March 3, 2005
WITH EMPLOYMENT ON THE RISE, ROMNEY STEPS UP JOBS EFFORT
Governor Mitt Romney today filed a comprehensive economic stimulus package that targets capital to spur investment and job growth, expedites the burdensome permitting process and lowers the high cost of unemployment insurance.
Romney’s proposal comes on the heels of last week’s news that more than 3,000 jobs were created in January, the fifth consecutive month of job gains. Over the past year, 26,100 new jobs have been added, indicating a steady economic recovery.
“Our economy is on the move and we are creating thousands of new jobs, but we need to keep our foot on the gas pedal, said Romney. “I am asking the Legislature to join with me in making sure Massachusetts is competitive when it comes to business growth and job creation.”
The centerpiece of the Romney proposal is the use of nearly $500 million for the Massachusetts Opportunity Relocation and Expansion (MORE) Jobs Program that will attract at least 20,000 new jobs to the state over the next five years.
Components of the plan are:
The Jobs Incentive Fund: This fund, worth $185 million over five years, will provide incentive payments of up to $10,000 per new job to companies in a traded cluster that add at least 100 new jobs over two years.
The Jobs Capital Fund: This $200 million capital fund will help companies that create at least 100 new jobs by providing them up to $20,000 per job for infrastructure improvements, such as curb cuts, sewer lines, traffic signals, access roads and highway ramps.
The Jobs Partnership Fund: This $100 million capital fund will be available to qualifying partnership programs that have a research contract between a private sector firm in a growing industry and any Massachusetts university.
Romney announced the filing of the economic stimulus bill at Cambridge-based Akamai, a leading provider of web acceleration technology that employs the majority of its 600 workers in Massachusetts. Paul Sagan, President and CEO-elect of Akamai, praised the Governor’s proposal, saying, “Akamai has thrived as a Massachusetts-based company. It is critical for the state to remain competitive in attracting and holding new businesses, so that the local economy can grow and create new economic opportunities.”
Noting the permitting process takes anywhere from four months to five years to complete, Romney’s legislation also overhauls this significant barrier for businesses looking to relocate and expand in Massachusetts. The “Jobs Expressway Package” reforms state and local permitting rules to give businesses greater clarity and predictability on the permitting process and guarantees approvals in certain areas will be processed within 180 days.
The newly created Office of Technical Assistance will support communities looking to update permitting regulations. An online inventory of pre-permitted sites will be developed and marketed by the state’s Business Resource Team.
In addition, Romney’s plan targets the state’s highest-in-the-nation unemployment insurance system, calling for $246 million in rate relief for businesses in 2006. With unemployment costs skyrocketing by an average of 73 percent last year, Massachusetts companies now pay a higher rate than any other state at $688 per employee.
By decreasing the taxable wage base from $14,000 to $12,800 and setting the schedule at “C” instead of “D,” the plan will give employers an immediate savings of $101 per employee in 2006. The proposal also brings Massachusetts more in line with the other states by reducing the number of weeks an individual can collect unemployment benefits from the current 30 weeks to 26 and providing benefits for individuals who have worked for 20 weeks instead of 15.
“With the Massachusetts economy on the road to recovery, let’s allow our employers, who have faced some of the highest unemployment insurance bills in the nation, to invest more money in growing their business,” said Romney.
Romney added, “Our unemployment insurance costs are completely out of step with every other state – hiring new workers in Massachusetts comes with an expensive price tag.”
Romney’s bill also includes $2 million to create a sales force to help attract out-of-state businesses. Combined with $625,000 in funding requested in Romney’s Fiscal Year 2006 budget, Massachusetts will triple its sales and marketing team to be more in line with other states’ efforts to generate new business opportunities.
“We want other states to know that Massachusetts has a world-class workforce, leading colleges and universities and a business-friendly environment,” said Romney.
The state’s One-Stop Career Centers will receive an additional $2 million to provide services for job seekers, particularly nearly 9,000 newly returning reservists and National Guard, and to employers looking for workers. There are 32 centers located across the state that hold workshops, sponsor job fairs and work with local employers to recruit workers for available job openings.
In addition, Romney’s plan includes a repeat of last year’s highly successful sales tax holiday designed to save consumers $10 million and boost spending. The holiday, which will occur during a seasonally slow retail period, will exempt individuals from paying the state’s five percent sales tax on purchases up to $2,500. Motor vehicles, boats, meals and utility payments are not included in the holiday and items priced higher than $2,500 will still carry the sales tax.
Romney’s bill also includes $250,000 for the implementation of a broadband access pilot program for underserved regions.
“Reforming the way the state works with businesses and providing incentives for employers will help preserve and create new jobs in Massachusetts,” said Romney.
###
Comments (0)
You don't have permission to comment on this page.