THE PIONEER BLOG

How Does MA Allocate Money to Its Community Colleges?

State funding for community colleges is widely considered to be allocated on the basis of enrollment. The bigger a school’s student body, the more money it receives. However, Massachusetts does not appear to follow this pattern for every campus. As demonstrated in Chart I, the bigger schools – Bunker Hill and Middlesex, for example – are on the upper end of state money appropriations for 2016. Conversely, the smallest – Greenfield, Berkshire, Roxbury – receive less. The schools that defy this size-money correlation are Bristol, North Shore, Massasoit, and Springfield Tech. At 6,286 students, Springfield Tech has fairly modest enrollment relative to its peers (As a frame of reference, Bunker Hill and Middlesex have 13,142 and 9,021 students, respectively). Yet […]

The Internet Sales Tax: Gone But Will It Be Back?

On June 30th, two days before it was scheduled to go into effect, the Massachusetts Department of Revenue (DOR) pulled a directive that would tax online retailers without a physical presence in the state. Under the directive, any company that has over 100 transactions and at least $500,000 in sales in the state in the prior year would be subject to a 6.25% sales tax. An internet sales tax is not, however, as easy to implement as it sounds. In 1992 the Supreme Court ruled in Quill Corporation v. North Dakota that that states could not levy taxes on businesses unless they had a physical presence in the state in which they were being taxed. To get around the ruling, […]

Welcome to the Crazy World of College Presidential Salaries – Part 1

In a world of skyrocketing college tuition and student debt, the issue of college administration costs has become highly visible—and infuriating—for those footing the college bills. A large part of a higher education institution’s administrative costs come from salaries, including pay for presidents, executive boards, deans, and provosts. But these positions also sometimes come with not-so-straightforward perks, including buyouts upon retirement and significant pension plans. While controversies may seem more likely in private institutions, taxpayer-funded public universities and colleges also have their share of issues. While Massachusetts’ nine state universities are supposed to provide a more affordable option for students, still some administrative salaries are increasing as tuition continues to rise. To gain a simpler view of how such salaries […]

The Downgrade: Perhaps A Yawn But We’re Not Alone

Since the end of the Great Recession in 2009, economic indicators have been largely positive. The U.S. GDP in 2015 reached $16.3 trillion, finally surpassing the $16 trillion before the recession. U.S. unemployment has fallen to 4.3%, down from 10% at  the height of the recession. Yet despite the recent growth, 13 states including Massachusetts have seen bond rating downgrades from at least one rating agency in the past two years. Five states have suffered downgrades from all three. Their stories should serve as a warning to Massachusetts not to follow in their footsteps. Bond ratings measure the risk that an entity will be unable to pay back its bond holders. As bonds get riskier, bond issuers are forced to […]

“A Source of Wonderful Ideas and Terrific Innovation”

“…yet another idea that came out of the Better Government Competition, in real-time, delivered by Pioneer Institute to the Commonwealth of Massachusetts…This organization, this event, for years and years and years has been a source of wonderful ideas and terrific innovation, and I want to, on behalf of the Commonwealth, thank you for your leadership and your work in so many different spaces…” – Governor Charlie Baker (view Governor Baker’s remarks in their entirety by clicking on the image above!) The Tall Ships weren’t the only attraction drawing a crowd to Rowes Wharf on Monday evening. Now in its 26th year, Pioneer’s Better Government Competition (BGC) Awards Dinner welcomed Governor Charlie Baker, MIT’s Dr. Joseph Coughlin, and BGC winner Kim […]

Understanding the Downgrade

S&P Global Ratings (S&P) recently downgraded Commonwealth and certain other Massachusetts agency bond ratings one notch from AA+ to AA. The AA rating is still considered a high mark in terms of the investment grade of the bonds, meaning S&P believes the state will meet its debt obligations.  While it is fair to say that the downgrade is not a calamity, it is certainly a warning signal as to what could happen should the state continue practices that do not lead to long-term fiscal health.  It’s a reality check to which we should pay close attention. As shown in Figure 1, the state’s S&P rating on Massachusetts bonds is still well above 2001 levels and is now at the same […]

Aging, Technology Take Center Stage at 2017 Better Government Awards Gala

Last night, on an inspiring evening, against the backdrop of the beautiful Sail Boston parade of tall ships, Pioneer Institute held its annual Better Government Awards Gala. Longtime supporters and new friends gathered at the Boston Harbor Hotel to celebrate the country’s most innovative ideas to improve care for the aging, and leverage their skills in new ways. The audience heard from Massachusetts Governor Charlie Baker, who discussed his administration’s initiatives on transportation, healthcare, and his new council to address healthy aging. Kim Brooks, the Chief Operating Officer of Senior Living at Hebrew Senior Life, accepted the top prize for her Better Government Competition entry, “The Right Care, Right Place, Right Time: Effectively Integrating Senior Care and Housing.”  And MIT AgeLab’s Joseph Coughlin, […]

Community College Presidential Pay Raises Not Necessarily Based on Merit

Last year saw some of the highest recorded salaries for presidents of Massachusetts community colleges. The presidents of Greenfield, Bristol, Massasoit, Quinsigamond, and Mt Wachusett Community Colleges receive the highest, with annual earnings in the mid-$200,000 range.  These salaries are the result of rapid growth in the last five-to-six years. Compensation is generally based on more than performance; experience and institutional characteristics factor in to determine a president’s salary. Salaries also tend to increase over time due to factors like inflation and a changing economy. However, some presidents have seen dramatic pay raises that far outpace the expected norm. For the six-year period (2016 is the last year for which data are available), Greenfield Community president Robert Pura saw his […]

Spending on Students: How Does Groton Compare?

Massachusetts is known for the strength of its K-12 education.  US News & World Report recently ranked the commonwealth’s public-school districts.  Having grown up in Groton, I wanted to see the correlation between educational expenditures and school district performance in the town. How does Groton’s education spending compare to Massachusetts towns with similar demographics? How about neighboring towns?  To find out, I used MassAnalysis, a free, online transparency tool offered by Pioneer Institute. MassAnalysis uses financial information provided by the municipalities to the Department of Revenue (DOR). MassAnalysis has two simultaneously useful features, the first is a peer analysis tool which compares a town of interest with other municipalities that are similar based on certain parameters. To analyze Groton and […]

How You Can Audit Massachusetts’ Pension Boards

Just recently Kathy Curran led an investigation into Massachusetts retirement boards’ wasteful use of public funds. Her investigative team found that while nearly all public retirement boards in Massachusetts are not on track to be fully funded for at least another decade, numerous boards have been treating themselves to expensive dinners, five-star hotel visits, and other indulgences paid for on the public’s dime. In the past, it has been challenging for the public to assess and compare the finances of their local retirement board to other such boards. It would take countless hours to comb through the hundred or so page financial statements in order to identify a trend that would point to potential excesses or mismanagement, never mind doing so […]

Closing Catholic Schools in Massachusetts Can Be Avoided

The Archdiocese of Boston recently announced that after operating for 93 years, the Saint Clement School in Medford will be closing its doors at the end of this school year due to a persistent decline in enrollment.  That means a multitude of students who believed they would be following the thousands before them as Saint Clement’s graduates will instead be tearfully giving up the maroon for colors unknown. Saint Clement High School is part of the Central Catholic League and I’ve enjoyed watching the players compete against my son’s school, Marian High School, in Framingham.  The school’s closing hits close to home. Saint Clement’s closing does not represent an isolated example.  Enrollment in Boston Archdiocese schools has dropped 21 percent […]

Groton’s Tax Base Dilemma

Among 15 peer municipalities, Groton’s commercial tax yield makes up a relatively small percentage of its total tax revenue and general government expenditures. In Groton and similar towns, how does developing a commercial tax base fare in terms of supporting local expenditures and moderating residential and personal property taxes?             MassAnalysis.com provides town-by-town data on an extensive range of parameters, including municipal expenditures, demographics, tax rates and revenue information. The database allows comparative analyses with “peer municipalities,” that rank similarly to a particular city or town across a variety of metrics that can be selected to provide robust, dynamic insight into municipal governments and their differences across Massachusetts. A pressing issue for Groton residents has been a perception that taxes […]

MA Colleges Spend Tens of Thousands in Taxpayer Money on Celebrity Commencement Speakers

Graduation season is in full swing, and as a hotbed of higher education, Greater Boston sees hundreds of thousands of students matriculate each spring. These festivities bring visiting parents, landscaped campuses, and, of course, commencement speakers. Celebrity speakers have long been a high-point at commencement ceremonies. Each year, politicians, academics, actors, musicians and CEOs get tapped to address graduating classes. In addition to the publicity they gain from such appearances, speakers often enjoy honorary degrees conferred upon them and the opportunity to impart wisdom on the newest generation of workers. The speaking fees these school pay are also increasing rapidly. In the last decade, the Commonwealth of Massachusetts has spent close to $700,000 in honoraria for visiting speakers and lecturers […]

Celebrating National Charter Public Schools Week

Great charter public schools are about great leadership. Charters in Massachusetts are the best in the country at bridging achievement gaps for our neediest students. They were authorized through the 1993 Massachusetts Education Reform Act, authored by Bay State leaders like Governor William Weld, Senate President Tom Birmingham, and Representative Mark Roosevelt. They believe that access to a quality education is a civil right, as education is the steppingstone to a better life. Education reformers often hearken back to the civil rights movement, drawing inspiration from the bold leadership that changed the nation, from the plaintiffs in the Brown v. Board of Education Supreme Court case, the Little Rock Nine, and MLK’s March on Washington. Pioneer Institute recently hosted an […]

Pioneer is critical because UMass is critical

The University of Massachusetts system is critical to the future of the commonwealth’s economy, and that is why Pioneer started drawing attention to the finances of the five-campus system in the spring of 2016 through the release of its three-part series. With a deferred maintenance backlog of more than $3 billion, the UMass system is in the midst of an irresponsible capital expansion program that has neglected that backlog. Gov. Baker may have provided the Boston campus with an emergency bailout of $78 million in state funding to demolish its much-discussed parking garage, but this is a BandAid and not a cure.  After all, the infusion of state funds comes in addition to the $74 million state taxpayers have contributed […]