Chamber CEO confident MBTA starting to turn a corner

THE HEAD of the Greater Boston Chamber of Commerce on Thursday delivered a calibrated assessment of challenges facing Boston and Massachusetts in 2024 and potential solutions to address them.

In prepared remarks delivered over LinkedIn, James Rooney, the president and CEO of the chamber, praised Gov. Maura Healey and Boston Mayor Michelle Wu while disagreeing with some of the policies they have espoused.

He also called for more investment in transportation and housing while urging lawmakers on Beacon Hill to rein in spending and cut more unspecified “outlier” taxes that make the state less competitive. He noted the state ranks 46thout of 50 states on the tax climate index developed by the Tax Foundation.

“We want the Commonwealth to be the best place for the free-market economy to work, to start a business, grow a business, create jobs, to achieve long-term success that benefits workers and consumers,” he said. “But we cannot compete and win unless we address the policies holding us back.”

On transportation, Rooney praised Healey’s “wise appointments” of MBTA General Manager Phillip Eng and Transportation Secretary Monica Tibbits-Nutt, without mentioning that Gina Fiandaca, Healey’s first choice for secretary, was removed after seven months on the job.

“I am more confident that we have turned a corner on truly prioritizing our mobility needs than I have felt in decades,” said Rooney, who previously spent 17 years at the MBTA, rising to deputy general manager.

“Let’s face it, the transportation policies of the past 30 years have left us in a mess and the biggest challenge in fixing it will be figuring out how to pay for it,” he said, referring to the MBTA as a “broken” transit system.

Rooney said the state must embrace public transportation as a “public good” while changing the way it pays for transportation infrastructure. He said the shift to electric vehicles will mean less gasoline will be consumed and less gas tax revenue collected. James Aloisi, a former transportation secretary, called earlier this week for charging for roadway use in a CommonWealth Beacon column, but Rooney didn’t mention any specific policy solution in his address. He has backed the appointment of a mobility pricing commission that has come close to winning approval the last few years on Beacon Hill but never crossed the finish line.

“The moment is now for bold action that fixes our transportation system,” he said.

On education, Rooney urged business leaders to deepen their engagement with the Boston Public Schools on vocational education and apprenticeships, but warned against a ballot question moving toward the November ballot that would do away with the high-stakes MCAS test that is required for graduation. “Removing this structure of accountability does a profound disservice to our students and is harmful to our schools,” he said.

Wu, Boston’s mayor, took pride in announcing during her state of the city speech this week that gun violence in Boston dropped to an all-time low last year. Rooney welcomed that news, but suggested chamber members have growing concerns about public safety downtown.

“Compared to other major American cities, Boston’s public safety record is impressive. But we cannot ignore our own data or national trends on shoplifting, antisocial behavior, the mental health crisis, and crime connected to drug abuse,” he said. “According to police data, shootings are down but overall crime in the city increased 2 percent from the year before. We must ensure that people feel safe living in their communities and working, shopping, and exploring downtown.”

On immigration, Rooney raised concerns about the rising cost of the emergency shelter system, which has been overwhelmed by migrants from other countries. Rooney said the fix to the problem must be found in Washington, and urged the state’s congressional delegation to come up with an immigration solution that is “humane and secure.”

Rooney said policymakers in Washington need to come together, compromise, and find a solution to the immigration crisis. “The federal government hasn’t done its job,” he said after his speech. “You can’t solve this problem by standing in the end zone.”

The Chamber of Commerce chief joined the chorus of policymakers saying the state needs to produce more housing. “If people can’t find housing, they will leave. If employers can’t find people, they will not start a business, they will not expand their business or, worse, they will leave as well,” he said. “The solution to the region’s housing crisis is that we urgently need more housing production.”

Rooney said the solution to the housing crisis is simply supply and demand, pointing to Austin saying greater housing production in the Texas city has led to a 6 percent decline in rents.

He also said policymakers should reject policies that he said tend to limit housing production, including rent control and transfer fees, which assess a charge on real estate transactions and use the money to produce housing.