More Talk of Adding New Local Taxes

Addressing multiple crises engulfing Massachusetts on top of slowing revenue collections, House Speaker Ron Mariano on Thursday voiced an openness to considering a local-option real estate transfer tax to boost the affordable housing supply -- similar to concepts earlier proposed by Governor Healey -- and previewed legislation that would strengthen monitoring of the struggling health care sector.

Mariano, speaking to business leaders Thursday at a breakfast in the Seaport, said his branch's housing bond bill would build upon Gov. Maura Healey's $4.1 billion proposal by expanding the Massachusetts Water Resources Authority service area "to provide clean water to future housing developments."

Bringing up the transfer tax, the Quincy Democrat said softening state tax collections "are a reminder of why it’s important to keep all options on the table when it comes to generating alternative forms of revenue."

"Now, I understand that the idea of a transfer fee is a cause for concern for some of you, but if you believe that the issue of housing affordability is a genuine crisis, then we must explore all options that have the potential to make a real difference," Mariano said during the Greater Boston Chamber of Commerce forum. "I look forward to having continued conversations with members, and with the business community, on how we can bolster the development of more affordable housing, while ensuring that Massachusetts remains competitive."

Mariano, speaking to reporters later Thursday morning, said he's not sure whether he has the votes in the House to adopt a local-option real estate transfer tax.

Asked whether he supports the tax, Mariano said his stance depends on the structure, and expressed concerns around Healey's proposal that would allow municipalities to impose a fee of 0.5 to 2 percent on the portion of a property sale above $1 million.

"You want it to be workable. You don't want it to be an inhibitor to construction," Mariano said at the Renaissance Boston Waterfront Hotel. "When I read the governor's, I thought, my initial reaction was that this might be high."

"I will talk to members to see where the support is. I don't know if I have the votes," Mariano said when asked about the fee.

Mariano said the House is "considering a number of options" to help municipalities finance affordable housing development, staunch the exodus of young residents out of Massachusetts, and enable businesses to recruit talent here. The House is seeking input from stakeholders on "what's the most efficient way to provide housing for employees to stay in Massachusetts."

The House's bond bill will exceed Healey's pitch, Mariano told reporters.

"I'm going to go big," said Mariano, who did not provide a specific figure.

The Quincy Democrat talked about housing development in his district, at the former naval air station in South Weymouth, that he's been working on for nearly three decades. The main obstacle is a lack of water supply, Mariano said.

Expanding MWRA service to Weymouth could help create at least 6,000 homes there, he said.

Mariano recalled his initial election to the House in the early 1990s during a previous MWRA expansion, and how constituents threw steep water bills into Quincy Bay as an act of protest. He said his constituents back then were paying for the creation of infrastructure including septic tanks, purification tanks, pipelines and sewer lines. The system now has more capacity than officials had anticipated, and Mariano said excess water is being wasted and dumped into the ground.

"We need to expand the ability to deliver infrastructure to these developments," Mariano said, as he invoked similar obstacles in Brockton. "And I'm serious that we have people who want to build 6,000 homes in Weymouth and they just need a water source. And if we can use this bonding bill to get that done, you'll see some impact on the South Shore."

Mariano did not offer details on the scope of the MWRA service expansion, and any associated costs.

As he started his speech, Mariano discussed the state's slumping revenue picture.

"Things are different than they were the last time I was here," he said. " Last time I was here, we had money. I could be a hero."

Mariano said the House's annual budget, marked for release in April, would provide a "significant increase" in funding to the MBTA, fully fund another year of the Student Opportunity Act, and continue to fund free school meals. Mariano said the House would provide a "little bit more" to the MBTA than what Healey recommended, though he did not disclose a specific figure.

He expressed support for reauthorizing the life sciences initiative but did not indicate whether the House would match Healey's request for a 10-year, $1 billion investment. As with other matters, he didn't lay out any specific timetable for House action.

Mariano appealed to business leaders to partner with the state and hire the influx of migrants who have inundated the state's emergency assistance family shelter system. Mariano noted the House recently passed legislation imposing time limits on shelter stays and establishing a tax credit for businesses that offer training to individuals housed in the shelter system.

"It's our hope that businesses in Massachusetts, including members of this chamber, will share in the responsibility of training, and eventually hiring, folks who are currently relying on the shelter system," Mariano said. "We've heard strongly from many businesses in Massachusetts on the problems with getting employees. We have a willing workforce walking across the border to get to this country. We need to take advantage of that."

Invoking the Steward Health Care financial crisis that could result in hospital closures or sales, Mariano mentioned legislation the House will pursue to "guard against transactions in the industry that drive up costs without improving patient outcomes."

"We need better data to alert regulators to a problem before it becomes a crisis, and to arm policymakers with the most reliable data analysis on which to make policy decisions," Mariano said. "We must establish a robust regional and state inventory of our health care resources to better evaluate the market impact and need for new projects, as well as the impact of cutting services -- planned, or in the case of Steward, unplanned. A comprehensive inventory and planning process is especially important in light of the ongoing Steward situation."

Mariano said issues plaguing Steward "might have been avoided if Steward hadn't spent years hiding their financial information from state regulators."

"We must harness the lessons that we have learned and ensure that we are better prepared in the future to respond to disruptions in the health care landscape," he said.

Mariano has repeatedly spoken about his distrust of Steward CEO Ralph de la Torre, stemming from the company closing Quincy Medical Center in 2014 due to multi-million-dollar losses.

Asked whether he's spoken to de la Torre recently, Mariano said, "Not since he pissed through my hospital."