Commonwealth Conversations: Engage!: January 2013

State of the Commonwealth 2013 Preview

Governor Patrick delivering last year's State of the Commonwealth. (Photo: Scott Eisen/Governor's Office)

This evening Governor Deval Patrick delivers his fifth State of the Commonwealth Address. In his address, the Governor will call for a renewed investment in education and transportation to create opportunity across the Commonwealth and to keep the its economy growing.

Learn more about these investments:

Competing in the 21^st Century: The Case for Comprehensive Investments in Education and the Cost of Inaction
The Way Forward: A 21^st Century Transportation Plan
The Patrick-Murry Administration: A Record of Strong Fiscal Management, Cost-Savings and Reform

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Improving the Oversight & Efficiency of Local Housing Authorities

Governor Deval Patrick filed legislation that will professionalize, modernize and regionalize the operations and financial management of the Commonwealth’s housing authorities. The proposals will change the governance structure of the housing authority system in order to protect the safety net that public housing provides for the Commonwealth’s most vulnerable families, seniors and persons with disabilities and builds on the Administration’s unprecedented commitment to public housing.

“This bill will simplify and professionalize our public housing system, improving transparency and accountability,” said Governor Patrick. “We owe the residents and the public no less.”

Key Elements of the Legislation:

The legislation consolidates the state’s 240 housing authorities into six regional housing authorities and builds on the steps the Patrick-Murray Administration has taken to increase transparency, accountability, performance, efficiency, innovation and cost savings in the state’s public housing system.
The six regional housing authorities will take over ownership, and fiscal and operational management of all public housing in the Commonwealth.
Under the reformed system, each regional housing authority will consist of one executive director, a governing board, and central and regional management staff and local site managers.

Maintaining and strengthening the state’s public housing system is part of the Patrick-Murray Administration’s comprehensive effort to provide quality housing to everyone in the Commonwealth.

This includes maintaining the nation’s strongest emergency housing safety net while increasing investments in homelessness prevention and permanent housing solutions, and creating new housing in areas near public transportation that is attractive and accessible to families and individuals.

It also furthers the Patrick-Murray Administration’s goal of ensuring that municipalities have the ability to increase the efficiency and effectiveness of local services through regionalization.

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Reforming Unemployment Insurance for Municipalities

Governor Deval Patrick filed legislation that will close loopholes to Municipal Unemployment Insurance (UI) and create a fair and collaborative system that provides economic relief to cities and towns.

The legislation arises from the work and recommendations of the Municipal UI Task Force he convened to address the concerns raised during the spring of 2012 by a number of municipalities. After soliciting feedback from municipalities through letter, meetings and presentations, the Task Force issued its recommendation in November.

“I thank the members of the Municipal UI Task Force for their hard work and creativity in coming up with this series of balanced solutions,” said Governor Patrick.

“Through the work of the Unemployment Insurance Task Force and with the filing of this legislation, we are engaging with cities and towns to provide a more equitable system and relief for both municipalities and employees on the local level,” said Lieutenant Governor Timothy Murray.

Key Points of the Legislation:

Create a 65% UI offset to retirees collecting a defined benefit pension, thereby significantly limiting a returning retiree’s access to unemployment when laid off and collecting a pension.
Eliminate the disparity between those employed directly by a school department and those providing services to the school but paid directly by the municipality. All public employees providing services to a school who have “reasonable assurance” of continued employment are ineligible to receive UI benefits when school is not in session.
Prevent municipalities from being charged for wages earned by election workers who make less than $1,000 a year. Currently, municipalities could be responsible for paying some portion of UI benefits to these employees, if they earn enough wages from other employment.
Allow the Department of Unemployment Assistance (DUA) to participate in the United States Treasury Offset Program so that the agency can intercept the federal tax returns of anyone who owes DUA funds as a result of an overpayment. As with the state program, the federal program will have procedures for notice and opportunity to present evidence as required by federal law and regulations.

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Making Massachusetts a Better Place for Businesses

Governor Patrick filed legislation that will lower business costs and encourage job growth by freezing unemployment insurance rates for employers and reducing or eliminating the contributions they make to fund health care programs for low-income residents.

“This common sense legislation is good for businesses and good for the Commonwealth,” said Governor Patrick. “Our people need jobs and these further measures will help employers create those jobs.”

“We want all businesses to succeed in Massachusetts, and this legislation proposes resources that will provide relief and a supportive business climate for companies across the state,” said Lieutenant Governor Timothy Murray.

Key Elements of the Legislation:

Freeze the UI Contribution Rate

Freezing the employer Unemployment Insurance (UI) contribution for 2013 will save employers an estimated $500 million. This marks the fourth year in a row the Governor has advocated for freezing the UI rate in order to provide economic relief to employers. If passed, the Patrick-Murray Administration will have saved employers approximately $1.7 billion over the last four years alone. Even with the freeze, the Unemployment Insurance Trust Fund balance will end 2013 with approximately $600 million dollars.

Eliminate the Fair Share Contribution Program and Medical Security Program

Effective June 30, 2013, the legislation will eliminate the Fair Share Contribution Program. The Fair Share Contribution program was established under the Commonwealth’s 2006 health care reform law and mandates that employers with 11 or more full-time equivalent employees make a “fair and reasonable” contribution toward the health care costs of its full-time workers, or pay a $295 per employee. The federal Affordable Care Act has a similar policy for employers with over 50 employees, effective in 2014, that could result in double-penalties if the two policies were to coexist.
Eliminate the Medical Security Program by the end of this calendar year. MSP provides qualifying individuals receiving unemployment insurance benefits health care coverage. Like the Fair Share Program, MSP will no longer be necessary under the ACA.
- Through the ACA, individuals currently enrolled under MSP will be able to access subsidized health coverage through our existing state insurance programs like MassHealth and those offered at the Health Connector.

Continue to Maintain Quality Health Care, Employer Contribution

In order to ensure employers are contributing their share to maintain quality, affordable health care for all residents, the legislation creates an “employer responsibility contribution” for employers which will, starting in 2014, help finance the cost of subsidized care for low-income residents.
- Unlike previous programs, the employer responsibility contribution will be streamlined, efficient and less burdensome for both small and large businesses.
- This contribution will be lower than the current employer assessment funding level for the Medical Security Program.

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Improving the Business Climate for Licensed Professionals

Expanding a regulatory reform effort that has already made doing business easier for thousands of businesses, Governor Patrick announced legislation to streamline and improve the licensing process and business climate for thousands of professional licensees throughout Massachusetts.

The legislation is part of the Patrick-Murray Administration’s comprehensive regulatory reform effort to conduct a fresh analysis of existing regulations and determine what still makes sense in the 21st century.

The effort, first of its kind in the Commonwealth in more than a decade, has removed unnecessary barriers to starting a small business, enhanced efficiencies of state government operations and aligned state practices with widely accepted national models or best practices.

“These common-sense changes in the Division of Professional Licensure are further steps forward in improving the business climate,” said Governor Patrick. “Together with our work to update or eliminate old regulations, simplify tax laws, contain health care costs and enhance access to capital, we are making Massachusetts an even better place to do business.”

Key Points of the Legislation:

Makes a number of internal changes to DPL operations that will lower costs and make the agency more efficient;
Eliminate some fixed-number quorum and appointment requirements for boards, which will make it easier for boards to conduct business and recruit members;
Strike out laws for several boards that purports to authorize the boards to hire staff and receive compensation. Currently, DPL provides boards with necessary support staff and the obsolete language causes confusion;
Eliminate a mandatory review of the Hearing Instrument Specialist Board every three years by the State Auditor, taking out a unique and unnecessary provision;
Eliminate the Board of Registration of Barbers and the Board of Registration of Electrologists and create a consolidated Board of Registration of Cosmetology and Barbering that will reduce redundancy and improve administrative efficiency in shared areas such as licensing, investigation and consumer outreach.

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Reforming the Board of Pharmacy and Compounding Industry

Governor Patrick has filed legislation to reform the Board of Pharmacy and strengthen state oversight of the compounding pharmacy industry. This legislation, along with related actions the Administration is taking, builds on recommendations released last week by the Commission on Pharmacy Compounding.

“There is no action that we in government can take to prevent all abuses in all industries – but we must do what we can. This legislation makes patient safety paramount and will help fill the gaps in compounding pharmacy monitoring that allowed NECC to operate in the shadows,” said Governor Patrick. “Together these changes can ensure that the tragic events of last fall never happen again.”

Four Key Parts of the Legislation:

Requires a special license for sterile compounding that will help regulators hold pharmacies accountable for their practices.
For the first time, authorizes the Board to assess fines against Massachusetts licensed pharmacies that violate Board of Pharmacy policies, regulations, or statute; and establishes whistleblower protections for pharmacists and pharmacy staff.
Requires licensure for out of state pharmacies that deliver and dispense medications in the Commonwealth.
Establishes a clear process to restructure and reorganize the composition of the Board of Pharmacy. The Board will include more members not practicing in the industry they are responsible for regulating. Under the legislation, the 11 member Board would be comprised of four pharmacists, one nurse, one physician, one pharmacy technician, one quality improvement expert, and three public members.

This announcement comes as the first of several reforms the Governor will propose over the next week to address specific needs as part of the Administration's continuing efforts to make government work better.

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