News: It's the economy, stupid

Thursday, September 22, 2022

It's the economy, stupid

Sep 22, 2022

COMPOUNDING INTERESTS — Small businesses are worried about inflation, supply chain problems and hiring enough employees, according to a new survey. But even as they pledge to help, the gubernatorial candidates' plans only address those issues in broad strokes.

Seventy-four percent of small businesses are worried about inflation driving up their operating costs and 61 percent are worried about their wages keeping up with inflation, according to the new MassINC Polling Group, Coalition for an Equitable Economy and Massachusetts Growth Capital Corporation survey of 3,243 small businesses with under 500 employees, conducted June 30 through Aug. 9.

Some more stats: 60 percent of respondents were concerned about getting capital, and far more so for businesses owned by people of color. Fifty-four percent of small businesses cited difficulties finding qualified and reliable employees, 46 percent were worried about hiring enough employees and 40 percent were concerned about supply chain problems. More than half of the businesses surveyed are bringing in less revenue now than before the pandemic.

The gubernatorial hopefuls touch on many of those pain points in their plans — but they're light on specifics. Maura Healey pledges to expand small businesses' access to capital in her economic development proposal, which also calls to create an Office of Economic Assistance to encourage entrepreneurism, particularly among women and people of color, and to boost vocational training. But she's yet to detail how she'll accomplish those aims beyond the steps she's already taken as attorney general, such as awarding $500,000 in financial relief to small businesses affected by pandemic shutdowns.

Geoff Diehl, who co-owns a small business with his wife, is even more light on details in his plan. His "Blueprint for the Bay State" calls to enact Gov. Charlie Baker's proposed tax breaks, which remain mired in the Legislature with the state poised to send nearly $3 billion back to taxpayers after triggering a 1986 tax-cap law. He would also create a "jobs boss" tasked with attracting new companies to and growing jobs in Massachusetts, but his campaign didn't respond to questions about where that position would fall within state government.

GOOD THURSDAY MORNING, MASSACHUSETTS. Speaking of policy proposals, Healey and running mate Salem Mayor Kim Driscoll are leaving the door open to bringing back rent control in their new housing plan.

Healey and Driscoll list "local rent stabilization policies" among the tools they would encourage communities to use to address their housing challenges.

It's not a full-throated endorsement, but the Democrats' openness to the concept is a marked change from Baker, who opposes restoring rent control. And it's giving advocates hope of making progress on a bill to bring back local-option rent stabilization next session.

"We've worked to move [rent stabilization] into the mainstream, and the latest reflection of that is the Healey-Driscoll housing plan," state Rep. Mike Connolly, who's sponsored rent-control bills the past two sessions, told Playbook. "We are now in a position to finally win on this issue."

But in order to get a bill to Healey, advocates will have to convince Democratic legislative leadership that bringing back rent control is a good idea. And it's not clear where they stand — spokespeople for House Speaker Ron Mariano and Senate President Karen Spilka declined to share their bosses' thoughts on the matter Wednesday.

TODAY — Baker and Lt. Gov. Karyn Polito visit the Big E at 9:30 a.m., a housing development project in Springfield at 11:30 a.m. and the ceremonial groundbreaking for the Robert and Donna Manning College of Information and Computer Sciences at UMass Amherst at 2 p.m. GOP auditor hopeful Anthony Amore joins Baker and Polito at the Big E. Healey tours the Verizon Innovation Center in Boston at 1:30 p.m.

Tips? Scoops? Email me: lkashinsky@politico.com.

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MIGRANTS IN MASSACHUSETTS

— DRIVING THE DAY: State Sen. Julian Cyr and state Rep. Dylan Fernandes are joining the calls for Justice Department officials to investigate the circumstances under which GOP Florida Gov. Ron DeSantis had migrants flown to Martha's Vineyard last week. "As legislators representing Martha's Vineyard, we have had the opportunity to meet with a number of these individuals. After hearing their accounts, we are deeply concerned with the circumstances leading to their transport," the lawmakers wrote in letters sent to Attorney General Merrick Garland and U.S. Attorney for Massachusetts Rachael Rollins.

— "Martha's Vineyard migrants may remain anonymous during lawsuit, judge rules," by Chris Van Buskirk, MassLive: "A federal judge ruled Wednesday in favor of keeping the identities of Venezuelan migrants involved in a federal lawsuit against Florida Gov. Ron DeSantis anonymous after lawyers argued the group had received a deluge of threats. ... At a press conference Wednesday afternoon, Lawyers for Civil Rights Executive Director Iván Espinoza-Madrigal said the migrants 'continue to receive hate messages and death threats that are arriving in the office of Lawyers for Civil Rights, that have arrived at Alianza Americas.'"

— "Migrants signed a form agreeing to be flown to Mass., DeSantis's office says. But critics say the document doesn't stand up legally," by Travis Andersen, Boston Globe: "Immigration attorneys on Wednesday criticized the purported consent form that Florida Governor Ron DeSantis's office said roughly 50 Venezuelan migrants voluntarily signed in Texas before boarding chartered flights to Martha's Vineyard last week, calling the brief document legally flawed."

— "Migrants staying at Joint Base Cape Cod settle in as they determine where to go from here," by Zane Razzaq, Cape Cod Times: "Attorneys representing the migrants have '24/7 unfettered access' to the site, [state Sen. Julian] Cyr said. A floor, equipped with printers and scanners, has been made available so lawyers can meet privately with their clients. The state boosted cell reception for better cell and Wi-Fi service as well as provided the migrants with iPads. Cyr said the devices are the same iPads the state provided to people quarantining in hotels during the beginning of the pandemic."

— "Some migrants move on," by Rich Saltzberg, MV Times: "Migrants who were transported unwittingly to Martha's Vineyard and then relocated to Joint Base Cape Cod have been free to come and go from the military base. Edgartown attorney Rachel Self, who has worked on behalf of the migrants, said some have taken trips to places like the Cape Cod Mall and two of them left on Sunday for New York City where they hope to establish their new lives. One migrant appears to have departed prior to the bus trip off-Island, according to state Rep. Dylan Fernandes, D-Falmouth."

— "How did an image of a fake Massachusetts flag end up in a brochure for Martha's Vineyard migrants?" by Spencer Buell, Boston Globe: "Will Bodine hadn't given his redesign of the Massachusetts state flag much thought in a while. ... So on Tuesday, it came as a complete surprise when Bodine learned his reimagined design was embroiled in the national controversy involving Venezuelan migrants flown to Martha's Vineyard unannounced last week."

— "As Biden seeks immigration changes, case of Newton judge accused of helping immigrant evade ICE lingers in courts," by Shelley Murphy, Boston Globe: "More than three years after Newton District Judge Shelley Joseph and a former court officer were indicted for allegedly helping an undocumented immigrant evade capture, the case has stalled in the federal court system, with her supporters urging the Department of Justice to reconsider the charges amid a shift in immigration policy under the Biden administration. In February, a federal appeals court refused to dismiss obstruction of justice charges against Joseph and the court officer, Wesley MacGregor, for allegedly preventing a federal immigration officer from taking the immigrant into custody, instead allowing the man to leave the courthouse by a back door. But since then, there have been few filings in the case and a trial date has not been set."

DATELINE BEACON HILL

— "Insurers ordered to cover more mental health services," by Christian M. Wade, Eagle-Tribune: "State insurance regulators are turning up pressure on health plans to take 'shared financial responsibility' for mitigating the state's mental health crisis by requiring them to cover more services and boost reimbursements to hospitals."

— "Victims group seeks funds to bridge federal gaps," by Christian M. Wade, Eagle-Tribune: "The Massachusetts Office for Victim Assistance, which supports more than 160 crime victim organizations across Massachusetts, has seen its share of federal grant money shrivel up from $69.2 million in fiscal year 2018 to $21 million in fiscal year 2021 — a nearly 70% decline over the three-year period. While the state has provided $20 million to offset the current fiscal year's losses, the agency said more money will be needed to prevent the loss of more than 200 jobs and reductions in services for families and victims of homicide, rape, domestic violence, elder abuse, and children who have been sexually trafficked or abused."

— "To qualify for Mass. tax refund, you need to meet this upcoming deadline," by Alison Kuznitz, MassLive: "A crucial tax deadline next month could be the deciding factor on whether Bay Staters qualify to receive hundreds, or possibly thousands, of dollars back in a tax refund from Massachusetts. While state officials issued broad eligibility parameters for the distribution of nearly $3 billion in excess state tax revenues, they have also zeroed in on one specific requirement: People must file their 2021 state tax returns on or before the extension due date of Oct. 17. That's also the deadline to pay any outstanding taxes, according to the Massachusetts Department of Revenue."

— "Lady Gaga has over $50K worth of unclaimed property in Mass., officials say," by Heather Morrison, MassLive: "Lady Gaga has more than $50,000 in unclaimed property in Massachusetts she still hasn't requested a claim for. The Unclaimed Property Division reached out to Gaga in March to inform her about the unclaimed property. But as of Wednesday, she still hadn't claimed it, the state confirmed with MassLive."

VAX-ACHUSETTS

— "Biden says the pandemic is over. Experts and advocates in Mass. say 'not so fast'," by Craig LeMoult, GBH News: "As local public health experts and others focused on COVID-19 gear up for what many worry could be yet another fall surge of the virus, they say the pandemic doesn't feel over. And some worry the president's comments could lead people to let their guard down and serve as a signal to Congress that additional federal support for the ongoing COVID response isn't necessary."

FROM THE HUB

— "Boston explores converting office buildings into housing, but challenges abound," by Catherine Carlock, Boston Globe: "The concept of reusing and converting space in Greater Boston, or indeed nationally, isn't new. But it's a post-pandemic priority for Boston Mayor Michelle Wu's administration, which is aiming to inject some energy into a downtown core that's still struggling with the realities of a workforce that's no longer coming into the office five days a week."

— "Boston climate protesters plan more 'disruption' as week continues," by Sean Philip Cotter and Flint McColgan, Boston Herald: "Fifteen self-styled 'rebels' ended up in cuffs as a climate group blocked traffic in multiple spots around Boston — and the group is planning to keep up the 'disruption' this week with no intent to seek permits. … This is all part of the 'week of rebellion' that the self-styled 'rebels' are holding this week in Boston to further climate goals, such as moving away from fossil fuels and cutting down on cars."

— "Starbucks strike on Commonwealth Avenue comes to an end," by Diti Kohli, Boston Globe: "Two months after Starbucks workers began a round-the-clock strike near Boston University, baristas have declared victory. But Starbucks said little has changed at the 874 Commonwealth Ave. location. Eighteen employees from Greater Boston announced in a public letter Wednesday that the company has agreed to meet baristas' demands and that the cafe will reopen in the near future. Starbucks said, too, in a statement that they 'look forward to serving our customers' again. But the coffeehouse chain claims it has not conceded to employees' calls to amend scheduling issues and remove a controversial store manager from her position."

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YAHD SIGNS AND BUMPAH STICKAHS

— FIRST IN PLAYBOOK: Auditor Suzanne Bump, who campaigned extensively for Chris Dempsey to succeed her, is now endorsing Democratic nominee and state Sen. Diana DiZoglio for the job. "It is essential that the next state auditor have firsthand knowledge of how government works. Senator DiZoglio's 10 years of legislative experience shaping policy and budgets, wrestling with the bureaucracy and advocating for greater access and transparency mean she will be ready to take the reins," Bump said in a statement.

— "Mud flies in auditor's race as candidates respond to campaign discrepancies," by Matthew Medsger, Boston Herald: "Republican Anthony Amore's campaign for Auditor says that a voter need look no further than his opponent's management of her campaign to see which of them is the best choice in November. 'Diana DiZoglio has gotten 34 audit letters from OCPF since launching her campaign for State Auditor,' Amore's campaign told the Herald. 'DiZoglio has been flagged an average of three to four times per month for submitting bad or incomplete records.' … DiZoglio says he's desperate. 'Mr. Amore is getting really desperate and grasping at straws if he's trying to misrepresent standard and routine communication letters that have also occurred between candidates like himself, Governor Baker and Geoff Diehl with OCPF,' the senator told the Herald."

DATELINE D.C.

— "House passes plan to head off future Trumpian election challenges," by Nicholas Wu and Jordain Carney, POLITICO: "The House on Wednesday passed a proposal aimed at preventing another Jan. 6, mostly along party lines, setting up some wrangling with senators as they consider their own bipartisan version across the Capitol."

FROM THE 413

— "Holyoke City Councilor Wilmer Puello-Mota sues to retain seat after expulsion over child porn charges," by Stephanie Barry, Springfield Republican: "Ward 2 City Councilor Wilmer Puello-Mota is suing the city to retain his seat after he was expelled earlier this month amid child porn allegations out of Rhode Island."

THE LOCAL ANGLE

— "National Grid says electricity prices to skyrocket," by Bruce Mohl, CommonWealth Magazine: "National Grid said the price of electricity it supplies to customers in Massachusetts this winter is going to skyrocket to record levels because the cost of natural gas, the primary fuel used to generate power in New England, is soaring. The utility said on Wednesday that the cost of electricity provided under its basic service plan will more than double on November 1, rising from 14.8 cents a kilowatt hour last winter to 33.9 cents this winter, the highest level ever."

— More: "Healey calls National Grid rate hike 'devastating'," by Bruce Mohl, CommonWealth Magazine.

— "Ron Beaty says he 'had no idea' Oath Keepers was extremist when he donated in 2014," by Heather Morrison, MassLive: "Ron Beaty Jr. donated to the Oath Keepers, a far-right extremist group, but said he 'had no idea' about the extremist elements of the group. Two elected officials were listed as being members of the Oath Keepers, including Beaty and longtime former Wilbraham Planning Board member David A. Sanders."

— "Mass. Migration: The pandemic pushed Bay Staters to greener pastures," by Craig Douglas, Lucia Maffei and Jess Aloe, Boston Business Journal: "[John] Welch is one of many former Bay State residents who made their vacation homes their permanent addresses as soon as the pandemic cleared the way for remote work. The promise of warmer climates and no income tax made Florida particularly attractive to longtime, wealthy Massachusetts residents, many of whom were fed up with Nor'easters and higher taxes. They aren't alone. A Business Journals analysis of federal tax and population data shows that the nation is in the throes of a post-pandemic reshuffling that will reverberate for decades to come. Approximately 8.7 million tax filers moved their primary residences to another U.S. county in the 2019 and 2020 tax filing years, taking at least $640 billion in reported annual income with them in the process."

— "Hands off: Massachusetts cops fine distracted drivers $829K in 2022," by Gayla Cawley, Boston Herald: "More than $829,000 in fines were issued for distracted driving during the first eight months of the year, as the state continues to crack down on motorists who can't put away their phones. Colleen Ogilvie, RMV registrar of motor vehicles, said 7,615 of the 38,233 citations issued to drivers who were talking or texting without a hands-free device were fineable offenses."

— "Advocates and families press Mass. prisons to stop photocopying mail," by Hannah Reale, GBH News: "Legal advocacy organizations and the families of incarcerated people in Massachusetts want the state's Department of Correction to stop photocopying mail sent to inmates. ... The DOC adopted this standard practice in 2018 in an effort to minimize the distribution of contraband, namely synthetic cannabinoids known as K2, that were increasingly found on some letters."

HEARD 'ROUND THE BUBBLAH

HAPPY BIRTHDAY — to Massachusetts Playbook and POLITICO alum Stephanie Murray, who now covers crypto policy for The Block; Abigail DesVergnes, Mike Knittle, Sean Moynihan of the The Moynihan Group, TT Sitterley and Helena Zay. Happy belated to Boston.com's Christopher Gavin, who celebrated Wednesday.

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