The new MBTA Retirement Fund Actuarial Valuation Report shows the fund is only about 51 percent funded. In 2006, it was 94 percent funded. A “death spiral” generally accelerates when retirement system funding dips below 50 percent.
About Charles Chieppo
Charles D. Chieppo is a Pioneer senior fellow. Previously, he was policy director in Massachusetts' Executive Office for Administration and Finance and directed Pioneer's Shamie Center for Restructuring Government. While in state government, Charlie led the successful effort to reform the Commonwealth's public construction laws, helped develop and enact a new charter school funding formula, and worked on state workforce issues such as pension reform and easing state restrictions against privatization. In 2000, Charlie was a member of the MBTA's Blue Ribbon Committee on Forward Funding and, more recently, his analysis of the proposed merger between the University of Massachusetts and Southern New England School of Law played a key role in the Board of Higher Education's rejection of the proposal. His columns appeared regularly in the Boston Herald and have also been published by The Boston Globe, Boston Business Journal, Providence Journal, Springfield Republican, and Worcester Telegram & Gazette.
Entries by Charles Chieppo
Worcester, Brockton, Fall River, New Bedford, and other Gateway Cities in Massachusetts have large waiting lists for charter schools plus room to expand under state caps. What’s needed are ways to curb obstructionist behavior that is blocking that expansion.
MTA campaign against graduation test takes their stand to ‘farcical extremes’ Originally appeared in CommonWealth magazine on April 25, 2023 The Massachusetts Teachers Asasociation is calling on its members to be “conscientious objectors” by refusing to administer MCAS and not let their own children take the dreaded tests. Such farcical extremes ensue when a special interest group has had too much power for too long. Massachusetts’ landmark 1993 Education Reform Act transformed K-12 public education by providing substantial funding increases in return for accountability, high standards, and expanded school choice. SAT scores rose for 13 consecutive years. In 2005, the Bay State became the first state to lead all four categories tested on National Assessment of Educational Progress (NAEP). By 2007, […]
Immigrants account for 17% of Massachusetts residents but start a quarter of the Commonwealth’s new businesses. These entrepreneurs could create even more jobs that further lift wages and standard of living if not for the unnecessary obstacle of restrictive state and local occupational licensing laws.
Going back to the bad old days of Taxachusetts would be an almost unfathomable mistake. Between the $3 billion bombshell that upended the recent legislative session, the ambiguity about how the tax revenue will actually be spent, and the contrasting examples of neighboring New Hampshire and Connecticut, Bay State voters have plenty of reasons to come back to reality and reject the ill-conceived proposal to amend the Massachusetts constitution this November.
In today’s Boston Globe, business columnist Shirley Leung raises important questions about who exactly will be impacted by the tax hike amendment that will appear on the Massachusetts ballot in November. The answer is retirees and small business owners – and we have the data to prove it.
Michelle Wu’s plan to clear tents from the Mass. and Cass homeless camping site by January 12 is long overdue. If only it had been done earlier, the move could have averted a humanitarian crisis.
As the U.S. Supreme Court takes up Carson v. Makin, the facts are clear. Maine has chosen to subsidize private education. As such, it cannot disqualify all religious schools from receiving public dollars under its school choice program.
Given the failures of both appointed and elected school boards, perhaps the time has come to have the state Department of Elementary and Secondary Education appoint the members of the Boston School Committee. Patience might be warranted if the Boston Public Schools were improving. But we have waited for decades, and they are only getting worse. Holding adults in the system accountable was a cornerstone of the Education Reform Act. If not now, when?
This op-ed originally appeared in the Boston Globe. It was written by Pioneer’s Charlie Chieppo along with AEI’s Beth Akers. There’s no doubt that the United States faces a student loan debt crisis. But the problem would be addressed much more effectively — and progressively — by a series of reforms targeted at those who bear the brunt of the crisis than by providing most borrowers with up to $50,000 in debt forgiveness. The overall numbers are daunting. According to the credit reporting agency Experian, 1.65 million Americans owed about $1.57 trillion in student loan debt in 2020, making it the second-highest category of consumer debt, behind only mortgages. About 10.8 percent of borrowers were in default on nearly $120 billion in student loan […]
Even as countless citizens and businesses are struggling, many state governments are faced with large deficits that hinder their ability to help. As a result, some, such as Massachusetts, are considering raising taxes on high-earners to generate revenue. But in its report, “Connecticut’s Dangerous Game: How the Nation’s Wealthiest State Scared Off Businesses and Worsened Its Financial Crisis,” the Boston-based Pioneer Institute provides a cautionary tale about the dangers of going down the path taken by the Bay State’s neighbor, Connecticut.
This op-ed has appeared in WGBH News, The Providence Journal, and Worcester Telegram & Gazette. In a republic based on the consent of the governed, there is a strong public interest in having an educated citizenry. Yet in Massachusetts, the cradle of public schooling in America where the state constitution directs us to “cherish” education, we seem to dole out incentives for just about everything except education. Consider the Race Horse Development Fund. Since 2014, the commonwealth has spent nearly $80 million to subsidize a horse racing industry that’s dying from the increasing availability of other forms of gambling. Since most of the fund’s money comes from a tax on Plainridge Park Casino revenue, it amounts to a transfer from gamblers, who tend […]
In response to a collapse in MBTA service in the winter of 2015, the newly formed Fiscal and Management Control Board (FMCB) set the authority on a course of bold reforms. The COVID-19 pandemic is once again presenting new and significant challenges to T leadership that require a rethinking of how service is delivered to stave off painful service cuts.
Thanks to the Supreme Court’s Espinoza ruling, many more students can reap the benefits of school choice
Even in a time of painful divisions in our country, there is little doubt among people of good faith that what Derek Chauvin and three other former Minneapolis police officers did to George Floyd was criminal. If they are indeed convicted of a felony, how is it that the former officers could very well be immune from civil liability?
The COVID-19 recession could cause Massachusetts’ unemployment rate to skyrocket to 25.4 percent by this June, according to a new policy brief published by Pioneer Institute. The Commonwealth’s unemployment rate was 2.5 percent in February.
The unprecedented surge of COVID-19- related unemployment claims that began two weeks ago is on pace to wipe out the MA unemployment Reserve Fund within three months, which will force state leaders to turn to the federal government for a bailout loan.
Congress has passed the Coronavirus Aid, Relief, and Economic Security Act, providing $2.2 trillion in financial relief to laid-off workers, hospitals, and distressed industries. The bill provides an extra $600 per week in unemployment benefits to each recipient for up to four months and extends benefits to previously ineligible categories of workers, including independent contractors, those with limited work history, and self-employed persons.
This op-ed by Greg Sullivan and Charlie Chieppo appeared in the Boston Business Journal on March 27, 2020. While passage of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Actis surely good news, it will come nowhere near fully addressing the pandemic’s impact on the commonwealth’s finances. Large block grants would be the best way to provide states with much needed relief. Thanks to the virus, state revenue sources from sales taxes to pension fund receipts are plummeting. At the same time, expenses connected to the outbreak are rising sharply. Just look at unemployment insurance. Weekly state unemployment claims rose from 4,712to 147,995in just two weeks. And while the new stimulus bill will add $600 to each unemployment check for up to four months and […]
Local education officials were up in arms earlier this year when Pioneer Institute proposed giving the Commonwealth the power to appoint some school committee seats in urban districts that are mostly state-funded. It would be hard to imagine a better example of why we need to adopt that reform than the current mess in Fall River.
By Jamie Gass & Charles Chieppo Read this op-ed in The American Conservative We are now nearly four decades beyond the publication of A Nation at Risk, a federal report that indicted the “rising tide of mediocrity” and initiated a well-deserved period of hand-wringing about K-12 public education in the United States. Massachusetts was the only state to respond to the call to create a school system that would be among the best in the world. Sadly, now even the Bay State is retreating from the policies that delivered its historic success. The landmark Massachusetts Education Reform Act of 1993, which was entirely state-led, pushed academic content and high standards over the Bush I and Clinton administrations’ agenda of K-12 […]
The Hill BY JIM STERGIOS AND CHARLES CHIEPPO, OPINION CONTRIBUTORS — 04/12/19 10:35 AM EDT A patient repeatedly tries to find out the price for a medical procedure. The hospital refuses, but eventually quotes the price as $5,500. But one health insurer’s website includes a page with price guidelines for various procedures. Seeing that the expected cost for the test he was to undergo was $550, the patient pulled off his identification bracelet and left the hospital. What makes this story stand out is that the patient was U.S. Secretary of Health and Human Services Alex Azar. If even someone who’s so knowledgeable about the health care system struggles to gain access to price information, then discovers a hospital is charging 10 times the […]
A review of the performance of Massachusetts students on National Assessment of Academic Progress 4th-grade reading and 8th-grade math tests shows that overall improvement has stalled in the last decade, but the percentage of students scoring in the top category has steadily increased.
This op-ed appeared in the Boston Herald on Wednesday, November 29, 2017. The history of education reform in Massachusetts over the past quarter century could be a case study in playing the long game. A 1993 law provided a massive increase in state funding in return for high standards, accountability and more choice. Teachers unions, school committees, superintendents and others in the education establishment liked the money, but not the reforms. They kept fighting, and less than 25 years later, little but the money remains. The sad thing is that the establishment’s success at eliminating reforms has brought a steep decline in the quality of public education in Massachusetts. Once the 1993 combination of money and reforms took hold, state […]
Here’s another one for that bulging “It could only happen in Massachusetts” file. Outsourcing bus maintenance would save $11 million a year and bring three of the MBTA’s nine garages into the 21st century. The work would continue to be performed by the mechanics (albeit slightly fewer of them) who do it now, and they would remain members of the same union, earning among the highest salaries in the industry. A slam dunk, right? Not here. While Gov. Charlie Baker remains strongly behind the proposal, his appointees to the MBTA Fiscal and Management Control Board are reportedly wavering in the face of fierce opposition from the Machinists’ Union. Read this full op-ed in the Boston Herald.
Charles Chieppo provides public testimony regarding the “Post Audit and Oversight on MBTA Bus Maintenance Reform.”
THE MBTA’S BUDGET SHORTFALL, once pegged at $335 million for the current fiscal year, is now down to $30 million. That’s good news for riders, taxpayers, employers, and legislators—really everyone except the T’s unions. Much of the savings is the result of a three-year exemption from the Commonwealth’s anti-privatization law that the authority was granted in the wake of its 2015 winter implosion. In June the MBTA unions got even worse news when an arbitrator ruled against them on a grievance they brought under Section 13(c) of the federal Urban Mass Transit Act. For years, the T unions have used 13(c) as a “get out of jail free” card when faced with even the most modest reform proposal. Read more at […]
A version of this op-ed appeared in The Berkshire Eagle, The Salem News, The Gloucester Times, the Patriot Ledger, The Brockton Enterprise, and The New Bedford Standard-Times. BOSTON — Moody’s Investors Service estimates that total U.S. state and local government pension unfunded liability will reach $1.75 trillion this year and the commonwealth is hardly immune from this alarming trend. The Massachusetts Teachers Pension Fund pays out over $2.6 billion in annual benefits and has barely half the money it needs to meet its long-term obligations. Many of the commonwealth’s more than 100 local pension systems are in a similar condition. This isn’t just a nightmare for the commonwealth, local governments and state taxpayers; more than 10 percent of all adults […]
By Jim Stergios and Charles Chieppo Read this op-ed online at USA Today. Education nominee could improve on past secretaries by backing state and local innovation. Every administration since President George H.W. Bush’s has pinned its hopes of transforming American K-12 education on several thousand bureaucrats in the Lyndon B. Johnson Building in Washington, D.C. and the Beltway lobbyists perched on their doorstep. Betsy DeVos, president-elect Donald Trump’s nominee to head the Education Department, needs a different plan. Given that the federal government contributes approximately 10% of the total spending in the nation’s sprawling, decentralized landscape of 100,000 public K-12 schools, it is neither plausible nor desirable that an Education secretary chase the chimera of a transformational national education policy. Arne Duncan’s seven years as President Obama’s secretary of Education were just the latest iteration […]
By Mary Z. Connaughton and Charles Chieppo Guest Columnists Originally published in The Berkshire Eagle, the Milford Daily News, New Bedford Standard-Times, and The Lowell Sun. It would be easy just to shake your head and turn the page upon learning that the MBTA Retirement Fund (MBTARF) is underfunded by nearly $868 million. Unfortunately, you cannot. Every year, the pension plan receives tens of millions of state dollars that flow through the MBTA. The T, in turn, has a contractual obligation to bankroll three quarters of any shortfall. Read this entire article in The Berkshire Eagle, the Milford Daily News and the New Bedford Standard-Times.