Massachusetts
Business confidence in Massachusetts falls despite signals of interest rate relief, index shows
Business confidence slipped toward pessimism last month, with employers concerned about sticky inflation and the Federal Reserve’s plans for rate cuts amid rising unemployment numbers, according to the Associated Industries of Massachusetts.
Confidence among the state’s employers slipped from 52 points in July to 51 points in August, down 1.4 points from the same period last year and “marginally optimistic but cautious,” AIM said in their latest Business Confidence Index report.
Sara Johnson, Chair of the AIM Board of Economic Advisors, said “the good news is that 12-month inflation, measured by the personal consumption deflator, held steady in July and consumer spending was robust.”
“At the same time, employers in Massachusetts and across the country have turned more cautious amid concerns about the slowing economy and federal tax, spending, and regulatory policies after the November elections,” she said.
Survey authors note the news comes as inflation remains high but lower than it’s been in years, while the labor market continues to cool. This could be a sign the Fed will follow through with plans announced by Chairman Jerome Powell to move forward with rate cuts.
“Inflation remained steady at 2.5 percent in July, paving the way for the Federal Reserve to reduce interest rates later this month. The labor market, meanwhile, continued to cool, driving the Massachusetts unemployment rate to its highest level in four years at 4.6 percent,” AIM wrote.
Just last month, Powell signaled that the time has come for the central bank to ease up on the gas.
“The time has come for policy to adjust,” Powell said in his keynote speech at the Fed’s annual economic conference in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
AIM’s business confidence index showed pessimistic feelings in July, when it fell to 49.8 points, and in September of 2023, when it was again at 49.8 points. Employers have otherwise been generally optimistic about the state of the economy in Massachusetts through the last year.
That’s not to say there aren’t pain points, according to Suzanne Dwyer, President of the Massachusetts Capital Resource Company and a member of AIM’s board of economic advisors. An employer’s feelings at the moment are entirely reflective of their industry, she said.
“The shifts in the economy appear to be segmenting business confidence by industry, geography and company size. Confidence among manufacturers, for example, continues to be weaker than the overall outlook, and layoffs in the technology sector have eroded confidence in that area as well,” Dwyer said.
AIM surveys more than 140 Bay State businesses to produce their monthly index, the first of which was published in July of 1991. According to AIM, business confidence hit historic highs in 1997 and 1998, with two months in either year showing 68.5% confidence, and hit a low in February of 2009, when it was 33.3%.
Herald wire services contributed to this report.
Massachusetts
Minnesota childcare fraud allegations spark audit request in Massachusetts: ‘Serious risks’
Fraud allegations in Minnesota’s childcare system are prompting two Massachusetts Republican lawmakers to ask the Healey administration to conduct a “top-to-bottom audit” of a Bay State voucher program.
State Reps. Marc Lombardo, R-Billerica, and Nicholas Boldyga, R-Southwick, say they’re alarmed after seeing national reports of fraud in childcare subsidy programs, pointing specifically to widespread allegations in Minnesota.
Their concerns have prompted them to ask Gov. Maura Healey to direct Education Secretary Patrick Tutwiler to “urgently conduct” an audit and review of the Massachusetts Child Care Financial Assistance program to identify any potential fraud and vulnerabilities here.
Child Care Financial Assistance helps low-income families pay for childcare in Massachusetts.
“While Massachusetts has not yet been directly implicated in the same manner, the similarities in program structure, relying on voucher reimbursements to providers for low-income families, raise legitimate questions about whether comparable fraud or waste could be occurring here undetected,” Lombardo and Boldyga wrote in a joint letter to Healey on Wednesday.
“Our Commonwealth invests hundreds of millions of dollars annually in this critical program to support working families and early education,” they added. “We owe it to Massachusetts taxpayers and the families who genuinely need this assistance to ensure every dollar is spent appropriately and reaches its intended purpose.”
The governor’s office did not immediately respond to a Herald request for comment on the letter.
Early Education and Care Commissioner Amy Kershaw has said that Massachusetts is not facing disruption to its $293 million share of federal childcare payments amid a nationwide freeze in response to the Minnesota fraud allegations.
Kershaw has also added that Child Care Financial Assistance is not being impacted, either. The state appropriates funds for the voucher program at the beginning of the fiscal year and then seeks federal reimbursement.
This fiscal year’s funding totals about $1.087 billion for the program, which covered more than 66,000 children in fiscal year 2025, according to a December report from the Massachusetts Taxpayers Foundation.
“Obviously, we are incredibly concerned about families across the country and in Minnesota who may lose access to Child Care Financial Assistance based on acts by the federal government,” Kershaw told Bay State childcare stakeholders on Monday.
Before the new year, the federal Administration for Children and Families froze all funding to Minnesota. All 50 states must now provide additional verification before receiving more funds.
Minnesota Democrats accuse the Trump administration of playing politics and hurting families and children as a result.
This all comes after a video surfaced on YouTube alleging fraud in childcare in Somali communities in Minnesota, to which Kershaw has said none of the allegations have been proven.
The Massachusetts early education and care commissioner noted how there have been similar videos posted in Massachusetts and other states like Ohio, California and Washington.
In their letter to Healey, Lombardo and Boldyga also highlighted how the U.S. Department of Health and Human Services has responded to the Minnesota allegations by closing loopholes that allowed payments without verifying attendance.
“These developments highlight serious risks in subsidized child care systems across the country,” the Republican lawmakers wrote, “including the potential for misappropriation of taxpayer funds on a massive scale.”
Lawmakers across the country are seeking similar reviews as Lombardo and Boldyga. In Michigan, State Senate Minority Leader Aric Nesbitt, a Republican, has asked for an audit of a state program that aims to help low-income families afford childcare there.
The Massachusetts audit would zero in on verifying that voucher payments to providers are based on documented child attendance records; cross-checking to detect potential “ghost children” or overbilling; and on-site inspections of voucher-receiving providers to confirm they are operating legitimate childcare programs, among other objectives.
“Such a thorough review would not only safeguard public funds,” Lombardo and Boldyga wrote, “but also strengthen confidence in a program that is vital to thousands of Massachusetts families.”
The Associated Press and Herald wire services contributed to this report.
Massachusetts
Massachusetts police officer struck and killed in line of duty; department mourns
A Massachusetts police department is mourning the death of one of its own after an officer was struck and killed while attempting to assist a broken-down driver on a highway.
The Uxbridge Police Department has hung black bunting above its main entrance as it receives condolences from across the Bay State following the incident early Wednesday morning.
The crash unfolded at about 12:45 a.m., when the officer was trying to help a motorist in the northbound lanes of Route 146, a main artery in the Worcester County town that borders Rhode Island.
Authorities identified the fallen officer on Wednesday afternoon as Stephen Laporta, 43, of Uxbridge. The Massachusetts State Police is investigating the crash.
“This is a devastating loss for our department and our community,” Police Chief Marc Montminy said in a statement. “Our thoughts and prayers are with the officer’s family, loved ones, and fellow officers during this incredibly difficult time.”
Gov. Maura Healey has ordered flags to be flown at half-staff at all state buildings in honor of LaPorta.
“I am heartbroken over the news of Officer Stephen LaPorta’s passing,” the governor said in a statement Wednesday afternoon. “He knew he was headed into a dangerous situation when he responded to the scene of a multi-vehicle crash, but like all of our officers do day in and day out, he put the public’s safety first – and he tragically made the ultimate sacrifice.”
Authorities closed Route 146 for hours after the crash, with investigators working the scene. The icy, frozen road reopened around 10 a.m.
Uxbridge First Holy Night, a community organization, offered its condolences to the department via social media, saying the loss is also felt “across our entire town.”
“Our officers are more than public servants — they are neighbors, friends, parents, children, and family,” the group stated. “When one of our own falls, we all grieve together.”
“Uxbridge is a close-knit community,” it added, “and in moments like this, we lean on one another. May we surround this family and our police department with compassion, strength, and support in the days ahead.”
Police departments from across the region sent cruisers to participate in a procession that accompanied a vehicle carrying LaPorta’s body to a medical examiner’s office before daybreak.
The Boston Police Patrolmen’s Association described the officer as a “fallen hero” and the death as “heartbreaking news.”
“Another police officer killed in the line of duty. This time in Uxbridge,” the association stated in a social media post. “The officer was involved in a motor vehicle crash while attempting to assist a motorist on Rte. 146 early this morning. Our thoughts and prayers are with the officer’s family and the entire Uxbridge Police Department during this incredibly difficult time.”
State Rep. Mike Soter, whose Central Massachusetts district includes Uxbridge, said his “heart sank” when learning of the death.
“This is so close to home,” he said in a Facebook post. “May GOD watch over this officer’s family and his fellow officers today as they need our strength as a community. May the officer’s memory be eternal always!”
In June 2024, the Uxbridge Police Department celebrated LaPorta’s promotion to full-time patrolman.
“He may seem familiar to you all because Ofc. LaPorta has already been actively serving our wonderful town as a full-time Dispatcher and working part-time patrol shifts,” the department stated in a Facebook post. “He has put in the work to switch his role up and come to the patrol side full time! Let’s give him a warm congrats Uxy!”
Massachusetts
State fire marshal warns Mass. bars, restaurants against sparklers after deadly Swiss blaze – The Boston Globe
Massachusetts fire officials are warning bars, restaurants, and nightclubs that sparklers and other pyrotechnic devices pose a serious fire risk and are illegal to use without professional licensing, following a deadly New Year’s Eve fire in Switzerland that killed 40 people.
State Fire Marshal Jon M. Davine sent a notice Tuesday to businesses across the state reminding them that sparklers — including so-called “cold spark” pyrotechnics often marketed for celebrations — are prohibited unless businesses have the required licensing, certification, and permits, according to a statement from Davine’s office.
“This includes small sparklers that have been sold as novelties or party favors to accompany champagne bottles, which are believed to have caused the New Year’s Eve fire that claimed 40 lives,” Davine said in the statement.
The warning comes after investigators said sparklers likely contributed to a New Year’s Eve fire at Le Constellation bar in Crans-Montana, Switzerland, that injured more than 100 people in addition to the dozens killed.
The notice was distributed to local licensing authorities by the Massachusetts Alcoholic Beverages Control Commission and shared with restaurant owners statewide by the Massachusetts Restaurant Association, Davine said.
Separately, the state Department of Fire Services issued a notice to a Florida-based company, King of Sparklers LLC, after sparklers it allegedly sold online were recovered by Fall River fire inspectors at a local establishment, the fire marshal’s office said. Officials said shipping such products into the state violates state law and the Massachusetts Comprehensive Fire Code.
Fire officials said sparklers burn at temperatures exceeding 1,800 degrees Fahrenheit and throw off sparks capable of igniting decorations, furnishings, and other flammable materials. Even after they appear extinguished, sparklers can remain hot enough to start fires, officials said.
Davine pointed to a 2022 incident in Dracut, where the improper disposal of illegal sparklers sparked a three-alarm fire that displaced nine residents.
Sparklers are classified as fireworks under state law, meaning their possession, sale, and use require professional licensing and certification, the Department of Fire Services said.
Davine said the tragedy in Switzerland echoed memories of the 2003 Station nightclub fire in West Warwick, R.I., which killed 100 people and injured more than 200 others. The fire prompted sweeping safety reforms in Rhode Island as well as Massachusetts.
The Rhode Island fire was sparked during a concert when a band’s pyrotechnics ignited the sound-proofing foam near the stage, and the flames licked their way up the wall. It took a moment for the crowd to realize what was happening, but within 90 seconds after the fire ignited people stampeded toward the front entrance and were crushed, the Globe reported.
“The tragic fire in Switzerland has a chilling similarity to the Station Nightclub fire in Rhode Island, which led to numerous safety reforms in Massachusetts bars and clubs,” Davine said in the statement Tuesday. “We just want to help these businesses keep their patrons and staff safe.”
Rhode Island State Fire Marshal Tim McLaughlin also recalled the Station nightclub fire in the wake of the Swiss blaze.
“It’s almost eerie to think about it — the similarities between the two,” McLaughlin told WPRI-TV this week. “It was something I never thought I’d see again.”
Nick Stoico can be reached at nick.stoico@globe.com.
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