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Mass Budget: Why Federal Stimulus Money *Strengthens* the Case for the Fair Share Amendment

Two weeks ago, the Boston Globe published an article casting doubt on the necessity of the Fair Share Amendment: “Massachusetts has nearly $5 billion in unspent federal stimulus dollars to spread to its residents. At least another $8 billion in aid is coming from the US government to help repair roads, bolster public transit, and shore up the state against climate change. The state’s tax receipts are again running well ahead of expectations.” If we have so much money, the Globe article implies, why would we need a ballot initiative to raise taxes on income over $1 million to fund additional investments in education and transportation?

But such framing is short-sighted, and a new report from Mass Budget explains why: short-term federal money is no substitute for long-term investment. In the report’s own words: “One-time federal funds during the pandemic have been crucial in providing immediate relief and helping recover from COVID, but are insufficient to meet the long-terms needs or close the kinds of gaps in access to transportation and education that the Fair Share Amendment (FSA) seeks to address.”

Let’s break down the key parts of this argument:

(1) Federal funds are inadequate to meet the scale of our transportation needs: “Around the state, 1 out of 11 bridges are considered structurally deficient and public transit systems large and small will see big dropoffs in revenue when the short-term federal relief funding runs out. Regional Transit Authorities, such as the Worcester Regional Transit Authority, have been able to use federal funds to improve service and eliminate fares, which particularly helps low-income riders and people of color. But they lack a way to continue these improvements in a few years when federal pandemic funds are depleted.”

(2) We need both the early investments to start new major transportation initiatives and the continuing investments in their long-term operation: “Ramping up major new infrastructure systems and commitments to more frequent and accessible service on existing systems without a backstop of permanent increases in transportation revenues would set up a funding cliff after federal funds run out. Lawmakers on Beacon Hill are understandably hesitant to invest in new commitments that they won’t be able to sustain.”

(3) Pledging our own investments in transportation will enable Massachusetts to better leverage federal money: “Like with the current Green Line extension that was financed through competitive grants in the 2009 federal stimulus package, states must offer partial state matching funds from state revenues. Winning federal grants will also be easier if the Commonwealth demonstrates a commitment to innovation, repair, increasing transit ridership, and improving the transportation networks that would connect to new federally-supported projects.”

(4) Our investments in pre-K and early education lag behind what’s needed for a strong recovery: “In our research earlier this year MassBudget found the cost of a full, universal, high quality and affordable system for early education and care in Massachusetts was projected at $5 billion above the amount of existing funding at that time….Proposed new federal funding in the “Build Back Better” plan will also likely come with state match requirements, making ongoing state revenue from FSA even more important.”

(5) We need a reliable funding source to deliver on the promises of the Student Opportunity Act: “The SOA creates growing commitments to continue to fund state Chapter 70 support for school districts at this higher level permanently….Back in 2019, the complete figure for increasing Chapter 70 funds under the SOA was estimated at $1.5 billion after 7 years.”

(6) We need a vision for world-class, affordable public higher education, not just temporary band-aids: “Current federal relief funding addresses COVID-era harms such as decreased enrollment, disruption to other funding streams like housing and dining that depend on in-person life on campuses, and some staff layoffs. With additional ongoing revenue from FSA, Massachusetts could start heading towards where we want to go: world-class campuses at UMass/state universities/community colleges, well-supported staff and faculty, and affordable opportunities for students to learn without taking on massive debt.”

If you haven’t yet signed a pledge to be a Fair Share voter next year, do so right now at raiseupma.us/pm!

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