BOSTON - It's the first work week of a new year for Bay Staters, and a new report from the Massachusetts Budget and Policy Center finds that, since the beginning of the economic storm in late 2008, Massachusetts lost fewer jobs and maintained higher wages than most parts of the country, and did not have a sharp increase in the poverty rate.
Jeff Thompson, assistant research professor with the Political Economy Research Institute at the University of Massachusetts Amherst, points to education as the primary reason.
"It's the role that education, that the educated work force, has played in driving economic growth and high incomes over the last several decades, but also to some extent the role that education has played in helping the state be somewhat resilient in the recent recession."
The report shows that, over the last thirty years, the share of college-educated workers has almost doubled in Massachusetts, and average incomes have grown more than twice as fast as in the nation as a whole. Thompson adds that a highly educated work force makes the region very attractive to firms, and high-quality public schools make the state attractive to people looking to move here for jobs.
While the state's unemployment rate sat below the national average at 8.2 percent in 2009, unemployment rates for workers with less education than completion of high school were seen at 17 percent and above.
Robert Tannenwald, a senior fellow with the Center on Budget and Policy Priorities, says that isn't necessarily a determining factor.
"It's true that not everybody is suited to college and not everybody wants to go to college, but that doesn't mean that they are doomed to a low-wage job. There are a whole host of programs and specialties that could be developed that will be in demand in the future."
Tannenwald says that while good-paying manufacturing jobs are not coming back to the U.S., jobs tied in with the environment, medicine and law will be in greater demand, and those workers without the needed skills or education will continue to be left behind.
The report, "State of Working Massachusetts 2010," is at www.massbudget.org
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Earlier this month, a new Arizona Public Service rate hike went into effect and one senior advocacy group said those on a fixed income may struggle to now pay their energy bills.
According to the utility, the average residential customer will see an expected bill increase of about 8%, which translates to about $10.50 a month. They said it is all in an effort to continue to provide Arizonans with reliable and resilient power and make "critical investments" in their system.
Aimee Cvancara, associate state director of AARP Arizona, contended the possible effects could be significant.
"Folks who are on a fixed income, whether that is a retirement income or even a working income with limited mobility, it is difficult to absorb a $10 to $12 cost in your monthly bill that was unanticipated," Cvancara pointed out. "Particularly because it's not the only increase that folks are seeing right now."
Cvancara emphasized consumers are feeling the weight of increased prices on everything, from groceries to gas, rent and now power. Arizona Public Service rooftop solar customers could also see an additional $2 to $3 a month on their bills but the Arizona Solar Energy Industries Association and Attorney General Kris Mayes are both demanding for a rehearing on the case with the Arizona Corporation Commission to challenge the rate hike.
Cvancara noted moving forward, a significant concern for Arizona consumers is going to be something called the system reliability benefit mechanism, which allows Arizona Public Service to recover costs between rate cases for new, utility-owned generation resources.
"This is a new thing for APS customers," Cvancara explained. "It is going to allow the utility to file for up to 3% rate increase and they can do that five times before they have to file for another rate increase."
Some ratepayers and environmental groups oppose the system reliability benefit mechanism, as they argued it will only raise rates and increase demand for fossil fuels. Cvancara said the Arizona Corporation Commission should always strive to balance investments for reliable energy versus the cost consumers will face.
Disclosure: AARP Arizona contributes to our fund for reporting on Budget Policy & Priorities, Consumer Issues, Health Issues, and Senior Issues. If you would like to help support news in the public interest,
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A 2023 study from the University of Nebraska Medical Center concluded the number of Nebraskans with a mental health or substance abuse disorder has probably increased over the pre-pandemic level of 20%. It also observed 88 of Nebraska's 93 counties have a shortage of behavioral health professionals.
Nonetheless, the state budget now awaiting Gov. Jim Pillen's signature cuts $15 million from the Division of Behavioral Health's funding for the state's six Behavioral Health Regions, which distribute those funds to providers. Many advocates believe the cut is based on an incorrect conclusion.
Annette Dubas, executive director of the Nebraska Association of Behavioral Health Organizations, said because $15 million remained in the budget for the Regions, it was concluded the money was not needed. In fact, she said much of it was for projects and proposals awaiting Department of Health and Human Services approval.
"The problem is not that it's not needed; there's a problem with getting it out the door and into services quickly," Dubas explained. "Because we know the demand is there. And if it's not being spent, let's figure out why. That's what we want the governor to sit down and talk to us about, so we can figure out where the holdups are."
The $15 million will be shifted to the Lincoln Regional Center for hiring nurses and other staff. Dubas questioned how realistic it is for the center to spend this amount of money on staffing, especially when the state is facing a nursing shortage of more than 5,000 by 2025. She also questioned what will happen to any money left unspent.
Dubas stressed the Division of Behavioral Health is not the only agency losing money through this budget process.
"This administration has gone into a lot of different funds, cash funds, etc., and kind of swept out money that they perceive is not being used or is not being spent, to use to help with their property tax relief," Dubas asserted.
The Pillen administration is paying Epiphany Associates from Utah $2.5 million annually for up to four years, to find savings of up to 25% across state agency budgets.
Chase Francl, CEO of the Mid-Plains Center for Behavioral Health, which receives about 40% of its funding from Region III, said cutting programs that save the state money cannot be considered cutting "waste."
"Mental health and substance use treatment really is a prevention service," Francl contended. "If we can get this right, then people are going back to work and maybe aren't ending up in corrections. And you start restricting here, you usually are just going to be creating a greater need for more costly services down the road."
Mid-Plains served 3,200 people in Grand Island, Kearney and Lincoln last year. Francl added they currently have about 60 people on a waitlist for therapy services.
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Congress just avoided a partial government shutdown by approving a budget through the end of September, but a new blueprint is renewing debate about a key safety net program and advocates in North Dakota and elsewhere are worried.
For the 2025 fiscal year, a House caucus of more than 170 Republican lawmakers has issued a proposed outline. It includes raising the retirement age for Social Security eligibility "to account for increases in life expectancy."
Nancy Altman, president of the advocacy group Social Security Works, said, like past suggestions from the caucus, it should be considered a non-starter, arguing it essentially amounts to a benefit cut.
"You never catch up," Altman asserted. "Even if you work till age 70, your benefit's going to be about 7% lower than it is under current law."
There was no specific higher age outlined, but AARP North Dakota has also sounded the alarm about the plan, urging its members to demand "no cuts." Social Security faces financial headwinds a decade from now, but Altman supports President Joe Biden's calls for raising payroll taxes on the wealthy to help ensure the program stays fully funded. His skeptics argued it would not be enough.
However, Altman and other advocates think it is a good first step. The GOP framework also calls for reducing benefits for higher earners. No income threshold was provided but Altman suspects it would still hurt a lot of people who are not exactly wealthy in their retirement.
"It's not what many people would think," Altman contended. "They're certainly not Jeff Bezos and Bill Gates, and the billionaire class."
She predicted the people targeted for cuts would be more aligned with the middle class. Republicans insist the changes would not cut or delay benefits for any senior currently in or near retirement. North Dakota's lone Congressman, Rep. Kelly Armstrong, R-N.D., is part of the caucus behind the proposal.
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