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Newsletter Archives
Mass. High Tech Council Update
May 20, 2009
Beacon Hill 2010 Budget and Tax Challenge
The Massachusetts Senate began its budget debate on May 19. Since Governor Deval Patrick initiated the 2010 budget process by releasing his recommendations in January, state tax revenue projections for FY2010 have been reduced by more than $1.5 billion.
The Governor, House and Senate have all responded to the 'budget crisis,' with proposals that include a combination of spending cuts and permanent new taxes. The Senate, working with the most updated revenue estimates, detail non-education local aid cuts of $439 million and balance their budget utilizing $1.1 billion in federal stimulus and $300 million from the state's reserve fund.
Additionally, the Governor, House and Senate have introduced multiple tax hike plans to offset the shortfall. The various tax plans are summarized as follows:
Governor: Supports a nineteen cent gas tax hike projected to raise $500 million in new revenue. He has also proposed new taxes on candy, alcohol, restaurant meals and additional fees on RMV related transactions including auto registrations.
Massachusetts House: In April, the House passed legislation raising the sales tax by 25% to 6.25%. The House passed the measure by a veto proof margin of 108-51.
Massachusetts Senate: The Senate also passed the 6.25% sales tax by a veto-proof vote of 29-10, along with an increased tax on alcohol sales which is estimated to raise $633 million and $98 million in new revenue respectively. Governor Patrick had publicly threatened to veto the sales tax hike if transportation, pension and ethics reform plans were not passed by the legislature.
While reform of some aspects of the largest cost-drivers in state government are moving forward, the specter of significant, permanent tax increases to resolve temporary budget shortfalls looms as a cause for concern. An assessment of systemic-reforms and new taxes in 2008 and 2009, as well as anticipated increased taxes planned for 2010 will be available to Council members this summer.
First MassTrack Tech Caucus Event Held at Zoran
Photo L-R: Rep. Charles Murphy, Rep.Jay Kaufman, Council President Chris Anderson,
Sen. Susan Fargo, Simon Dolan of Zoran, Joe Murphy of Entegris, and Lori Johnson of Zoran.
The Council's inaugural MassTrack Tech Caucus Briefing featured a substantive discussion of economic and education issues between legislative and Council members on May 8 at Zoran Corporation. This was the first in a series of ongoing briefings designed to provide a forum for candid discussion between senior executives and the legislators who represent the largest concentration of tech workers in the Commonwealth. Visit http://www.masstrack.org/Map.aspx to view a map of the tech heavy areas in Massachusetts.
Senior VP and General Manager Simon Dolan hosted legislators representing technology and innovation economy workers from neighboring communities including House Ways and Means Chair Charles Murphy (Burlington), House Revenue Committee Chair Jay Kaufman (Lexington) and Senator Susan Fargo (Lincoln).
The discussion focused on the current economic downturn, its impact on tech employers, and how it could be utilized as a catalyst for action and reform on two major Council priorities: charter schools and municipal healthcare financing.
During the course of the meeting each legislator reinforced support for the newly established caucus and positively stated the value of face-to-face meetings with tech industry leaders.
In order to expedite action on these action items we ask that you consider hosting a MassTrack Tech Caucus meeting of senior tech execs and legislators in your region. Please contact Council Vice President Wyndham Lewis wyndham@mhtc.org or 781-890-6482 x14 for more information.
Council's Anderson Recognized for Education Work
Council President Chris Anderson was honored by Roxbury Preparatory Charter School, one of the nation's leading charter public middle schools, at the 10th anniversary gala at UMass Boston on May 7. Anderson, honored alongside the school's founders Evan Rudall and John King, was recognized for his distinguished leadership within the business community and on the Massachusetts Board of Education coalescing support for standards-based education (expanded MCAS), student assessment (TIMSS testing) and innovative school models such as Commonwealth Pilots and Charters.
In his address Anderson lauded the schools directors for their dedication and results. (Visit www.mhtc.org/policy/education.asp to read Anderson's remarks.) Roxbury Prep is a middle school situated in Mission Hill that enrolls entering sixth grade students who are typically at 20% proficiency in math and science and three grade levels behind in reading. By contrast, graduating eighth graders at the school rank in the top ten of all Massachusetts schools in MCAS math scores and seventy percent of Roxbury Prep students and graduates are on track to complete college compared with ten percent of their peers in district middle schools.
Roxbury Prep stands as a remarkable example of how charter schools make a profound impact in low income areas and provides a wealth of best practices and an irrefutable argument as to why Massachusetts must heed President Obama's call to "lift charter school caps wherever possible."
Council President, Chris Anderson
Council Testifies for Expanded Charter School Cap
Building on the momentum of more than five hundred charter school students, parents, teachers and advocates rallying at the State House on April 29, the Council was back on the hill testifying in favor of a bill to expand the charter school cap in the state's lowest performing areas. Although the Council favors a more broad-based statewide cap expansion, President Chris Anderson joined Boston Foundation President Paul Grogan, Massachusetts Business Alliance for Education Managing Director Linda Noonan and A.I.M. Vice President Andre Maier to collectively challenge the legislature to halt the practice of artificially impeding proven effective education models.
TalentConnect Enrollment Underway
On April 28, the Mass. High Tech Council, Defense Tech Initiative, and ConnectEDU co-hosted an important meeting of nearly 50 senior human resources executives from New England's diverse world-class innovation technology community along with academic leaders and military officials. The meeting was hosted by MITRE. Building on the industry enthusiasm generated by our inaugural February 12 meeting and successful March 3 public launch, the Council's TalentConnect initiative drew a broad spectrum of executives to learn more about the web-based talent identification, tracking and acquisition program developed in partnership with Boston-based ConnectEDU.
At MITRE, Council President Chris Anderson and ConnectEDU CEO Craig Powell provided an overview of the unique partnership that will give employers unprecedented access to a national network of more than 2 million students enrolled in more than 300 colleges and universities. You can access the presentation at /TalentConnect_28_April_Updated.ppt. This network is conservatively estimated to grow by 100% per year during the next five years to more than 12 million or 62% of all U.S. college students by 2014.
Attendees viewed a live demonstration that provided additional detail about TalentConnect's features allowing employers to search for students. Pricing structure and timelines also heavily incentivize early adoption by employers. Council members are offered a 33% discount, a 4-year price-lock subscription (versus 3 years for non-MHTC members), and an additional 25% discount off the first year subscription for enrollment by June 30, 2009.
Participants included - Textron Systems, Raytheon, Draper Laboratories, BioTrove, National Grid, FIRST, Mercury Computer, Deloitte, Analog Devices, Kollmorgen Corporation, Stratus, Naval Undersea Warfare Center, HP ProCurve, Wentworth Institute of Technology, CT Center for Advanced Technology, MassPort, Commonwealth Sciences, Mass Life Sciences Center, Jacobs Technology, UNH-Manchester, Merrimack College, and UMass.
To schedule an enrollment meeting, please contact Jane Stoy (jane@mhtc.org) as soon as possible.
TalentConnect Network Gets Massachusetts Boost
The TalentConnect network, already covering more than 2.4 million students in 2,500 schools with projected growth of 100% annually, received a significant boost this week when ConnectEDU was awarded a substantial state contract by the Massachusetts Educational Finance Agency (MEFA) to create the Commonwealth's career and college planning portal. (To read the press release dated May 13, visit our newsroom at www.mhtc.org.) The portal will be incorporated into the existing ConnectEDU network and will provide Massachusetts students and families the comprehensive solution to manage the complex college preparation and admissions process. Nearly 33% of Massachusetts' high schools are currently on the network and this contract assures the rapid addition of the Commonwealth's remaining high schools as well as a substantial increase in participation by the state's public and private universities.
Hanscom S&T
Since January, Defense Technology Initiative and Council principals have participated in a series of meetings with Hanscom leadership and significant progress has been made toward the establishment of the Electronic Systems and Software Science and Technology Board at Hanscom AFB later this year.
The primary intent of the Science and Tech Board is to streamline the partnerships of academia, government and industry with the Electronic Systems Center (ESC), thereby joining forces with the military in its mission accomplishment. Draft articles of collaboration have been developed and adoption is targeted for the summer.
Council Energy Program Update
The Council has expanded its energy program offering to members by establishing a new relationship with an old friend and partner, SourceOne. The change will allow us to improve our ability to respond to member energy procurement requirements and allow competitive bids to be considered for supply agreements, while expanding services to include energy efficiency, clean technology, and associated site assessments integral to more strategic energy planning and management.
Look for a more detailed announcement and initiation to an energy briefing being scheduled for June.
Council Hosts Chinese Economic Development Delegation
Hangzhou Biotech Park Garners Interest
The Council recently convened business and academic leaders to meet with a delegation of economic development officials from the Hangzhou Economic Development Area (HEDA) in Hangzhou China. The meeting co-hosted by the Council and UMass President Jack Wilson, focused on development of a new biotech park in China's top commercial city (Forbes Magazine 2003-2008). In addition, Hangzhou is a Sister City of Boston.
The biotech and pharmaceutical park will accommodate each step of the drug development pipeline from discovery to manufacturing and will be operational by next year. Representatives from Massachusetts' top biopharma companies and research centers attended and participated in the discussion. For information presented at the meeting visit our web site home page at www.mhtc.org.
Feedback from the visiting Chinese was that their Boston visit was a success and that HEDA would welcome a delegation from Massachusetts biotech companies to visit Hangzhou in the coming months. Additionally, HEDA is eager to receive specific information requests from Massachusetts firms regarding investment opportunity, development potential, tax benefits and incentives. HEDA indicated that they have assembled a team ready to provide rapid and thorough response to these inquiries as well as logistics for a visit from U.S. biotech execs.
If you are interested in participating in a Massachusetts delegation visit to Hangzhou with HEDA representatives to explore the specific opportunities for your company, please contact High Tech Council Vice President, Wyndham Lewis at wyndham@mhtc.org.
A follow-up briefing will be held for those who express interest by May 29 in participating in a delegation trip.
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