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An attempt to repeal the state’s $1 billion Life Sciences Act was defeated by the Massachusetts State Senate this week.
The Life Sciences Act of 2008 provides roughly a billion dollars over 10 years in loans, grants, tax incentives and other stimulus funding mechanisms to the state’s biotechnology industry. However, Sen. Richard Tisei, R–Wakefield, had submitted Amendment 255 to the Senate’s version of the fiscal year 2010 budget, titled “Repeal of the Biotech Bailout Bill.” This would have saved an estimated $100 million over the next year, its advocates claimed.
Tisei isn’t the only critic of the bill. A number of the state’s unions have also denounced the bill, which had the strong support of Massachusetts Gov. Deval Patrick, as being corporate pork. They have also claimed the funds are being given to large corporate giants that don’t necessarily pay prevailing wages.
Just this past week, Patrick affirmed his continued support for funding the Act, as well as for the Massachusetts Life Sciences Center, the quasi-public agency which oversees the life sciences funds. To operate, the MLSC also requires renewed funding in the 2010 budget. In an interview Wednesday, Patrick claimed not funding these initiatives amounted to “the worst kind of shortsighted thinking.” He also said: “As the (budget) process develops, we’ll be at the table fighting for adequate funding for initiatives.”
During the Senate budget debate on Thursday, Tisei claimed 255 was a “bipartisan” amendment, as he had several other Republicans behind him and one Democrat, Sen. Mark Montigny, D-New Bedford, according to the State House News Service.
“If you’re a manufacturing company from Uxbridge, you haven’t got a dime,” Tisei told SHNS. “If you’re a biotech firm in Uxbridge, you’re probably doing pretty well. At a time when we don’t have the money to properly fund the basic human service programs that we’re all responsible for, you’ve got to wonder.”
He also claimed this “biotech giveaway” wasn’t a major factor for life sciences companies in deciding to do business in the state. Citing a biotech executive whom he’d spoken with, Tisei said, “What’s more important is that you have a good business climate, and the overall cost of doing business.” Tisei asked: “What are we going to do for the guy in Methuen who has a retail shop who is going to see all his business go to New Hampshire. What about the auto dealers, we wanted to give them a break. But for all the sexy stuff, we’re willing to give away the store, empty the treasury. I hope this amendment passes.”
“No one would deny that this industry creates good jobs, good wages, great benefits,” said Montigny to SHNS. “I would only argue on two fronts. One, we cannot afford the tax credit, and two, the tax credit[s] are not what draw the life sciences, biotech and medical device industry. It’s the minds.”
Montigny also took aim at the MLSC. “If we’re going to do this, and spend this money, it should be fully transparent and it should be accountable,” he said. “People are outraged by the notion of these quasi public agencies. They operate outside the scrutiny that’s necessary to promote good government.” He claimed that several of the salaries of the MLSC were in the six figures range. “As you peel the layers at the quasi publics, well, you know what happens when you peel a rotten onion.”
During the debate, senate advocates for the Life Sciences Bill emphasized the need to remain competitive. “This is a time when we absolutely have to maintain our edge in the life sciences industry, and when we compare our situation to other states, I would attribute some of our edge to the life sciences community,” said Sen. Anthony Galluccio, D-Cambridge, according to SHNS. “And when you have the edge, you have to keep it.”
After debate Thursday night, the Senate rejected the amendment 32 to 7.
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