Governor Deval Patrick's Five Year Capital Investment Plan FY2010 - FY2014

Governor's Capital Investment Plan FY2010

Massachusetts Recovery

Economic Development

The Massachusetts economy is the largest in New England and the 13th largest in the nation1, and as such having a robust economy is important not only for the Commonwealth’s own citizens, but also for the economic vitality of the region and the country.  Similar to the experience of states throughout the country, the Commonwealth has been hit by the recession and unemployment has risen from 6 percent one year ago to 9.1 percent today.  A critical component of the Governor’s recovery plan for Massachusetts is not only to stimulate job creation today, but to make investments that support long-term economic growth.  The Patrick-Murray Administration is focused on doing just that through strategically targeted capital investments that attract private investment and support the innovation economy of the future. 

The following graph reflects the Administration’s planned capital investments in economic development projects and programs over the next five years, as compared to FY09 economic development-related spending.

This bar graph show the Economic Development: all sources of funds between the years of FY09 through FY14

Highlights of fiscal year 2010 capital investments in economic development include the following:

  • $22 million for the Massachusetts Opportunity Relocation and Expansion (MORE) Jobs capital program, which provides grants for public infrastructure improvements that support business expansion and relocation.  These grants are targeted to projects that create at least 100 new jobs, generate a significant portion of sales from outside the Commonwealth, or provide other significant economic benefits. 

  • $13 million for the “Growth Districts Infrastructure Investment Program” as a means of expediting commercial and residential development within designated areas in the Commonwealth.  The initiative offers a focused approach to work with each community where a growth district is located to ensure that all required permits are secured, site preparation is completed, infrastructure improvements are identified, and marketing resources are made available on an expedited basis.

  • $30 million in fiscal year 2010 – and an estimated $250 million over the next five years - for Governor Patrick’s ten-year, $500 million Life Sciences Initiative capital program.  This capital program supports continued growth in one of Massachusetts key industries.  These capital investments include the building of new research centers that will attract academic and industry leaders to Massachusetts from around the globe, including beginning construction of the Sherman Center at the University of Massachusetts Medical School - Worcester.

  • $15 million for the Broadband Initiative, which will invest capital funds in long-lived, carrier-neutral infrastructure assets to promote broadband expansion to unserved and underserved areas, starting with Western Massachusetts.

It should be noted that the capital investments reflected above in the Economic Development investment category include only the projects and programs in the FY10-14 capital investment plan that are designed first and foremost for the purpose of supporting economic development.  There are, however, hundreds of millions of dollars more in planned investments reflected in the Transportation, Community Investment and other investment categories in the capital investment plan that will support economic development and the creation of jobs in the Commonwealth. 

ARRA Funding

The Commonwealth is seeking ARRA funding for various economic development infrastructure investment initiatives.  One example is the $105 million applied for by the Massachusetts Broadband Institute (MBI) including $100 million for broadband infrastructure in western Massachusetts and $5 million for statewide broadband mapping. The proposed fiber-optic infrastructure project would build upon the recently announced $4.3 million, 55-mile segment of MBI fiber being deployed along the Interstate 91 corridor and create jobs, educational, and business opportunities in the western region of the Commonwealth.  All federal broadband stimulus funding will be awarded based upon a competitive review and scoring process of grant applications from across the nation.  The MBI expects to learn about its round one federal award funding for broadband in November 2009.

Footnote:

1 University of Massachusetts, Donahue Institute, Massachusetts State Data Center, 2008 Q3 data, p. 20
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