Bay State Poised For Recovery
Like a lot of businesses and families, I will not be sorry to say goodbye to 2009. The global economic collapse hit the commonwealth hard this year, and caused a lot of damage. But we stayed true to our values, adjusted promptly and responsibly, and, as a result, look forward to better tomorrows ahead in 2010. Here’s why.
Because of a steep and unforeseen drop in revenue, the commonwealth faced a $9 billion budget gap, about a third of annual state spending. Through a series of tough choices, we closed it and delivered the third of three consecutive annual budgets that were balanced, responsible and on-time, not something many other states can say. Citing our proactivity and “record of sound fiscal management,” the three major credit rating agencies reaffirmed our state’s AA bond rating, while downgrading other states across the country.
Positive Signs
According to a host of metrics, the worst of the crisis is now behind us. Home sales have increased four months running. The unemployment rate has dropped. Capital markets are rebounding. And surveys show business confidence is improving. Independent analysts now predict that Massachusetts will recover faster and stronger than the rest of the nation.
That is no accident. It’s the result of a values-based strategy that we have pursued since the beginning. Those values — creating good jobs at good wages in every region, offering a world-class education to our kids, expanding social justice by protecting the safety net — are the values to which we as a commonwealth are committed, and are the basis on which we have made tough but necessary choices throughout 2009. And because there are still so many neighbors in need of work, and so many small businesses in need of help, we will stay focused on that strategy throughout 2010.
Our strategy for job growth has four parts: education, innovation, infrastructure and regional equity.
Education is first because it is our calling card around the world. Our students have achieved at the top of the nation on national achievement measures for three years in a row, and third in the world on international math and science measures. Our well-educated workforce is the single reason most often cited by businesses for locating and expanding here. That’s why we have maintained funding for public schools at record levels, placed a new emphasis on STEM (science, technology, engineering and math) education, and filed legislation to address the achievement gap. These efforts and others also position us to compete for the Race to the Top funds in the federal American Recovery and Reinvestment Act. Those funds have been earmarked to reward states that innovate in education with federal dollars.
Innovation and invention are a part of our economic character. We have invested time, focus and a little money in industries like IT, life sciences and clean energy, and those investments have yielded job growth across the commonwealth today, with great prospects for the future. In fact, the recent drop in unemployment is the result of job growth in these very sectors. In November, the professional, scientific and business services industries added 1,200 jobs while the education and health sectors saw a gain of 3,100 jobs and manufacturing added 900 jobs.
Infrastructure is not particularly sexy, but if we don’t deal with the level of neglect, all bets are off. So, we’ve invested more money in roads, rails and bridges, broadband expansion, housing and energy infrastructure than at any point in Massachusetts history — $5.5 billion in the last two and a half years. These investments have not only put people to work today, but strengthened our economic foundation for the future.
Looking Beyond Beacon Hill
And finally, regional equity, is about spreading economic opportunity throughout the commonwealth, with a special emphasis on our gateway cities. It’s smart because we can leverage the fact that the cost of living is lower, and the workforce just as talented, outside the Greater Boston area. That’s how we persuaded Liberty Mutual to expand in Springfield and some of our top universities and IT companies to build their new high performance computing center in Holyoke. It’s a fair approach, too, because state government has been preoccupied with the neighborhood around Beacon Hill for far too long. People all across the commonwealth deserve opportunity as well.
All of this is about creating the right conditions for business investment and growth. Because ultimately government doesn’t create jobs — business does. That’s why we have worked to reform permitting and zoning laws and practices, cut the business excise tax, and filed legislation to lower health care premiums for small businesses. We want to make it as appealing as possible for businesses to put down roots here.
That’s also why in October I convened a day-long economic summit to re-engage leaders from businesses, universities, nonprofits and government to make sure we were connecting the dots between our strategy and their needs. That day of brain-storming identified three priority areas for collaboration: competing effectively for federal funds, improving access to capital, and maximizing business expansion. We will be taking specific action on each of these fronts in the coming months.
The challenge in 2010 will be to build off of this solid base, continuing to work together to create as many jobs and as much growth as possible. We are on the right track, and we have good reason to be optimistic. Now, in partnership and with hope, let’s get to work. A better future awaits.
Deval Patrick was elected governor of Massachusetts on Nov. 7, 2006. He is up for re-election in Nov. 2010.
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