Gobi Aims to Establishes Higher Education Affordability Task Force in Budget Debate

BOSTON (May 26, 2021) - The Massachusetts State Senate moved Tuesday to adopt an amendment submitted by Senator Anne Gobi (D-Spencer) to the FY22 state budget establishing a task force aimed at evaluating the affordability of public and private education options in the commonwealth. This task force will study the impact that affordability has on the financial health and longevity of higher education institutions, including the future role that small private colleges will play in the state, and how this impacts the workforce pipeline.

Gobi, Senate Chair of the Joint Committee on Education, had this to say on the amendment's passage, "It is impossible to ignore the nation-wide trend of declining undergraduate enrollment that has affected Massachusetts and its institutions. In an effort to shore up our vital higher education institutions this task force will evaluate the current situation facing higher ed institutions and make recommendations to move them forward on a path towards long-term sustainability to ensure the needs of our students are met and we are able to produce the workforce and education levels expected of our state."

The task force, consisting of representatives from the Department of Education, Department of Labor, the joint committee on higher education, appointees of the governor, and student representatives from each type of higher education present in the state among others, will evaluate the impact of college affordability on the financial health and longevity of higher education institutions, including the future role of small private colleges in the state. These schools have suffered enrollment declines at even higher rates, at 4% compared to 3% at public institutions, and the number of total high school graduates is predicted to continue to decrease in the upcoming years. In addition to that, the task force will examine affordability's impact on the workforce pipeline, including how it affects the state's ability to attract students to schools in the state and retain them here after graduation.

For more information on the amendment or budget process, please contact Senator Gobi's office by email at Anne.Gobi@MASenate.gov.

Massachusetts Senate Gives Final Approval to Holyoke Soldiers' Home Bond Bill

Legislation includes additional bond authorization for community- and home-based care services

BOSTON (05/21/2021) - The Massachusetts State Senate on Thursday unanimously gave final legislative approval to a bill authorizing $400 million in bonds for the design and construction of a new soldiers' home facility in Holyoke. The bill, which passed the Massachusetts House of Representatives earlier in the week and now moves to the Governor for consideration, also authorizes the issuance of $200 million in bonds to increase geographic equity and accessibility related to the continuum of long-term care services for veterans across the state.

"As we pass this critical measure, my thoughts today are with the families and loved ones of the veterans who died at the Soldiers' Home in Holyoke as a result of COVID-19," stated Senate President Karen E. Spilka (D-Ashland). "The Senate will always lead in its efforts to support the brave men and women who have served. Veterans of all generations deserve a facility that meets their growing physical and mental health needs, and this legislation provides a blueprint for those efforts. More reforms are needed to help increase access to care in our communities for our veterans and I am committed to making that happen. I want to thank the Senate and House conferees, House Speaker Mariano and my legislative colleagues for their hard work and swift action in seeing this important measure through."

"I would like to thank President Spilka and Speaker Mariano for your leadership and congratulate my colleagues on the conference committee, for their hard work and dedication on this important issue," said Senator Anne Gobi (D-Spencer), a member of the legislative Special Commission studying the COVID-19 Outbreak that took place at the Holyoke Soldiers Home and a former vice Chair of the Joint Committee on Public Service. "I am pleased that we have authorized this bond bill to construct a new facility befitting the veterans we are hoping to serve, ensuring the highest quality care for them in the future."

The existing soldiers' home in Holyoke was built in 1952 with many triple- and quadruple-bed rooms. Those capacity and facility issues became clear last year as the highly contagious COVID-19 virus spread throughout the home leaving more than 70 veterans dead.

The bill passed by the Legislature will advance the construction of a modern facility with a "small house" concept to meet the needs of future generations of veterans. To further meet the needs of veterans in all corners of the Commonwealth, with an emphasis on those areas not primarily served by the soldiers' homes in Chelsea or Holyoke, the $200 million in bonds authorizes the establishment of regional or satellite veterans' homes as well as new or expanded supports for community-based care services and home-based care services. This $200 million for geographic equity was added to the bill by the Senate after passage by the House and maintained by the conference committee.

In passing the $400 million bond authorization for a new soldiers' home in Holyoke, Massachusetts is eligible to receive up to 65 per cent in federal reimbursement through the Veterans Affairs State Home Construction Grant Program.

The legislation ensures that construction of the project utilizes a diverse workforce and provides for well-paying, middle class jobs. The bill includes Project Labor Agreement language that mandates a pre-bid, pre-hire labor agreement for the construction of the new facility in Holyoke, which will ensure that the workforce is local, diverse, inclusive, well-trained, safe and skilled. Historically, such agreements on large taxpayer funded projects result in the completion of construction on-time and on or under budget.

Mandating bold action to establish, recruit, and assist women, minority, and veteran owned businesses who may participate in the design and construction of the facility, the bill establishes the Access, Inclusion and Diversity Committee to help set and monitor progress of diversity and inclusion goals and recommend solutions and programs to meet them, throughout the design and construction of the facility. This provision builds on the Senate's commitment to address systemic racial inequities in all areas of the economy.

The legislation now goes to the Governor's desk for approval.

Audit Shows Questionable Use of State Funds at Berkshire County Arc, Inc.

Report identifies over $777,000 in unallowable expenses

Boston, MA (May 25, 2021) - An audit released today by the Office of State Auditor Suzanne M. Bump shows questionable use of state funding at the Berkshire County Arc, Inc. (BCArc), a nonprofit organization located in Pittsfield, MA, that serves children and adults with intellectual and developmental disabilities, and individuals who need assistance with daily living. The audit identified $777,844 in improper spending by the human service provider, including expenses made on 48 credit cards that were unallowable under state regulations. The audit, which examined the period of July 1, 2017 through June 30, 2019, notes that some of the inappropriate spending came at the direction of those in management positions at the organization.

"The questionable practices and the amounts involved in this apparent misuse of state funding is made worse by the fact that these dollars should have been supporting the agency's disabled clients," Bump said of the audit. "Our audit makes clear that those in leadership fell short of meeting their oversight and fiduciary responsibilities. Decisive action is needed to remedy this situation and build trust in this critical Berkshires institution upon which so many families and individuals rely."

The audit found BCArc charged $651,540 in unallowable expenses against its state contracts for maintenance expenses, bookkeeping, and capital improvements made to buildings owned by an affiliated organization called Berkshire Omega. Berkshire Omega operates exclusively for the benefit of BCArc, and its board of directors has five members who were appointed by BCArc's board. Under state regulations, this type of spending is unallowable because the costs are non-program related and do not directly benefit the nonprofit's clients.

Additionally, BCArc employees used organization credit cards to pay for $124,247 in expenses that were non-reimbursable under its state contracts because they were either not related to the nonprofit's programs, were specifically prohibited by state regulations, or were inadequately documented. The audit found BCArc's president and CEO used credit card reward travel miles earned by BCArc for his personal use which is inconsistent with state regulations and the organization's own policy. Auditors also determined, the president and CEO's spouse, who was working as a consultant to BCArc, used or benefited from the organization's credit cards for $2,057 in trips, meals and gifts for a BCArc conference. Further, the audit notes, BCArc charged its client funds accounts $43,192 in credit card purchases for which it did not have the required documentation.

To address these issues, the audit recommends BCArc's board and those in management establish monitoring procedures to hold employees accountable for spending and a system of oversight for credit card use to ensure spending is appropriate and documented. In its response, BCArc stated that its board of directors has made some revisions to the credit card use policy. The audit also recommends the organization end the practice of using state funds to pay for Berkshire Omega's capital improvements and to work with the state on all unallowable costs that should be repaid.

In fiscal year 2019, BCArc received over $25 million in funding from state agencies including the Department of Developmental Services, the Rehabilitation Commission, and the Commission for the Blind. BCArc was incorporated on February 2, 1959 as a nonprofit human service agency. The organization provides residential and support services to individuals with developmental disabilities, brain injuries, and autism, as well as individuals who need assistance with activities of daily living at home.

The full audit report is available here.