AS PREPARED FOR DELIVERY:
Governor Deval L. Patrick
Greater Boston Chamber of Commerce
Tuesday, October 22, 2013

Thank you, Bob, for your generous introduction and, Paul, thanks for having me back.  Good morning, ladies and gentlemen.

 I want to acknowledge the many members of our Cabinet and staff who are here today, and thank them publicly for the great service they give to the people of the Commonwealth.

I have spoken often over the past several years about how we support public schools and close the achievement gap, how we expand quality, affordable health care and control costs, how we stimulate innovative industries, how we rebuild our roads, rails and bridges.  Over and over again, I have stressed the importance of investing in education, innovation and infrastructure, because doing so is a winning strategy for growth.  That’s all about “how.”

As we look ahead, let’s remember why growth matters.  For me, it’s all about opportunity.

The opportunity to build a better life for ourselves and our families is what drives most of us in this room.  Positioning our state to succeed in the 21st century and giving our children and grandchildren the opportunity to succeed is our generational responsibility.  Meeting that responsibility by expanding opportunity for people all over Massachusetts is why I wanted this job in the first place.

Well, opportunity requires growth.  An expanding economy needs well-prepared and competitive talent.  It needs inventors and innovators and investors.  Opportunity without growth is a zero-sum gain, just a rearranging of the pieces on a checkers board.  Opportunity through economic growth lifts us all. 

That growth will come largely from you.  Business creates jobs, not government.  In my private sector experience, what businesses wanted most from government is a light touch on regulation and taxes.  So, we eliminated or simplified over 130 unnecessary regulations; reduced the permitting time for state approvals from two years to about 60 days; cut business taxes three times so far; slowed the growth in health care premiums; and much more.  By any reasonable measure, Massachusetts is a more competitive place for business today than it was seven years ago.

Another lesson I learned in the private sector is that growth requires investment.  And to support business growth – and the opportunity that depends on it – government must invest alongside business.

So, for the past seven years, we have invested strategically in education, innovation and infrastructure.

We invest in education because education is our calling card to the world.  With over 300 colleges, universities and research institutions within a 90-minute drive of where you’re sitting, education is our most significant resource -- as important to Massachusetts as oil is to Texas and corn is to Iowa.  Meanwhile, the global economy is in the midst of a knowledge explosion – so being educated is how our children and grandchildren will compete.  And we get a great return on those education dollars: a dollar spent on a child’s education before the age of five saves 11 dollars in public spending later. 

So, with the Legislature’s help, we funded the public schools at the highest level in our history, even when the bottom was falling out of the budget.  We worked to bring kids off the wait-list into quality early education programs and to make college more affordable.  And we engaged our community colleges in the vital work of meeting our workforce needs, leveraging our training dollars.

We invest in innovation because there are a handful of high growth industries that depend on the concentration of brainpower we have.  That’s what the life sciences initiative is about, our $1 billion, 10-year commitment to strengthen our biotech sector.  That’s what our clean and alternative energy programs are about, from stewarding the Regional Greenhouse Gas Initiative, the nation’s first successful cap and trade market, to enabling a 30-fold increase in wind generation and a 90-fold increase in solar.  That’s why we travel to other states and overseas to promote our financial services and digital gaming and robotics and cyber security and Big Data expertise, and why we built – with five universities and two IT companies -- the fastest high performance computing center east of the Mississippi in downtown Holyoke.  And because we are making more of the things we invent, advanced and precision manufacturing is making a strong comeback, too.

And we invest in infrastructure – the unglamorous work of government – because it supports everything else.  Roads, rails, and bridges, as well as broadband, public and affordable housing, lab and library facilities, even health care -- all things the public sector builds as a platform for private sector investment and personal ambition.

Education, innovation and infrastructure.  That’s our growth strategy.  And it is working. 

Massachusetts has climbed out of recession faster than most other states and is growing faster than the national growth rate.  Earlier this year we re-gained all the jobs lost in the Great Recession, one of the first states in America to achieve that milestone, and we’ve continued to add jobs since.

We are first in the nation in student achievement; at or near the top in the world in math and science.  We are also first in the nation in economic competitiveness, entrepreneurial activity, health care coverage, veterans’ services and energy efficiency.  We have emerged as the top international supercluster in the life sciences and biotech, and as a national leader in clean and alternative energy, with double-digit job growth in the latter sector in each of the last few years.  Last month was the best September in home sales since 2005.

And we’ve done it responsibly.  Our budgets are balanced and on-time, our bond rating is the highest in our history, and we have one of the largest rainy day funds in America.
 

Also, a Stanley Cup, NBA Championship, a perfect NFL season, a World Series …
 

That's what our strategy has produced for the Commonwealth as a whole.  Here's what it's meant for Greater Boston.

We’ve doubled the charter school cap.  Margarita Muniz Academy in Jamaica Plain is one of six Innovation Schools in Boston, and the first dual-language high school in the state.  And using new tools to close the achievement gap, Orchard Gardens and Trotter Elementary have gone from being so-called “failing schools” to two of the best in the state.

Students at Bunker Hill Community College now have paid work experiences at our largest companies, and we’ve launched a new partnership between Roxbury Community College and Madison Park to enable students to graduate in five years with both a high school diploma and a job-ready associate’s degree.

The Integrated Science Complex at UMass Boston will open next fall, and another academic building is also under construction on the campus, the first new academic buildings at UMass Boston in four decades.

Our strategy in innovation is working, too.

Every one of the world’s largest biopharma companies has a major presence in Massachusetts today, and we attract more biotech venture capital per capita than any other state.  

Homegrown companies are growing.  CommuniSpace moved into larger quarters in the Innovation District.  athenaHealth is multiplying the size of their Watertown campus.  Next Step Living, an energy efficiency company in the Seaport District, grew from a small start-up six years ago to over 500 employees today, and one of the top 100 clean tech companies in the world.

 Our start-up community is on fire.  LearnLaunchX is helping companies launch game-changing educational ideas.  MassChallenge, a public-private partnership, has become the world’s largest start-up accelerator, fostering some of the world’s most talented entrepreneurs.  And Greentown Labs moved into a new expansion facility in Somerville this summer to do the same for clean tech start-ups.

And then there’s infrastructure.

We replaced 14 bridges on I-93 in 10 weekends during the summer of 2011, a project that would ordinarily have taken 3-5 years.  We replaced the Chelsea Street Bridge so it could accommodate more traffic more safely on the road over it and in the river under it. Longfellow Bridge, the BU Bridge and Anderson Bridge over the Charles are getting long-overdue refurbishment right now.  The number of structurally deficient bridges is down 19% in the last 6 years. 

New roadwork in Somerville and the first Orange Line station in 25 years are the linchpins for the mixed-use development at Assembly Row.  We’ll cut the ribbon on Yawkey Station in a few weeks; along with a new commuter rail station in Brighton, financed by New Balance, these projects have catalyzed new mixed-use developments.

We built three new T stations along the Fairmount Corridor in Roxbury and Dorchester to provide more convenient service to downtown Boston, and to the network beyond.

We’ve added direct air service from Logan to Tokyo and Dubai, to Istanbul and Panama City.  And over 4 million international arrivals came through Logan last year, a notable surge in the number of tourists and business travelers.

Housing starts in Greater Boston tripled in the last two years.

Mattapan Community Health Center, Whittier Street Health Center, and East Boston Neighborhood Health Center each have new homes, and Codman Square Health Center has expanded – creating thousands of jobs and providing better care to more than 100,000 patients. 

These are just a few examples of what our growth strategy has meant for Greater Boston.  And we are not done.

Beginning next year, we will install all electronic, open road tolling on the Mass Pike.  E-tolling on the Tobin Bridge will be operational by the spring.  No more toll booths.

I am also pleased to announce that MassDOT will begin immediately to straighten out the Turnpike in Allston, eliminating the existing turns before and after the tollbooth, reducing congestion and travel time, and opening up 60 acres of the Beacon Yards area for development.

In addition, I can announce that the MBTA today launches a $1.3 billion procurement to replace decades-old Orange and Red Line trains with new and modern equipment, equipment that will be built in Massachusetts.

And in keeping with our dedication to using innovative approaches to construction projects, we will replace the Clayton Street Red Line bridge over a weekend in November.

This strategy is not rhetorical.  It’s real.  This is how we use public investment – of time, money and ideas – to stimulate private sector growth.  But there is still so much more to do, faster growth to support, more opportunity to create.  As numerous and worthy as these projects are, they don’t fully meet our needs.

To meet more of that need, I proposed new taxes for education and transportation last January.  The Legislature provided more modest resources.  So, this community will have to return to this subject in just a few years.  In the meantime, how we use those new resources, and how we leverage new reform authority, present important decisions – not just for the governor and legislators, but also for the people of the Commonwealth.

As we consider the wisest approach, keep these principles in mind.

First, we must continue to reform.  Our transportation system in 2007 consisted of projects under construction without a plan to finish them; a Turnpike Authority accountable to no one that had entered into financial deals that posed huge fiscal risks; a non-existent capital plan; and, according to independent analysis, a chronically mismanaged T.

So, we shut down the Turnpike Authority.  We reformed the T’s infamous pension.  We reduced headcount at the Registry by leveraging technology and third party partnerships like AAA.  We merged duplicative legal, human resources and IT departments.  We negotiated a path out of those risky financial deals.  And we saved over $500 million.  We did more projects, and did them faster, with less money.

Let me be clear: Reform is no substitute for adequate revenue.  But reform must continue alongside investment, and should include public-private partnerships, smartphone apps, border tolls and electronic tolling.

Second, we must increase capacity.  Few things are more frustrating than being stuck on the Pike on your way to work, or waiting for an overcrowded Red Line train at the end of the day.  Being constantly late because your commute is inconvenient and unreliable is both frustrating and compromising.  It is critical for us to invest in the means to move people (and goods, for that matter) more conveniently around the state.  Our residents, those here today and those we wish to attract and retain, must have that access to more affordable housing; to medical and educational and work opportunities; and to shopping, too.  In some cases, like new cars for the T or replacing failing bridges, that will mean upgrading and repairing what we have.  In others, like replacing tollbooths with open road tolling on the Pike or using DMUs on the Fairmount Line, it will mean making smarter use of our assets.  In still others, like the Green Line to Medford or South Coast Rail to Fall River and New Bedford, it will mean expanding our network.  Without an intentional focus on and commitment to increasing capacity, we will constrain the City’s, the Commonwealth’s and the region’s growth.

Third, we must achieve regional equity.  Leaving aside for a moment the fiscal damage it did, I love the Big Dig.  As a constant traveler on our roads, an occasional flyer out of Logan and a frustrated architect, I think the Big Dig is a marvel and a huge benefit to our Commonwealth.  Indeed, Boston is a “proof point” of the value of infrastructure investment, where the Big Dig helped place Boston at the center of the state’s recovery.

But the needs left unmet outside of Boston because of the Big Dig inside Boston are a profound economic failing.  Catching up on the deferred maintenance of our regional roads, local bridges and commuter rail is critical.  Expansion projects like the Green Line extension or South Coast Rail are just as critical.  I want to specially emphasize this point to the many friends and partners here.  It serves the growth interests of the people of this community as well as those outside of Boston to unlock access to the affordable housing, the capable workforce, and the commercial, educational and recreational opportunities in the many communities beyond Route 128.  It is vital that we reverse the regional neglect of the Big Dig years.

After all, economic growth, across the whole of the Commonwealth, is our goal.  Investing in education, innovation and infrastructure is how we stimulate growth.  As I wrap up, I want to return to why that matters, why expanding opportunity matters.  

Opportunity has been a central principle of this country.

America, unlike any other nation on earth, is organized around civic ideals.  Not religion or race, not language or geography, like other countries, but transcendent statements of civic purpose.  And we have defined those ideals, over time and through struggle, as freedom, equality and fair play.  That’s what America has been about for more people, for a longer time, than any other nation in human history.

Opportunity is what makes all our other civic ideals possible.  But opportunity is not inevitable; it doesn’t just happen.  Each generation of Americans has had to strive and to sacrifice to make opportunity real.  Whether it was freeing the slaves or giving women the vote in one era; the GI Bill, rural electrification or the interstate highway system in another; or expanding broadband and early education, and closing the achievement gap today, making opportunity real requires action.

Renewed action is needed today.

In a society dedicated to equality, income inequality is getting worse.  As we emerge from the global recession, for those already college educated and with transferable skills, the knowledge-based job market is wide open.  Those already with money to invest benefit from the resurgence of the Dow.  

But the ability of people to bridge that gap is harder than ever.  The poor are no longer just the abject destitute: nearly a third of food stamp recipients in Massachusetts have a working adult at home.  Just the other day the homeless population living in motels hit an all-time high, many of them school age children.  Many middle class families where both parents work still can’t get ahead, let alone imagine a better life for their children.  According to Opportunity Nation, for the first time in America, today’s young adults risk having lower educational attainment rates, on average, than their parents.  Only six percent of children born to parents at the bottom make it to the top.  Children in many European countries now have greater socio-economic mobility than those in the United States.

The American Dream is in trouble.  For this Commonwealth and this country to be true to her civic ideals, opportunity has to be accessible to all our residents, not just the favored few.  And again, opportunity requires action.  That means we must make public investments mindful of the lack of opportunity of the left out and left back.  If the American Dream is to endure, we who benefit first from economic recovery need to care about those who benefit last, or not at all.

One of the traditions of Massachusetts governors is that you hang the portrait of a former governor over the fireplace in the governor’s office, as a source of inspiration, I suppose, or perhaps just as a reminder that you are but one in a long line of others.  I’ll bet every one of my predecessors wondered at some point, as I do now, whether anything they accomplished would last.  We have shown that investing in education, innovation and infrastructure, alongside reform and modernization of government itself, is a way not just to endure recession but also to shape a brighter future.  More than anything, I hope what lasts is a broad understanding that growth is a choice and that opportunity for all is why that choice matters.  For the sake of the next generation’s opportunity, let’s choose wisely.

Thank you.  I look forward to the conversation.

 

Click here to view the press release.