These are extraordinary times, and our country and our Commonwealth are facing extraordinary challenges. The national economic crisis that began to affect Massachusetts one year ago has led to significant job losses, a deteriorated housing market and state revenue loss in the billions of dollars. While the economy is showing some signs of rebounding, state tax revenue growth is expected to lag, meaning that the Commonwealth will continue to face significant fiscal challenges in the near future.
One of the ways in which government can help address the economic hardship we face today is through increased investment in public infrastructure. Investing in infrastructure creates needed construction-related jobs in the short term and builds a foundation for economic growth and job creation over the long term. This means making investments needed to maintain our existing infrastructure – roads, bridges, schools, public housing, etc. – and it means making investments in new types of infrastructure needed to support economic growth in the 21st century – clean energy and energy efficiency, broadband expansion and the life sciences.
In response to the need for bold action to stimulate job creation and to support long-term economic growth, the Patrick-Murray Administration is proud to release this five-year capital investment plan for fiscal years 2010-2014. This plan is built on the foundation of the Administration’s work with the Legislature over the past two years to begin reinvesting in our state’s infrastructure in a fiscally responsible, targeted and transparent manner. Since the Patrick-Murray Administration took office, there have been ten bond bills enacted into law, authorizing funding for the capital investments reflected in this five-year plan and, in some instances, for years beyond this plan. The capital investments authorized by the bond bills reflect shared priorities of the Governor and the Legislature, including investments in schools, infrastructure to support economic development, roads and bridges, affordable housing, parks, a clean environment and the efficient functioning of state government. These capital investments will create thousands of jobs in the near term and will ensure that Massachusetts continues to be a great place to live, work, start a business and raise a family for years to come.
This capital investment plan continues to implement the vision and priorities established in each of the Administration’s first two capital plans. In large part, the investments included in this fiscal year 2010-2014 plan continue projects launched in prior years or commence projects anticipated by last year’s five-year plan.
Given the economic challenges we face, it is more important than ever that we prioritize our capital investments in a way that will maximize our ability to spur economic growth. Significant investments in Higher Education, the Accelerated Bridge Program and Housing continue to be high on the Patrick-Murray Administration’s list of priorities. And investments in the innovation economy – including expanded Broadband, the Life Sciences and clean energy – will ensure that Massachusetts emerges from this global recession ready to compete in the 21st Century.
The Patrick-Murray Administration’s priorities are closely aligned with those of the Obama Administration, which worked with Congress earlier this year to enact a $787 billion federal stimulus bill that is estimated to include more than $13 billion for the Commonwealth. Some of this funding will augment the Patrick-Murray Administration’s capital investments, particularly in the areas of transportation, housing and the innovation economy.
This capital investment plan is also fiscally responsible. Two years ago, the Administration developed and published a debt affordability analysis and policy to ensure that the annual borrowing needed to support the capital investment plan is set at affordable levels. This debt affordability analysis and policy was a first for the Commonwealth, and it was positively reviewed by the credit rating agencies. The Administration has updated and republished the debt affordability analysis with this capital investment plan, and the borrowing levels used to develop this plan were determined based on the debt affordability policy. Due to the changing economic and fiscal condition of the Commonwealth over the last two years, taken into account in the debt affordability analysis and policy, planned borrowing to support this five-year capital investment plan has been reduced by $1.1 billion since the original five-year capital plan published by the Administration two years ago.
Through this capital investment plan, the Patrick-Murray Administration is taking advantage of an opportunity to address the current challenges we face in a manner that will position the Commonwealth for economic growth and prosperity over the long-term. This plan provides for the Commonwealth to invest significant resources in infrastructure and other public assets that are critical to our quality of life, the strength of our economy, and the efficient functioning of government at every level. Among other things, these investments will help attract private investment and support long-term economic growth that creates sustainable jobs for our citizens; build and maintain roads, bridges and rail we use for our daily commutes; improve public college facilities that educate our workforce and nurture our innovation economy; and create and preserve safe, affordable housing for the people of Massachusetts. Through the investments included in this plan, we will create thousands of jobs in the near term and we will create the environment needed to support job creation and economic growth over the long term.