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Sam Drysdale
State Legislature News Service
Months after a coalition of regional business chambers warned politicians on Beacon Hill to rein in spending, Gov. Maura Healey told members of the state’s business community on Thursday that the new state budget would be “balanced.” They marketed themselves as being “responsible” and “responsible.”
The governor’s budget proposal released Wednesday relies on multi-year or one-time new ordinary revenue to fund new spending plans as tax collections slow and fall below previous expectations for fiscal year 2024. There is.
Despite the prospect of slowing revenue growth, Mr Healy stressed there are no plans to raise taxes.
“As a result of our hard work to make our state more competitive, we will not introduce new taxes or tax increases,” he said at the Associated Industries of Massachusetts (AIM) event in Newton, drawing applause from attendees. was bathed in
Although Healey and legislative leaders have said they have no intention of raising state taxes to cover their spending priorities, Healey last week raised certain hospitality taxes that local governments already pay. A bill has been introduced that would authorize a 5% local surcharge on car owners. Local automobile consumption tax.
AIM president and CEO Brooke Thompson congratulated Healey on the tax cuts it signed into law last year, but the business group also wants to see more tax reform.
AIM, the state’s largest business group, will lower its short-term capital gains tax to 5 percent (last year’s tax measure lowered it from 12 percent to 8.5 percent) and will join other New England states in exempting vehicle tractors and trailers. is supported. In his Massachusetts State of the Business Address this month, Thompson said he would allow sales tax and rail vehicle exemptions and business profit deductions.
Mr. Healey did not address those tax policy priorities in his speech Thursday, but he touted the housing bond bill and new child care plan as business-friendly initiatives.
The governor also did not address the question marks hanging around state and corporate leaders. This unresolved error could mean Massachusetts owes the federal government $2.5 billion, which could mean it was misused during the COVID-19 pandemic. There is sex.
Mr Thompson highlighted this topic in his business speech as one of AIM’s main priorities this year.
“AIM strongly supports an immediate resolution to the $2.5 billion deficit in the state unemployment system,” she said. “Businesses should not be subject to additional taxes because of Massachusetts’ misuse of federal relief funds to pay unemployment claims during the pandemic.”
Regarding the housing bill, the governor touted a new report from the University of Massachusetts Donahue Institute on the potential impact of the $4.1 billion bill. The bill aims to make housing more affordable and accessible at a time when a lack of options is driving people out of state.
According to the report, the housing bill would produce tens of thousands of new homes in the state, stimulate approximately $25 billion in economic activity, create 30,000 jobs, and generate approximately 1 billion in state and local revenue. It is said that $100 of tax revenue will be generated.
“This analysis, again, not me talking, this is the Donahue Institute talking, but they say it highlights an opportunity to create upward mobility for more residents.” “To increase housing production, we need to grow the construction industry with more companies and more workers,” Healy said.
The Office of Housing and Livability, which Healey oversees, commissioned a study to estimate the impact of the housing bond bill on the state’s economy. The total amount of public and private spending associated with the full implementation of the bill is estimated to be $15.1 billion over five years, with a total economic impact of $24.8 billion over the same period.
Thompson said the business group supports the “overarching objectives” of the governor’s housing bill, particularly supporting accelerated development near public transit.
In addition to injecting billions of dollars into housing production, the bill includes other measures such as allowing communities to enact local option transfer fees for the purchase of affordable housing and lowering standards for zoning reform. It also includes policy changes.
An AIM spokesperson said “broad support” for the bill did not mean its members necessarily supported every aspect of the bill.
“Almost every employer in Massachusetts has heard from an employee, “I would love to work here or stay here, but I can’t afford to raise my family here.”” Thompson He said this in his State of Massachusetts Business Address.
The Greater Boston Chamber of Commerce and the Massachusetts Business Roundtable also support the so-called Affordable Housing Act.
Healey also touted his administration’s new early childhood education and care proposal, saying the state’s high cost of living is hitting workers with children especially hard.
The governor’s plan includes expanding universal preschool programs to all 26 “gateway cities” by 2026, making more low- and moderate-income families eligible for child care assistance, and expanding the Commonwealth Cares for Children program to all 26 “gateway cities” by 2026. (C3) Includes one more year of grant funding. And he introduced an executive order calling for a “whole-of-government” approach to promoting access to child care.
“We know we can reduce costs for thousands of families. We can help women – thank you for the Pink Slip Initiative – we can help women return to work. , we can help them stay in the workforce and, importantly, we can help them achieve the quality education and care for their children that they deserve,” Mr Healy said on Thursday. . .
The governor also announced a new executive order he signed Thursday under which state agencies will no longer specify a minimum education level when hiring new employees.
“Massachusetts is in the midst of a transition to a skills-based economy, and the demand for skilled workforce talent is greater than ever, and employers are looking more closely at personal skills than traditional qualifications, such as “We seek to expand and strengthen our talent pipeline by prioritizing the following:” the order reads.
Her announcement Thursday received applause and encouraged business leaders to adopt similar practices.
Healey said the state needs to move to a “skills-based economy” and hiring practices based solely on degrees “reduce people to one line on a resume.”
“We know how difficult it is to fill open positions, and frankly, as the state’s largest employer, we face this challenge as well,” Healy said. “Massachusetts has the highest percentage of working-age adults with a four-year degree, about 50%. We are proud of that. But the other half of our workforce also has the highest percentage of working-age adults with a four-year degree. However, job postings in both the public and private sectors often require a degree as a minimum requirement, even if a degree is not required to perform well in the job. There are so many. It creates barriers for both employers and workers alike.”
Tonja Mettlach, executive vice president of the Mass Business Roundtable, issued a statement praising the move.[rethink] recruitment practices and [be] We’re getting creative with how we recruit, retain and invest in talent. ”
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