North Shore Chamber of Commerce Economic Development & Public Policy Blog

Patrick seeks broad changes for community colleges

2012-01-24T14:47:00.000-05:00

Governor Deval Patrick, speaking last night in his annual State of the Commonwealth address, proposed sweeping changes to the community college system, centralizing authority for 15 campuses and emphasizing job training.

Patrick highlighted the connection between the often overlooked schools and the unemployment problem. Encouraging more cooperation between schools and local employers, he said, would help the state’s 240,000 unemployed get the skills they need to fill an estimated 120,000 current job openings, many of which require specific training.

“We have a skills gap,’’ Patrick told the packed House chamber at the State House. “We can do something about that. We can help people get back to work. And our community colleges should be at the very center of it.’’

The 30-minute speech offered a narrow focus and lacked the lengthy list of new initiatives that often characterize such addresses. Beyond the community college proposal, Patrick introduced just two other initiatives: a health insurance payment overhaul and a criminal sentencing package, both of which he has previously supported.

Unlike last year’s speech, when excitement from Patrick’s reelection was still spilling over, the governor delivered this address, his sixth, at a moment when he has been overshadowed politically.

His predecessor, Mitt Romney, is locked in a riveting Republican presidential primary contest. Patrick’s state party is focused on helping Democrat Elizabeth Warren challenge US Senator Scott Brown, a Republican, in what may be the nation’s most gripping Senate race.

Even Patrick’s lieutenant governor, Timothy P. Murray, has stolen the spotlight with growing interest in his mysterious high-speed rollover crash and in his ties with a former Chelsea Housing Authority chairman Michael E. McLaughlin, who is under federal investigation. Murray received a prolonged ovation from the friendly crowd when he was introduced.

Despite the budgetary challenges faced by his administration, Patrick cited the state’s high credit rating, its vast improvement in job creation, and his ability to curb public employee benefits without the turmoil that erupted in Wisconsin and other areas of the country.

The governor also touted the state’s success in curbing health insurance rate increases, from an average of 16.3 percent two years ago to 2.3 percent this year.

Patrick again pushed to dramatically change the medical payment system, renewing an unsuccessful plea he made last year to end the fee-for-service model with a so-called global payment system that rewards doctors for coordinating care.

And the governor renewed his support for a modified version of the controversial “three-strikes’’ crime bill that would lengthen sentences for repeat violent offenders, requiring life sentences without parole for those whose third felony is murder or a “similarly heinous act of violence.’’

Patrick, however, demanded that the strict new punishments be coupled with his plan to eliminate mandatory minimum sentences for nonviolent drug offenders. He said that state spending on prisons has grown 30 percent over the last decade because of longer sentences for first-time nonviolent drug offenders.

“We have moved, at massive public expense, from treatment for drug offenders to indiscriminate prison sentences and gained nothing in public safety,’’ he said. “Many come out more dangerous than when they come in.’’

Throughout last night’s speech, the governor drew applause from fellow Democrats in the state’s political establishment, who greeted his initiatives warmly.

The future of the state’s community college system has faced renewed questions since November, when a pair of reports described it as disjointed and inadequate in its preparation of students for technical careers.

Patrick reinforced that assessment last night, citing successes within several individual colleges where programs train workers in fields like health care and precision manufacturing.

“We need that kind of sharper mission across the Commonwealth, so that community colleges become a fully integrated part of the state’s workforce development plan,’’ Patrick said. “We can’t do that if 15 different campuses have 15 different strategies.’’

The governor’s proposal will let a central board dole out funding to individual colleges, taking into account enrollment and several performance measures. The new plan is also intended to make it easier for students to transfer credits among colleges, attacking a problem that has drawn frequent complaints. To help with the transition, Patrick is proposing a $10 million bump in the community college system’s budget for the coming year.

Community colleges are often overlooked in a state dominated by elite universities including Harvard and the Massachusetts Institute of Technology, but they tend to enroll vast numbers of students and play a crucial role in training workers.

The plan could meet internal resistance, as college presidents are being asked to cede much of their power to a central body. Patrick spoke with community college presidents earlier yesterday, catching many off guard.

Bill Hart, executive director of the Massachusetts Community Colleges Executive Office, said the presidents were still awaiting specifics.

“We’re just trying to digest what we’ve heard,’’ he said.

It was not the first time a Massachusetts governor has tried to centralize the community college system. The Romney administration put forth its own proposals, which foundered in the Legislature.

But Paul Grogan, chief executive of the Boston Foundation and author of an influential report on community colleges released two months ago, said this time could be different.

“There’s an accountability movement in education now, and also obviously there’s the tremendous problem created by the economy,’’ he said. “This is an opportunity for the schools to be something fundamentally more important than they have been.’’

Reaction to Patrick’s address last night ran along party lines, drawing praise from Democratic leaders in the House and Senate who said they share Patrick’s agenda. The Legislature’s small Republican minority said the governor’s community college plan did not do enough to address the state’s larger economic problems.

“For what is the number one issue for the public out there, jobs and the economy, I thought it was extremely light in the speech,’’ said Representative Bradley H. Jones Jr., the Republican leader from North Reading. - Mary Carmichael, Boston Globe, 1/24/12

House, Senate Approve Unemployment Insurance Rate Freeze

2012-01-23T14:36:00.000-05:00

The Massachusetts Legislature overwhelmingly approved a supplemental budget last week that would freeze Unemployment Insurance tax rates for 2012 and head off an automatic 31 percent tax increase for employers.

The $130.7 million measure also eliminates a sunset provision that would have ended the popular Workforce Training Fund Program on December 31 and require state officials to post online the full cost-benefit analysis of new regulations.

The Senate passed its version of the bill 35-0 on Friday, while the House of Representatives passed its own bill by a 154-to-1 margin on Wednesday. Because of minor differences between the House and Senate bills, AIM will continue to work with both chambers to ensure that the final legislation that is sent to the Governor includes all the measures that employers support.

“Employers commend the Legislature for acting quickly to freeze Unemployment Insurance rates at the current Schedule E, a move that will avoid an automatic jump in UI costs from $715 per employee to $935 per employee,” said John Regan, Executive Vice President of Government Affairs at Associated Industries of Massachusetts.

“We urge Governor Patrick to sign it. We also hope that 2012 will be the year that policymakers make meaningful structural reform to the UI system.”

AIM maintains that the Unemployment Insurance increase is unnecessary since the fund used to pay jobless benefits in Massachusetts posted a balance of nearly $100 million at the beginning of the year. AIM projects that the surplus will grow to between $300 million and $400 million even if rates are frozen.

The UI rate increase was effective at the beginning of the year, but the Legislature still has time to approve a freeze because employers don’t have to start paying the tax until the end of the first quarter.

Three key state senators wrote a letter to Senate President Therese Murray January 5 urging the branch to freeze the rates at their current level. The letter - signed by Sen. Barry Finegold (D-Andover), Sen. Michael Rodrigues (D-Westport) and Minority Leader Bruce Tarr (R-Gloucester) - argued that freezing unemployment insurance rates would ensure economic stability for small business owners and create a climate for job growth as businesses recover from the recession.

AIM is also pleased that Legislators are looking to lift the sunset provision on the commonwealth’s flagship program for improving the skills of Massachusetts residents. The Workforce Training Fund Program has provided $193.2 million in grants since its inception to some 2,500 Massachusetts employers to train 277,351 workers. AIM blog, Brad Macdougal, 1/23/12

Massachusetts Employers Outline Policy Priorities for 2012

2012-01-20T11:26:00.000-05:00

The North Shore Chamber of Commerce is a proud member and partner of Associated Industries of Massachusetts.

Associated Industries of Massachusetts (AIM) last week released Common Wealth 2012, its statement of the principles and beliefs that will guide Bay State employers on public policy issues during the New Year.

AIM engages in policy work on behalf of some employers who provide jobs to 650,000 Massachusetts residents. We do so guided by the belief that only a vibrant, private-sector economy creates opportunity that binds the social, governmental, and economic foundations of our commonwealth.

Given that objective, what are AIM’s specific public policy priorities on behalf of Massachusetts employers for 2012?

Reduce the cost of health insurance by supporting adoption of alternative methods to pay medical providers and by encouraging employer and consumer engagement.
Address high electricity costs in Massachusetts and any burdensome state regulations that drive those costs.
Secure a one-year or multi-year freeze in Unemployment Insurance rates and implement long-term structural changes in the UI system
Oppose anti-growth proposals such as paid family leave and mandated sick leave.
Support efforts to ensure that Massachusetts maintains globally competitive schools and workforce development programs.
Repeal the restrictive Massachusetts definition of Independent Contractor and adopt the federal definition.
Amend the mandatory treble damages law to apply only to willful violations of the Massachusetts Wage & Hour statute.
Retain existing legal protections for intellectual property, especially the use of non-compete agreements.
Continue predictable, responsible and long-term state fiscal policy.

AIM looks forward to working with the Patrick Administration and the Legislature during 2012 to create an environment to encourage the ingenuity and entrepreneurial energy that has historically driven the Massachusetts economy. AIM stands for jobs, economic opportunity, fiscal predictability, business formation, innovation, education, and a government that acknowledges that the private sector has the unique ability and responsibility to create the Common Wealth for the people of Massachusetts.

House Supplemental Budget Includes Unemployment Rate Freeze

2012-01-19T10:20:00.001-05:00

The House Ways and Means Committee reported a supplemental budget bill today with a one-year Unemployment Insurance rate freeze that would head off an automatic 31 percent tax increase for employers in 2012.

The bill would also eliminate a sunset provision that is due to end the popular Workforce Training Fund Program on December 31.

The full House of Representatives is expected to vote on the $130.7 million supplemental budget proposal next week. It would then move to the state Senate for debate.

The UI rate increase was effective at the beginning of the year, but the Legislature still has time to approve a freeze because employers don’t have to start paying the tax until the end of the first quarter.

Freezing Unemployment Insurance rates at the current Schedule E would avoid an automatic jump in UI costs from $715 per employee to $935 per employee. AIM maintains that the increase is unnecessary since the fund used to pay jobless benefits in Massachusetts posted a balance of nearly $100 million at the beginning of the year. AIM projects that the surplus will grow to between $300 million and $400 million even if rates are frozen.

“The House of Representatives deserves tremendous credit for taking a step that will boost the economy without harming people who need unemployment benefits. At a time when states such as California, Michigan and Rhode Island are paying hundreds of millions of dollars to cover shortfalls in their unemployment systems, Massachusetts has the ability to reinvest the money it would have raised with a tax increase into the private sector for economic growth,” said Richard C. Lord, President and Chief Executive Officer of AIM.

Lord urged policymakers to move forward as well on long-term reform of the UI system.

The Massachusetts jobless fund emerged from the recession in better shape than those in other states because the commonwealth’s knowledge-based economy proved more resilient during the downturn than the nation as a whole.

Unemployment in Massachusetts remains at 7 percent, well below the national average of 8.5 percent and one-third lower than the jobless rate in California.

Governor Deval Patrick and Beacon Hill lawmakers have frozen UI rates for three consecutive years. The 2011 freeze averted a $400 million tax increase and limited a $228 per employee increase to an average of $61 per employee.

Pressure to freeze rates in 2012 has built steadily during the past several weeks.

Three key state senators wrote a letter to Senate President Therese Murray January 5 urgingthe branch to freeze the rates at their current level. The letter - signed by Sen. Barry Finegold (D-Andover), Sen. Michael Rodrigues (D-Westport) and Minority Leader Bruce Tarr (R-Gloucester) - argued that freezing unemployment insurance rates would ensure economic stability for small business owners and create a climate for job growth as businesses recover from the recession.

"Our economy cannot endure a sharp increase in the Unemployment Insurance. Allowing rates to increase will stifle job growth in the commonwealth," Finegold, Rodrigues and Tarr wrote in the letter to Murray. AIM blog posted by John Regan, 1/12/12

Transportation secretary vows garages will be built, suggests branding ports

2012-01-12T15:41:00.000-05:00

DANVERS — The state's new transportation czar, Richard Davey, told North Shore businesspeople yesterday that in these tight financial times he has no magic wand he can wave to make local dreams — like a bridge over Route 128 in Beverly — come true.

"I can't wave my wand and say: 'Aha, I want them to build a bridge in Randolph,'" Davey said in a speech at a packed North Shore Chamber of Commerce breakfast at the Danversport Yacht Club.

Davey, former head of the MBTA, took over this summer as Massachusetts Department of Transportation secretary and CEO. He oversees a 10,000-person agency that includes highways, the Registry of Motor Vehicles, mass transit and aeronautics.

Beverly Mayor Bill Scanlon has been pushing for a new Route 128 interchange at Brimbal Avenue and a bridge over the highway there as a way to unlock more than 200 acres in the area of Norwood Pond for commercial development.

Complete Salem News article can be found here

Company eyes life sciences tax incentive for expansion

2012-01-12T15:39:00.000-05:00

BEVERLY — Cell Signaling Technology is seeking to take advantage of a relatively new state program that offers tax incentives for the state's life sciences industry.

The Beverly firm, headquartered on Route 128, is one of 44 life sciences companies from around the state that have applied for a portion of the up to $25 million in tax breaks that will be awarded this year by the Massachusetts Life Sciences Center.

Cell Signaling is looking for a tax break of up to $2 million on its $20 million investment in a new research and development center on Tozer Road, where construction has already started.

"In our business, we have to grow to compete," Cell Signaling president and CEO Michael Comb said. "We're a real small company surrounded by much larger companies that we're competing with. We have a great niche and a great reputation, but we need to continue to grow."

Complete Salem News article can be found here

Transit costs, needs deserve close scrutiny

2012-01-11T11:08:00.001-05:00

The prospect of fare increases and service cuts can't please those who rely on the MBTA for commuting to work or getting around the north-of-Boston region.

But something has to be done to address the transit agency's budget gap, which officials say could reach $161 million in the fiscal year that begins July 1 and doesn't include funding for any capital improvements or even major maintenance issues.

We'd suggest all taxpayers, not just regular riders, familiarize themselves with the T's financial situation. There's plenty of information available on its website (www.mbta.com), and a couple of hearings will be held in this part of the state (Salem, Wednesday, Jan. 25, 6 to 8 p.m., City Hall Annex, 120 Washington St., and Lynn, Tuesday, Feb. 7, 6 to 8 p.m., council chamber, City Hall) at which MBTA officials will discuss the alternatives and take public comment.

We like the fact that people both within and outside the state transportation bureaucracy are insisting the agency keep up the pressure to reduce costs. For decades, the MBTA was known as one of the most bloated and profligate transit systems in the county, and while there have been significant efforts to curb those practices in recent years, more can and must be done on the spending front.

"We've gotten the low-hanging fruit, so now we have to take some pain," John Jenkins, chairman of the Department of Transportation's board of directors, noted last week. "If the public's going to take some pain with fare increases, we have to take some pain with efficiencies, too."

And Transportation Secretary Richard Davey (who appears before the local business community at the North Shore Chamber of Commerce's monthly breakfast meeting in Danvers tomorrow), has made it known that his boss, Gov. Deval Patrick, is "not happy" with the possibility of people having to pay more to use T services or losing some of those services.

Complete Salem News article can be found here

Greg Klemmer and Tim Brodigan join the NAI Hunneman Team

2012-01-11T10:34:00.000-05:00

Boston, Mass. - January 11, 2012 - NAI Hunneman is pleased to welcome veteran commercial broker Greg Klemmer and his team to NAI Hunneman. Greg will serve as an Executive Vice President and member of the firm's management committee. In addition to Greg, Tim Brodigan, Senior Vice President at Klemmer Associates will also join NAI Hunneman. Greg and his team will be focusing their efforts on the leasing and sale of office and industrial properties in the suburban Boston markets.

Greg Klemmer, SIOR

Executive Vice President

NAI Hunneman
303 Congress Street

Boston, Massachusetts 02210

(617) 457-3253 direct line

(781) 223-3999 cell

(617) 457-3268 fax

gklemmer@naihunneman.com

Tim Brodigan, SIOR

Vice President

NAI Hunneman
303 Congress Street

Boston, Massachusetts 02210

(617) 457-3247 direct line

(617) 921-5163 cell

(617) 457-3268 fax

tbrodigan@naihunneman.com

About NAI Hunneman

Founded in 1929 and headquartered in Boston, NAI Hunneman is a leading provider of commercial real estate services to corporations, institutions and the private market. Through its association with NAI Global, NAI Hunneman is a local firm with global reach offering brokerage and project management services in more than 350 markets across the nation and around the world.

NAI Hunneman | 303 Congress Street | Boston, 02210 | (617) 457-3400 |www.naihunneman.com

Ex-Microsoft exec is tightlipped about start-up

2012-01-09T13:15:00.000-05:00

Ray Ozzie e-mailed last week to let me know he has a post-Microsoft start-up, and he is hiring. But aside from mentioning that the company is called Cocomo and doesn’t yet have an office of its own, he did not want to divulge much.

Ozzie is perhaps best known as creator of the 1990s collaboration software Lotus Notes, and more recently as the person Bill Gates chose to succeed him as Microsoft’s chief software architect in 2006. Ozzie spent four years in that role.

Ozzie wrote that Cocomo is “being bootstrapped with a few folks that I’ve worked with before. In the short term, I probably won’t be posting much more than ‘they’re recruiting,’ because the team won’t be ready to talk about what they’re working on for some months.’’

When I asked more about whether Ozzie was an adviser to the new company or part of the founding team, he replied: “I’m devoting the vast majority of my attention right now in helping to get the project off the ground with the team, so yes, in that respect I founded it and am part of the founding team. That said, it’s a really strong set of players who are quite capable of doing and growing this on their own; quite fun.’’

It seems that former Microsoft executive Matt Pope is also a cofounder of Cocomo. Ransom Richardson, another former Microsoftie based in Boston, is also part of the team.

Cocomo’s first public job posting seeks a lead user interface designer with extensive mobile experience. But it does not describe the company’s focus in any detail, saying only that Cocomo is building “a new communications product for this new world . . . We aspire to deliver compelling tools for social interaction that people will use, value and love.’’

Ozzie wouldn’t say if the company has raised any money. While still without office space, most team members are in Boston.

Via e-mail, Don Dodge, a Google executive who worked alongside Ozzie at Groove and at Microsoft, wrote:

“I think times have changed significantly, but I’m not sure Ray has. Ray is a big thinker [who tends to work on] big ideas that take years to develop, and more years to sell and get to scale. That worked well for Lotus Notes and to some degree for Groove, but I don’t see many recent examples of success using that model. Today everything is mobile, social, games, and small apps. Not exactly the sweet spot for Ray. But, he is one of the smartest guys I know, so he will probably come up with something interesting.’’

Start-up powers down

AutoVirt, a Nashua start-up that sought to simplify the process of “migrating’’ corporate data from one storage system to another, closed its doors in December. Résumés have started circulating, founder Klavs Landberg is searching for his next gig, and the company is seeking to sell its intellectual property.

AutoVirt once had 40 employees and about $20 million from venture capital firms Sigma Partners and Kepha Partners. The chief executive, Josh Klein, left in November. Vice president of engineering Caesar Naples left around the same time.

The company developed software to analyze data stored on Windows-based file servers and network-attached storage hardware and move it around as necessary. Files used regularly might sit on more expensive solid-state hard drives, while files accessed only occasionally could be shifted to less-expensive storage media.

AutoVirt was founded in 2007, and it launched a reseller program last fall.

“Unfortunately, the company is unwinding,’’ confirmed Jo Tango, founder of Kepha Partners and a board member at AutoVirt. “They made some good progress, but the market didn’t develop for them.’’

Steve Duplessie, founder of Enterprise Strategy Group, mentioned AutoVirt’s demise on Twitter last week. He explained that AutoVirt was “a classic example of a great solution to a non-problem - a nice-to-have versus a need-to-have. People spend money on need-to-have, not nice-to-have.’’

Most IT groups, he said, are content to shuffle data around manually, even if it is more time-consuming. - Scott Kirsner, Boston Globe, 1/9/12