Governor Deval L. Patrick
Greater Springfield Chamber of Commerce
Tuesday, November 19, 2013
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. Indeed, we have a generational responsibility to position our state to prosper in the 21st century. 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 comes from you. Business creates jobs, not government. In my private sector experience, what business wants first 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 less than 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, larger 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. Here’s why.
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 the center point of the state, education is our most abundant 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 10-year, $1 billion 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 and greenest high performance computing center east of the Mississippi in downtown Holyoke.
And because we are making more of the things we invent, advanced or so-called “precision” manufacturing is making a strong comeback, too. During this administration, manufacturing has grown more than 50 percent faster in Massachusetts than in the nation as a whole, and seven times the rate it did during the previous administration.
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 climbed out of recession faster than most other states and is growing faster than the national growth rate. Early 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 have continued to add jobs since. September was the best month in home sales in Massachusetts since 2005.
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, attracting more biotech venture capital per person than any other state.
We have become a national leader in clean and alternative energy, with double-digit job growth in the latter sector in each of the last few years.
We have trained almost 100,000 people statewide for jobs in the innovation economy.
And we have 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.
That's what our strategy has produced for the Commonwealth as a whole. Here's what it has meant for the Pioneer Valley.
The Zanetti Montessori School in Springfield has gone from one of the state’s so-called “failing” schools to one of the best in the state using the tools we created through the Achievement Gap Act.
Innovation schools like the Springfield Renaissance School and the 21st Century Skills Academy in West Springfield are using new learning models to focus on college and career readiness.
West Springfield High, which I visited just this morning, has teamed up with STCC, the Hampden Regional Employment Board and the Western Mass Tool and Machine Association to develop a career pathway program in advanced manufacturing.
STCC is also expanding its Mechanical Engineering Technology facility and, along with Putnam Voc-Tech and the Urban Leagues of Springfield, is deepening its life sciences training capacity.
The Pioneer Valley Life Sciences Institute is establishing a Health Informatics and Technology Innovation Center in Springfield, focused on advancing public/private-sector partnerships and incubating innovative technology developed by start-ups and larger firms alike.
We’re funding internship programs at the Court Square Group, the Orthotics and Prosthetics Lab in Springfield, and FloDesign Sonics in Wilbraham, a few of over 6,000 workers and job seekers trained in the region since 2007.
The Hampden County Sheriff’s headquarters is undergoing a comprehensive energy efficiency overhaul, just one example of nearly $6 million in energy efficiency and renewable energy investment in the region.
Police and fire departments, schools and libraries in East Longmeadow, Hampden, Ludlow, and at Baystate Medical Center, have better and faster internet access because of our MassBroadband 123 initiative.
The Ludlow Mills complex is becoming a modern, energy efficient, mixed-use development with residential, office, retail and commercial space.
Over 900 affordable housing units have been created or preserved in Springfield, and another 49 units for seniors in Ludlow, employing hundreds of people along the way.
Downtown Westfield has been transformed through restoration of the City’s two major bridges, new common space, and the new presence of Westfield State in the commercial center of the city.
Amtrak’s Vermonter service is coming back to the Knowledge Corridor, and new multimodal stations are built or underway in Northampton, Greenfield, Holyoke and, at long last, Union Station right here in downtown Springfield.
Reconstruction of the I-91/I-90 interchange in Holyoke and West Springfield will be complete by next summer.
We are building the Canal Walk, a 9,000 foot pedestrian walkway in Holyoke to complement the revival of the mill area downtown.
The redesign of Genessee, Taylor and Worthington Streets in Springfield has stimulated $6 million in private investment by Liberty Mutual at the STCC Technology Park.
The Route 116 Bridge over the Chicopee River and the Roosevelt Ave Bridges over the rail lines in Springfield have been replaced.
State Street in downtown Springfield; East Street and Chapin Street in Ludlow; the rotary at Route 5 and 57 in Agawam; the Red Stone Trail in East Longmeadow; Route 5 from Edgewood Street to Warren Terrace, and Converse Street from Lauren Street to Dwight Street in Longmeadow; the Bikeway loop in Agawam – all have been improved.
The PVTA will soon have 30 new buses.
And we have been steady at your side as this region has picked up and rebuilt from the 2011 tornadoes.
And we’re not done yet.
I am pleased to announce over $1.2 million to establish a permanent home for Camp STAR Angelina at Forest Park, creating a new pool, bathhouse, trail and amphitheater, a year-round accessible facility for the city’s families.
I am also pleased to announce an initial commitment of $200 million to replace the I-91 Viaduct here in Springfield, a project that is desperately needed for safety and accessibility reasons and that presents the real opportunity to reunite the downtown to its neighborhoods and the riverfront.
The point is: 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, limited primarily to transportation. So, this community and every other will have to return to the 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 a governor and legislators, but also for the people of the Commonwealth.
As we consider the wisest approach to meeting our transportation needs, in particular, 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 system. 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 a half billion dollars. 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 – any experiment that is equitable and effective to get the job done.
Second, we must increase capacity. 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 who live here today and those we wish to attract and retain, must have the access to more affordable housing, to medical and educational and work opportunities, and to shopping, too, that adequate transportation makes possible.
In some cases, like new cars for the T, new buses for the RTAs, 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 some of our rail lines, it will mean making smarter use of our existing assets. In still others, like South Coast Rail, the Green Line to Medford and the Housatonic Line to New York City, it will mean expanding our network. Without an intentional focus on and commitment to increasing capacity, we will constrain the Commonwealth’s and this region’s growth.
Third, we must achieve regional equity. Leaving aside for a moment the fiscal damage it did, I love the outcome of 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, the Big Dig is a “proof point” of the value of infrastructure investment, because that project 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. If we want to provide what people outside of Boston need to grow their opportunity, future governments will have to continue to invest – in both modernization and service expansions -- outside of Boston as well. And you will have to hold them accountable to do so.
After all, economic growth, across the whole of the Commonwealth, is our goal. Investing in education, innovation and infrastructure is how we stimulate growth. And the sooner we grasp the connection between these principles of reform, increased capacity and regional equity, on the one hand, and economic growth, on the other – and deal with that – the better off we will be.
As I wrap up, I want to return to why that matters, why economic growth and the opportunity it promises matters.
Opportunity is central to who we are as a nation.
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. Without opportunity our civic ideals are nothing but rhetorical flourishes. 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 critical 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 half of food stamp recipients in Massachusetts are working people. Just a few weeks ago, 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. I don't know whether this is meant to serve as a source of inspiration or 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, choose wisely.
Thank you. I look forward to the conversation