Mass. Governor Lays Out $125M Jobs Bill

Gov. Mitt Romney outlined a legislative package on Monday totaling $125 million designed to create more jobs. Many elements of the package target the science and technology communities.

Romney laid out the details of the jobs bill in a series of meetings with key business, labor and academic leaders, and with members of his Regional Competitiveness Councils, which are all-volunteer boards that guide economic development in different areas of the state.

The legislation – to be filed once final input is received – is focused on expanding key businesses, training workers and developing more housing and commercial space. The bill's $125 million price tag is spread over three years. An estimated $50 million of it would be funded by instituting a change that conforms the state’s tax refund practices to Internal Revenue Service time limits. The remainder would be paid for through self-funding mechanisms or non-General Fund sources.

Highlights of the bill include:

• Matching funds for federal research and development grants made to colleges, universities and other entities ($15 million);
• A targeted tax rebate to companies that create new jobs in biotechnology, life sciences and medical device manufacturing ($10 million);
• Expansion of the Statewide Technology Transfer Center, to be housed at a University of Massachusetts campus, to increase the likelihood that technology developed at the school will have commercial application and lead to job creation ($2.1 million);
• Doubling the Economic Opportunity Tax Credit from 5 percent to 10 percent for business development of brownfields ($2.7 million);
• Career assistance for workers, such as a non-degree tuition assistance loan program and grants to encourage training partnerships among community colleges, industry and career centers ($1.8 million); and,
• Restoration of appropriations for the Workforce Training Fund ($57.8 million).

Gov. Romney said the bill builds on Massachusetts' strengths by providing incentives to move jobs from the laboratory to manufacturing facilities. Under the proposed tax rebate, eligible manufacturing companies in the biotech, life sciences and medical devices field that create at least 25 new jobs will be entitled to a rebate equal to 50 percent of the state income tax paid to the state for each new employee of the company.

Earlier this year, Gov. Romney launched his “Jobs First” campaign, which consisted of a number of initiatives aimed at job growth and economic development and included the creation of the Regional Competitiveness Councils (see the Feb. 21, 2003 issue of the Digest). More details on the governor's proposal is available at: http://www.mass.gov/portal/index.jsp?pageID=aghome&agid=gov

The state legislature is currently considering an alternative $110 million economic development package introduced by the Speaker of the Massachusetts House of Representatives over the summer (see the July 11, 2003 issue of the Digest).