Massachusetts is grappling with economic pressures exacerbated by federal policy changes, according to Boston University finance professor Mark Williams. The state’s core industries are being disproportionately impacted by tariff hikes, cuts in funding for education and healthcare, and the persecution of immigrants. If these trends continue, Williams predicts a sharp increase in job losses and severe strain on state and local budgets.
Job Creation and Economic Slowdown
Job creation in Massachusetts has stalled, with research, medicine, and life sciences jobs being particularly at risk. Jim Rooney, president and CEO of the Greater Boston Chamber of Commerce, highlighted the challenges in an interview on the Sunday edition of “Keller at Large.” He noted that these sectors, crucial to the Massachusetts economy, are facing significant threats, with the impact being felt particularly in the state’s heart industries.
“This is right in the gut of the Massachusetts economy,” said Rooney, underscoring the serious consequences of the stalled job creation. The state’s response to the economic difficulties has been through multiple lawsuits attempting to block federal cuts, but Rooney hopes coalition building with other states will help mitigate some of the damages.
National Coalition for Research Funding
Rooney mentioned a national coalition for research funding that has been launched, which includes over 60 chambers of commerce across 30 states, such as Alabama, California, Texas, Pennsylvania, and Michigan. This coalition is advocating for the economic and scientific benefits of research funding, aiming to influence Congress and protect jobs within Massachusetts. The group plans to lobby, sign joint letters, and make the case to lawmakers about the potential negative impacts of current federal policies.
Graduation Standards in Massachusetts
In addition to these economic challenges, Rooney also addressed the state’s graduation standards for public high school students. Following the approval of Question Two in November, the state introduced temporary standards to replace the MCAS test, which had been a cornerstone for measuring academic progress.
Rooney expressed disappointment with the outcome of the vote, stating, “We were against eliminating the MCAS test.” He emphasized that Massachusetts invests significant resources in education, and the need for measurable standards is crucial to ensure that students receive a quality education. While the temporary standards have faced criticism for being vague and inadequate, Rooney pointed out that cities and towns still have the authority to impose local standards, including maintaining some MCAS tests at the local level if they choose to do so.
Boston’s Financial Struggles
Rooney also discussed the financial situation in the City of Boston, where a significant shortfall in commercial property tax revenues has caused tension between the business community and Mayor Michelle Wu. The looming fiscal gap is a significant concern for the city’s economic future.
For more on this ongoing situation and to watch the full interview, please check out the video player above.
