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" UMASS/AMHERST 312066 0382 2821 1 Joint Committee on Bonding, Capital Volume 3, Issue 1 Fall/Winter 2005 Expenditures and State Assets MASS 2006 PER HJ Committee Newsletter n M465 HIS ISSUE Annual Capital Hearings Messagefrom the 1 Xiie Joint Committee on Bonding, Capital housing, the capital improvement of the Chairmen aging public housing stock, and the Com- Expenditures and munity Development Action Grant pro- Annual Capital Hearings 1 State Assets con- gram(CDAG). ducted its annual Capital Hearings Chancellor Judith Gill and Director of ProfileofMembers 2 this past May, re- Fiscal Policy Kurt Steinberg discussed ceiving valuable the Board of Higher Education's main testimony from state concerns: asset preservation, capital needs officials on various subjects ofinterest to mem- and renewal applying the "fix it first" ap- Surplus Land Bill 3 bers. proach. Joint Rule IF requires that the committee Secretary of Environmental Affairs Ellen Committee Description 4 conduct annual hearings to review the bonds Roy Herzfelder (since replaced by and notes in theformofgeneral obligationdebt, Stephen Pritchard) discussed the reduced dedicated income tax debt and special obliga- spending on open space that is reflected in tion debt. Thecommittee alsoreviewstheCom- the significant reduction in the amount of monwealth's liabilities relative to state- land protected. When asked about condi- supported debt; state-guaranteed debt; and indi- tions on state parks, the Secretary re- rectobligations. sponded that there is still an $800 million Director Jane Gumble ofthe Department backlog of deferred maintenance needs. ofHousing and Community Development She also mentioned a major project, under said DHCD's priorities include the devel- the management of DCR, the repair and opment of privately-owned affordable renovationofthe Longfellow Bridge. Message from the Chairmen Sen. Mark Montigny and Rep. David L. Flynn "Happiness is notin tlie mere possession of David L. Flynn served as sible forreviewing and holding money; it lies in thejoyof Vice-Chair for the House public hearings on the status of Long-Term Debt com- the bonds and notes of the achievement, in the thrill mittee. Commonwealth. ofcreative effort. The committee's mis- The committee plays a vital Franklin D. Roosevelt sion isto reviewall legis- role in determining how much lation providing for the debt may be assumed by the giving, loaning or pledg- Commonwealth during the ing of the credit of the upcoming fiscal year by con- Commonwealth. The ductingthe annual capital hear- Special PointsofInterest committee also is respon- ings. Fromthe capital hearings, This fiscal year marks the sible for evaluating such legis- members gained valuable in- Springfield Convention committee's new status as the lation and determining the formation about current and Center joint committee on bonding, appropriateness of enacting future capital projects from MassachusettsSchool capital expenditures and state legislation containing in- variousstateagencies. BuildingAuthority assets. Prior to this change, the creased bond authorizations for The committee is looking House and Senate each had the Commonwealth. As part of forward to its new role in the separate committees on Long its new mission, the committee Legislature and is committed Term Debt and Capital Expen- now deals with bills concern- to its mission to secure a fis- ditures. Senator Mark Mon- ing the disposition of state cally sound future for our tigny was Chairman for the land. Commonwealth. Senate side and Representative The committee also is respon- ) P.»t;c 2 Volume 3, Issue 1 Member profiles: " Senator Brian A. Joyce. Vice Chair Representative Benjamin Swan. Vice-Chair Senator Brian A. Joyce isservinghisfifth term in Following an eclectic occupational experience in both the public and private sectors, which took him the Senate, representingthe Norfolk, Bristol and Plymouth district. tothefour-cornersofthe United States, in 1994 Ben SenatorJoyce has a well-deserved reputation Swan was elected State Representative in the 11'*^ forworkinghard on behalfofthe communities Hampden District (D-Springfield), an office which he he represents andthe people heserves. still holds. A 1984 graduate ofthe Boston CollegeSchool Prior to serving as vice-chair of the Committee of ofManagementand a Magna Cum Laude graduateofSuffolk Bonding, Expenditures and State Assets he served on the following UniversityLawSchool where hewas an editorofLaw Review, Committees: vice-chair of Steering, Policy and Scheduling; vice-chair SenatorJoyce is a practicingattorneywho hastaughtat both of Public Safety; Ways and Means; State Administrations; Taxation; the graduate and undergraduate levels. Thesenator isthe and Transportation. recipientof numerous awardsfor his leadership on senior Rep. Swan is proud to include among his legislative priorities such issues, public safety initiatives and education. He was also issues as youth development, economic development, housing, one ofonly38Americans selected for a prestigious 2002 health-care, senior-care, education, police-community relations and Marshall Fellowship. He and hiswife Mary havefive children corrections. between theages of8 and 17-years-old. Representative Susan Pope Senator Michael R. Knapik Representative Susan W. Pope is currently serving Michael R. Knapik (R-Westfield) iscurrently her fifth term as a State Representative for the 13'*^ stehrevSiengcohnisdsHixatmhptderemna&sHtahempSsthatiereSeDnisattroicrt.from •JajTi^^^H MpiedrdmlaenseenxtDicstormimcti.ttTeehse:ReBpornedsienngt,atiCvapeitsaitls oEnxpetnhrdeie- MemKbnaeprikofptrheeseSnetlnyatseerCvoemsmaisttteheeRoannWkianygs & ^^^^^/^^^^^M^ ture, and State Assets (where she is the Ranking Republican), Municipalities and Regional Govern- Means. Inthis position, Knapik is partofthe ment, and Ethics. Additionally, Representative Pope is active in sev- prestigious House-SenateConference Commit- eral subcommittees including the MetroWest Legislator's Caucus, tee charged with reconcilingtheAnnual State Budgetand the Woman's Legislative Caucus, and the Commission on the An- otherspending plans. In addition, Knapikalsoserveson the nual Municipal Census. Legislature'sJointCommitteeson Revenue, Bonding, Capital Expenditures &StateAssets, and Municipalities & Regional Representative Pope's priority issues include special edu- Government. Priorto hiselection tothe StateSenate, Knapik cation funding, affordable healthcare, senior tax relief, small busi- served in the House ofRepresentativesfrom 1991-1995. ness and ensuringgreater control atthe local level. Representative Pope is actively involved in efforts to stop domestic violence and Duringhistime inthe Legislature, Knapik has maintained create better resourcesforabuse victims. She has been a long-time priorities targetingtheenhancementoflocal aidto cities and supporter and initiator of environmental preservation efforts, like towns, public safety, education, economicdevelopment, and theCommunityPreservation Act. issues concerningthe elderly. {Continuedfrompage I five year capital plan anticipates state tively moving the second data project general obligation bond funding of forward overthe past year. Robert C. Maier, Director of the $593 million, or33%ofthetotal plan. Board of Library Commissioners, dis- President of the Massachusetts Tax- cussed the public library construction Chief Justice for Administration and payers Foundation, Michael Widmer, grant program, which assists munici- Management, Robert Mulligan, was concerned about deteriorating in- palities with projects to construct or stressed that renovation and construc- frastructure in the state. He stated that renovate public library facilities. The tion of the state's court buildings re- any increase in the bond cap should be Board expects to have the same cap of mains a priority. The John Adams tied to inflation and income growth but $16.3 million for the next several fiscal Courthouse recently opened and the that the state also would need to ac- years. construction of the Worcester court countforapossiblerecession. Jack Wilson, President of the Uni- facility commenced; the latter is the largest courthouse construction project versity of Massachu- The Committee has prepared a report yet undertaken inthestate. setts, stated the impor- summarizing the hearing proceedings tance of basic infra- Victoria Phillips, Chief Strategic and also otheractivities ofthe committee structure and new Officer, and Lou Angeloni, Chief Fi- during the past year. The report includes building capacity. The nancial Officer, testified on behalf of a list ofbills considered by the commit- university presented a the Information Technology Division. tee, as well as a summary of the Com- S600 million capital ITD will continue work on the new monwealth's fiscal outlook and capital request to the admini- MMARS and Virtual Gateway projects spendingobligafions. stration. The UMass in fiscal year 2006. ITD has been ac- • Committee Newsletter Page 3 Surplus Land Legislation Committee News & Updates H.4491,AllAct relativetothedevel- Numerous concerns about this bill arose opmentofunderusedstale from various individuals and parties. ownedrealpropertyandthe Among the objections was why a state pdaLilinamsuweepssfonf.rsdeeicCattClihhoaspaniprpntootcepfeeerrsrSt7te7aycth,oteafiswootownbhunee5lee4Gdnd8enbsoeaufrrc-akl atirahnelgessceoteneircdaivygdee.hbstoafM2toae7tfsh0aesfsidrhastoDtyosestrvweetthfloouyoswbapnMlumayeotrsnostsct,ibatDtuyee.wyvoTlseuahtllneadodtrepebmhluweaatanvnsteda •TtFphuilRernaeancCpneec.ordismnmwgiiS.FttathltelHespR,eeheepohn.hnaasTsHheKemaubolioeidtvkehoe,nrdCearrDtCee-o.- Chapter26 ofthe Acts of2004 town orcityonlygets 180days. Speliotis, D-Danvers. expired onJune30, 2005. • On Friday September 30, After taking these objections into con- 2005, Governor Mitt Romney, H.4491 changes several aspects ofprior sideration, a new draft of the bill was Mayor Charles V. Ryan, and legislation, including the establishment of produced. The bill now gives the Legisla- Massachusetts Convention a state surplus land coordinating commit- ture the power to determine what is done Center Authority Executive tee (SSLCC), consisting of 1 1 members. with surplus land. All land bills will be Director, James E. Rooney The SSLCCwould have final say in deter- brought before the joint committee on opened the MassMutual Cen- mining whether land is surplus. After the bonding, capital expenditures and state ter in the cityofSpringfield. Commissioner declares land to be surplus assets. In order to help local towns and The $71 million construction based upon the SSLCC's determination, cities, the bill gives host municipalities project improved the former he must notify host municipalities to en- the right of first refusal before Mass De- Springfield Civic Center. The sure localcommunitiesare informed. viselsoipmmuelntta,neeovuesn.tThhoeurgeh tihsearerveiqeuwirpeemreinodt fCeeentterofis nnoeww14b7u,i0l0di0ngsquaanrde There is a formal detailed process the that, ifany property formerly occupied by suupropnlusrecleainvdingcotmhmeitCtoememismsuisotneru'nsderregco- D15M%HoforthDeMhoRusiisngdedveevleolpoepdedfobrehfoourstihnegi,r v2a1t5e,d00s0pacseq.uarTehefreeetisofnorewnoa- 15,000 square foot ballroom, ommendation. H.4491 specifies the allo- formerclients. kitchen, 40,000 square foot cation ofall net cash proceeds realized by the Commonwealth from conveyance, The Senate also is developing its own exhibit hall, support spaces, lease, or other transfer ofreal property to version ofasurplus land bill. and meetingspaces. the agencyor from the sale ofsurplus real TheJointCommittee's prede- property. cessor, the Long Term Debt Committee, was instrumental in drafting Chapter 45 of the Acts of2001 and Chapter 152 Massachusetts School Building of the Acts of 1997, which provide special revenues for Authority Update the financial support for the MassMutual Center, as well as the Boston Convention and The MassachusettsSchool issued the remaining $500 Exhibition Center and other million at the end of Sep- Building Authority tember2005. the first phase ofa two-part facilities inthestate. (MSBA),chairedbyState pilot program using inde- TreasurerTimothyCahill, The MSBA issued $2.5 pendent local CPA firms to isan independentpublic billion ofits own dedicated perform audits of projects Some bills passed into law: authoritycreatedbyChap- sales tax bonds in July of funded by the School •Chapter 44 of the Acts of ter208 oftheActsof2004. 2005. This bond issue will Building Assistance Pro- 2005 provides for the exten- meet funding needs of be- gram. The MSBA plans to sion ofcapital accounts due to The state established the tween $1.5 billion to $2 complete audits ofall prior- lapse. It was signed by Gov. School Modernization and billion by next year. A ity wait list and contract MittRomneyon June 28. Reconstruction Trust Fund tptohreofgurpnardmo.gtrhIaneimtiMalScoBfnusAnidsitcenadgpitfaoolrf ppyaoeriatdriotno20ot0hf5e.thMeSsBTalhAeesitnaaxnfniwsucaaasll a1s8Isnimsootnratdnhceser.tporoejencstusrewtirtahnisn- •fC2oh0ra0p5ttheerproh5vo3iudseiosnfg$t1sht0ea0biAlcimtzisaltliiooonnf $150 million transferred portion ofthe sales tax paid parency and public confi fund and $100 for the afford- f2C0ro0om4mm,otnhawenedaGelnt$e1hralbilFlguieonnnderaoilnf tytoheeartFheutnhfdruonwudiglhlinrc2er0ce1eai1sv,eesawehafeuclnhl dpseereonkgcirenagimn,tthheethaseccthiovoMelSabBnudiAldpianrigs Jasubillgyene2hd8o.buysiGnogv.trMuistttfRunodm.nIetywaosn onecentofthe salestax and obligation bonds, of which ticipation of local commu each yearthereafter. $500 million were issued in nities in the auditprocess. March 2005. The Treasurer The MSBA has completed pint Committee on Bonding, Capital Expenditures and State Assets StateHouse,Room466 Boston,MA02133 Phone:617-722-2017 Fax:617-722-2813 Email: [email protected] [email protected] or current resident Members of the Committee, 2005-2006 MissionoftheCommittee: Thejointcommittee on Bonding, CapitalExpendituresand SenatorMari<C. Montigny(D-Second Bristol and Plymouth), Chair StateAssetsshallreviewalllegislation providingforthegiv- Representative David L. Flynn (D- Bridgewater),Chair ing, loaningorpledgingofthecreditofthe Commonwealth a(smeeenAdrteidclebyLXAIrItiocflethLeXXAXmIVe)n.dSmaeindtcsomtmoitthteeCeonsshtailtlubtieonr,esapson- Senator Brian A. Joyce(D-Norfolk, Bristol and Plymouth), Vice- Chair sible forevaluatingsuch legislationanddeterminingthe appropriateness ofenactinglegislation containingincreased Representative Benjamin Swan (D-Springfield), Vice Chair bondauthorization forthe Commonwealth. Thecommittee shallperiodicallyreviewandholdopen publichearings, ac- Senator Cynthia StoneCreem (D-FirstMiddlesexand Norfolk) ceptingoralandwritten testimonyon thestatus ofthe bonds andnotes ofthe Commonwealth, including1.generalobliga- Senator RichardT. Moore (D-Worcesterand Norfolk) tion debt;2. dedicatedincome tax debt;and3. specialobli- Senator DianneWilkerson (D-Second Suffolk) gation debt. SenatorMichael R. Knapik (R- Hampden and Hampshire) Representative Paul C. Casey(D-Winchester) Representative William C. Galvin (D-Canton) RepresentativeTheodore C. Speliotis (D-Danvers) RepresentativeWilliam M. Straus (D-Mattapoisett) "Moneyoften costs too much. Representative Kathi-Anne Reinstein (D- Revere) Ralph Waldo Emerson Representative GarrettJ. Bradley(D- Hingham) RepresentativeStephen R. Canessa (D- Lakeville) Representative Susan W. Pope (R-Wayland) Representative Karyn E. Polito(R-Shrewsbury) Committeeandnewsletterstaff: Atty.Jay Newsome, DirectorofFinancial and Legal Affairs Priya Hegde, Financial Analyst Karen Ceurvels, Receptionist