February 2008

Volume 31, Number 1
February 2008

General Donald Quenneville Takes Reins at DTI; Chester Named Education Commissioner; UI Battle Continues

The Massachusetts Defense Technology Initiative (DTI) has named Brigadier General Donald J. Quenneville (ANG, retired), a former fighter pilot and a top commander overseeing North American homeland defense, as the organization's new executive director. Quenneville will be responsible for daily operations of DTI.

Quenneville was most recently the Deputy Commander of Force Employment and the Canadian North American Aerospace Defense Region in Winnipeg, Manitoba. Quenneville was responsible for ensuring that the Region Battle Staff, the Sector Air Operations Center, air defense fighter units and other strategic assets performed as a team to provide peacetime air sovereignty and tactical warning of attack on North America. He was also responsible for ensuring the mission effectiveness and administration of the U.S. Air Force units assigned to Canada.

"I am delighted to join a dynamic organization that has a track record of results and strong growth potential," said Quenneville. "Massachusetts and the region have significant defense technology assets of value to the regional economy and the Pentagon. I look forward to working with the entire region's defense technology community to create jobs and support the development of cutting-edge technologies that secure our nation and protect and empower our brave military personnel around the world."

Quenneville hit the ground running by building on successful DTI-supported initiatives, including the Natick Science & Technology Board and the coordinated campaign to bring an Air Force Cyber- Security Research Center to the region. He also intends to make it a priority to expand DTI's membership.

"General Quenneville has the ideal experience and skills to take DTI to the next level," said DTI Chairman and BAE Systems General Manager Steve Jamison. "General Quenneville has dedicated his professional life to serving his nation and the Commonwealth. Overseeing DTI's ambitious agenda is a logical next step in his long and distinguished history of public service."

Quenneville began his military career in 1971 when he received his commission through the Officers Training School at Lackland Air Force Base, Texas. After spending eight years on active duty as an F-106 pilot, he joined the Massachusetts Air National Guard's 102nd Fighter Wing at Otis Air Force Base. He was commander of the 102nd Fighter Wing on September 11, 2001; pilots and aircraft from the unit were the first to respond to the terrorist attacks on the World Trade Center. In his 36-year Air Force career, Quenneville achieved Command Pilot status with more than 4500 flight hours and received numerous major military awards and decorations, including the Defense Superior Service Medal and the Canadian Meritorious Service Cross.

"Having someone of General Quenneville's stature lead DTI is a boon for the organization and the region's entire defense sector," said Christopher Anderson, President of DTI and the Mass. High Tech Council. "We look forward to DTI reaching new heights under General Quenneville's leadership."

Quenneville holds a Bachelor of Arts-Engineering Science from Dartmouth College and a Master of Science-Systems Management from University of Southern California. He and his wife, Maggie, live in Plymouth and have five adult daughters.

General Quenneville replaces Alan J. Macdonald who earlier this month accepted an executive position at South Shore Hospital.

To learn more visit www.massdti.com.

Board of Education Selects Chester

At a January 17 special meeting, the Massachusetts Board of Education unanimously voted to appoint Mitchell Dan Chester, Senior Associate State Superintendent of the Ohio Department of Education as the next Commissioner of the Massachusetts Department of Education.

The vote capped a 15-month recruitment and selection process. Board member and High Tech Council President Chris Anderson, who chaired the Board and initiated the recruitment and selection process, offered the nomination of Mitch Chester for the position. After the vote, Anderson said "I am very pleased that such a disparate group representing diverse interests could come to a unanimous decision in such short order. It speaks to the fact that Mitchell Dan Chester is without doubt the right candidate for the job."

During the past several years K-12 - specifically STEM education-has steadily climbed the list of public policy priorities on the Council's annual CEO Survey. For nearly two years the Council, along with co-chairs Ray Stata from Analog Devices and Henri Termeer from Genzyme, have convened major stakeholders in public education - education, union, government and business leaders -to identify changes in the Massachusetts public education system necessary to create a more globally competitive system for our state's schools. This collaborative Education Leadership Initiative has developed consensus priorities aimed at empowering our schools, building capacity and improving the quality of our educators (for more information, please click here).

Incoming Commissioner Chester has expressed an eagerness to meet with and begin working with the Council to assure we begin implementing the identified strategies as a result of our efforts during the past two years.

Patrick Seeks New State Education Governance Structure

In January, Governor Patrick announced his restructuring of the state's early childhood, K-12, and higher education policy setting boards. The proposal creates the post of Secretary of Education. The Commonwealth has tried an education secretariat twice in recent decades and in both cases, the Legislature has ultimately abolished the position.

During the past several years, successful-yet separate-efforts driven by the Great Schools Campaign/Mass. Insight, the Mass. High Tech Council, and the Boston Foundation have resulted in the development of clear strategies for transforming our education delivery system consistent with the global demands of the 21st Century. These strategies are fundamental to the state's long-term economic interests. Consolidating these efforts now will help establish a unified and committed "backbone" to guide policy development toward a consistent set of goals unaffected by periodic changes in direction from elected or regulatory policy interests.

We now look forward to the confirmation of these issues coming from Governor Patrick's Readiness Project in the coming months. With a new governance structure in place, the Governor will have the capacity-and accountability- for implementing these well-documented changes to our education delivery system.

Unemployment Insurance Battle Continues

On January 30, the Council continued its campaign to prevent the proposed unemployment insurance hike. In a memo to the Legislature, Council President Chris Anderson urged immediate action to freeze the 2008 unemployment insurance (UI) rate, stressing the fact that inaction will cost Massachusetts employers $150 million in additional UI taxes this year.

With the window to prevent this dramatic and unnecessary increase rapidly closing, the Council emphasized that a rate freeze is a priority of our CEO members and any legislative action will be considered a MassTrack vote. The Council has also maintained an aggressive schedule of meetings with legislative leadership and committee chairmen in an effort to thwart the proposed payroll tax hike.

The fact that our UI system remains one of the largest cost barriers to business expansion in Massachusetts undermines all other "pro-growth" policies that have been adopted by the Legislature in recent years. Bay State employers are burdened with some of the highest health care, energy and labor costs in the nation. Furthermore, recent increases in corporate taxes and the specter of "closing tax loopholes" - as well as new corporate tax hikes proposed by the Governor - have called into question the cost stability and predictability of the Massachusetts business climate. Addressing the other business cost challenges will take time, but the Legislature can act immediately to provide relief to struggling employers by freezing the 2008 rate.

Given the Legislature's leadership in recent years on Economic Stimulus and Expedited Permitting legislation - and the potential to support new jobs in burgeoning tech sectors including life sciences, clean energy and defense technology - we expect that the Legislature will do the right thing and act in a pro- active manner to support the employer community. We are also looking for leadership and unambiguous support for a rate freeze from Governor Patrick.

In addition to freezing the 2008 rate, we recommend a comprehensive set of reforms to make our UI system competitive for the long term while protecting the benefits of those currently without a job.

• Providing Benefits for 26 weeks - Currently, all unemployed workers in Massachusetts are eligible for 30 weeks of benefits and in 48 other states benefits last 26 weeks. We strongly recommend a review of duration and other non-wage benefits, such as the dependency allowance. Estimated $90 million savings.
• Strengthening Eligibility Requirements - Massachusetts currently allows an individual who has been working for 15 weeks to be eligible for the same benefits as someone who has been in the workforce for 20 years. We recommend a minimum of 20 weeks, which is still low but more competitive with other state systems. Estimated $30 million savings.
• Replacing Rate-Setting Mechanism - We suggest creating an automated rate-setting system that accounts for Trust Fund balance, unemployment data and economic conditions. A new rate-setting mechanism will make UI costs more stable and predictable without the need for annual legislative action.

Finally, two points to remember: 1) Employers-not workers or unions-fund 100% of state Unemployment Insurance bills; and 2) None of these reforms will reduce the amount of weekly benefits paid out to displaced workers, which is the highest in the nation at a maximum of $600.

Annual Meeting Preview

Please join us to usher in the Massachusetts High Technology Council's 31st year at our Annual Meeting on Friday, February 15, 2008, 7:30AM - 9:30AM at the Burlington Marriott.

Results of the Council's annual CEO Survey will be released during the meeting and early indications are that this year education and corporate tax issues will be front and center on the Council's public policy agenda.

The event's keynote will be delivered by former Council Chairman and Commissioner, Social Security Administration, Michael J. Astrue. Mr. Astrue brings a unique perspective on the U.S. economy as the first baby boomers enter the social security system.

The Council appreciates the contributions from our current Chairman, John Bertucci, Chairman, MKS Instruments, Inc. John served at a pivotal time for the Council overseeing the organization during the inception of an independent DTI, the introduction of MassTrack and the Council's 30th anniversary year.

Dr. Joshua Boger, President and CEO, Vertex Pharmaceuticals has been nominated to serve as the Council's Chairman during the next two-year term.

Registration and Buffet Breakfast
7:30-8:15 AM

Program
8:15-9:30 AM

Attendance is quickly nearing capacity, but there is still space available. For more info or to purchase a table or individual admission, please contact Jane Stoy at jane@mhtc.org or 781-890-6482.

SAVE THE DATE

"Clean Energy for High Tech" Symposium
Wednesday, March 26, 2008
1:00 - 5:00 PM, cocktail reception to follow
The Newton Marriott, Newton, Massachusetts

About the Event