Category: Politics

Final Weeks for Governor Patrick to be Marked by Wind Energy Auction

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Massachusetts Governor Deval Patrick is not resting on his laurels for his final weeks in the corner office. On the contrary, he is advocating for a large auction for offshore wind development.

Patrick has reportedly told public relations executive Helene Solomon that the federal government would be auctioning off a substantial area south of Martha’s Vineyard. Once developed, this location could potentially provide power to as much as 60 percent of Massachusetts homes.

Along with federal officials Sally Jewell and Walter Cruickshank, Secretary of the Interor and Acting Director of the Bureau of Ocean Energy Management, respectively, Patrick announced in June that there will be approximately 742,000 acres off the shore of Massachusetts that could be up for lease for commercial wind energy use. This is expected to be one of the largest offshore wind projects in federal waters.

Massachusetts Environmental Affairs Secretary Maeve Vallely Bartlett has recommended that the federal agency lower the minimum bid from $2.00 per acre of the tract to just $1.00 because these areas are quite large and quite deep, which could be a deterrent to developers. She has also recommended other cost savings, such as lowered rent and fees for operating the site.

Support of wind energy projects such as this one is not new for Patrick, who also supported the Cape Wind energy project that was planned for an area in the waters of Nantucket Sound. Unfortunately, that project, while still ongoing, still faces opposition and has not gained much traction.

New Massachusetts Energy Chief Says State Can’t Rest in Push for Renewable Energy

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Bespectacled Maeve Bartlett stood behind a glossy black podium at the DCU Center and made a bold claim: The Commonwealth of Massachusetts is, she said, the national leader in meeting the challenges of climate change and adopting renewable energy technologies. Numero uno. The criteria: megawatts.

In 2007, Massachusetts had 3 megawatts of solar capacity and 3 megawatts of wind capacity. Operating at full power, these renewable energy plants could power 3,000-5,000 modern homes – small peanuts in a state with 6.7 million people.

But then Governor Deval Patrick and his administration passed three clean energy laws: the Green Jobs Act, the Green Communities Act, and the Global Warming Solutions Act. Businesses came a-dashing. Today, the state boasts 643 megawatts of solar capacity and 103 megawatts of wind capacity, and in 2014, Clean Edge ranked Massachusetts the leading state for clean energy policy and eco-energy investments per capita.

Barlett, formerly the agency undersecretary, was recently appointed to lead the final seven-month charge as head of the Executive Office of Energy and Environmental Affairs. She hopes to implement such plans like the Cape Wind project, secure hydroelectric contracts and construct more than 300 urban parks.

During her speech at the DCU Center as part of the eighth annual Massachusetts Energy Summit, Barlett said that the state could not rest in its push for renewable energy. The state hopes to eventually secure 30 percent of its power from clean energy sources.

Such grandiose plans represent big bucks. The Massachusetts clean energy sector is a $10 billion industry, with employment expected to surpass 100,000 jobs in early 2015. The sector has seen double-digit job growth for three consecutive years. At the recent Clean Energy Annual Jobs Report, Governor Patrick reported, “We have long believed that a strong commitment to investing in clean energy would not only provide significant environmental benefits, but would also serve as an economic catalyst in the Commonwealth.”

It is for megawatts – and megajobs – that Massachusetts is “taking the first, crucial steps to leaving a cleaner and more secure energy future,” said Bartlett, “for the next generation.”

Massachusetts Task Force Challenges Companies To Promote Women

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A state task force was established by Massachusetts Governor Deval Patrick to encourage the hiring of female employees in the Commonwealth. The task force is suggesting that companies permit more flexible scheduling, and hire and promote female workers to higher positions.

Almost half of the employees in Massachusetts are women, and nationwide they are either the only or main breadwinner in approximately 40 percent of families with children under the age of eighteen. It is a well-known statistic that women earn almost 25 percent less than male employees, and many find it difficult to juggle home and work due to inflexible work schedules. These have been ongoing problems for years, but the newly created task force is trying to change that.

Rachel Kaprielian is the Secretary of Labor and Workforce Development. She wants businesses to change outdated policies and become more family friendly, with the understanding that doing so benefits everyone desiring more time with their loved ones.

Governor Patrick recently started a one-year internship program for women after noticing a shortage of females in administrative positions and on the boards of private companies in the state. Fourteen women have been hired for executive positions at the state level.

Bentley University and Governor Patrick’s administration are challenging Massachusetts companies to hire more female workers and use their talents more effectively. Companies accepting the challenge will assign an administrator for the program, agree to hire women, increase the number of females at the executive level and narrow any wage gaps between male and female employees.

The task force also wants the Governor’s administration to look into paid family leave. Currently, almost three million workers in the state are not compensated when they miss work to take care of babies or other family members.

The task force is also targeting schools to encourage female students to learn science, technology, engineering, and mathematics (STEM) to assist them in achieving higher paying jobs. Working with the Department of Elementary and Secondary Education and the Department of Higher Education, the task force will recommend courses for female students in high school that will help them in their future job search.

Improvements to South Station Could Boost Framingham/Worcester Rail

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According to Massachusetts Transportation Secretary Richard Davey, Boston’s South Station is “becoming a choke point in the system and an obstacle to expanded service.” Davey placed a request with lawmakers on October 9 asking them for help with negotiating a deal that has the potential to allow the expansion of South Station.

Before the MBTA can add an additional seven tracks to the existing 13, it must first purchase property owned by the U.S. Postal Service. This piece of land has been the topic of discussions for years. The property is critical for the expansion of the station in its efforts to provide prompt service to commuters traveling through South Station.

The U.S. Postal Service and South Station “have yet to strike a deal,” said Davey, who will be leaving his post as transportation secretary at the end of October. He has asked Transportation Committee chairmen Sen. Thomas McGee (D-Lynn) and Rep. William Straus (D-Mattapoisett) for assistance with coming to an agreement. Davey also mentioned that the office is interested in purchasing property that once belonged to the Spaulding Rehabilitation Hospital. This purchase would enable the expansion of the North Station rail lines with two new tracks and a center platform.

Following the signing of a transportation bond bill in April, the Patrick administration re-engaged with the Postal Service, offering to build a $350 million mailing facility in the Boston Seaport District. “Frankly, we’re a little stuck,” Davey admits. “We’ve made a number of different proposals that we thought were compelling, that made the Post Office whole.”

The Postal Service has expressed concerns that the new Seaport land would depreciate, resulting in a lower price if it should attempt to sell the property in the future.

MA Senate Passes $80 Million Spending Bill

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An $80 million spending bill was recently approved by the Massachusetts State Senate to end the 2014 fiscal year. The bill will allow select state agencies to spend money from the 2014 fiscal year in the 2015 fiscal year. Five million dollars was also included to reimburse cities for expenditures from extreme weather conditions.

While several riders ended up attached to the bill, a rider to authorize the sale of the state transportation building in Boston was stripped. This rider originated in the House and would have allowed the Massachusetts Department of Transportation building on Tremont Street to be sold to the highest bidder. The Senate was wary about moving forward with the sale. After the Senate passed the spending bill, Democrat Senate Ways and Means Chairman Stephen Brewer said, “We will have an ongoing discussion about that. I am not going to prejudge where anything ends up.”

A myriad of other items were also included in the bill. There was a section on a commission to address sex offenders, a section on prescriptions written by nurse practitioners or physicians assistants, a section regarding Taunton State Hospital, the crafting of a new unemployment table, a section on the Cambridge Public Health Commission, and sections on home energy assistance to low-income families.

There was also a specific section that earmarked two million dollars to cover the restoration costs of the Mayflower II. A section could also be found that allowed the building of a three million dollar public safety building in Senator Brewer’s hometown.

The bill seems to effectively dispense with the budget surplus, estimated to be at twenty-five million dollars, amassed by the Patrick Administration as a result of tax collections that greatly exceeded revenue estimates made for the 2014 fiscal year.

The Senate and the House orchestrated no debate or public explanation of the bill. Senator Brewer stated he is optimistic to have the final bill on Gov. Patrick’s desk quickly.

Ebola and the Economy

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Unless you’ve been under quarantine for the past few weeks, you know that Ebola has once again reared its ugly head, causing widespread concern – bordering on panic in some quarters – about the possibility of a global pandemic. How realistic a possibility is this?  Could it actually happen? Frankly, it’s still too early to say one way or the other. However, it’s not too soon to make some basic predictions about how some businesses will be affected should matters get much worse.

Dr. Bruce Aylward is the Assistant Director General for the World Health Organization (WHO). He recently announced that organization’s prediction that the number of cases is expected to top 9000 by the end of this week, and the fatality rate of the current outbreak has risen from just under 50% to over 70%. When asked how the situation might evolve over the next 60 days, he warned: “We anticipate the number of cases occurring per week by that time to be somewhere between 5,000 and 10,000 per week.”

As in previous instances of global health scares, airlines, theaters, sports arenas, and other locations where large “fraternities of strangers” gather are sure to be the first to suffer the economic consequences of a population frightened into isolation. Participating in purely recreational activities will be weighed against the fear of contagion, and attendance is sure to plummet.  Schools, churches, and other venues where attendance is “less voluntary” will follow suit in very short order if the outbreak is not quickly reigned in.

The WHO announced yesterday that the Ebola epidemic had officially been halted in Nigeria, Africa’s most populous country.  Sadly, Liberia, Sierra Leone, and other nations in the region remain mired in the misery of a highly-contagious, incurable, deadly viral outbreak, and new cases are popping up around the globe on a daily basis.  Should this situation continue, the global economy is sure to take a big hit.

From a business perspective, this could cause a loss of billions of dollars in revenue. On a more personal level, this could very likely fundamentally change the way we socialize. How big a change depends entirely on how long this outbreak takes to be subdued and how much damage it does in the meantime.

Worcester Chamber Says ‘No’ to All Four Ballot Questions

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In November, voters across the Commonwealth will have the option to cast their vote for or against four positions that could impact business across the state. Recently, the Worcester Regional Chamber of Commerce met to discuss each of these questions in detail and to develop a policy to assist its members with a better understanding of how their vote would impact the business environment in the community and beyond. The chamber ultimately took a negative position for each of the questions on the ballot, stating that the proposed initiates would be detrimental to business.

  • In 2013, a law was passed tying the Massachusetts gas tax to the rate of inflation. This means the tax automatically adjusts every year without the legislature having to vote on it. This ballot question would repeal that automated yearly increase. The chamber noted that the additional gas tax will help fund needed infrastructure repairs throughout the state and are therefore against repealing the law.
  • In 1983, Massachusetts instituted a 5-cent deposit on soda and beer bottles and cans. This question asks if that deposit requirement should be extended to include water, juice, and sports drink containers as well. The chamber stated that this proposed change would have a negative financial impact on bottlers, distributors and retailers who sell these drinks, and are therefore against the measure.
  • In 2011, the Massachusetts legislature chose to allow casino gambling in Massachusetts. However, several citizens groups have come out strongly against legalized gambling and this question allows voters to express their opinion on the topic. While repealing the law may not impact Worcester, the chamber believes that the proposed initiative would limit job growth on a statewide scale.
  • The fourth question involves a proposal to alter how businesses provide paid and unpaid sick time to their staff members.  The measure would tie the number of sick days to the number of hours worked. The chamber believes that this proposal would limit a business’s flexibility to structure benefits as they need to.

The Worcester Regional Chamber of Commerce President and CEO Tim Murray drafted a letter to its members recently regarding the chamber’s position on each of these points. Both the executive committee and the public policy committee met to discuss the ballot questions in detail before the chamber created a comprehensive decision on the questions. The Chamber committees ultimately agreed that these initiatives would not benefit the business community in Worcester and that they may negatively impact their members.

Candidates for Top Office Go Silent on Non-Competes

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Both major-party candidates for governor,  Charlie Baker and Martha Coakley, should have been in the hot seat on non-compete clauses this past Monday. After all, they were in Cambridge speaking with an audience of young, tech-oriented, startup-minded, entrepreneurial spirits.  But if anyone was looking for answers, a strong stance, or even a reasonably thorough discussion on the matter, they will just have to wait because both Coakley and Baker went with “wait-and-see” positions on the topic.

Non-competes have become a hot button topic in the business community and subsequently spilled into the political ring. While the non-compete has been included in many agreements between employer and new hires, its function has gradually come into question, with a growing sector of the business community considering the non-compete clause as stifling. Employers continue to insist it’s necessary for protecting trade secrets.

Candidate Baker offered an opinion that hints he believes there is room for compromise. It’s a safe position that gives both sides hope. Meanwhile, candidate Coakley took an even weaker slant, saying she is open to looking at change, waiting to hear from all parties. This despite the fact that the opinions of both sides’ is not merely a matter of public record, but quite a volatile one.

That both candidates can take such a position is discouraging. It is well known employers want to leave things as they are while employees are growing increasingly tired of the stifling nature of the non-compete clause, saying that it limits their opportunities to grow and stops them from moving to a competing company or starting a business of their own in the same field. With all the publicity surrounding current legislative attempts to outright ban the practice of non-competes, one has to wonder how two candidates vying for the corner office could take such non-committed approaches.

Of course, playing it safe is the norm in politics, not the exception. Neither candidate wants to openly offend constituents so close to the election. Unfortunately for those of us who want a candidate that has a strong opinion either way, we may have to wait until the candidate is actually in office before hearing one.

GOP’s Baker Unveils Economic Development Plan

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Charlie Baker, Republican candidate for governor of Massachusetts, unveiled his economic and development plan Wednesday. The candidate claims that the plan will help build better schools, create jobs, and help to strengthen local communities.

Included in the plan are several proposals that would use tax credits to incentivize the hiring of veterans or those on welfare, as well as plans to help small employers with the upcoming rise of the minimum wage to $11 per hour by the year 2017.

Baker also claimed that his plan would cut business fees, help provide affordable housing, and further open the process for bidding on public projects to minority-owned businesses.

While Baker’s plan has been estimated to cost up to $300 million year, he said that it would overall be “a small price to pay” and the lost revenue could be easily covered. He added, “We’ve got a $38 billion budget. Tax and other revenues grow by about $1 billion a year. I think we can figure it out.”

Democratic candidate Martha Coakley already announced that her administration would offer up to $500 million for economic development over the course of the next decade if elected governor. Of that $500 million, Coakley stated that $400 million be used on major infrastructure projects. The rest would be set aside for grants to find further strategies for economic development. Coakley has also pledged to cut the waiting list of those applying for subsides for pre-kindergarten education. Baker stated that early education shouldn’t be the only focus for the state.

Baker said, “The important thing we need to do with respect to expanding pre-K is we need to make sure that those kids are going into schools where they’re going to continue to get the education they need.” He added, “You can’t think about pre-K without thinking about K-8 as well. Those two have to be connected.”

Along with Coakley and Baker, three others have announced their plans to run for governor as independents, Jeff McCormick, Scott Lively, and Evan Falchuk.

Election Day is Nov. 4.

Should Cape Wind Receive $150 million Federal Loan Guarantee?

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The U.S. Department of Energy has announced that it will grant a $150 million loan to advance the Cape Wind energy project in Massachusetts, provided backers can secure an additional $2.6 billion in financing. If successfully built, Cape Wind will consist of 130 wind turbines capable of producing 360 megawatts of electrical power.

The project has been controversial since its inception. Cape Wind has been praised by supporters as having the potential to transform Eastern Massachusetts into a national hub for wind power production. Backers say that Cape Wind is a model for wind projects being considered in other parts of the country. Wind power is often cited as a key component of “clean energy” alternatives to fossil fuels, and is praised for producing very little pollution while being endlessly renewable. Greater use of wind power would reduce reliance on fossil fuels, while construction of the wind turbines is estimated to create about 400 jobs. An additional 50 permanent operational jobs will be created once construction is completed.

Not everyone is impressed. Critics point out that the number of jobs divided by the money spent means that each job will be created at a cost of over $300,000 apiece. Some suggest that is too much money for too few jobs. Critics also point out that even with government subsidies, wind energy is more expensive to produce than more traditional energy sources. Fisherman have complained that the wind turbines will upset their fishing opportunities by restricting access to areas that are now available for fishing. Meanwhile, free market conservatives argue that the project represents a potentially disruptive intrusion into the energy market that will have unintended consequences.

Despite the offer of the Energy Department money, it remains to be seen whether the rest of the $2.6 billion in financing will come together in order to trigger the $150 million loan, although European investors recently came forward with an offer of $600 million. However, political, regulatory, financial and environmental hurdles remain, leaving it still uncertain whether supporters or critics of the project will ultimately prevail.