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.

Massachusetts Lighting Company Doubles LED Sales

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Everyone knows that Massachusetts is a hotbed for companies in fields like biotech, research and development, medical device manufacturing, and… lighting…. uh, wait… whut?

That’s right, there is a rapidly expanding market for cost-effective, energy-efficient, commercial lighting products, and companies like Worcester’s Access Fixtures are positioning themselves accordingly. In fact, as evidence of what can only be described as explosive growth, Access Fixtures recently announced they have already experienced more than a two-fold increase in their year-over-year sales of LED-based lighting.

While the vast majority of Access Fixtures LED product sales are new luminaires, CEO Steven Rothschild says the company has also seen a noticeable increase in sales of LED retrofit kits for commercial wall packs and bollards, indicating an increase in the number of property managers who are updating their existing luminaires from other sources to LED. “As prices fall and efficacy increases, property managers realize the value achieved by a lower energy cost and reduced or eliminated maintenance,” said Rothschild. He continued, “The high volume we’ve been experiencing also allows us to reduce our overall cost of materials, which is one of the reasons we can sell an LED-equipped bollard for $239.99 and LED wallpacks from $99.00.”

Access Fixtures’ extensive lineup of interior and exterior lighting fixtures includes products for sports, commercial, industrial, residential and hospitality applications. Luminaire types include wall packs, area lights, bollards, garage lighters, vandal resistant, exit and emergency, high bay, low bay, linear fluorescent, track lighting and grow light fixtures.

With companies like Access Fixtures leading the way, Massachusetts is rapidly becoming known for something other than Cape Cod, cranberries, and biotech. Our lighting industry is also starting to cast a long shadow.

 

WPI Introduces Data Tool to Evaluate Massachusetts’ Competitive Edge

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Worcester Polytechnic Institute has announced the development of a new system to help evaluate Massachusetts’ competitive position among leading technology states. The program has been dubbed the Massachusetts’ Technology, Talents and Economic Reporting System (MATTERS).

MATTERS is an online system that consolidates a collection of independent national rankings along with a set of key cost, economic and talent metrics into a single source for use by all parties interested in building a successful future for Massachusetts’ technology-based businesses. The platform allows users to compare technology strengths between states. For example, they can examine and assess how Massachusetts and New York stack up on talent, cost and economy metrics, as well as national rankings on tax climate and technology indexes.

This data provides companies with critical information while also providing policymakers and advocates with dynamic, searchable data to substantiate public policies, leading to decisions that help attract and retain business to the state.

“This reporting dashboard makes important data accessible to those who need it. It also demonstrates the impact that our faculty and students can have on the state’s competitiveness, especially in the technology sector,” Stephen Flavin, vice president of academic and corporate development at WPI, and a member of the Massachusetts High Tech Council, said in a statement Wednesday.

The tool can be accessed online here.

 

GE Prepares for Marlborough Site Summer Launch

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General Electric’s decision to move its Healthcare Life Science division from New Jersey to Marlborough was initially met with tempered enthusiasm by those gauging its economic impact on the region. However, recent projections predict that the center will employ over 500 full time employees no later than 2017.

Luckily for the already stressed recruiters at GE, the Life Sciences center will not begin operations at full-scale levels; the current timetable calls for a partial launch early this summer, requiring an operational staff of approximately 215 employees. Filling even a limited number of these extremely technical positions would be a challenge for any company. Luckily, General Electric chose the Marlborough site specifically for the hiring advantages it provides.

According to releases from Erica Bell, senior global resource leader at GE, highway accessibility made Marlborough an appealing location compared to several other potential locations, with both Boston and Worcester seen as academic pools from which the facility can draw. Another benefit that Bell mentioned was the reasonable commuting times it afforded to Western Massachusetts. These factors ensure that a vast majority of the positions available now and in the future will be filled by candidates from within Massachusetts.

The location is also in the midst of what is fast becoming a regional hub for the life sciences. Life sciences technology is the fastest growing sector of the Massachusetts’ economy and, by relocating to Marlborough, GE was able to position themselves closer to customers and partners within the industry. They are also extremely close to the hospitals and universities that serve as training and testing centers for staff and equipment.

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.

“Snow Loans” To Help Small Business Owners Recover from Difficult Winter

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The Massachusetts Growth Capital Corporation (MGCC) has issued its first snowstorm loan, part of an initiative to help small business owners bounce back after record snowfall this winter. Up to $1 million has been set aside in a fund that is available to qualifying businesses throughout the state.

“As small businesses throughout Massachusetts continue to recover from extreme winter weather conditions that have restricted business, we are pleased to announce this low-interest loan program is available to help them regain their financial stability,” said Governor Baker in a statement late February. “While our local economies continue to bounce back, we encourage everyone to continue shopping at their local retailers, restaurants and small businesses.”

The $5,000 to $10,000 micro-loans are available at low interest rates and are intended to help businesses in heavily impacted communities to recover. In the wake of lost revenue from this particularly harsh winter, the funds could make the difference for many locals.

“It’s been a tough winter and these micro-loans can make the difference to meeting a payroll, or paying the rent. We’re here to help and hope other businesses that need a hand will take advantage of this great opportunity,” MGCC President Larry Andrews said.

Massachusetts saw record snowfall this year of 108.1 inches, compared to the highest recorded levels of 107.6 inches in 1996. Closures and road bans brought down revenue for many business owners this season.

“Our small businesses are the backbone of our economy and it is important that we help ensure their longevity by lending a helping hand when they need it most,” said Lieutenant Governor Polito in a statement. “We are confident that our entire economy will continue to recover from one of the toughest winters we have seen in decades.”

MGCC issued the first micro-loan, set at $10,000, to Dorchester caterer Down Home Delivery & Catering last Tuesday. MGCC will be responsible for funding the loans, collection of interest and principal payments, managing the loan portfolio, and loan approvals. It is expected that businesses in heavily impacted areas, particularly those in Boston and gateway cities such as Worcester and Leominster, will receive priority. The program will continue through May 2015.

 

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.

A Full and Exciting Year for Harvard Bioscience

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Harvard Bioscience of Holliston, a global developer, manufacturer and marketer of a range of life sciences equipment, has reported record quarterly revenues of $30.4 million for Q4-2014, an approximate 9.0 percent increase of $2.5 million in comparison to the $27.9 million earned in Q4-2013.

The company stated it was able to significantly improve its operating margins and other key metrics in the final quarter of 2014. “The fourth quarter wrapped up a very fulfilling and exciting year for our company,” President and CEO Jeffrey A. Duchemin said in a statement. According to Duchemin, acquisitions completed last October, combined with a new management philosophy, contributed to the strong finish. Acquisitions included Multi Channel Systems MCS GmbH and Triangle Biosystems Inc.

Combined with their procurement of HEKA Electronik of Germany in the first quarter of 2015, Duchemin expects the new additions to continue to “contribute toward our organic growth as our sales team offers a complete set of electrophysiology solutions to our customers.” He concluded, “In 2014, we put together the building blocks of a solid foundation that we believe will continue to deliver value for our shareholders. We look forward to another great year.”

Income from continuing operations, as measured under U.S. generally accepted accounting principles (GAAP), was a loss of $19,000, or $0.00 per diluted share, for the three months ended Dec. 31, 2014; compared with a loss of $255,000, or $0.01 per diluted share, for the same quarter in 2013. For the year 2014, revenues were $108.7 million, an increase of 3.3 percent, or $3.5 million, from 2013’s results.

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.