Rep. Garballey does, too

Continuing a commitment to provide economic relief for small businesses and grow and create jobs, Sen. Ken Donnelly, a Democrat representing Arlington, said Senate has passed legislation that will freeze the unemployment insurance rate. Without the freeze, the rate would increase by more than $228 per employee, with the average employer seeing a per-employee payment jump from $644 to $872.

The House voted in favor of the bill on Wednesday, Feb. 16. Rep. Sean Garballey, a Demicrat representing Arlington and West Medford, voted in favor of the freeze.

Feb. 18: Governor signs freeze bill

"We recognize that small businesses are the backbone of our economy and understand the financial strain these companies are under," Donnelly said. "I am pleased that the Senate was able to pass this legislation in an effort to alleviate this burden and allow small businesses to thrive. It makes it much easier for businesses to grow and hire additional staff as the economy continues its recovery."

Last year, in an effort to spur business development and keep doors of existing business open, the Senate passed a similar unemployment-rate freeze. The Senate took the lead on other business-friendly efforts such as: establishing certain business tax incentives and a cap on small business health insurance rates to provide further relief and encourage short-term growth. The Legislature has also reduced the corporate excise tax, dropping this year to 8.25 percent from 8.75 percent and to 8 percent by January 2012. This year’s rate drop constitutes a 13 percent reduction in the corporate excise tax since 2009.

The Senate bill to freeze the unemployment insurance rate, adopted Feb. 10, would hold steady the current rate schedule for Unemployment Insurance assessments on employers for calendar year 2011 In previous recessions the state has frozen the assessment schedule to relieve the burden on small businesses in tough economic times.

The bill now goes to the House of Representatives for consideration.