Mass. Economy Sees Worst Quarter Ever

July 31, 2020 Pace LaVia

Although there are many indications that the economy is beginning to see signs of a slow recovery, the numbers are in for Q2. And, frankly, they aren’t good. Facts and figures show that Massachusetts’ economy, along with the rest of the nation, has seen its worst quarter ever.

Here are some of the dismal statistics:

Mass. real gross domestic product (GDP) declined at an annualized rate of 43.8 percent in April, May, and June — the largest drop in history according to MassBenchmarks.
Payroll employment fell by 16.5 percent in Q2 — an annualized rate of decline of 51.4 percent.
Wage and salary income in Massachusetts fell 11.2 percent — an annualized rate of decline of 37.7 percent.
Mass. had the highest unemployment in the nation at 17.4 percent in June.
Mass. residents filed nearly 20,000 new unemployment claims for the week ending July 18.

Mass. Issues Strict Travel Restrictions

Gov. Charlie Baker has signed off on a new executive order requiring travelers to fill out a travel form prior to arrival when entering the state from another state considered to be at high-risk for COVID-19.

Moreover, a quarantine period of 14 days will be required unless travelers can show a negative COVID-19 test result issued within the previous 72 hours.

The fine for violating the order is $500 a day. The order goes into effect Aug. 1.

You can read the full order and find more details here.

Cannabis Social Equity Proposal Calls for Loans Rather than Grants

Mass. lawmakers are contemplating a measure that aims to create a loan program designed to promote social equity within the state’s cannabis industry, whereas several other states with similar programs have offered social equity grants.

Detractors of the plan claim that it only offers minorities more debt instead of the promised equity. This comes at a time when there has been much criticism over the increasing lack of social equity in the state’s cannabis programs.

The current plan calls for 10 percent of cannabis tax revenue to be applied toward loans for social equity and economic empowerment.

Comparing the plan to social equity programs in other states, California awarded $10 million in equity grant funding in October 2019 and an additional $30 million in April 2020. And Illinois devotes 25 percent of cannabis taxes to social equity grants.

Mass. Cannabis Commissioner, Shaleen Title, in an interview with Boston Public Radio stated that she is ‘embarrassed’ by industry inequities as only three of 70 approved economic empowerment applicants have opened for business.

Meanwhile, Mass. cannabis regulators are seeking input on potential changes to regulations pertaining to both the recreational and medical cannabis programs in the state. The Mass. CCC will hold a virtual public hearing on August 3, 2020 at 10:00 AM. It will also be accepting written comments on the regulations through August 14.

Mass. Offers Commercial, Industrial, and Residential Buildings Financing for Energy Improvements

MassDevelopment and the Massachusetts Department of Energy Resources have announced the availability of financing for energy improvements on commercial and industrial buildings, as well as multifamily properties with five or more units and buildings owned by nonprofits. The program is being run through Property Assessed Clean Energy (PACE) Massachusetts.

Under the program, property owners will be able to finance energy efficiency upgrades, as well as renewables, and gas line extensions. The financing would be repaid via higher tax assessments on the properties.

MassDevelopment President and CEO Lauren Liss had this to say:

“Together with the Massachusetts Department of Energy Resources, MassDevelopment is pleased to administer PACE Massachusetts, a new low-cost, long-term financing tool for property owners looking to reduce energy consumption through capital improvements. We continue to encourage cities and towns to ‘opt in’ and enable property owners across the state to take advantage of this program.”

You can learn more about the program at FraminghamSource.com.

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