Business comMITTment: Romney shares vision of future for city, state during Chamber breakfast

By Jonathan Bender -- The Lynn Journal
Wednesday, May 5, 2004

Governor Mitt Romney believes the health of the economy in Massachusetts is improving but still needs a jumpstart from government in the form of deregulation and a static tax rate.
Romney addressed the fiscal health of the state and the influence wielded by special interests at the Lynn Area Chamber of Commerce Annual Meeting last Wednesday morning.
In his opening remarks, Mayor Edward "Chip" Clancy Jr. said, "I want to thank him [Gov. Romney] publicly. In my entire 40-year saga of trying to bring the Blue Line to Lynn, his administration has been more supportive and proactive. They understand the economic impact that the Blue Line can have on the central business district,"

Although Mayor Clancy was complimentary initially, he and Gov. Romney would later lock horns over charter school funding in Lynn (See story on Page 3).

"I suppose you would be interested in knowing what the health of the economy looks like and what the future looks like," Gov. Romney said to the 500 guests present at the Knights of Columbus.

He went on to paint a picture of an economy on the rebound, but still lagging a bit behind in Lynn.

The unemployment rate across the commonwealth sits at 5 percent, but in Lynn, that number is closer to 8 percent. Full employment is at 4 percent.

According to Romney, apartment rental rates went down this year as his administration increased the housing flow. "All indicators are positive and the signs are promising," said Romney, who argued that his administration must convince businesses to grow in Massachusetts. He sent a letter to all major employers in the state last month that basically said the same thing.

Romney stated that Massachusetts must keep taxes competitive and improve on the unemployment insurance tax rate (the highest in the country) because taxes are like the prices that stores charge customers.

"We raise our prices and people are going to look elsewhere, not overnight; but over a decade or a half decade," said Romney.

The governor also discussed the importance of economic incentives to companies considering their future in Massachusetts.

He cited the example of Ocean Spray, which has a manufacturing plant in Centerville.
The cranberry producer was considering moving a manufacturing plant to Wisconsin until the governor's office was able to offer a $75,000 grant from the Workforce Training Fund to new employees of Ocean Spray. Craisins will still be made locally.

After introducing his new secretary of economic affairs, Ranch Kimball, Romney talked about the "weed wackers" on his staff. Romney compared his staff's ability to cut through regulatory delays in the permitting process, (a la the weed wacker).

"Raising taxes is not the answer. There are two ways we can get more money. We can have greater economic growth and we can at the things we are spending money on," said Romney.

He followed that statement with a ringing criticism of special interest groups and the power they wield at the state level.

"Elected officials are bombarded with support and request of special interests. Special interests are coming between the public and personal good," said Romney.
He pointed to I-90, where the average toll taker makes $70,000 a year. According to Romney, the Massachusetts Turnpike has 10 percent of the highway miles in the state; but 80 percent of the costs.

"All friends, Republican and Democrat, find a home on the Turnpike," said Romney.

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