Chris Lisinski clisinski@statehousenews.com
AIM’s Thomson Says State Wants To Keep Aware Of Key Enterprise Points
JAN. 21, 2025…..Warning that the Massachusetts economic system may fall “sufferer to its personal success” with out motion, the top of an influential enterprise group renewed requires Beacon Hill to rein in employer prices and strengthen the labor pool.
Brooke Thomson, president of the Related Industries of Massachusetts, urged lawmakers to reform the unemployment insurance coverage system a day after the Healey administration revealed the state owes $2.1 billion to the federal authorities as a result of a mistake beneath the Baker administration.
Thomson additionally known as for the Legislature and state officers to additional cut back capital beneficial properties taxes, broaden capability at vocational excessive colleges and proceed to deal with increasing housing manufacturing.
Thomson, who took over main AIM final 12 months, cautioned in a State of Massachusetts Enterprise deal with posted Tuesday that “the very ascendancy of the Massachusetts economic system has created points that, left unaddressed, threaten our prosperity now and sooner or later.”
“Massachusetts, in brief, has discovered find out how to create a dynamic, world-class economic system that adapts to altering situations on the vanguard of innovation,” Thomson stated in her recorded remarks. “The problem earlier than us at this time is find out how to protect our economic system from falling sufferer to its personal success.”
AIM printed Thomson’s speech as lawmakers are settling in for the 2025-2026 time period and days after Gov. Maura Healey outlined her own priorities in her newest State of the Commonwealth deal with.
The governor will file her annual funds on Wednesday and on Thursday is the scheduled featured speaker at an AIM occasion in Waltham.
Thomson praised new legal guidelines to fund housing growth and financial development and ship tax aid, however warned of house costs “close to unattainable ranges,” a shaky transportation system and competitors from states which can be “aggressively choosing off items of our flagship industries like life sciences and local weather know-how.”
Thomson urged Healey and legislative leaders to deal with “moderating one of many highest ranges of enterprise prices within the nation,” beginning with motion to reform the state’s unemployment insurance coverage system.
Healey on Monday introduced a settlement with the U.S. Division of Labor after the Baker administration used $2.5 billion in federal funds to cowl jobless advantages the state ought to have paid with its personal cash. The deal requires Massachusetts to pay the federal authorities $2.1 billion over the following decade.
Whereas Healey stated unemployment insurance coverage tax charges is not going to improve for employers by means of a minimum of 2026 and pledged to hunt reforms, the longer-term outlook is cloudy. Even earlier than accounting for the debt, labor officers projected that the fund used to pay jobless advantages could fall hundreds of millions of dollars into the red inside 4 years, within the course of pushing the taxes that employers owe to cowl advantages to the very best charges.
“Our buddies on the Massachusetts Taxpayers Basis report that Massachusetts ranks within the backside 10 of all states in about 40 p.c of competitiveness metrics, and amongst these poorly performing metrics two themes are obvious: value and placement,” Thomson stated. “From enterprise taxes, power prices, and baby care, to housing and commute occasions, Massachusetts is asking extra from its residents than the overwhelming majority of different states.”
Thomson additionally known as for one more lower within the short-term capital beneficial properties tax price to five%, and to permit deductions for enterprise curiosity “in order that firms is not going to be penalized for borrowing and investing in development.”
One other strain level she believes poses a “long-term risk” is a scarcity of expert labor. Unemployment in Massachusetts stays beneath the nationwide degree, and plenty of employers say they’re nonetheless struggling to fill open positions or discover correctly certified candidates.
Thomson voiced assist for increasing capability on the state’s “oversubscribed” vocational and technical excessive colleges. She additionally burdened that decreasing prices for staff is a key think about strengthening the labor pool.
Different trade organizations are rolling out agendas for the 12 months forward. The Larger Boston Chamber of Commerce will host a virtual event in February the place its president, Jim Rooney, will focus on “the state of the economic system, headwinds and tailwinds, and the way it all issues to enterprise, residents, and policymakers.”
Correction: An earlier model of this story listed the wrong date for the Larger Boston Chamber of Commerce annual deal with. That occasion has been postponed to Feb. 13.
