The Affiliated Chambers of Commerce of Greater Springfield, Inc. unveiled its legislative agenda for the year 2004 today, as part of its annual Outlook program. According to Vice President of Government Affairs Jeffrey Ciuffreda, the ACCGS Board of Directors, upon recommendation of the Chamber’s Legislative Steering Committee, voted to adopt positions on several issues as the nucleus of its legislative efforts. As with all legislative issues the Chamber adopts, Ciuffreda says this year’s efforts signify "the Board's continued resolution to keep the cost of doing business in Massachusetts reasonable and to ensure that our members are 'economically competitive' ".

Massachusetts State Budget for FY 2005

The ACCGS has been monitoring the current year’s budget and revenue will continue to do so throughout 2004. While budget cuts and reforms have taken place, Ciuffreda says more gaps- perhaps in the $1 billion range in the FY 2005 budget- are projected and therefore more must be done.

Fiscal data from the first half of the year are beginning to show the growth in state revenue collections are not likely sufficient to keep pace with the rising costs of Medicaid, debt service, and pensions, to name a few. The Chamber acknowledges the importance of certain sectors of our economy that depend on state financing such as higher education, health care, and our cities and towns. At the same time, the Chamber continues to fight to keep the costs of doing business down as our members try to survive in these difficult economic times.

Ciuffreda says monitoring the budget and engaging elected and appointed government officials in dialogue designed to bring about meaningful reforms, reasonable service reductions, if needed, and ensuring proper spending levels in critical areas of public interest will consume a great amount of the committee’s time.

Unemployment Insurance (UI) Tax Rates and Reforms

This has been a major area of concern for the ACCGS over the past few years. At the end of 2003, it was thought that the reforms the Chamber advocated for would be incorporated into law, but that did not occur.

The Chamber, in 2003, acknowledged the need for increases in the rates as the result of the UI fund being depleted because of the economic downturn. However, the Chamber also advocated for critical reforms to the benefit structure in order to bring benefits in line with other states and to keep the increase to a manageable level. While one good feature emerged, tax tables being more experienced rated, no benefit reforms were enacted, causing a much larger increase than is acceptable. Ciuffreda states the Chamber will again work for benefit reforms and fight for more reasonable tax rates.

Workers Compensation

Since the successful reforms of 1992, the Chamber has fought, and will continue to fight, against legislation reversing those reforms. At the same time, there is evidence that the rate reductions over the years have caused many insurers to stop offering coverage, forcing more companies into the involuntary coverage pool and driving up their rates. The Chamber will continue to monitor this situation believing that more insurers offering coverage is better for employers in the long run.

Small Group Health Insurance

Ciuffreda says legislation is pending that would address a problematic change in small businesses health insurance that was passed into law several years ago. As a result in the change in law, organizations such as the Chamber are now prevented from "pooling" its members, (combining large and small businesses), in order to obtain lower health insurance rates. The Chamber will continue to advocate for the passage of corrective legislation that should have a positive effect on the cost of providing health care coverage, especially to very small employers.

Minimum Wage Increases

Ciuffreda says there are bills pending in both the House and Senate to increase the state minimum wage, and to annually increase this wage by indexing. The Chamber has taken a position that this rate is best set by the marketplace and not through legislation. Furthermore, if it is set through legislation, it should happen at the federal level and definitely should not include any automatic indexing language.

Health Care

This is one of the most complex areas of public policy that the state and federal governments must deal with. In an effort to better understand and influence policy making, the Chamber is beginning a new sub-committee to concentrate on health care issues. Issues of concern include the Medicaid’s consumption of roughly 30% of the state budget; inadequate rates paid to health care providers by the state, tort reform, physician shortages and escalating health care costs driven by new state mandates, such as, mandatory nurse staffing ratios.

Local Property Tax Rates

The Chamber will remain very active in all communities during the property tax rate setting process in the fall. The communities of Agawam, Springfield, Westfield, and West Springfield all currently have a two tiered system, and other affiliates have either had one in the past or are considering going to one. The Chambers in each community work hard each year to be sure the city councilors and selectmen understand that by having a two tiered system, the business community is actually subsidizing the residents, even though businesses do not use all services of the community. While it may be unrealistic to think that every community will have one tax rate for all classes, Ciuffreda says, "the Chamber's mission is to be sure that the subsidy is at a reasonable level. The efforts of business to create jobs for our region's residents is greatly affected by the property tax burden."

Other Issues Being Monitored

While the ACCGS has adopted several positions, Ciuffreda says other issues will be monitored closely. Other issues being followed include environmental issues regarding banning certain chemicals, electronic shelf pricing for retail food businesses, smoke free workplace legislation, child labor laws, municipal relief legislation, and job training and education.