Economic Development in Massachusetts For All

With some signs indicating that the United States economy is headed for a recession, it is important to understand what Massachusetts government is doing to create jobs and stimulate the Massachusetts economy.  While state government in particular is limited in how it can stimulate the economy, there is a place for economic policies on Beacon Hill.

My focus on economic development has always been to ensure that all Massachusetts residents prosper, so that no one is left behind.  In a state where housing, electricity and property taxes are too high, it is critical that, in John F. Kennedy’s words, “a rising tide lifts all boats.” 

The most basic value that ensures equitable economic development is education.  The Massachusetts constitution is one of the only state constitutions that includes education as a constitutional right.  This is the primary reason that the Legislature passed the Education Reform Act in 1993, to ensure that all children, regardless of their circumstances, receive a great public education.  By properly investing in education, whether K-12 or higher education, Massachusetts state government strives to guarantee that all children have the same opportunity to excel in their lives through education, and get a job that can provide for themselves, and their families.

The kinds of jobs that are available for Massachusetts residents depend on a variety of factors that are mostly out of the hands of government.  However, state government can make a difference in attracting certain industries and businesses with its policies.  In the 37th Middlesex District, there are numerous examples of these policy implementations.  In Boxborough, part of the reason that Cisco Systems came to the town was through the Tax Increment Financing (TIF) tax break.  The company employs hundreds of area residents, and pays over $3 million in property tax revenue to Boxborough.  At Devens, MassDevelopment, the Patrick administration, Senator Resor and I helped attract Evergreen Solar to build a $150 million facility to produce solar panels through a similar state tax credit.

Devens, of course, has been a national model on how to create economic development at a closed military base.  Massachusetts has made significant investments and unique designations to Devens that make it an attractive place for businesses to locate.  The commitment from MassDevelopment of a 75-day permitting process makes it much easier for a business to set up shop quickly.  Through a law passed last year, Massachusetts towns and cities have the ability to designate certain areas as allowing a streamlined permitting process.

Of course, companies will not come to an area without the appropriate infrastructure.  For example, at Devens the fact that it has its own water and electricity provider was a factor in helping attract the pharmaceutical company Bristol Myers Squibb (BMS).  The Legislature also had to provide $54 million in infrastructure improvements for the company, but the return is a $500 million facility, with an investment of $1.3 billion in the region.  Finally, as part of this legislation a Project Labor Agreement (PLA) was demanded, to make sure that the workers who would construct the facility are paid good wages, with health care and pensions benefits.

This latter provision underscores another basic value to ensuring that all Massachusetts residents prosper from economic development.  Just as it is obvious that the so-called free market involves government subsidies of major corporations like Cisco and BMS, it is clear that government must play a role in making sure that if you work hard in Massachusetts, you should be able to afford to live in the state.  This past year, the Massachusetts Legislature raised the minimum wage to $8.00 an hour, the highest in the nation.  This landmark effort raised the standard of living for over 300,000 low-wage workers.  Furthermore, a health care law was passed has expanded health care coverage to over 200,000 residents, ensuring that workers will be more healthy, and therefore more productive on the job. 

It is clear that true economic development involves policy areas as diverse as education, infrastructure, health care, and tax policies.  With Deval Patrick in the corner office and a House and Senate that have consistently strived to make improvements in these issue area, it is truly exciting to see how economic development in the Commonwealth will proceed.

Jamie Eldridge
State Representative