June 2009 Policy Update

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     June 2009

In this Issue:

 

 

Greater Boston Chamber Policy News

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. Issues related to all four goals are currently before state government. The Chamber is working with member companies, government leaders, and other business groups to advance those issues, as outlined below.


Transportation Reform: Chamber supports several key reforms, designation of significant new funds for transportation

The Chamber has been working for several months to achieve significant reform in the state's transportation system, while also securing new funding for our critical infrastructure.  The past few weeks have seen significant progress on both fronts.

Earlier today, Governor Deval Patrick signed a new transportation reform law that begins to address the state’s major transportation challenges.  The Massachusetts Legislature also sent the Governor a budget bill designating a major new funding source for the transportation system.

The Chamber supports the significant reforms included in the transportation law, including: structural reorganization for a more logical, and less cumbersome, state bureaucracy that eliminates duplication of agencies; pension and health care reform; and progress on the issue of tort reform. These reforms will bring efficiencies to the management of the system.

Coupled with these reforms, the designation of $275 million for transportation will help alleviate the system’s immediate budget troubles. These new funds will help secure the state’s obligation to bondholders, while also delaying toll hikes and MBTA fare increases. The additional funding is also a critical step towards addressing the $20 billion financing gap for roads and bridges revealed by the Transportation Finance Commission in 2006.

Over the coming months, the Chamber will continue to work with administration officials and legislative leaders for more improvements to the state’s transportation system. Together, we will strive to achieve the well-funded and efficient transportation system that is crucial to ensure economic growth throughout the Commonwealth.
 


Rainy Day Fund: Budget proposal is a step in the right directiononnn

In its March ’09 Massachusetts Competitiveness Scorecard, the Chamber proposed that each year all state capital gains revenues beyond the first $300M be allocated to the Rainy Day Fund, until the Fund reaches 15% of budgeted revenues.

The legislature recently passed its FY ’10 conference budget which included a proposal transferring a significant portion of new capital gains revenue growth to the Rainy Day Fund. The Chamber thinks this measure is a step in the right direction and will work to have even more capital gains revenues deposited into the Rainy Day Fund.  The more that can be done, the better equipped we will be to preserve critical programs, avert tax increases, and weather future recessions.

Massachusetts has used its Rainy Day Fund to blunt the impact of revenue shortfalls, increase funding stability for government programs and services, and minimize the need for tax increases and service cuts during times of economic downturn. Strong reserves have also contributed to improved state bond ratings and reduced borrowing costs. However state reserves have proven inadequate in the face of the current economic crisis – leading to the passage of broad service cuts and tax increases. This presents Massachusetts with an opportunity to retool its approach to budgetary savings and long-term fiscal planning.

The Chamber will continue to work for a strong Rainy Day Fund that will help insulate state finances from the economy’s cyclical swings.


Education: Chamber co-sponsors report on STEM education

The Chamber and other leading business groups have come together to urge that science, technology, engineering and mathematics (STEM) education be a statewide priority. The Chamber co-sponsored a report, “Tapping Massachusetts’ Potential: The Massachusetts’ Employers STEM Agenda,” which was released Thursday, June 18th at a Business Leaders Breakfast. The report represents the beginning of an on-going collaboration among the business community to ensure that STEM education is a priority. Click here to view the report.


Life Science Regulation: Chamber successfully blocks onerous new requirements

The Chamber helped to successfully block a Senate proposal which would have imposed onerous new licensing and training requirements on pharmaceutical and medical device sales representatives. The education of health care providers by industry representatives is already comprehensively regulated by federal law. Imposing duplicative, new state oversight of life science activities would create an unwelcoming climate for this critical, growing cluster – potentially driving new jobs and investment to competitor states.

The Chamber will continue working to ensure a competitive environment for life science research, training, collaboration, and production commercialization in Massachusetts.


May Jobs Update: Mass adds jobs for first time since May 2008

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 our 2002 peak.  

Headlines from the May 2009 Massachusetts Jobs Update include:

  • Massachusetts added 4,900 jobs last month; first monthly job gain since May 2008
     

  • Massachusetts remains 195,000 jobs below previous peak; lowest employment since February 2008
     

  • State leisure & hospitality jobs ranked 31st among states last 12 months

You can find all of the 2008-2009 monthly Massachusetts Jobs Update documents archived on the Chamber’s website, bostonchamber.com.

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 June 3, Representative Marty Walz, House chair of the Joint Committee on Education, addressed the Chamber's Workforce Development Committee. She discussed the ongoing review of the state's education system and classroom innovation.

On June 4, Jim Eisenberg, chief of staff to Speaker of the House Robert DeLeo, addressed the Chamber's Government Affairs Committee.  He outlined the state's financial challenges and updated members on ongoing budget and reform bill negotiations.

On June 23, Secretary of Health and Human Services Dr. JudyAnn Bigby addressed the Chamber's Life Science Alliance.  She discussed the effort to bring universal electronic medical records to the Massachusetts health care system.

 

Upcoming Chamber Policy and Government Affairs Events


Government Affairs Forum
Lt. Governor Timothy Murray
Commonwealth of Massachusetts

Wednesday, September 23, 2009
Location TBD
7:45 a.m. Registrationon
8:10 - 9:00 a.m. Program

Click here to register



Financial Services Forum
Eric Rosengren, President & CEO
Federal Reserve Bank of Boston

Friday, October 2, 2009
Hyatt Regency Boston
7:45 a.m. Registration
8:10 - 9:00 a.m. Program

Click here to register



Executive Forum
Drew Faust, President
Harvard University

Thursday, October 22, 2009
Boston Marriott Copley Place
7:45 a.m. Registration
8:10 - 9:00 a.m. Program

Click here to register

 

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