Page 12 - BusinessWest June 23, 2021
P. 12

 Editorial
HAow to Spend the Stimulus Windfall
s the fight against the COVID-19 pandemic winds down, several levels of reopening, many individual businesses are strug- another battle — yes, we can call it that — is emerging gling to get all the way back.
on just how the state should spend more than $5 billion One big obstacle is workforce. Companies across all sectors are
in federal stimulus money coming it’s way. struggling to find good help, and an infusion of funds into training
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 Actually, there are different fronts to this conflict, the first being a large disagreement over who should control this windfall, with both Gov. Charlie Baker and the Legislature believing that they know, better than the other, how this money should be allocated.
We’re not sure either is fully qualified, but that’s another matter.
Let’s get back to the money — $5.3 billion of it, to be exact. This is the state’s share of the proceeds from the American Rescue Plan (ARP). It is, indeed, a windfall, a rare opportunity to take money with no real strings attached to it and put it to some good.
So, naturally, there has to be disagreement over who should control the money and how it should be spent — should we really expect anything else? We hope these differences of opinion can be worked out quickly (probably not, but we can hope), and that the state can commence allocating this money in ways that will create opportunity and address long-standing problems. It appears likely that the proceeds will be divided in some way, with the governor controlling a large portion and the Legislature deciding how to spend what’s left.
Already, the governor has indicated several priorities, includ- ing everything from the housing crisis to battling opioid addiction; from infrastructure work to funding the state’s announced vaccine lottery sweepstakes.
While these are worthy causes, to be sure (although we certainly believe there are better ways to spend $6.5 million than a lottery), money needs to be set aside to help the businesses of this state, many of which are still battling to fully recover from the pandemic. While many business sectors are starting to rebound, especially the hospitality industry after a brutal 15 months of stagnancy and then
Opinion
Reflections on Juneteenth
programs would certainly help address the ongoing labor shortag- es. As economic-development leaders have said for years, the prob- lem isn’t necessarily with the numbers of people in the workforce, but the skills they possess.
Meanwhile, we share the business community’s disappoint- ment that the governor remains opposed to allocating some of the money from the American Rescue Plan to pay for the huge deficit in the state’s unemployment insurance fund caused by the deep and very sudden job losses during the pandemic; more than 30 states have already committed to using some ARP funds for this purpose.
Baker has instead signed legislation that spreads the hike in the so-called solvency assessment over 20 years and covers $7 billion in unemployment payments tied to pandemic-related job losses.
We don’t believe that simply spreading the payments over 20 years is a real solution to this problem. The pain remains — it’s just dispersed over two decades instead of all at once. While the pay- ments will be smaller, they will still be a burden to businesses that are, as we noted, still struggling to fully recover from the pandemic and don’t need to pay for a problem that was not of their doing.
When it comes to the ARP windfall, the phrase ‘good problem to have’ certainly comes to mind. Indeed, deciding how to allocate $5.3 billion is a test for which there are few truly wrong answers.
But it is incumbent on the governor and the Legislature to come up with the best answers, and some of these involve a business community that is far from out of the woods when it comes to this pandemic and the many challenges that remain. v
  BAy John Regan
ssociated Industries of
Massachusetts (AIM) and the
Commonwealth’s business com- munity join with our fellow citizens
in celebrating the first official state observance of Juneteenth, which com- memorates the day in 1865 — June 19 — that the last enslaved people held in Galveston, Texas learned of their free- dom, two years after President Lincoln issued the Emancipation Proclamation.
The day is both an historical observance and an opportunity to reflect on the accom- plishments of African-Americans here in Massachusetts and throughout the nation. It is also a reminder of an event largely ignored by history texts, much like the Tulsa massacre that took place 100 years ago.
AIM — as an organization committed to diversity, equity, and inclusion — regards the day as a symbol of the importance of creating an economy that provides oppor- tunity for all the citizens of Massachusetts.
“The Juneteenth holiday is a long- overdue teaching moment about the con- tributions and history of a people who were instrumental in building the country.
Reminders of what has kept us apart are necessary to forming bonds that bring us together moving forward,” said Donna Lat- son Gittens, founder of MORE Advertising in Watertown and a member of the AIM Executive Committee.
Gov. Charlie Baker signed a bill last July making June 19 a limited-scope holiday, analogous to Patriots’ Day, Presidents’
Day, and Martin Luther King Day. Private employers may elect to observe the day but are not required to do so. Creation of the state holiday came amid a national racial reckoning following the death of George Floyd and several other black people dur- ing encounters with police.
Employers plan to mark Juneteenth in various ways.
AIM member National Grid announced that all of its U.S. employees, including 6,336 employees in Massachusetts, would be given the Friday before Juneteenth off as “a symbol of our dedication to honor- ing black Americans who have suffered the impacts of racism throughout U.S. history,” according to Natalie Edwards, the compa- ny’s chief diversity officer.
The company encouraged its workers to use the time off as “a day of reflection and to celebrate black communities, particu- larly in the neighborhoods where they live and work.”
AIM members New Balance, Foley Hoag, Boston University, Harvard Uni- versity, and Morgan Memorial Goodwill Industries have also instituted Juneteenth as a paid holiday. Other members, such as Fidelity Investments and Santander Bank, are conducting or sponsoring online events to discuss diversity and financial issues in communities of color.
When Baker signed the law last July, it was in recognition of “the continued need to ensure racial freedom and equality,” he said. “Juneteenth is a chance for us all to reflect on this country’s painful history of slavery and the systemic impact that racial injustice continues to have today. It is also an opportunity to recommit ourselves to the goal of creating a more equal and just society.” v
John Regan is president and CEO of Associated Industries of Massachusetts.
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OPINION
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