It remains to be seen what kind of U.S. senator Scott Brown will be. But there was no mistaking the nature of the voter unrest that last month vaulted him into the seat long held by the late Ted Kennedy.
It was all about jobs — or the lack thereof — as Democrats from President Obama on down have since acknowledged. And Massachusetts, despite its wealth of research universities and teaching hospitals, continues to lag in the creation of new jobs.
Michael Widmer of the Massachusetts Taxpayers Foundation describes the pace of recovery as still "anemic" here. Speaking before the North Shore Chamber of Commerce in Peabody on Wednesday, he noted that Massachusetts was one of only five states that failed to fully recover the jobs lost in the recession before this latest one, adding that despite signs of an economic rebound, "I don't see the conditions for dynamic job growth in the immediate future."
The lack of jobs translates into lower income and sales tax revenue, which means continued fiscal problems for the state, as well as cities and towns. All of which, according to Widmer, creates a "moment of opportunity" for the commonwealth — a chance to make some systemic changes that will help business, aid job creation and make the cost of government more affordable. Among the suggestions that merit serious consideration on Beacon Hill:
Reform the state's unemployment insurance system, which is currently one of the most generous — and expensive — in the nation. If left unchanged, employers face a 40 percent increase in rates later this year — a certain job-killer.
Unlike energy costs and other factors that make Massachusetts one of the highest-cost places in which to live and do business, Widmer points out, "unemployment insurance is in our control." All that's required is a willingness on the part of the governor and legislative leadership to do something about it.
The state must end its dependence on one-time sources of revenue (stimulus money, rainy day funds, etc.) and volatile taxes like that on capital gains.
Capital gains revenue, which is derived from the tax on the sale of real estate, stocks and other assets, can vary widely from year to year. But while state leaders pay lip service to the idea of reserving these funds for capital projects or putting them away for a rainy day, when times are good they can't resist the temptation of using the money for general operating expenses. This, too, must change.
State and municipal officials must address the skyrocketing cost of health, retirement and other benefits earned by those in the public sector.
In order to survive in these lean times, those in private industry have had to make significant adjustments in benefit levels. That has in many cases meant higher health premiums and co-pays for workers and an end to pension guarantees for retirees.
"The public sector over time can't be immune to this," Widmer declared.
Indeed, he said, the "very high level of benefits" that have become par for the course for those working for state or municipal government are simply no longer sustainable. This widening gap between public- and private-sector benefits is a major factor in voter resistance to tax increases, and often leaves state and municipal officials with no option except to cut personnel and reduce services.
As one Tea Party activist told us recently, "Pretty soon we'll have one firefighter trying to do the job of 10, and nobody benefits from that."
Brown's election revealed an electorate that's hungry for leadership and fundamental change in the way government operates. The status quo is no longer acceptable, and certainly isn't affordable.
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