Legislature OK’s economic development bill with local funding

The House and Senate today approved a $4 billion economic development bill that includes funding for a range of grants and programs that benefit cities and towns.

The compromise bill emerged from a conference committee late on Tuesday and represents months of work by negotiators beyond the scheduled end of the formal legislative session on July 31.

The multi-year package includes:

• $400 million for MassWorks grants for local infrastructure

• $100 million for the Rural Development Fund

• $150 million for the Public Library Construction Program to help municipalities with building updates and rehabilitation

• $100 million for grants, through the Seaport Economic Council, to provide support for the state’s 78 coastal municipalities to withstand and adapt to the impacts of climate change

• $200 million for the Clean Energy Investment Fund to promote job creation, and economic and workforce development in the area of climate technology

The bill includes language, which had been opposed by the MMA, that would require municipalities to be in compliance with the MBTA Communities Act (Sec. 3A of Ch. 40A) for much of the local funding authorized in the bill. This is intended to align with existing funding already identified as at-risk for noncompliant MBTA Communities, but these provisions could also complicate eligibility for municipalities that aren’t within the MBTA service area.

The economic development package would make a number of policy changes, including reforms to the civil service system that would give communities more options for filling essential municipal jobs. The MMA had strongly supported the compromise civil service reform, including a new “hybrid” pathway that civil service departments could use to more easily identify and hire candidates for municipal police and fire positions outside of the traditional exam process. The Legislature’s bill would also expand flexibility for residency requirements, and support and expand cadet programs. One provision would allow active special legislation to exempt positions/departments that was filed before July 31, 2024, to not require further action by the Legislature, but rather some subsequent filings with the state’s Human Resources Department, the Civil Service Commission, and the Legislature.

The bill includes a number of other policy items supported by the MMA, including an amended State Action for Public Health Excellence (SAPHE) 2.0 program that would create a statewide action plan for bolstering public health services across Massachusetts while providing important fiscal safeguards for municipalities.

Another policy provision would require local consultation on priority development sites.

The bill would remove current limits on political candidates using campaign funds for child care expenses incurred during campaign activities, something that has been allowed by federal election laws for years.

The Legislature’s economic development bill has been sent to Gov. Maura Healey for her review and signature. The governor had started the process with the filing of her $3.5 billion economic development bill in March.