Gov. Charlie Baker filed a plan yesterday to reduce an unemployment insurance fund deficit that will otherwise come out of the pockets of businesses.

 

The proposal would provide $1 billion to reduce a $5 billion UI trust fund gap.

 

As it stands, Massachusetts businesses will effectively see a more than 10% bump in their UI rates, beginning this year and continuing for the next two-plus decades, in the form of a quarterly “Covid-19 recovery assessment rate” to help the state pay off the deficit, reports Greg Ryan at the BBJ.

 

Even employers who didn’t lay off a single employee during the pandemic -- and new business that haven’t even opened yet -- will be assessed these UI fees on top of the usual charges.

 

"If we were to put $1 billion in to fund a piece of the deficit in there, it would dramatically reduce the pain that’s going to be felt by the employer community," Baker said.

 

Baker’s proposal would be funded using part of unprecedented $5-billion budgetary surplus.

 

It’s a really good step in the right direction.

 

But Beacon Hill should also use federal American Rescue Plan Act to reduce UI debt that was not employers' fault, something more than 30 states across the country have already agreed to do.

 

 

Baker also wants the Legislature to reconsider returning the charitable giving tax deduction that voters approved, but Democrats recently iced.

 

He wants to restore the 5% tax deduction as a way to help nonprofits that were stretched thin during the pandemic, reports Matt Murphy at State House News.

 

"I think this one's worth another look, and I hope the Legislature gives it some serious consideration because, as I said, it's affordable, people voted on it and many of the organizations that would benefit from this did a lot of really heavy lifting for us all over the course of the last 16 months," Baker said.

 

Baker said many of the food pantries, shelters and addiction treatment providers that would benefit "carried a big part of the burden of helping people through the pandemic."

 

Adding that the tax break "would send the appropriate signal to them that their work is appreciated."

 

Seventy-two percent of voters approved the charitable tax deduction in a referendum more than 21 years ago.

 

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