Commonwealth of Massachusetts – Unemployment Insurance Trust Fund Surveillance Report

Rating Summary

The long-term rating continues to reflect the legal framework and revenue pledge, backed by annually re-setting employer payroll assessments, securing Special Obligation Revenue Bonds. Particular consideration was given to the exceptionally strong nature and breadth of the tax revenues, the Commonwealth of Massachusetts’ (the “Commonwealth’s”) strong and growing underlying economy, and the generally increasing underlying taxable wage base, demonstrated by a 1.8% ten-year compound annual growth rate (CAGR).

Special Obligation Revenue Bonds are limited obligations of the Commonwealth of Massachusetts (the “Commonwealth”), secured by a pledge of special bond contributions assessed on all covered employers in the Commonwealth. Pledged funds are generated from a mandatory charge (the “COVID-19 Recovery Assessment” or “Assessment”) on experience-rated private, contributory employers in Massachusetts¹ , which represent a broad and diverse…