PEABODY — The Peabody Area Chamber of Commerce announced its involvement in a campaign to oppose efforts from the Commonwealth of Massachusetts to pass the payment of a $2.1 billion debt onto business owners.
According to the Mass Opportunity Alliance, which is leading the campaign, the Baker Administration misallocated federal funds during the COVID pandemic, a mistake which came to light in 2023 when Gov. Maura Healey took over.
“The Healey-Driscoll Administration has negotiated with the federal government to repay the funds over the next 10 years,” PACC President Deanne Healey said in a statement. “However, instead of the state absorbing the cost of its mismanagement, the current plan shifts the financial responsibility to Massachusetts businesses through increased unemployment insurance payments.”
The state could have ended up having to pay $3 billion after penalties, fees, and interest were factored in, but instead agreed to pay back the $2.1 billion over 10 years, according to Mass Opportunity Alliance.
Payments to the federal government will be made through the Unemployment Insurance Trust Fund, the organization said on its website, which is funded by a tax on employers, starting in 2026.
“Basically, what they’re saying is they don’t want to use the State’s ‘Rainy Day’ fund to pay it back into the unemployment fund,” Healey told The Daily Item. “They’re calling on additional investments from the business community to pay it back over a number of years. It was an error on the state’s side, but they’re putting the onus of paying the money back on the business community.”
Her goal now is to raise awareness among the Peabody area business community, making employers aware of the cost increases coming their way and giving them the resources to notify their legislators.
“This campaign is really meant to educate them to say that there’s something you can do about it,” Healey said. “That’s what we’re here for: to be a lookout for issues that impact the business community, educate them on how it’s impacting them, and give them opportunities to weigh in and address it.”
In addition to notifying other chambers of commerce, MOA has also involved industry groups like the Associated Industries of Massachusetts and the National Federation of Independent Businesses.
Those interested in backing the movement can send a pre-written email to their representative on the group’s website, youbrokeityoufixit.com/.
“We think this is a state issue that they should be fixing, not putting the burden on the business community. A lot of decisions are made with big businesses in mind who might be able to absorb a little higher cost line item,” Healey said. “But then, when you bring it down to especially the small business community, which makes up the vast majority of our businesses in the state, they take a bigger hit on it.”
