the next eight years. The panel will hold a public hearing on the borrowing proposal next week and the bill has a due date of June 14 to make its way out of the Bonding Committee.
The $3 billion financing plan for bridges has changed a bit since the governor first introduced it in early April. The bill now calls for $1.1 billion of grant anticipation notes secured by future federal funding and another $1.9 billion of bonds backed by gas tax revenues, with a pledge of 10 cents- up from the current 6.8 cents - of the state's 21-cent gas tax.
Patrick's original strategy included tapping into future general obligation bonding capacity and restructuring $366 million of existing debt, a plan that state Treasurer Timothy Cahill opposed. Cahill does support the $3 billion bond bill as it stands now with the increased gas-tax pledge.
Along with the four bond bills within the Bonding Committee, a $25 million broadband borrowing plan sits with the House Ways and Means Committee. The measure would help support Internet access throughout the state.
The $1.27 billion housing initiative that Patrick signed last week will support residential development and spur employment in the construction industry. Nearly $500 million of bond proceeds will pay for renovating state-supported public housing developments. The upgrades are projected to benefit more than 50,000 units.
Another $220 million will help finance Massachusetts' Affordable Housing Trust Fund, which develops and maintains affordable housing projects for households whose incomes are not more than 110% of the state median income.
Another $125 million will support the Housing Stabilization Fund. That program acquires, preserves, and rehabilitates affordable housing, including foreclosed and distressed properties.
"This bond bill was an important and collaborative effort with the state legislature to devise a comprehensive plan to provide affordable housing in Massachusetts," Patrick said in a press release. "There are steps we need to take to keep our state a great place to live and work."
