Dear NFIB/Massachusetts member,
Despite a robust economy with low unemployment, particularly in and around Boston, Massachusetts’ puzzling revenue picture grows darker. State revenues have fallen more than $400 million behind projections with the largest revenue month (April) behind us and only two months left in the fiscal year.
While the Baker administration and legislative leaders project confidence that budgetary adjustments in this year’s spending and next year’s budget. Although there are many theories for the revenue shortfall, the slow growth in revenues may reflect the slow economic recovery and the increasing share of non-taxable income (health insurance, leave from work, other benefits) enjoyed by workers.
One issue driving state budget woes is health care costs – now 42% of the $40 billion state spending plan for FY 2017. Fully 30% of the Massachusetts’ residents are covered by a government subsidized health insurance policy.
The House budget demands that the Baker administration review and implement a new assessment on employers to help pay the state’s exploding MA Health program. While awaiting the Senate budget plan for FY 18, small business owners are telling their legislators that the state’s health care cost problems are nothing new for small businesses. Small business needs cost relief to grow and compete in the state. A new tax or assessment (or whatever policymakers want to call it) will not solve the problem for small businesses — it will add to the cost of health care.
The threat of another minimum wage increase – already the highest in the nation at $11.00 per hour – and a new paid family leave law granting workers as much as 26 weeks paid leave on top of the Massachusetts sick leave laws, make Bay State small business owners very nervous just as some regulatory relief may be on its way from Washington.
Bill Vernon
State Director
NFIB/Massachusetts
