Feud between Massachusetts auditor, Healey admin over ‘unfunded’ MBTA zoning mandate intensifies

State Auditor Diana DiZoglio finds herself in yet another battle with the Healey administration, alleging the governor and attorney general have “politically weaponized” her office over a finding that the MBTA zoning law is an “unfunded mandate.”

DiZoglio wrote an “open letter” to Gov. Maura Healey and AG Andrea Cambell on Tuesday, addressing the “perpetuation of some significant misunderstandings” stemming from her office’s recent determination of the controversial MBTA Communities Act.

The Auditor’s Division of Local Mandates found late last month that the 2021 zoning law is an unfunded mandate as it “does not provide a funding mechanism for compliance with its provisions” and that the Legislature failed to provide an appropriation when approving it.

The determination initially led to a squabble with Campbell who said last Monday that the unfunded mandate claim is wrong and has no effect on the law being implemented.

Healey has echoed the AG’s response, saying it is “unfortunate that some communities are choosing to use the … advisory opinion to try to stall its implementation.”

DiZoglio reacted to Campbell’s criticism last week, explaining that her office’s unfunded mandate determination doesn’t change the state Supreme Judicial Court’s January ruling that the MBTA Communities Act is constitutional and enforceable.

The SJC’s ruling came in the AG’s legal win against Milton, the first town to vote against compliance with the mandate that requires 177 municipalities across Greater Boston to have at least one zoning district where multifamily housing is permitted as of right.

Towns and cities can now seek a Superior Court order exempting them from compliance until the state provides funding, the auditor has said.

DiZoglio doubled down on her concerns in a letter she posted on her X social media account Tuesday, highlighting how her office has “made no statement, even remotely, suggesting that the law is not the law.”

“It has simply stated that the funding mechanism needs work – work which is well within the reach of this administration … and the legislature to conduct,” DiZoglio wrote. “But for that work to get done, we need to communicate rather than rush to judgment.”

The auditor explained her office “cannot conduct” a fiscal analysis for cities and towns that request such a study. The state Executive Office of Housing and Livable Communities must first file a “fiscal effect” estimate and small business impact statement.

Those two documents, DiZoglio said, are needed based on the SJC’s ruling and for the Division of Local Mandates to “determine if the mandate is funded by appropriation.”

“Attempts to scapegoat my office,” DiZoglio wrote, “by the Attorney General and others, for issues that have arisen due to the inadequate vetting of well-intentioned legislation and EOHLC’s failure to file the required fiscal impact statements … are grossly out of line and incredibly disingenuous.”

An AG spokesperson told the Herald that the auditor knows Campbell’s position on whether the MBTA Communities Law is an unfunded mandate as the two offices have met to “share our opinion on the law.”

The AG’s office said it found out about a letter DiZoglio’s office sent to several cities and towns with the unfunded mandate determination “through the public” and the auditor allegedly never gave notice of the letter before it went public.

“Picking fights with public officials might grab attention, but that’s not my approach,” Campbell said in a statement shared with the Herald. “Though I won’t engage in distractions, I will correct mischaracterizations of the law – especially when they could lead to noncompliance.

“This office doesn’t use the law to act on grudges or scapegoats,” the AG added. “We use the law to improve people’s lives by protecting our economy and residents, putting money into their pockets, and promoting public health and safety, and we welcome partnership from the Auditor in that work.”

Spokespeople for the governor and state housing office did not immediately respond to a Herald request for comment on Tuesday.

The town of Middleboro sued the Healey administration last week challenging a “great abuse of power” with the state withholding previously committed grant funding in a fight over the MBTA zoning plan.

In a lawsuit filed in Plymouth Superior Court last Friday, officials highlighted how they believe the state “incorrectly declared” the Plymouth County town “non-compliant” with the law, arguing that they’ve gone above and beyond in their effort to create affordable housing.

DiZoglio has been battling Campbell for months after voters overwhelmingly approved an audit of the Legislature last November. Lawmakers and the AG have been resistant to the effort, stalling it from advancing.

The auditor finished her letter to Healey and Campbell Tuesday, saying: “As someone who has been very public about my own experience with childhood housing insecurity, currently lives in an MBTA community, and has (approved) these initiatives as a member of the Legislature, I find it hugely disappointing that any colleague of mine would politically weaponize my office’s fulfillment of its legally required duties.”

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