WEEKLY NEWS DIGEST (September 5-11, 2011)

EMPLOYMENT

Menino set to coax nonprofits into hiring; Incentives part of broad jobs plan.” By Andrew Ryan. Boston Globe. September 5, 2011. To encourage job growth, Mayor Thomas M. Menino today will propose financial incentives for hospitals, universities, and other nonprofits to hire out-of-work Boston residents. Institutions that hire jobless Bostonians would receive a $1,000 or $1,500 credit that would be deducted from the money nonprofits are asked to pay each year in lieu of property taxes. Boston’s top five employers – four major hospitals and Boston University – contributed more than $8.6 million to city coffers last year despite their tax-exempt status. The nonprofit credits are part of a broad 10-point plan to stimulate hiring that the city will release today as Menino addresses the Greater Boston Labor Council’s annual Labor Day breakfast. The Menino administration views the initiative as a complement to an upcoming federal jobs package – about to be unveiled by the White House – that is expected to include some form of tax credits but will probably be targeted more at businesses. Under the proposal, Boston would give a nonprofit a $1,000 credit for hiring an unemployed resident. The credit would increase to $1,500 if the person had been out of work for six months or more. City officials described the proposal as a modest push to spur hiring. Because the annual payments from nonprofits are technically voluntary, the Menino administration would not need City Council approval to implement the program. Administrators at Boston’s largest nonprofits declined last week to discuss the credits and whether they would encourage hiring because they had not yet learned full details of the mayor’s proposal. That made it difficult to gauge the impact that a $1,000 to $1,500 credit might have on a billion- or million-dollar institution.

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