The Challenges and Opportunities of Child Care Reform in Massachusetts

Massachusetts is one of the most expensive states in the nation to care for a child. According to a recent report by the Massachusetts Special Legislative Early Education and Care Economic Review Commission, many families spend between 20% and 40% of their income on early childhood care. This causes direct harm to families with young children and also strains the statewide economy. Inadequate access and soaring costs drain an estimated $2.7 billion out of the economy every year. 

Soaring child care costs are harming families and draining the statewide economy

High costs force many parents and mostly working-class mothers to transition to part-time work or leave the workforce altogether. This can negatively alter the course of their careers which drives the gender wage gap and suppresses economic growth in the state. COVID-19 has added to this effect. The pandemic shocked the supply of child care workers. In the fallout, working mothers picked up the slack. As the state continues to recover from COVID-19, lowering the cost burden of accessible, high-quality child care for working parents will reverse that trend and help families and the economy grow.

State lawmakers are well aware of the urgent need for relief and reform to the child care system in Massachusetts. Speaking recently at an event the Boston Chamber of Commerce, House Speaker Mariano called on the private sector to work with legislators to alleviate the crisis. 

The Speaker’s invitation to businesses to propose suitable legislation to provide child care resources to their employees comes on the heels of the recent Early Education and Care Economic Review Commission report that examined the state of child care in Massachusetts. The Commission identified low wage growth for child care workers and program closures as primary contributors to rising costs. 

Since March 2020, 17% of early child care and education programs have closed in Massachusetts. This represents nearly 24,000 enrollment slots for children across the state. As enrollment slots and workers disappear, competition and costs for the remaining options increase. The legislature has targeted these supply-side issues with a $100 million proposal that includes program stabilization grants and incentives designed to attract and retain child care workers.

The Commission’s report also identified failures in child care subsidy programs. Bureaucratic and information barriers mean that many eligible families cannot access child care subsidies. For those that do, current child care subsidy reimbursement rates cover only 50% of market-rate costs. This is below the federally suggested 75% which limits the ability of subsidy-eligible families to compete with private payers for limited slots. Even with these program stabilization grants, many working-class families will still struggle to afford quality child care without legislation fixing the leaks in the state's subsidy programs.

The cracks left unfilled by each policy choice must be kept in mind while policymakers are crafting the future of child care in Massachusetts. The required employer-based resources Speaker Mariano promoted can certainly provide needed relief for many families and an aggressive suite of policy options including employer-based resources, increased stabilization grants and easing the access to and competitiveness of public subsidies can meaningfully ease the burden of child care costs in the state.

Facing the challenges of soaring child care costs will require serious investment by present and future policymakers; the Commission’s report estimates at least $1.5 billion annually. However, that investment would be modest in comparison to the powerful tool that adequate child care becomes when it ultimately supports working families, attacks the gender pay gap, and drives economic growth.

References and Further Reading

Special Legislative Early Education and Care Economic Review Commission - March, 2022

The Untold Cost of Inadequate Child Care - The Massachusetts Taxpayers Foundation, April, 2022

Massachusetts' Economy Loses $2.7 Billion due to Child Care Problems Every Year, New Report Finds - GBH News, April 28, 2022

Why Has COVID-19 Been Especially Harmful for Working Women? - Brookings, October 2020

Massachusetts House Push for New Child Care Funding -- But It Won't Provide Direct Relief to Parents, Families - MassLive, April 11, 2022

Diving into the Commonwealth's Most Promising Startups

Few startup markets are as competitive and thriving as Massachusetts and, more specifically, Boston. Ranging from crypto goldmines to plant-based meat alternatives, the talent is far-ranging, making the Bay State one of the hottest markets in the country. Despite a cut-throat market, these successful startups are making it work in the Commonwealth’s thriving startup scene.

Motif

Perfectly coinciding with the rise of alternative meat options, Motif has made a name for itself in the plant-based food space. While the company was first created with the goal of producing ingredients that secondary companies could use to make their own plant-based products, Motif soon came to develop its own line of food that was met with rave reviews across the board. Alternatives include beef, pork, and chicken, all of which could be sold directly to third-party distributors interested in expanding their plant-based line. Shifting their model from an ingredient supply business to selling the foods directly has not been a breeze for Motif -- but a process that is nevertheless proving worthwhile.

https://www.bostonglobe.com/2022/05/18/business/boston-startup-motif-start-selling-plant-based-meat-alternatives/

Kintent

One group that recently earned major funding is Kintent, which helps companies meet compliance standards. Receiving funding from both TolaCapital and Openview and led by a powerful team aiming to close the affordability and thoroughness gap in compliant software companies currently on the market, Kintent is already making waves. In a nutshell, Kintent is helping to make sure all SaaS companies are up to code and working with strong security to ensure the safety of all parties involved, including meeting standards like HIPAA. The increased funding is set to go toward continuing to expand and helping to round out the expansion team, including sales agents.

https://techcrunch.com/2022/05/03/kintent-aims-to-automate-away-enterprise-compliance-tasks/

Flipside Crypto

Crypto has taken the world by storm in recent years, both positively and negatively, with harsh crashes and falling values lately. One startup in the cryptocurrency space, Flipside Crypto, is aiming to use blockchain tech to grow with the market and one day rival brick and mortar institutions that have been the long-standing norm. To help do this, the company has recently received a $50 million investment to be used for expansion and continuing to source crypto’s next biggest thing in decentralized finance.

https://www.bostonglobe.com/2022/04/19/business/boston-startup-gets-50-million-uncover-most-promising-crypto-projects/

Phoenix Tailings

Focused on mining and increased output that makes economic and sustainable sense, Phoenix Tailings is bravely challenging the most established mining companies out there. One of the primary approaches is taking the traditional mining waste, called tailing ponds, and using this waste to extract the remaining important metals that primary companies typically cast aside. Some of these refined metals are valuable enough to be used in phones, cars, and the aerospace industry, yet so many companies skip over the opportunity. Based in Woburn, Phoenix Tailings is set to completely disrupt the market in the most sustainable and economically sound approach.

https://www.bostonglobe.com/2022/05/12/business/woburn-startup-aims-break-chinas-grip-rare-metals/ 

Zoning Reform is Key to Solving the Housing Crisis in Massachusetts

The cost of rent and housing has been steadily increasing in Massachusetts while wages have remained stagnant, making it increasingly difficult for people to find a place to live. Local officials can reverse this trend by pairing zoning reforms that open up high demand areas to increased market-rate construction with inclusionary zoning requirements that ensure housing options exist for families who cannot afford market prices.

The Crisis

There is no doubt we are facing a housing crisis. The state has seen tremendous economic growth in recent years, but the supply of housing has not kept pace with the demand. As a result, the cost of housing has skyrocketed, and many families are being priced out of their homes. The problem is driven by local zoning codes that restrict the construction of new housing in high-demand areas. These codes often date back to the mid-20th century, when the state was facing a different set of challenges. In light of the current crisis, it is clear that these codes need to be updated to allow for the construction of more housing. Only by increasing the supply of housing can we hope to address the affordability crisis that is currently gripping the state.

There is no one-stop solution, however. Market-rate construction often fails to provide enough units, and with such an extreme shortage of available housing in the first place, these new homes are quickly scooped up with higher-than-asking bids or all cash offers from families desperate to own a home. This naturally pushes housing prices above affordable limits.

On the other hand, affordable housing construction requirements that are too onerous or designed to favor NIMBY-ism (Not In My Backyard) can make housing unviable where it is needed the most (and it’s needed everywhere now). This has the unintended consequence of depressing the overall amount of housing that is added in high-demand areas. This, in turn, can create a negative effect on housing affordability.

Local officials must judge the effectiveness of their housing policy combinations by two measures. First, is the supply of market rate housing allowed to match demand in desirable areas? Keeping in mind that this housing crisis affects many tenants who would not qualify for affordable housing vouchers, so their housing demand must be met as well. Second, are there enough designated affordable housing options to fill the cracks left by a white hot housing market?

A Two-Pronged Solution

Allowing market-rate housing development of all kinds - including duplexes, quadplexes, and mixed-use apartment and commercial buildings - in high-demand neighborhoods can help to solve the supply side driver of housing affordability. Density can bring welcome change to Massachusetts neighborhoods, in the form of abundant housing options, without the devastating effects of gentrification when allowed in areas throughout the state, and not just the urban core.

Duplexes, quadplexes, and other multiplexes are an efficient use of land and infrastructure, and by allowing them in higher-demand neighborhoods, we can create more affordable housing without displacing current residents. Mixed-use development combining residential with retail or office space is another way to increase density while providing amenities and services that residents need.

The inclusionary zoning mandates that are popular in Massachusetts today can work alongside the modernization of zoning codes to ensure that market-based construction does not leave anyone behind. When used together, market-rate construction and inclusionary zoning create abundant, affordable housing in high demand areas.

References and Further Reading

Worcester Weighs New Policy to Increase Affordable Housing - WGBH, May 25, 2022

Fixing Greater Boston's Housing Crisis Starts with Legalizing Apartments Near Transit - The Brookings Institute, October 14, 2020

Surging Prices and Scarce Inventory Are Driving Greater Boston's Apartment Hunters to Their Wits' End - Boston Globe, March 15, 2022

Is Inclusionary Zoning Creating Less Affordable Housing? - Strong Towns, April 11, 2018

Concern About Climate Change is Falling

A recent poll has narrowed down what Massachusetts residents care about most. And among the many issues that the Commonwealth is grappling with, climate change is falling under the weight of rising concerns over health care and education.

The poll, conducted by the Barr Foundation and MassINC Polling Group, surveyed nearly 2,000 people and included questions about:

• Climate change

• High fuel costs

• Education

• Taxes

• Health care

• Economy

Less than half of those surveyed cited climate change as one of their top concerns in the state. That statistic is particularly troublesome when comparing the figure to what it was only years before in 2019. Specifically, MassINC found that 47% of respondents agreed that climate change was a high priority, but in 2019, the figure was 54%.

The poll further broke down the results by demographics and political preference to better understand which group most supported climate change compared to other policy concerns. In general, Democrats believed climate change was one of the more serious threats, with 64% agreeing and 30% saying it was somewhat serious. On the other side, 22% of Republicans said yes, climate change is a high-priority problem, while 26% said it was only somewhat serious.

However, health care topped the lost as the priority for residents in Massachusetts, with nearly one-third of respondents saying it is the most important issue facing the state. This is not surprising given the high cost of health care and the recent debate over access to insurance. Education is the second-most important issue, with 16 percent of respondents saying it is the top priority. The economy, taxes, and transportation are also high on the list of priorities for residents.

Shifting opinions on climate change are not hard to believe. Just this year, the US economy has dramatically adjusted and re-adjusted as the nation tries to build toward a post-pandemic recovery. Economic momentum has been halted for many reasons, not least of which are the war in Ukraine; bringing other concerns like gas prices and the economy to the forefront for residents.

Direct relief for these immediate concerns most likely dominate the Commonwealth’s recent perceptions. Gas prices skyrocketed almost overnight and past efforts at economic relief have brought stimulus programs that have eased some pain through the COVID years. Alternatively, approaches to combatting climate change take years to progress and that can be frustrating to those who care about resolving the issue.

Once the current political and economic environment have a chance to readjust, it’s reasonable to assume that climate change will reemerge as a pressing issue for residents. Massachusetts and New England are warming at an alarming rate, and the possibility that the effects will be deepened in the coming years in the state is likely. There is no doubt that climate change will soon impact our communities and the urgency to solve this global crisis will soon reappear at top of the priority list.

New England Clean Energy Initiatives Delayed by Years

Recent reports indicate that some clean energy initiatives in New England will be delayed by up to five years. This comes as a major setback for the region, which has been working hard to reduce its reliance on fossil fuels.

One of the most important aspects of the transition to clean energy is the development of new infrastructure. This process is often slow and expensive, and it requires significant coordination between different stakeholders. In New England, much of the necessary infrastructure is already in place. However, there are still some major projects that need to be completed before the region can fully transition to renewable energy sources.

One of the biggest obstacles to the completion of these projects is the ISO New England minimum offer price rule. This rule requires that all power plants in the region offer their electricity at a minimum price of $0.02 per kilowatt-hour. This price is significantly higher than the cost of producing electricity from renewable sources, and it makes it very difficult for new clean energy projects to compete against existing fossil fuel plants.

According to Boston Globe, “the minimum offer price rule was created to help insulate fossil fuel power plants from having to compete against renewables that cost less due to state programs and subsidies that exist to help foster clean energy development. It created a floor below which a developer cannot bid, meaning that those less expensive energy supplies, like large-scale offshore wind or solar, aren’t able to compete.”

The result has been more fossil fuel companies winning bids with the fear of a lapse between renewable and old fuel sources as the switch is made. Adding to the problem may be a brand new decision to delay implementation. Independent System Operator New England, also known as ISO or ISO-New England, has embraced a proposal for a phased approach of project implementation for renewables, setting back efforts by years.

Many have criticized the move as failing to recognize the severity of climate change and how soon change needs to happen. Massachusetts has pledged to reduce greenhouse emissions by at least 50% by 2030, and with only eight years to go, the current landscape for renewable projects will need some significant help to reach these goals.

“This is a really terrible idea,” said Mary Anne Hitt, director of the Sierra Club’s Beyond Coal Campaign. “It would be like if the FDA decided to phase out cigarettes by allowing tobacco companies to keep selling them for another five years.”

Unfortunately, the ISO New England minimum offer price rule has now created one of the singular obstacles to the development of clean energy in Massachusetts and the region. However, there are efforts underway to reform the rule, and it is possible that these efforts will be successful. These reforms could help speed up the transition to clean energy in New England and provide a much-needed boost to the region's economy. In the meantime progress on this issue will likely be slow.

Many individuals, enterprises, and communities in Massachusetts remain committed to supporting renewable energy sources. With continued support from residents and businesses, we may eventually be able to reach our collective renewable energy goals. Only time will tell if these delays are a minor setback or a major roadblock for New England's clean energy future.

References:

- Boston Globe, "New England clean energy initiatives delayed by years," March 15, 2018.

- Sierra Club, "Sierra Club: New England's Clean Energy Future Delayed By Years," March 16, 2018.

- ISO New England, "Independent System Operator New England Adopts a Phased Approach to Implementing the Capacity Performance Resource”

Massachusetts Tops Innovative State Ranking… Again

For the second year in a row, Massachusetts has been named the most innovative state in America by the U.S. Chamber of Commerce Foundation's "Enterprising States" study.

The Bay State has long been considered a bastion of innovation and entrepreneurialism, and this ranking is further evidence of that. Massachusetts has consistently ranked near the top of various other measures of innovation, including the Boston Consulting Group's "Innovation Premium" index and Bloomberg's "Innovation Index."

What makes Massachusetts so innovative? There are a number of factors, but one key reason is the state's highly educated workforce. Nearly half of all adults in Massachusetts have a college degree, the highest percentage in the nation.

There are a few reasons for the ranking, including different weighted measures. Here are a few where Massachusetts ranked the highest, according to WalletHub:

·      1st (Tied) Highest R & D Spending per Capita

·      1st (Tied) Highest Venture-Capital Funding per Capita

·      3rd Best Eighth Grade Math & Science Performance

·      4th (Tied) Highest Share of STEM Professionals

·      5th Highest Share of Science & Engineering Graduates Aged 25+

Why Does State Innovation Matter?

The concept of introducing new ideas, technology, and ways to conduct business is a hallmark of a solid future for any state’s economy. Innovation is crucial at every level of an enterprise, including startups, small businesses, and major corporations; it helps move markets, concentrate market share within a region, and attract talent to continue the cycle of positive growth.

When it comes to the US as a whole, innovation is crucial for economic expansion. Disruptive startups and changing business models are what keep the country ahead of the curve, with the highest GDP, and the third overall ranking in the Global Innovation Index. The ranking of innovative states attempts to show which individual states and regions are contributing the most to the success of the United States in these international rankings.

The study was conducted by WalletHub and factored in multiple topics to produce the final ranking. Questions researchers included where based in broad topics around human capital and the innovation environment for each state.

A Breakdown of Massachusetts’ Standing

So what else contributes to the Commonwealth’s high innovative ranking year to year? In short, a consistently strong economy.

In the last quarter of 2020, Massachusetts increased its GDP by nearly 8%. Prior to that, the state GDP had increased by 33.1%. Additionally, despite the fact that the unemployment rate is slightly higher than the national average at 4.3%, it only grew 1.3% over a single year period, arguably due in large part to the pandemic. The overall labor force has also risen in the last four years by roughly 121,400 residents.

Another important innovation standard? Startups. Massachusetts is doing exceptionally well in this category with billions invested in innovative research ideas and future companies. This investment culture and the potential opportunity it will bring for future industries and jobs, has made the Boston area among the most likely to be the next Silicon Valley.

In addition to a strong economy, the state of Massachusetts is also home to top-tier colleges and universities. With such an educated workforce, it’s no wonder that the Commonwealth has been able to produce so many successful startups.

And Finally

While it’s good news that Massachusetts is once again the most innovative state in America, there’s always room for improvement. The state can continue to invest in its workforce by providing more opportunities for training and education. Additionally, policymakers could focus on creating an even more business-friendly environment to attract more startups and entrepreneurs to the Commonwealth.

By continuing to invest in its workforce and business environment, Massachusetts is poised to maintain its ranking as the most innovative state in America for years to come.

How Massachusetts Is Combating Lack of Diversity In Clean Energy

The world has been racing toward renewable energy sources as the threat of climate change is quickly becoming evident in every corner of the globe. Here in New England, efforts to combat climate change have been steadily increasing with the adoption of innovative laws and regulations, forward-thinking budgets, and aggressive renewable energy plans to increase our progress toward clean alternatives. But now a new imperative to create diversity in clean energy is emerging.

As the world continues barreling toward climate solutions, some have noted that the industry itself is far less diverse than one would expect at this stage of its maturity; leaving behind key voices and endangering further innovation. Reuters brought the issue to light last year in a report demonstrating that the clean energy space is dominated by white men, and has ostracized women and people of color.

The Problem at a Glance

An analysis by BW Research Partnership, found that over 60% of those currently working in the industry are white, only 8% of workers are Black, and Latinos only held 17% of clean energy positions. On the other hand, the total American labor force statistics for 16 years and older include 77.5% were white, 12.3% were Black or African American, and 18% were Hispanic or Latino in 2021, according to the Bureau of Labor Statistics.

Women only make up 27% of the clean energy industry despite making up almost half of all laborers in the United States.

In a recent report issued by E2 called “Help Wanted: Diversity in Clean Energy” the authors discuss diversity as an economic imperative “…as we rebuild the U.S. economy in the wake of COVID-19, we have a chance to do it in ways that create new opportunities for people of color. As Congress and state lawmakers focus on clean energy’s role in the recovery, they should focus as well on rebuilding the economy more equitably.”

Despite these numbers, the demand and interest exist for people of color to work climate-related jobs, given that the types of positions vary so widely from operations to material acquisition, to supervisors and customer service, leaving many to believe that the process of hiring is problematic in recruiting and encouraging interest in clean energy careers.

Large-scale Movements

Several groups are now dedicated solely to uplifting black and brown employees in the clean energy sector. Two prominent groups for Black energy workers include Black Owners of Solar Services, or BOSS, and the American Association of Black in Energy, not to mention general support groups like Energy Efficiency for All.

One significant move toward ensuring a more inclusive future is President Joe Biden’s Justice40 Initiative signed within weeks of him taking office. With Justice40, the President mandated a macro-level government policy stating that at least 40% of any federal investment in climate or clean energy goes to disadvantaged communities. This move, however, does not cover an inclusive workforce, which may be necessary to ensure systemic change and leaves municipalities to take on this task themselves.

Massachusetts Clean Energy Inclusivity

Massachusetts is quickly becoming a model for the rest of the country in creating direct lines for people of color to explore careers in the clean energy sector. Of particular note is a program created by the Massachusetts Clean Energy Center, or CEC, has expanded to welcome previously excluded individuals.

CEC matched students with clean energy companies and mandated that 60 internships be made available to students from cities with high rates of underserved communities and economic hardship. Additionally, CEC has created a Targeted Internship Program that specifically recruits and mentors “interns of color and students from other underrepresented backgrounds.”

This program has emerged just in time for the substantial Cape Wind off-shore renewable energy project as well as major state-funded investments in expanding the wind industry. This massive shift toward clean energy creates a critical need that the Commonwealth approach this undertaking as inclusively as possible.

Cannabis Cafes in Massachusetts

Cannabis has taken over the Massachusetts marketplace following its legalization for recreational use. Out of that came the idea of home delivery, shops, and now cannabis cafes, also known as pot cafes, marijuana cafes, social consumption sites, but whatever you want to call them – they’re coming and maybe soon.

The first licensed and regulated cannabis cafe in the country, Original Cannabis Café, set the trend in West Hollywood. The cafe allows patrons 21 and older to consume cannabis inside the shop via decadent food optionally infused with cannabis or through separately sold products. Cited as a convenient one stop shopping, guests have given high praise to the cafe and now, that magic is set to come to the Bay State.

State Senator Julian Cyr has advocated for cannabis cafes, arguing that they can have a number of positive benefits for the community, including increased tourism and revenue. In one interview, he added, “providing a public space to use cannabis will allow those who can’t afford to own their own home, those with children at home, those living in public housing, and others struggling to find a place to consume cannabis safely will have a place to do so.”

The push for these cafes to come to Massachusetts isn’t necessarily a new concept but it’s one with renewed hope. Allowing for cafes to open in Massachusetts was first introduced to voters back in 2016, which received approval as part of the ballot measure legalizing recreational cannabis.

Despite this, momentum would eventually stall as hopefuls attempted to clear some major legal obstacles to opening their doors. One obstacle is the direct community approval needed to authorize social consumption sites – which raises an important legal question on whether such approval is actually authorized in Massachusetts law. In response, the Joint Committee on Cannabis Policy has supported a bill that would remove this technicality, allowing for communities to vote in favor of their preference. The bill would also create a Cannabis Social Equity Trust Fund and focus on creating stronger contracts for community and café relationships.

If approved, the legislation could unlock cafes sites in as many as twelve municipalities in the near future as part of a pilot program. Priority for licenses to open cafes focuses on those in underserved and disadvantaged locations as well as craft marijuana co-ops and microbusinesses. Municipalities who are believed to be contenders include Amherst, North Adams, Somerville, and Provincetown, all of which have already participated in working groups that will help pave the way for cafe locations.

However, community support is split on social consumption given the dangers of driving under the influence. To that, some argue that cannabis consumption is no different than the intoxicating drinks offered at a bar. On the other hand, there is at least a tool to easily measure intoxication levels in the field for alcohol, while none exists for marijuana. In response to this, some citizens propose that a device for field-testing marijuana intoxication be created before any café opens its doors – though the science is far from perfect on these devices.

Community members and cannabis entrepreneurs alike have big dreams for these cafés and their potential. If approved, Massachusetts communities will have an experience that many other parts of the nation never will, or at least not in the near future. The possibilities are endless, as notes one dispensary owner, Zachary Ments, who has already crafted the ultimate vision of his café if given the opportunity. According to the Boston Herald, it involves partnering with a local chef to create the best cannabis-infused meals and, maybe down the line, consumer experiences like a cannabis yoga studio.