Category: Politics

Gains Reported in State’s Human Services Sector

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A new research study released by the Donahue Institute at the University of Massachusetts in conjunction with UMass Dartmouth has revealed that human services sector employment in the Bay State increased nearly 48 percent during the years spanning 2003-2011, a fact many in the industry will surely find to be a source of encouragement. In addition, the report indicated that the 145,000 members of that sector generated disposable income in an amount ultimately responsible for a $3.4 billion statewide economic impact in 2011 alone.

The study had been commissioned by The Providers’ Council, a leading association for community-based groups across the Commonwealth. Creation of the report was overseen by David Jordan, CEO of Seven Hills Foundation, together with fellow Providers’ Council committee members who had been charged with the task. Formally released at the Statehouse, the report also declared that the 145,000 jobs comprising the human services sector equated to 5 percent of the total jobs within the state, and that this sector had increased in size more rapidly than anticipated.

Other key findings in the report include the fact that, despite sector growth, state budgetary allocations for spending on human services shrunk from 11.8 percent in FY 2003 to just 9.8 in FY 2014, something fiscal watchdogs are likely to applaud. Also of note was the discovery that out of all industries represented within Massachusetts, human services included the highest rate of employees with a defined disability, at 6.5 percent.

Will the MBTA Cause the Demise of 2024 Boston Olympics?

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At a Suffolk University panel convened in Boston on March 17th, there was a discussion regarding two closely related subjects: improved infrastructure and the possibility of hosting the world’s Olympic Summer games in 2024.

This past December, Boston Mayor Marty Walsh said that the Olympics “allows us the opportunity to really talk to our partners in the state and federal government about upgrading the infrastructure that we have.” Additionally, a study by the state earlier in the year found that an Olympic bid would indeed be feasible.

The only problem? After a tough winter– as you may have heard, Boston had record snowfall at 107.6 inches– is estimated that the MBTA system has a backlog of $6.7 billion in needed work. With this amount of money needed, there aren’t many options.

One option would be to raise revenues or taxes. This could help not only solve existing problems, but tackle ones related to having a robust infrastructure for the upcoming Olympics. Current No Boston Olympics organizer and former MassDOT officer Chris Dempsey said that the pro-Olympics movement has objected to this.

Another option would be to simply address one issue or the other, leaving the other for future resolution. For better or worse, the Olympics would probably go by the wayside if it came down to this. While the Olympics could bring in extra revenue, it also can be a strain on the city, one that is not absolutely necessary.

The train stations that are already starting to undergo improvements include the Red and Orange line trains, along with the Government Center station. Incidentally, these renovations would also be needed if the Olympics were to take place. The expansion of South Station and upgrades on the JFK/UMass station would also be nearly necessary to host the Summer Olympics.

Study Says a Carefully Planned Boston Olympics Could Bring in Billions

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As Boston prepares its bid for the 2024 Summer Olympic Games, supporters and detractors have come out of the woodwork. However, according to a study done by The Boston Foundation and the UMass Donahue Institute, the Olympics could bring up to $4 billion to the state’s economy.

According to the study, the bulk of the revenues generated would come from the creation of 4,100 construction jobs during each of the six years needed to ready the city. In addition, the city could see increased revenue during the Olympic Games themselves with tourists adding an estimated $300 million. In addition, the study estimates that another 4,300 temporary jobs will be created just for the span of the Olympics.While the report outlines the economic benefits of having the Olympics in Boston, it also cautions against overspending with the warning that it would offset the economic benefits the Games would bring. Historically, other cities have exceeded their budgets for preparing for the Olympic Games by an average of 252 percent. The report points out that the International Olympic Committee has always exposed the host city to all financial obligations that come with hosting the games.

While the report outlines the economic benefits of having the Olympic Games in Boston, it also raises substantial questions about the fiscal viability of having an Olympic-sized budget for the games.

In addition to concerns with overspending, the report also points out shortfalls in public transportation and infrastructure that would need to be addressed. The report drew no conclusions as to the likelihood that Boston would receive a disproportionate amount of public money to improve its infrastructure. The study was also unable to determine how extensive these improvements would actually be.

Baker Takes On Skills Gap

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Massachusetts Governor Charlie Baker has assigned three of his top deputies to oversee an effort that would better align the state’s education and workforce training systems with the needs of employers. The decision underlines the skills gap as a remaining obstacle to real economic growth.

Baker signed an executive order formally establishing a “Workforce Skills Cabinet”, which will develop goals, objectives and metrics with the input of individuals, businesses, government agencies and community-based organizations and advocacy groups. The Cabinet will be responsible for implementing by region the various suggestions for improving vocational and educational opportunities within the state, reporting their progress back to the governor.

The Workforce Skills Cabinet will be chaired by Labor and Workforce Development Secretary Ron Walker. Walker, a Democrat, was a cofounder of Next Street, a merchant bank that provides capital to entrepreneurs in urban areas. Baker said he anticipates that Walker will bring “the new, innovative approach he took in his role at Next Street” to his new position.

“I share the governor-elect’s emphasis on connecting education to work, his commitment to workforce development, and look forward to helping carry out his mission to make Massachusetts a great place to live and work in every region of the Commonwealth,” Walker said in a statement.

The inability to locate and hire skilled employees was by far the top concern expressed by Massachusetts employers last year.Over the coming months, Walker will be collaborating with Education Secretary Jim Peyser and Economic Development Secretary Jay Ash to create an effective plan to address the disconnect between available jobs and skilled workers by the summer.

“More than anything, we need to make sure we find a way to link our workforce to job opportunities that exist out there for our citizens. These are inseparable goals and critical strengths for the commonwealth to continue to be successful over time,” Baker said at a press conference.

The skills issue crosses almost every industry, from manufacturers in the Blackstone Valley to software companies in Boston’s Innovation District to research and engineering firms on the North Shore. Recommendations will take into account the differing economic and demographic needs of each region.

Baker Takes $750M from MassHealth with New Budget

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On Wednesday, March 4th, Governor Charlie Baker filed a $38.1 billion budget proposal which includes recommendations for increased spending on objectives like local aid, transportation and higher education. The budget also proposes cutting more than $750 million from MassHealth to help fill a projected deficit of $1.8 billion.

For his first budget, Baker says he inherited a gaping shortfall in the available sources of revenue required to continue funding state government at the current level of service. The gap, officials say, was caused by an 8% increase in spending within the current budget year and reliance on one-time sources of up to $1.2 billion in funding.

Baker will file two pieces of companion legislation with the budget, including a bill to establish an early retirement program. The second bill entails his proposals for a tax amnesty program for first time filers, a gradual elimination of the film tax credit program, and an expansion of the earned income tax credit to 30 percent of the federal credit.

Without withdrawing from the state’s savings, increasing taxes or raising fees, Baker’s budget proposes to limit growth in spending by 3 percent, or $1.1 billion. It would also reduce the state’s reliance on one-time sources of funding by half. MassHealth, one of the largest expenses in the state budget, will grow by $950 million. This will represent a 5.6 percent increase in the nearly $14 billion Medicaid program, which provides healthcare to 1.7 million low and moderate income residents.

MassHealth had been expected to grow by 16 percent in fiscal 2016. However, Baker’s administration have budgeted $761 million in net savings back to the state, which includes $400 million in cuts at MassHealth after a redetermination process for 1.2 million subscribers. Budget officials have stated that chiropractic benefits would no longer be covered, though adult dental coverage and coverage for autism services to 10,000 children will be extended.

Besides trimming funds from MassHealth, the Baker Administration also plans to direct all capital gains taxes into the general fund in fiscal 2016. This represents nearly $300 million that would otherwise be earmarked for the stabilization account, currently holding $1.2 billion. $178 million in savings has also been budgeted from an early retirement fund while another $125 million will be taken from the Group Insurance Commission by increasing deductibles and premium co-pays, as well as increasing the employee health insurance contribution for all employees hired after 2003.

Other solutions to the budget gap include:

  • $100 million from a tax amnesty program;
  • $30 million from the sale of the Sullivan courthouse in Cambridge;
  • $125 million for actions like the state hiring freeze and the annualization of emergency cuts, and;
  • A minimum $17 million in federal emergency snow disaster money expected to arrive in July.

Most budgets were level funded, including the majority of agencies that faced budget cuts in fiscal 2015 to solve a mid-year deficit, which were level-funded to post-cut numbers. Exceptions included spending increases at MassHealth, health and human services like the Department of Children and Families, a $105 million increase for Chapter 70 school aid, and a $34 million increase in unrestricted local aid. The budget also includes a 3 percent raise in funding for higher education campuses, police training, and summer job programs.

With Plainridge Park Casino scheduled to open this summer, Officials say the governor has budgeted an additional $87 million in revenues that will be used, along with lottery profits, to fund unrestricted local aid in cities and towns. Roughly $70 million in legislative earmarks that had been engraved into the fiscal 2015 state budget have been eliminated.

Worcester Chamber to Host Debate of Boston Olympics Bid

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The Worcester Regional Chamber of Commerce is about to host a debate discussing the pros and cons of Boston winning its bid to host the 2024 Olympics Games. The debate will be held as two separate functions, and is intended to discuss the possible implications for Worcester should Boston become the host city.

Representatives from the Boston 2024 Partnership, sponsors for the bid to bring the Olympics to Massachusetts, as well as their opponents, No Boston Olympics, will present their arguments to chamber members. This debate will address the potential impacts of Boston becoming the host city and Worcester’s potential level of involvement should that occur.

The discussion will begin on Tuesday, March 10, with opening statements from Richard Davey, former state transportation secretary and CEO of the Boston 2024 Partnership group. He will be discussing the partnership’s plan to run a cost-effective event using private funds, existing facilities and temporary venues. He will also discuss the organization’s belief that hosting the Olympics will greatly contribute to the commonwealth’s long-term growth.

On Friday, March 13, the debate will continue with statements from Chris Dempsey and Kelley Gossett, co-chairs of No Boston Olympics. The group believes that a pattern of overspending, years of construction, and few proven economic benefits for past host cities, make hosting an undesirable choice for Boston. They will discuss their view that the state should maintain its budgetary focus on schools and rebuilding transportation infrastructure.

A first time bidder in the Olympics, Boston beat out other major cities such as Los Angeles, San Francisco and Washington D.C. to become the official U.S. entrant. While its bid is heavily dependent on the use of existing facilities such as Gillette Stadium and the TD Garden, several venues would have to be constructed before Boston could host an international event on the scale of the Olympics.  This list would have to include – at a minimum – a temporary stadium able to seat more than 60,000, a velodrome, and an aquatics center.

Boston’s bid was privately funded by the Suffolk Construction Company, and has continued to gather more than $11 million in private funds.

Unfortunately, attendance for these debates is restricted to Chamber members only and will not be open to public. If you are unable to attend, watch this space for further details as they become public after the debates.

 

Baker Resists Tax Hike for “T”

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Charlie Baker thinks the issue of the how to fix the lingering issues related to the financially-troubled MBTA transit system in Boston is still up in the air.  During a February 19 appearance on WGBH Public Radio in Boston, Governor Baker said that, while all options are being evaluated, the issue of raising taxes to solve the issue is one he’s reluctant to consider. Campaigning for his recent election, Baker said he would not raise fees or taxes and that he was in favor of repealing a law that linked the gas tax to the inflation rate.

Conservatives groups have pushed for the MBTA to be placed into receivership. Baker noted that the city of Chelsea, a fiscal control board in Springfield, and the Lawrence Public Schools all successfully emerged from receivership. However, he said he was not yet ready to consider that option for the transit system.One suggestion that has periodically come up as a potential solution was for the MBTA to transfer some of its debt to the state. That debt was related to the agreement made a quarter-century ago that committed the state to expanding the transit system at a cost of an estimated $3 billion.

According to Baker, the operating budget for the MBTA has risen by 50 percent over the past seven to eight years, and that commuter rail operations were significantly increased despite a drop in passenger trips.  Baker also noted that since 2000, the MBTA has grown faster than any other mass transit system in the country, despite the population remaining at virtually the same level.The situation has become much more pronounced in the past few months due to the mountains of snow covering the region. Full service has been forced to shut down during successive major storms.

Baker stated that much of his senior staff has been working on transit issues and expects the service levels to be much improved.

Worcester Groups Pitch Transportation Solutions – Seek Backers

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In an effort to provide much-needed transportation solutions in Worcester, seven groups provided ideas for a National Science Foundation program. This program, which was also shared with the cities of San Diego and Chicago, seeks to provide solutions to the cities’ transportation issues that arose out of growing populations. Some of the innovative ideas included skyline transportation and environment scanning apps.

The groups present labored over their proposals for ten months. Though there was a grant program, the groups involved share the creative credit. Participants in the program suggested that the groups might benefit from partnering with businesses.

The Art of Science Learning as well as Worcester’s Incubator for Innovation sponsored the event. Worcester’s focus was on transportation while San Diego handled water resources and Chicago handled urban nutrition. Professionals, students and a healthy cross-section of people from around Worcester were represented.

One of the interesting things about the program is that each of the represented groups presented a unique approach. One idea was to make the bus system more demand-driven than it is presently. One of the groups crafted a middle school curriculum about transportation. Another came up with the idea of converting volunteer service hours into usable bus passes. One proposed program uses predictions about walking patterns to determine which sidewalks and walkways to repair. Another proposes helping patients coordinate bus trips according to their appointments.

One of the things that participants took away from the experience was that, if the desire actually existed, the community could adopt these options immediately, with experts predicting better momentum for the work will make a difference.

Baker Announces New Business Posts

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Nominations for vital business posts were recently announced by the incoming Baker administration. The candidates chosen are well-known and , as a result, their nominations have been met with little fanfare but, more importantly, little protest.

Chapman1_0Baker named John Chapman as his new Undersecretary for Consumer Affairs and Business Regulations. This is a key position for Chapman, as it represents a substantial promotion for the Cape Cod based Republican who first appeared on to the radar of most party voters last year when he challenged William Keating for a seat in Congress. Positions previously held by Chapman included postings as Commissioner of the Department of Industrial Accidents, as well as Undersecretary for the Office of Economic Development. Both of these positions were held during the administration of the former Governor, Mitt Romney.

pvn001Meanwhile, in a true milestone in the history of Massachusetts state politics, the administration has announced that its nominee for Assistant Secretary of Business Development will be Nam Pham. Mr. Pham, a Vietnamese American, is currently serving as the outgoing director of VietAID, the largest community development foundation focused on the needs of American citizens of Vietnamese descent. Pham has been a long time political ally of Baker.

Both of the nominees will serve under the supervision of Housing and Economic Development Secretary Jay Ash.

More information on these new postings is expected to be released shortly.

Baker Chooses Lepore For Top Finance Post

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Governor-elect Charlie Baker  has named Kristen Lepore as the head of his finance office. Currently, Lepore is the Vice President of Government Affairs at the Associated Industries of Massachusetts.

Previously, Lepore was the Deputy Chief of Staff to Governor Cellucci and the Director of Fiscal Policy in Cellucci’s Executive Office for Administration and Finance. President George W. Bush chose Lepore as New England’s regional rep for the United States Department of Education. In 2012, Lepore joined the Associated Industries of Massachusetts. During her time with A.I.M., Lepore has gone up against changes to the Massachusetts health insurance rating system from the Affordable Care Act.

Baker has his first annual spending bill due in just three months and the budget shortfall from mid-2014 is still not entirely sorted out. It’s possible that one of Lepore’s first duties will be to fix the budget gap that’s been determined at $329 million by Governor Deval Patrick. Patrick took care of part of the gap with reductions in executive spending, but earlier in November, he filed a bill that called for an additional $57 million in cuts.

At this point, it’s unclear if the House and Senate will try to close the gap before the end of 2014 or if they’ll wait for Baker to be sworn in.