April 2009 In this Issue: Chamber Releases First Competitiveness Scorecard Workforce Development: Chamber-Federal Reserve Bank of Boston Hold Internship Workshop Transportation: Reform Bills Advance in Senate and House, Chamber Working for Both Significant Reform and New Revenue Corporate Tax Policy: Chamber Continues to Advocate for Pro-Competitive Approach Inside the Chamber Upcoming Government Affairs Forum Greater Boston Chamber Policy News State and local governments are developing their budgets for the 2010 fiscal year, which begins July 1. The economic slowdown makes that task more difficult, but it does not reduce the need to make Greater Boston and Massachusetts more competitive. The more that can be done to strengthen the business climate, the faster the region will return to economic growth. The Chamber is working towards that goal on a number of fronts: Competitiveness: Chamber releases first Competitiveness Scorecard Last week, the Chamber launched a new policy initiative – the Competitiveness Scorecard, a barometer of cost and competitiveness issues facing Massachusetts’ businesses in the current economy. The Competitiveness Scorecard will be published throughout the year and will measure Massachusetts’ competitiveness on a key issue compared to all 50 states. It will also be a vehicle through which the Chamber will introduce a specific policy proposal designed to enhance the state’s competitive position. Future editions of the Scorecard will focus on business costs, workforce development, and innovation issues. The first Competitiveness Scorecard is focused on the state’s Rainy Day Fund. It includes significant policy proposals that will help strengthen the Commonwealth’s competitiveness, particularly in future recessions. To read the full Competitiveness Scorecard click here. The Massachusetts Rainy Day Fund, measured at 7.2 percent of the total FY 2008 budget, ranked 13th in the nation before this recession hit the state. History shows that that is not enough to protect the Commonwealth against future recessions. The Chamber proposal on the Rainy Day Fund includes: Dedicating capital gains revenues to the Rainy Day Fund by capping the amount of capital gains revenue that is directed to the budget at $300 million per year. This general fund allocation could be phased in, starting at $500 million in the first year and decreasing to $300 million over a four year period. Depositing all additional capital gains revenue into the Rainy Day Fund each year until a target of 15% of budgeted revenues is reached. Directing additional capital gains revenues back to the general fund, once the fund has reached its 15% target. Chamber president & CEO Paul Guzzi also outlined the proposal in an op-ed in the Boston Herald on Monday, April 12. Click here to read the op-ed. Look for the next Competitiveness Scorecard early this summer. Workforce Development: Chamber-Federal Reserve Bank of Boston Hold Internship Workshop The Chamber-Federal Reserve Bank of Boston workforce development partnership continues to move forward, with an emphasis on promoting internships. As recent Chamber and Reserve Bank studies have shown, Greater Boston needs to expand its supply of college-educated workers. High-value, work-based internships can be an excellent vehicle for achieving this goal. On April 16, 2009, the Chamber and the Federal Reserve Bank of Boston hosted “Developing Win-Win Internships: A Best Practices Workshop,” at the Fed. This half-day workshop provided an opportunity for business leaders, colleges, and universities to connect with each other and learn about best practices for internship programs. Workshop participants attended breakout sessions on strengthening the employer/university relationship, compensation and legal considerations related to internships, effective recruiting techniques and mentoring of interns, and understanding and communicating with the millennial student - a session focused on Gen-Y’s view of the world and the workplace. The Chamber, the Reserve Bank, and interested members will continue to work together in the months ahead to advance internships. Transportation: Reform Bills Advance in Senate and House, Chamber Working for Both Significant Reform and New Revenue The transportation reform and revenue issues are advancing. They have been moved to center stage by several recent events, including pending toll increases on the eastern Turnpike and harbor crossings, legislation proposed by Governor Patrick which includes both reforms and new revenues, and a comprehensive reform/revenue proposal issued by the Chamber and four other major business groups (the Massachusetts Taxpayers Foundation, the Massachusetts Business Roundtable, A Better City, and NAIOP Massachusetts). The business groups’ proposal and the Governor’s bill each contain major reforms and an increase in the gasoline tax. The Legislature has decided to address the reform and revenue issues in separate bills, and to start with reform. At the end of March, the Massachusetts State Senate released its version of a transportation reform plan designed to streamline the state’s transportation bureaucracy. The Senate bill advances some of the reforms included in the proposal released by the Chamber and other business groups last month. In April, the House of Representatives passed a reform bill a reform bill which also advances selected reforms. Both bills focus only on reform; both chambers have pledged to pass a revenue bill in the weeks following enactment of a reform bill. The Chamber and our business group partners will continue to advocate for large-scale reforms, while also working to address the critical issue of funding. Corporate Tax Policy: Chamber Continues to Advocate for Pro-Competitive Approach The Chamber continues to work on the combined reporting system established in last year’s corporate tax legislation. Pursuant to member feedback, the Chamber testified before a March 31st Department of Revenue (DOR) hearing on regulations proposed to implement combined reporting. They contain provisions which could substantially harm Massachusetts’ competitive position, including: Intercompany Transactions with Foreign Affiliates: A key provision in the proposed regulation contradicts the 2008 Massachusetts corporate tax law, as well as a corporate tax law enacted several years earlier, by essentially disallowing certain deductions for companies subject to a "foreign income inclusion" provision. It would prevent many companies operating in Massachusetts from qualifying for existing addback exceptions on intercompany transactions with foreign affiliates. The Chamber urged DOR to include the addback exception in the final regulations. Affiliated Group Election: Section 10(h) of the proposed regulation would allow DOR to unilaterally undo a group election. This type of broad discretion would undermine the 2008 law’s 10-year affiliated group election lock, a provision carefully negotiated last year. It would hinder efforts to bring stability, transparency, and simplification to the tax code. The Chamber urged DOR to remove from the final regulation section 10(h) Affiliated Group Election - Disregard effect in certain instances. DOR is expected to promulgate a final regulation in the coming days. 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. Inside the Chamber On March 19, Department of Revenue Commissioner Navjeet Bal addressed the Chamber's Financial Services Committee. She discussed corporate tax policy, including combined reporting regulations under consideration by DOR. On March 23, State Representative Charles Murphy, chairman of the House Committee on Ways & Means, addressed the Chamber's Government Affairs Committee. He discussed the House budget process and the state's financial challenges. On March 31, Speaker of the House Robert DeLeo made his first address to the Chamber's Government Affairs Forum. His address focused on his plans for ethics and pension reform, the state's budgetary crisis, and his leadership style. Find coverage of the speech here, photos here, or listen here. On April 1, Massachusetts Health & Human Services Secretary Dr. JudyAnn Bigby addressed the Chamber's Women's Network. She discussed some of the administration's achievements in implementing health care reform, and took questions from the audience on a broad range of health care issues. Find photos from the event here. On April 7, Jim Segel, special counsel to House Financial Services Chairman Barney Frank, addressed the Chamber's Financial Services Committee. He addressed the financial regulatory reform efforts underway in the U.S. House of Representatives. On April 8, Jeffrey Simon, Massachusetts director of infrastructure investment, addressed the Chamber's Development Committee. He discussed the incoming Federal economic stimulus money and the administration's plans for the funds. On April 15, Senate President Therese Murray addressed the Chamber's Government Affairs Forum. She discussed the use of Federal economic stimulus money, and answered questions on transportation reform and gaming legislation. Find coverage and photos here. Upcoming Chamber Policy and Government Affairs Events Special Chamber Forum - Clean Tech: Fueling Innovation and Growth in Massachusetts The clean technology industry is a driver of innovation and job creation here in Massachusetts, even during this time of economic downturn. Governor Deval Patrick and President Barack Obama have both made ‘green jobs’ an economic priority and the Commonwealth seems particularly well positioned to benefit. Already, clean energy firms in Massachusetts account for more than 14,000 jobs – with an annual job growth rate of 20 percent. The region’s colleges and universities are increasing their research in renewable energy, and the state could see an infusion of federal stimulus money for wind power and efficiencies. This unique clean technology panel with focus on the future of this industry in Massachusetts and offer Chamber members the opportunity to hear directly from some of the key players in government, development, and venture capital funding. The panel will feature: Ian Bowles, Secretary of the Massachusetts Executive Office of Energy and Environmental Affairs Tim Healy, chairman & CEO of EnerNOC Dr. Christina Lampe-Onnerud, founder & CEO, Boston-Power, Inc. Hemant Taneja, managing director of General Catalyst Partners and chairman of the New England Clean Energy Council Tuesday, April 28, 2009 InterContinental Boston 7:45 a.m. Registration 8:10 - 9:00 a.m. Program Click here to register Government Affairs Forum Luncheon U.S. Congressman Edward Markey Chairman, Select Committee on Energy Independence and Global Warming Monday, June 8, 2009 Boston Harbor Hotel 11:45 a.m. - 1:30 p.m. Program & Lunch Click here to register b o s t o n c h a m b e r . c o m m
In this Issue:
Chamber Releases First Competitiveness Scorecard
Workforce Development: Chamber-Federal Reserve Bank of Boston Hold Internship Workshop
Transportation: Reform Bills Advance in Senate and House, Chamber Working for Both Significant Reform and New Revenue
Corporate Tax Policy: Chamber Continues to Advocate for Pro-Competitive Approach
Inside the Chamber
Upcoming Government Affairs Forum
Greater Boston Chamber Policy News
State and local governments are developing their budgets for the 2010 fiscal year, which begins July 1. The economic slowdown makes that task more difficult, but it does not reduce the need to make Greater Boston and Massachusetts more competitive. The more that can be done to strengthen the business climate, the faster the region will return to economic growth. The Chamber is working towards that goal on a number of fronts:
Competitiveness: Chamber releases first Competitiveness Scorecard
Last week, the Chamber launched a new policy initiative – the Competitiveness Scorecard, a barometer of cost and competitiveness issues facing Massachusetts’ businesses in the current economy.
The Competitiveness Scorecard will be published throughout the year and will measure Massachusetts’ competitiveness on a key issue compared to all 50 states. It will also be a vehicle through which the Chamber will introduce a specific policy proposal designed to enhance the state’s competitive position. Future editions of the Scorecard will focus on business costs, workforce development, and innovation issues.
The first Competitiveness Scorecard is focused on the state’s Rainy Day Fund. It includes significant policy proposals that will help strengthen the Commonwealth’s competitiveness, particularly in future recessions. To read the full Competitiveness Scorecard click here.
The Massachusetts Rainy Day Fund, measured at 7.2 percent of the total FY 2008 budget, ranked 13th in the nation before this recession hit the state. History shows that that is not enough to protect the Commonwealth against future recessions.
The Chamber proposal on the Rainy Day Fund includes:
Dedicating capital gains revenues to the Rainy Day Fund by capping the amount of capital gains revenue that is directed to the budget at $300 million per year. This general fund allocation could be phased in, starting at $500 million in the first year and decreasing to $300 million over a four year period.
Depositing all additional capital gains revenue into the Rainy Day Fund each year until a target of 15% of budgeted revenues is reached.
Directing additional capital gains revenues back to the general fund, once the fund has reached its 15% target.
Chamber president & CEO Paul Guzzi also outlined the proposal in an op-ed in the Boston Herald on Monday, April 12. Click here to read the op-ed.
Look for the next Competitiveness Scorecard early this summer.
The Chamber-Federal Reserve Bank of Boston workforce development partnership continues to move forward, with an emphasis on promoting internships. As recent Chamber and Reserve Bank studies have shown, Greater Boston needs to expand its supply of college-educated workers. High-value, work-based internships can be an excellent vehicle for achieving this goal.
On April 16, 2009, the Chamber and the Federal Reserve Bank of Boston hosted “Developing Win-Win Internships: A Best Practices Workshop,” at the Fed. This half-day workshop provided an opportunity for business leaders, colleges, and universities to connect with each other and learn about best practices for internship programs.
Workshop participants attended breakout sessions on strengthening the employer/university relationship, compensation and legal considerations related to internships, effective recruiting techniques and mentoring of interns, and understanding and communicating with the millennial student - a session focused on Gen-Y’s view of the world and the workplace.
The Chamber, the Reserve Bank, and interested members will continue to work together in the months ahead to advance internships.
The transportation reform and revenue issues are advancing. They have been moved to center stage by several recent events, including pending toll increases on the eastern Turnpike and harbor crossings, legislation proposed by Governor Patrick which includes both reforms and new revenues, and a comprehensive reform/revenue proposal issued by the Chamber and four other major business groups (the Massachusetts Taxpayers Foundation, the Massachusetts Business Roundtable, A Better City, and NAIOP Massachusetts). The business groups’ proposal and the Governor’s bill each contain major reforms and an increase in the gasoline tax.
The Legislature has decided to address the reform and revenue issues in separate bills, and to start with reform. At the end of March, the Massachusetts State Senate released its version of a transportation reform plan designed to streamline the state’s transportation bureaucracy. The Senate bill advances some of the reforms included in the proposal released by the Chamber and other business groups last month. In April, the House of Representatives passed a reform bill a reform bill which also advances selected reforms. Both bills focus only on reform; both chambers have pledged to pass a revenue bill in the weeks following enactment of a reform bill. The Chamber and our business group partners will continue to advocate for large-scale reforms, while also working to address the critical issue of funding.
The Chamber continues to work on the combined reporting system established in last year’s corporate tax legislation. Pursuant to member feedback, the Chamber testified before a March 31st Department of Revenue (DOR) hearing on regulations proposed to implement combined reporting. They contain provisions which could substantially harm Massachusetts’ competitive position, including:
Intercompany Transactions with Foreign Affiliates: A key provision in the proposed regulation contradicts the 2008 Massachusetts corporate tax law, as well as a corporate tax law enacted several years earlier, by essentially disallowing certain deductions for companies subject to a "foreign income inclusion" provision. It would prevent many companies operating in Massachusetts from qualifying for existing addback exceptions on intercompany transactions with foreign affiliates. The Chamber urged DOR to include the addback exception in the final regulations.
Affiliated Group Election: Section 10(h) of the proposed regulation would allow DOR to unilaterally undo a group election. This type of broad discretion would undermine the 2008 law’s 10-year affiliated group election lock, a provision carefully negotiated last year. It would hinder efforts to bring stability, transparency, and simplification to the tax code. The Chamber urged DOR to remove from the final regulation section 10(h) Affiliated Group Election - Disregard effect in certain instances.
DOR is expected to promulgate a final regulation in the coming days.
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.
On March 19, Department of Revenue Commissioner Navjeet Bal addressed the Chamber's Financial Services Committee. She discussed corporate tax policy, including combined reporting regulations under consideration by DOR.
On March 23, State Representative Charles Murphy, chairman of the House Committee on Ways & Means, addressed the Chamber's Government Affairs Committee. He discussed the House budget process and the state's financial challenges.
On March 31, Speaker of the House Robert DeLeo made his first address to the Chamber's Government Affairs Forum. His address focused on his plans for ethics and pension reform, the state's budgetary crisis, and his leadership style. Find coverage of the speech here, photos here, or listen here.
On April 1, Massachusetts Health & Human Services Secretary Dr. JudyAnn Bigby addressed the Chamber's Women's Network. She discussed some of the administration's achievements in implementing health care reform, and took questions from the audience on a broad range of health care issues. Find photos from the event here.
On April 7, Jim Segel, special counsel to House Financial Services Chairman Barney Frank, addressed the Chamber's Financial Services Committee. He addressed the financial regulatory reform efforts underway in the U.S. House of Representatives.
On April 8, Jeffrey Simon, Massachusetts director of infrastructure investment, addressed the Chamber's Development Committee. He discussed the incoming Federal economic stimulus money and the administration's plans for the funds.
On April 15, Senate President Therese Murray addressed the Chamber's Government Affairs Forum. She discussed the use of Federal economic stimulus money, and answered questions on transportation reform and gaming legislation. Find coverage and photos here.
Upcoming Chamber Policy and Government Affairs Events
Special Chamber Forum - Clean Tech: Fueling Innovation and Growth in Massachusetts The clean technology industry is a driver of innovation and job creation here in Massachusetts, even during this time of economic downturn. Governor Deval Patrick and President Barack Obama have both made ‘green jobs’ an economic priority and the Commonwealth seems particularly well positioned to benefit. Already, clean energy firms in Massachusetts account for more than 14,000 jobs – with an annual job growth rate of 20 percent. The region’s colleges and universities are increasing their research in renewable energy, and the state could see an infusion of federal stimulus money for wind power and efficiencies.
This unique clean technology panel with focus on the future of this industry in Massachusetts and offer Chamber members the opportunity to hear directly from some of the key players in government, development, and venture capital funding. The panel will feature:
Ian Bowles, Secretary of the Massachusetts Executive Office of Energy and Environmental Affairs
Tim Healy, chairman & CEO of EnerNOC
Dr. Christina Lampe-Onnerud, founder & CEO, Boston-Power, Inc.
Hemant Taneja, managing director of General Catalyst Partners and chairman of the New England Clean Energy Council
Tuesday, April 28, 2009 InterContinental Boston 7:45 a.m. Registration 8:10 - 9:00 a.m. Program
Click here to register
Government Affairs Forum Luncheon U.S. Congressman Edward Markey Chairman, Select Committee on Energy Independence and Global Warming
Monday, June 8, 2009 Boston Harbor Hotel 11:45 a.m. - 1:30 p.m. Program & Lunch
b o s t o n c h a m b e r . c o m m
