The Affiliated Chambers of Commerce of Greater Springfield, Inc. recently unveiled its legislative agenda for the year 2005, as part of its annual Outlook program. 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, 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 Budget for FY 2006

The Chamber, through its budget sub committee, has closely monitored the state budget for the past two fiscal years. Once again, the FY 2006 budget will be a priority item in the Chamber’s program of work. Over the years, the Chamber has adopted a set of principles regarding the state budget. These principles will once again guide the committee in its work. Strong attention will be paid to the structural deficit in the state’s budget, defined as the gap between spending in ongoing programs and revenues from recurring sources.

The Chamber will continue to support meaningful reforms of programs, process, and management. Strong encouragement will be given to the Administration and the legislators to work together in this area. Additionally, the Chamber will advocate for prioritization of spending to ensure that the competitive nature of our state’s offerings will assure that long-term employment and quality of life are not jeopardized. Finally, until the structural deficit expected to be present in the FY 06 budget is fully resolved, the Chamber feels talk of personal income tax rate reduction should be placed on hold.

As always, the Chamber will pay extra attention to those areas of the budget that affect sectors of our economy that depend on state financing such as higher education, health care, human services, and our cities and towns. At the same time, the Chamber will continue to fight to keep the costs of doing business down as our members try to survive and grow during this period.

Health Care

It seems that everyone on Beacon Hill has health care as a priority item for 2005. The Chamber, through its sub committee concentrating solely on health care, will be an active participant in the discussion taking place on this issue that seemingly will result in a comprehensive piece of legislation addressing many of the complicated facets of the health care world. Once this legislation is offered, the Chamber will study it and take a well thought out position on it.

The Chamber will continue to support small group health insurance reforms and will work to make that part of any comprehensive legislation on health care. Additionally, special attention will be given to the full funding of Medicaid costs and to the "Free Care Pool" to prevent cross subsidization of state health care programs by the business community.

In 2004 the Chamber opposed legislation mandating fixed ratios of nurses to patients in our hospitals. This legislation is expected to be introduced again in 2005. The Chamber will oppose its passage as it is the Chamber’s belief that it would greatly add to the costs of operation of all hospitals, and that it does little if anything at all to address any issues regarding the shortage of nurses. The health care sub committee will look at the nursing shortage issue and determine if there is a proper role for the Chamber to play in that issue.

Unemployment Insurance (UI) Reforms

While some success was gained in 2004 in this area, there were meaningful reforms that were not enacted. These reforms will be the focus of the Chamber in 2005. Massachusetts now has the dubious distinction of having the highest cost per employee in UI costs. Specifically, these are the reforms the Chamber will advocate: increasing the number of weeks of work required for eligibility from the current level of 15 to 20; changing the duration of benefits from 30 weeks (the only state to offer this many weeks) to 26 weeks, the level of all other states. It should be noted that in 2004 a weak attempt was made by the legislature to do this through the use of a trigger, that if a certain rate of unemployment was met, the weeks of eligibility would drop from 30 to 26. Unfortunately, the trigger used was so unrealistic that it would have only been met twice in the last 20 years, a period of time that includes some robust economies. Efforts may be taken to rework this trigger to make it a more realistic one.

Small Group Health Insurance

Legislation has been offered the past few years that would address a problematic change in small business health insurance that was passed into law several years ago as part of a sweeping reform bill. As a result organizations such as the Chamber of Commerce are now prevented from "pooling" its members in order to obtain lower health insurance premiums. The Chamber will continue to advocate for the passage of this corrective legislation, or advocate that it be included in any broader health insurance reform bill.

Workers Compensation

Since the successful reforms began in 1992, the Chamber has fought legislation seeking to reverse many of these reforms. It is assumed that many attempts to do so will again take place in 2005. The Chamber will continue to keep the system currently in place, and working so well for employers and employees, and oppose all efforts to repeal parts of the reforms already made.

One other aspect of Workers Compensation that the Chamber will continue to monitor if necessary, is to ensure that competition exists in the system and that insurance companies enter into the state to offer this insurance and not leave as has been the case during some years. The issue here is rate adequacy and the Chamber will monitor this situation to be sure a balance is struck that will benefit employers in the long run.

Truth in Hiring Legislation

The name of this legislation comes from a successful initiative in Kentucky that the Chamber will work to enact in Massachusetts. This legislation is needed to give employers limited immunity from liability when disclosing information about current or former employees. The obvious need to offer this immunity is to ensure the safety of the workplace.

Legislation Banning Certain Chemicals

The Chamber was successfully involved in defeating this legislation in 2004 and will remain active in 2005. The legislation targets certain chemicals currently used in many manufacturing processes that are heavily regulated by state and federal agencies. Any involved group with little or no scientific data could add to this list very easily. The outright ban of these chemicals would have a severe adverse impact on our manufacturing base. The Chamber believes that there is currently in place state and federal agencies that study and regulate the use of these chemicals and that safeguards are in place that do not require this proposed outright ban.

Property Tax Rates

This perennial issue will be a major focus of our efforts on the local level. The efforts of the Chamber to create jobs for our regions residents is greatly affected by the property tax burden placed upon business. More detail can be found on this issue in the 2004 effort section.

Other Issues Being Monitored

While the ACCGS has adopted several positions, other issues will be monitored closely. Other issues being followed include automobile insurance reform, minimum wage increase, Springfield's financial situation, and job training and education.

The committee also acknowledges that there may be other issues that arise during the year that will demand its attention.