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Boston's Morning Newsletter
Is $2.1 billion a good deal? Explaining the bargain to resolve Massachusetts' massive jobless claims mistake
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Trump’s first day back in the White House was marked by two speeches, a withdrawal from the Paris Agreement (again) and a blizzard of other executive actions that continued late into last night. We have more on the local reactions and what comes next below.
But first, Massachusetts received some major news yesterday, thanks to the Biden administration:
And your total comes out to… $2.1 billion. That’s how much Massachusetts has to pay back the feds. Gov. Maura Healey’s administration revealed yesterday that they reached a settlement with the outgoing Biden administration last Friday to pay back most — though not all — of the $2.5 billion in federal COVID pandemic funds that the state misspent under Gov. Charlie Baker. Here’s what to know about the big IOU:
- How was the money misspent? State officials say the Baker administration accidentally used federal funds to pay jobless claims that should have instead been paid using state money. The mistake happened over the course of three years during the pandemic. (As my colleagues reported at the time, the state labor department’s loose financial controls were already under scrutiny.)
- Is $2.1 billion a good deal? It’s still a painful amount of money, but it could have been worse; according to the Healey administration, the bill could have exceeded $3 billion, if the feds held the state to the full amount, plus interest and penalties. (Some speculated Trump’s Republican-led administration would have been less forgiving.)
- How long does the state have to square up? The settlement lets the state spread out the payments over 10 years, starting this Dec. 1.
- Where is that money coming from? Most of the money will be paid from the state’s Unemployment Insurance Trust Fund, which is funded by a tax on employers. However, Healey said employers won’t see any increase in their tax rates until at least 2026, as the state eyes reforms to the unemployment insurance system. Meanwhile, $73 million in back interest will be paid from the general budget.
- What is Healey saying? “It is incredibly frustrating that the prior administration allowed this to happen, but we are going to use this as a moment to come together with the business and labor community to make meaningful reforms to the Unemployment Insurance system,” she said in a statement.
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PSA: MassDOT is reminding morning commuters to be careful on the roads amid this week’s frigid temperatures. Highway Administrator Jonathan Gulliver says the primary concern is melting and refreezing snow following Sunday night’s storm. “As the temperature drops, salt and whatever other treatment we use becomes a little bit more ineffective,” Gulliver told WBUR’s Stevee Chapman.
- Zoom in: The typical trouble spots tend to be secondary roads and highway ramps, according to Gulliver. He said it’s safe to assume that anything that looks wet on the roadway is ice.
- Zoom out: How much snow did your town wake up to Monday? Check out this map and list of Massachusetts snowfall totals.
Talking about their generation: Newton’s City Council is set to vote on a “generational” tobacco ban tonight, following in the footsteps of neighboring Brookline and 10 other communities in Massachusetts. The proposed ordinance would ban anyone born after March 1, 2004 from ever buying tobacco products, including e-cigarettes — even after they eventually turn 21.
- The vote comes after the state’s Supreme Judicial Court upheld Brookline’s first-in-the-nation law last March. Some Beacon Hill lawmakers are pushing for a similar tobacco ban statewide.
The northern border: A U.S. Border Patrol agent was fatally shot yesterday in Vermont during a traffic stop roughly 20 miles south of the Canadian border. According to the FBI, a suspect in the shooting was killed, and a second suspect was injured and taken into custody.
- The shooting led to part of I-91 being shut down in both directions for more than two hours; the southbound lane remains closed.
Mayflower Brewing has been saved from impending closure. The Plymouth-based brewery announced Friday it will stay in business for “years to come,” thanks to a deal with a local beverage distributor.
- Launched in 2007, Mayflower has been one of the largest beer producers in Massachusetts. But as the Boston Business Journal reports, it now faces increasing competition on the South Shore.
P.S.— Need a break from the news? Internet-famous sandwich historian Barry Enderwick is coming to CitySpace tonight to promote his new cookbook and demonstrate some techniques for making a good sandwich great. Get tickets here.
