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Greater Boston Chamber Public Policy News
December 2009
 
The Chamber's 2009 legislative agenda is focused on four goals: strengthening Greater Boston's workforce, making the region's business climate more competitive, strengthening critical industries, and fixing Greater Boston's infrastructure.  The Chamber is working with member companies, government leaders, and other business groups to advance those issues, as outlined below. 

POLICY
In This Issue
Education Reform | Unemployment Insurance | 2009 Accomplishments Recap
 
Education Reform: Chamber and coalition partners working for January bill  
The Chamber continues to work with state government leaders and other members of the Race to the Top Coalition for passage of a state education reform bill by mid-January. States must apply to the federal government for phase one of ?Race to the Top? funds by January 19. The State Senate passed a bill in November, and the House is expected to debate legislation at the beginning of January.

In a December 15 letter to House members, the Chamber urged adoption of three key measures: (1) Increasing the Charter School cap to 18% ? to meet the demand for charter school spaces, currently far in excess of supply; (2) Providing tools to turn around underperforming schools ? to enable superintendents and the state education commissioner to make drastic changes in the lowest performing districts; and (3) Establishment of Horace Mann Charter Schools ? to enable local school districts to create Horace Mann Schools without having to obtain union sign-off. These three steps will greatly expand options for parents and students, and strengthen public schools throughout Massachusetts.

Unemployment Insurance: Chamber lobbying for rate relief and reform legislation
The economic downturn has led to a dramatic increase in the state?s unemployment rate, and a subsequent depletion of the trust funds that pay unemployment insurance (UI) benefits and Medical Security Trust Fund (MST) benefits (health care for unemployed residents). As a result, current law will impose a 42% increase in UI tax rates for Massachusetts employers in Q1 of 2010 unless special legislation is passed. Such an increase would add an average $250 in UI costs per worker on top of premiums that are already among the highest in the nation.

On the UI issue, the Chamber and its partner business organizations (Associated Industries of Massachusetts, Massachusetts Business Roundtable, Massachusetts Taxpayers Foundation) have been working with state government leaders for legislation that would 1) avert an increase in UI rates from the current schedule E up to schedule G, in favor of a more modest increase to schedule F, and 2) reform the UI system?s experience rating and workforce attachment provisions. This legislation could save employers more than $200 million compared to current law, and help to mitigate an obstacle to new hiring. In addition, targeted reforms could help ensure a more equitable UI system, while contributing to the long-term solvency of the trust fund.

On the MST issue, at the end of November the Patrick Administration adopted three measures to close the Fund?s shortfall: a one-year doubling of the $16.80/worker/year fee paid by employers (total cost ($60 million), a reduction of some MST benefits, and a transfer of $30 million from the state?s operating budget into the Fund. If the Legislature passes a bill to set UI rates at Schedule F next year, it will more than compensate for the MST fee increase. In addition, the Chamber and other business groups have urged the administration to merge the MST into Commonwealth Care, which serves a similar population.

2009 Accomplishments Recap
On November 18, the state legislature held its final formal session for 2009. The second half of the 2009/2010 legislative session will resume in early January, with all of the 2009 bills still under consideration.

At this half way point, click here to review highlights of the Chamber?s 2009 accomplishments, both in the Legislature and in other areas.


For more information on the Chamber's policy agenda, contact Jim Klocke, executive vice president, Tim Sweeney, director of public policy, or Sarah Lanning, assistant director of economic development.

 

 

JOBS
November Jobs Update: State unemployment rate drops to 8.8%
Each month, the Chamber releases a monthly jobs update to administration officials, legislators, key policy-makers, and Chamber members, informing them of the state's latest job numbers, emerging trends in job creation, and the state's current employment numbers in relation to the state's 2002 peak.

Headlines from the November 2009 Massachusetts Jobs Update include:

  • Massachusetts lost 1,700 jobs last month; posted a 2.5% job loss in the last 12 months, moderately better than the US annual job loss rate of 3.5%
  • The state unemployment rate dropped to 8.8%, second consecutive month of decline and substantially lower than the US rate of 10.0%
  • Seven of the 12 regions added jobs last month; all 12 regions shed jobs year-over-year
  • Education, Health Services, and Professional & Business Services led job gains last month
INSIDE THE CHAMBER
On December 2, Representative Brian Dempsey, House Chair of the Joint Committee on Economic Development and Emerging Technologies, addressed the Chamber?s Government Affairs Committee. He discussed a range of issues including gaming, economic development, competitiveness issues, and job creation.

CHAMBER POLICY STAFF

Jim Klocke, executive vice president

Tim Sweeney, director of public policy

Sarah Lanning, assistant director of economic development

 

 
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