NFIB

State budget
With the national economy translating into lower revenues from capital gains, corporate excise, state income and sales taxes, state leaders are scrambling to make the first of four quarterly $1.3 billion local aid payments to cities and towns. That obligation and other bills are being paid with short term borrowing. Short term borrowing (which must be repaid by June 30) to maintain cash flow may reach the level for all of FY 08 ($1.8 billion) by Dec. 31. Blaming the national economic woes for the state's budgetary problems misses the point that even with strong revenues, the state would have had a hard time balancing the $28.2 FY 09 operating budget adopted just three months ago. The national situation only exacerbates the state's structural deficit which some previously estimated to be $1 billion. The administration estimates at least $600 million despite projected increased revenues from new corporate and cigarette taxes and "enhanced enforcement." September revenues will be announced later this week with many expecting bad news. Look for the governor to act to reduce spending where he can and for the legislature to return in special session after the election to make further budget reductions and to give the governor emergency powers to further reduce spending. Also watch for resolution of large federal healthcare and Big Dig reimbursements to the state to ease the crunch.         

Regulations affecting small businesses: Privacy
After hearings, the state has promulgated regulations governing the standards for safeguarding personal information about a resident of the state. The regulations (201 CMR 17.01-17.04) apply to individuals, corporations, partnerships or other legal entities that keep personal information on paper or electronically and are designed to protect the information from unauthorized access. The regulations are due to take effect on Jan. 1, 2009. A similar Executive Order issued by Gov. Patrick covers state and municipal agencies.

Regulations continued: Jewelry
As a result of a new federal consumer protection law that specifically preempts state regulation of manufacturing and sale of children's jewelry, the Department of Public Health dropped the effort to establish state specific standards. Massachusetts had threatened to implement stricter standards that would have hampered domestic jewelry manufacturers and jewelry retailers in a national and worldwide market. The new federal regulations will take effect Feb. 1.   

And more regulations: CORI
The Criminal History Systems Board is considering new regulations to improve the accuracy of criminal offender records, to limit information to conviction and pending criminal charges, and to ensure the subject has a process to correct errors and to challenge the accuracy and relevance of the information in the report.     

Quote of the week
In describing the reaction of out-of-state developers to the recent weeks long legislative hold up of a liquor license for a major supermarket -- a hold-up that jeopardized a multi-billion dollar mixed use development in Westwood -- the developer said the process had bewildered out-of-state investors and "there's a sense of amazement... about how business is done in Massachusetts." 

And in D.C.
NFIB has gone on record in support of quick passage of Alternative Minimum Tax relief without an offset and for the extension of other current provisions providing tax relief for small business. In the financial bailout debate, NFIB has taken positions in support of community banks as the source of small business credit and in opposition to golden parachutes for executives at financial giants. Finally, NFIB has called for allowing the moratorium on off shore oil drilling to expire on Sept. 30, citing the high cost of fuel as one of small business owners' biggest challenges.