Maura Healey

Healey says no indication Baker administration broke the law after mistaken use of $2.5B

June 7, 2023 by pkzadmin

There is no indication the Baker administration broke the law when $2.5 billion in federal money was erroneously used to pay off pandemic-era unemployment benefits, which should have been funded through state coffers, Gov. Maura Healey said.

Questions have swirled over the past week in the Beacon Hill orbit after the state’s Executive Office of Labor and Workforce Development confirmed the withdrawal of $2.5 billion in federal relief funds for unemployment claims that should have been covered by the state.

“No one broke any laws,” Healey told reporters outside the State House Wednesday. “It’s just to a matter of whether this was done the way it was supposed to be done, or whether there were other ways that this could have been done. Again, it’s more about just getting a handle on it right now. And the most important thing is we’re in discussions with the U.S. Department of Labor. And other states are working through similar issues.”

It is still unclear whether Massachusetts is on the hook to pay the federal government back, a question that looms large over legislative conversations on tax relief. The discrepancy, the Healey administration has said, stems back to 2020, when former Gov. Charlie Baker was in office.

It was only recently identified through a yearly audit and previous inspections had not picked up on the error. An outside accounting firm hired to review the state’s Unemployment Trust Fund also previously missed the mistake.

Healey said officials are still “getting to the bottom of what happened in terms of disparities” and the administration is not looking into whether the error was an unlawful or illegal act.

Healey did not specify who in her administration has been in contact with the Department of Labor.

A spokesperson for Baker said the former administration “worked hard” to quickly set up new processes to ensure people received unemployment payments during the pandemic, including distributing tens of billions of dollars in benefits over two years.

“When complications were discovered, the administration immediately engaged an experienced outside consultant to help with reconciliation of the UI Trust Fund balance. The consultants issued a public report in December of 2021 that identified $300 million Massachusetts owed to the federal government, and the state acted quickly to resolve that issue,” the spokesperson, Jim Conroy, said.

Labor and Workforce Development Secretary Lauren Jones said last week the Healey administration is “determined to provide a solution with the goal of minimizing impact to the commonwealth.”

A U.S. Department of Labor spokesperson previously said they have been in discussion with state officials “about their error and is working with the state on options to rectify the situation.”

Members of the state’s congressional delegation sent a letter Wednesday to a U.S. Department of Labor Official urging federal officials to work with Massachusetts to rectify the “accounting error.”

“States have faced significant obstacles in appropriately administering federal pandemic UI funds. This is due in part to the prioritization of speed in disbursements, but also to the federal government’s unfortunate underinvestment in federal and state UI infrastructure,” the letter said, which was signed by U.S. Sens. Elizabeth Warren and Ed Markey as well as U.S. Reps. Lori Trahan, Stephen Lynch, Seth Moulton, Katherine Clark, Ayanna Pressley, William Keating, and James McGovern.

The multi-billion episode has drawn comparisons to summer 2022, when a little-known tax cap law required the government to send billions back to residents in the form of reimbursement checks.

That led legislative leaders to scrap talks on tax relief and sideline a massive economic development bill that was in the works at the end of the legislative session.

Senate President Karen Spilka did not say earlier this week whether this year’s scenario is similar to last year’s tax-cap situation.

“We’re in the fact-finding phase right now, trying to figure out what happened,” she said, adding the Senate will continue with a tax relief package that “will be out soon, so stay tuned.”

Addressing the misuse of federal funds should not preclude the Legislature from taking up a tax relief bill, Senate Minority Leader Bruce Tarr told the Herald on Wednesday.

The Gloucester Republican said he is “not convinced” that Massachusetts will be forced to pay the federal government back.

“I’d also hope that the federal government would recognize its responsibility in this matter. They were motivating us to put out the money as quickly … as we could. The rules seemed to be changing quite a bit when we’re trying to do it. And I think there’s some shared responsibility here,” he said.

He said state officials acted “in good faith” despite the error.

“That being said, this is a sizable mistake,” he said. “And I think we need to understand how it happened, and who is responsible for it. And how we can make sure that the employers in the commonwealth are protected, the taxpayers of the commonwealth are protected, and the integrity of our state government is protected.”

State officials find Baker administration mistakenly used $2.5B in federal pandemic-era relief funds

June 2, 2023 by pkzadmin

Heads are spinning Friday after a yearly audit found officials mistakenly used $2.5 billion in federal pandemic-era relief funds to pay off unemployment benefits, a costly figure that was supposed to be covered by Massachusetts, not the feds.

It is unclear when the federal government will be paid back or how the error was made. The state’s Executive Office of Labor and Workforce Development said the discrepancy stems back to 2020, when former Gov. Charlie Baker was in office, and was “only recently identified” by the Healey administration this year.

Secretary of Labor and Workforce Development Lauren Jones said the Healey administration is “determined to provide a solution with the goal of minimizing impact to the commonwealth.”

“The Executive Office of Labor and Workforce Development has since taken steps to implement and enhance internal controls. We are also working closely with [the U.S. Department of Labor], outside auditors, and other necessary partners to resolve this issue,” Jones said in a statement.

The audit showed that in 2020 and through the pandemic, the state labor department withdrew $2.5 billion in federal relief funds for unemployment claims that should have been covered by the state’s Unemployment Trust Fund, which Massachusetts employers pay into, labor officials said.

Multiple audits over the past several years by two independent groups did not catch the error, the state said. And an outside accounting firm hired to review the state’s unemployment trust fund also missed the error, officials said.

The Boston Globe first reported the error Thursday night.

But some are questioning whether “error” is the best way to describe the mistaken use of $2.5 billion.

“It’s not millions, it’s billions,” said Eileen McAnneny, a senior fellow in economic opportunity at the Pioneer Institute. “The magnitude of this oversight is astounding.”

Business groups are calling on the state to keep the responsibility of cleaning up the mess out of the hands of employers or taxpayers. That comes as the Executive Office of Labor and Workforce Development made clear no claimants were impacted.

The $2.5 billion error was made by the state, and it is “reliant upon the state of Massachusetts to rectify this major oversight,” said Christopher Carlozzi, Massachusetts state director for the National Federation of Independent Business.

“However, in no way should employers be held liable for a $2.5 billion mistake that was not their doing. If Massachusetts must repay the federal government, they should use remaining federal funds or excess tax revenue and not rely on business owners to shoulder the burden,” Carlozzi said in a statement.

Carlozzi said the state should not raise the unemployment insurance taxes employers pay nor deplete the existing unemployment insurance fund balances “as small business owners are currently paying a hefty COVID-19 assessment on their UI bills to cover the cost of layoffs resulting from state-mandated shutdowns.”

And as the dust settled Friday morning, many in the Beacon Hill orbit were trying to wrap their heads around the situation and potential impacts the multi-billion dollar error could have on the state’s finances.

A spokesperson for House Speaker Ronald Mariano said the Quincy Democrat’s office is “in communication” with the administration and “will continue to monitor the situation as it develops.”

Senate President Karen Spilka’s office did not immediately return a request for comment.

Massachusetts Taxpayers Foundation President Doug Howgate said it might be worth taking a breath before any major decisions are made.

“I think we’re all kind of processing a lot of information and I think it’s worth us taking the time to figure out what the situation is before we jump to conclusions,” he told the Herald.

A U.S. Department of Labor spokesperson said they have been in discussion with state officials “about their error and is working with the state on options to rectify the situation.”

Massachusetts Fiscal Alliance spokesman Paul Craney said “under no circumstances” should local businesses be expected to pay for any portion of the $2.5 billion mistake.

“They’ve already paid more than enough. Any public comments even suggesting this will only continue to drive the narrative that Massachusetts is uncompetitive and does not support its small businesses,” he said in a statement.

Pride on the march in 3rd District and beyond

June 1, 2023 by pkzadmin

LOWELL — The commonwealth is home to almost 7 million residents with nearly half a million Bay Staters identifying as LGBTQ+.

June is Pride Month, which honors the 1969 Stonewall Uprising in New York City, when police violently raided the Stonewall Inn, a gay bar, igniting a riot that led to the gay liberation movement.

U.S. Rep. Lori Trahan kicked off Pride Month with a roundtable at UMass Lowell Thursday morning at which she heard from 15 community leaders who provide resources, services and support for the LGBTQ+ community.

She introduced herself to the group as an ally, saying that she was committed to standing “shoulder-to-shoulder with you” to create opportunities and safe spaces for people in her 3rd Congressional District, in the state and the nation.

“It is up to all of us to ensure that we are protecting the lives and livelihoods of LGBTQ+ citizens across the world,” she said, before opening up the floor to hear from the participants who worked in academic, governmental, health care, business and nonprofit sectors across the state.

Some attendees, like Isa Woldeguiorguis and Masada Jones, hail from Lowell. Both work at the Center for Hope and Healing, whose mission is to end sexual violence.

Junior Peña is the executive director for Student Diversity, Equity, and Belonging Initiatives at Fitchburg State University, whose work focuses on identifying biases and creating a welcoming space for students on campus.

Overall, all the members present spoke to elevating awareness and visibility of the community through their outreach and educational programs. They all spoke to feeling that Massachusetts was a leader in creating an equitable environment, even as they recognized financial, political and societal challenges to the effort.

Same-sex marriage was legally recognized in 2004, Maura Healey is the first woman elected governor in the commonwealth and the first lesbian governor in the U.S., and roundtable speaker Julie Chen is the first LGBTQ+ chancellor of the UMass system.

Chen said inclusion was one of the pillars of UMass Lowell’s four-point strategic plan.

“We are very conscious of making sure that everybody at this university feels like they belong,” she said. “So that you can be your best self here at this university.”

She cited a survey of undergraduates in 2022 in which more than 1,000 students identified as LGBTQ+.

“We want to provide whatever resources our students need so that they can be successful,” Chen said.

The city of Lowell was represented by City Manager Tom Golden who said the “city stands with all of you.”

“We want to make sure that everyone who comes to Lowell feels welcome,” he said. “To make people feel comfortable, safe and to want to be part of our community to build a better tomorrow.”

Members of the community said their work was threatened by white supremacy groups like the Proud Boys. Anti-LGBTQ+ groups like Mass Resistance and the Mass Family Institute are headquartered in Massachusetts.

Anthony Bovenzi is the president of NoWoCoPride, a gay and lesbian organization based in Fitchburg that produces events and activities in North Worcester and beyond.

“Massachusetts is great on many fronts, but (it) is also the biggest safe haven for white supremacist groups, and they are constantly threatening our Pride,” he told Trahan. “Right now, I’m receiving 10 death threats a week from white supremacist groups all over New England including Massachusetts.”

The organization works closely with state and local police to monitor the threats and increased their security budget.

“There are five white supremacist groups based in Fitchburg alone,” Bovenzi said. “The Proud Boys are based in Brookfield and Spencer.”

The gains made in trans rights are also threatened by racist-based groups operating in the commonwealth, said Dallas Ducar. She is the executive director for Transhealth, based out of Western Mass., which provides gender-affirming care for people across the state and New England.

Besides its medical services, the organization also trains students, doctors, physician assistants and nurse practitioners in gender-affirming health care.

Like Bovenzi’s NoWoCo, a portion of Transhealth’s budget also goes to security to protect against anti-trans threats.

“As a clinic we had to go silent until we received Homeland Security funding to be able to have safety,” she said. “We had to take our providers off the website.”

She said the threats represent an extreme, radical element with the majority of people expressing a bipartisan support for LGBTQ+ issues.

That was a position that Woldeguiorguis pushed back at, saying, “There’s a notion that white supremacists are the fringe. They are built off of a foundation of white supremacy in this country that has existed long before Proud Boys.”

In closing, Trahan said the conversation was enlightening and she was committed to elevating the work and partnering with the groups represented at the table.

“We’re going to continue leading with joy but being vigilant along the way,” she said. “We are partners in this effort.”

The city of Lowell kicks off Pride Month on Saturday, June 3, at 10 a.m., with a flag-raising ceremony and a performance by the New England Pride Colorguard Ensemble, in front of City Hall, 375 Merrimack St. The public is also invited to join the Colorguard and The Party Band as they lead a parade from City Hall to Kerouac Park, 75 Bridge St., for a noon to 4 p.m. festival. For information, call 978-674-1482 or email rdei@lowellma.gov.

One out-of-state MBTA manager fired, four others warned: Maura Healey says to expect more changes

April 26, 2023 by pkzadmin

Gov. Maura Healey said more leadership changes will happen at the MBTA after a manager found to be working out of state was fired and four others who live hundreds of miles away were told to be in Boston more often.

“We actually removed one individual,” Healey said. “And there will be other changes.”

That employee, according to a Healey spokesperson, is James “Jay” Neider, chief of capital programs for the MBTA, who was fired last month.

Neider owns homes in Millsboro, Del. and Gilbert, Ariz., property records show. According to a Boston Globe report, Neider also spent a lot of time in Hawaii and Wisconsin, where phone records indicate some of his family members live.

Hired in 2019, his job consisted of overseeing large capital projects. Neider was paid more than $300,000 last year, with bonuses tacked onto his roughly $275,000 salary. Despite working less than four months this year, he raked in nearly $125,000, when factoring in his base pay, “other pay” and a roughly $20,000 buyout, according to the state comptroller’s office.

The Herald has tried to reach Neider for comment, but messages were not immediately returned.

Neider is the only remote manager to be terminated so far, but Healey told reporters “more leadership changes will happen,” referring to the shake-ups she’s already implemented so far, with new MBTA General Manager Phillip Eng, Transportation Safety Chief Patrick Lavin, and three new T board members.

“I just cannot have a situation where I have members in management not on the job,” Healey said. “It is a lousy signal to other state workers who are showing up every day working hard, and that’s what I expect of my team, across all agencies, across all departments.”

The MBTA, at the direction of Healey, told four other out-of-state capital programs employees that “they needed to be in the office three days a week and had two weeks to make the necessary arrangements for this requirement,” T spokesperson Joe Pesaturo said.

Pesaturo did not provide the names of these four employees, but shared their job titles with the Herald, which verified the names of three managers.

Karli Del Rossi, chief of staff for capital programs, owns a home in Bonita Springs, Fla.; Charles Thorn, deputy chief of capital programs, owns a home in Maywood, N.J. and Maysoon Tawfik, chief of capital programs strategy and innovations, has a home in Manhattan, N.Y., according to land records.

Del Rossi was paid $143,054 last year; Thorn made $174,000 after starting mid-year in 2022, but has an annual pay rate of $232,000; and Tawfik’s salary was $236,295 last year, according to the state comptroller’s office.

The fourth employee warned to work in Boston more often was the CPSI system administrator, Pesaturo said.

“The T is currently reviewing next steps with capital employees to ensure they are able to meet the shared capital programs requirement to be physically present in the office three days a week,” Pesaturo said in a statement. “The T cannot comment further on personnel matters.”

He did say, however, that the MBTA is in the process of reviewing how and when employees work remotely, “balancing the needs of in-person work with remote work.”

“Maintaining safe, reliable transportation is the T’s No. 1 priority and employee schedules must be designed to best serve operational and customer needs,” Pesaturo said.

Healey said she expects all state employees to show up every day, work hard and work with one another.

“We’re going to have to do the work on the HR front to bring more people in,” Healey said. “But as with everything, I’m not going to hide the ball on anything, and when things are brought up and brought to my attention, we’re going to move quickly.”

Medford, MA – August 30: Construction workers replace the tracks along the Wellington Station area during the one month shut down of the MBTA Orange Line on August 30, 2022 in , Medford, MA. (Staff Photo By Stuart Cahill/MediaNews Group/Boston Herald)

Some seasick over topless bathing season on Nantucket

March 26, 2023 by pkzadmin

Some on the island of Nantucket are dreading this summer.

It’s not global warming or Kevin Spacey making a return visit that has them fretting, it’s topless bathing. It kicks off, or comes off, in a few short months.

“I don’t want the season to begin,” said Nantucket resident Beth Barry, who said she’s not alone in that sentiment. “It’s like having a free strip club. So many people didn’t vote for it.”

But the majority did. As the Herald reported last May, Nantucket Town Meeting members passed the topless bylaw 327 to 242. Then-Attorney General Maura Healey backed the legality of the bylaw in December before changing over to the governor’s office.

Healey’s AG office stated: “We approve the Town’s vote authorizing any person to go topless on any public or private beach in Nantucket because we discern no conflict” with the constitution.

Alas, John Adams did not see this one coming when he penned the Massachusetts Constitution.

Barry, who said she’s not a prude but wants the Town Meeting vote re-taken so everyone can chime in — especially, as was the case for her, voting remotely if they are off-island.

“This drastically changes our community. How can it be every beach?” she told the Herald. “I wasn’t able to vote from Boston.” She’d be OK with a few beaches going topless for all, but every beach seems excessive, she stressed.

The AG’s office this past December did suggest further clarifying the bylaw so it has “a more definite scope.”

The town on its website has said there would be an adjustment period. “We ask everyone to be patient and respectful as the island adapts to this first-of-its-kind bylaw in the Commonwealth of Massachusetts,” the post stated, the Associated Press reported in December.

As of Saturday, the “Rules & Regulations” section of the island’s town website did not get down to the bare facts about topless swimming and sunbathing. The island does have plenty of rules on fire pits, beach bonfires, noise, smoking drinking … but nothing easily found going sans tops.

The bylaw, as approved, allows anyone, regardless of gender, to go topless on Nantucket’s beaches.

It was suggested to the Herald that authorities and island inhabitants take into consideration a few key risk factors, including potential social media posts of young women in the nude that could go viral turning this tranquil oasis into an ogling destination.

Or, what about any sex offenders? There are three sex offenders listed as residing or working on Nantucket, according to the Massachusetts Sex Offender Registry. This includes Level 3 offenders, considered the most likely to re-offend. The Herald was asked if town officials have a plan to monitor their actions.

Still, The Gender Equality on Beaches bylaw was passed “allowing the space for all bodies to be topless,” supporters say. So it is clear that this summer will be bottoms only on Nantucket.

Extension of drinks to-go, other pandemic-related provisions, likely to be renewed under state spending plan

March 26, 2023 by pkzadmin

Pending a signature from Gov. Maura Healey, Bay State residents are likely to continue being allowed to purchase espresso martinis and other to-go libations with takeout meals from their favorite restaurants.

State lawmakers have approved a spending plan that would extend drinks-to-go and other provisions that popped up during the pandemic, such as outdoor dining regulations and remote access to public meetings.

Selling cocktails, beer and wine with takeout and delivery orders proved to be a lifeline for restaurants, especially when they shuttered during the pandemic’s infancy, said Lesley Delaney Hawkins, former executive secretary of the Boston Licensing Board.

Restaurants are likely to keep that option for another year if and when Healey greenlights the $389 million supplemental budget request.

“The pandemic is on the back burner, but the impacts are still very real. You’re still seeing restaurants that didn’t reopen,” Delaney Hawkins told the Herald. “People aren’t necessarily comfortable sitting down and having dinner or lunch. This is another option that benefits the consumers and the restaurants.”

Addiction prevention specialists and package store leaders say they oppose to-go drinks because they believe the option has created another avenue for underage drinking. They argue there’s been an increase in minors consuming alcohol, placing the blame on the difficulty of enforcing third-party delivery networks, like Uber Eats and DoorDash.

Heidi Heilman, president of the Massachusetts Addiction Prevention Alliance, pointed to a small research study that Boston University conducted last year in which a majority of to-go drink recipients reported no one checked their IDs upon order delivery. Some of the 15 deliveries went to college dorms without ID verification.

“We are seeing illegal sales to minors increase through this particular measure,” Heilman told the Herald on Saturday. “We just don’t think the benefits to restaurants are going to outweigh the harms it creates by exacerbating our drinking problem in Massachusetts.”

A spokesman for the state Alcoholic Beverages Control Commission confirmed to the Herald there have been no violations of on-premise establishments — restaurants, bars and hotels — providing alcohol to underage consumers since to-go drinks emerged.

“With the pandemic, we want to find the silver lining,” said Delaney Hawkins, a partner who chairs the restaurant and hospitality industry for Prince Lobel Tye LLP. “Drinks to-go, I don’t see any downside. It’s just another tool for the restaurant industry to get back on its feet.”

Sixteen states and Washington D.C. have passed legislation making cocktails to-go permanent, while Massachusetts and 13 other states adopted temporary to-go legislation.

In a survey from the Massachusetts Restaurant Association, roughly 40% of adults stated if a restaurant includes to-go drinks with takeout, they’re more likely to choose it over an establishment that doesn’t.

“Cocktails to-go continues to be a revenue source for restaurants, and it’s not something that’s going to go away anytime soon because customers still rely on takeout and delivery,” MAR director of government affairs Steve Clark told the Herald.

Robert Mellion, executive director for the Massachusetts Package Store Association, believes drinks to-go shouldn’t have lasted more than a year. The emergency provision has allowed on-premise establishments to become off-premise retailers of alcohol, he said, adding it has led to unnecessary competition between package stores and restaurants.

“If this goes on for another year, we are going to be pushing hard for enforcement,” Mellion said Saturday. “We were told by the legislature last year that this was the last year of drinks to-go. … That’s the reason you’re seeing us run around with our hair on fire.”

Maura Healey

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