FY2013 - FY2017 Capital Investment Plan
Report - Investment Category - Economic Development

The Massachusetts economy is the largest in New England, and 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.  Our economic recovery has been fueled by support and investments in the innovation economy, advanced manufacturing and biosciences. As of August 2012, the unemployment rate was 6.4 percent, far below the national rate of 8.1 percent.

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 accomplishing this through strategically targeted capital investments that attract private investment and support the innovation economy of the future.

The following graph reflects the Administration’s estimated capital investment in economic development projects and programs over the next five years, as compared to fiscal years 2007 and 2012 economic development related spending.

Policy Goals

The FY13-15 Preliminary Strategic Plan for the Executive Office of Housing and Economic Development (HED) sets forth four key overarching goals with a clear agenda for growing jobs and communities over the next three years. 

1. Accelerated Job Creation.  The plan calls for five broad strategies to drive economic growth:
   • Advance education and workforce development for middle-skill jobs through coordination of education, economic development and workforce development programs;
   • Support regional development through infrastructure investments and local empowerment;
   • Support innovation and entrepreneurship;
   • Increase the ease of doing business; and
   • Address our cost competitiveness. 
2. Stabilized Housing. HED aims to develop feasible and financially responsible approaches to ending homelessness and advancing the production and preservation of housing that is affordable across the income spectrum and that is consistent with Fair Housing Principles. 
3. Enhance Consumer Awareness. The Commonwealth will empower and educate consumers to protect themselves against fraud and abuse by expanding the range of HED educational resources. 
4. Improved Business Climate. In its mission to provide a fair and competitive marketplace, the Commonwealth institutes good adjudicatory standards that aim to help consumers without overburdening businesses in the process. 

Administration Accomplishments to Date

• With the launch of the new START Matching Grant Program in FY12, MassVentures provided grants of up to $100,000 each to 10 companies selected by a screening panel for a total of $1 million of grant funds administered.  It is anticipated that in year two of the program, five of the original companies from round one will receive an additional grant of $200,000, with a second round of ten new companies being selected for a $100,000 grant for a total cost of $2 million in grants. 
• The Massachusetts Broadband Institute (MBI) leveraged over $40 million in state funds to receive over $83 million in additional federal funds for broadband expansion throughout the state.  The MBI has commenced construction on MassBroadband 123, a 1,100 mile fiber-optic network that will expand broadband access in more than 120 communities in western and north-central Massachusetts and provide direct connections to more than 1,300 schools, hospitals, libraries and public safety facilities that currently lack reliable, affordable internet service.
• Massachusetts has demonstrated its commitment to the life sciences community through investments in infrastructure to accelerate promising science as well as create a business friendly environment. To date, the Massachusetts Life Sciences Center has committed $187 million to twelve capital projects and created 2,425 jobs in the building trades and in the life sciences. The Governor has committed to providing $500 million in life sciences investment over ten years. The Center’s infrastructure investments have contributed to the creation of more than one million square feet of new life sciences research and manufacturing space across the Commonwealth.
• The Administration created the MassWorks Program, which is a consolidation of six grant programs combined under one program through Chapter 238 of the Acts of 2012. The MassWorks Infrastructure Program and the associated prior grant programs have supported over 100 infrastructure projects to advance housing, economic development and small town transportation safety improvements across the Commonwealth since 2007. MassWorks Infrastructure Projects represent not only thousands of construction jobs but also the creation of thousands of new full- and part-time jobs, hundreds of new housing units and millions of private funding investment which are leveraged through the strategic investment of the MassWorks Program funding. 

FY13 Highlights

• $55 million will be invested in Governor Patrick’s Life Sciences Initiative capital program, an $11.5 million increase over FY12. These capital investments provide funding for at least 12 projects including the construction of the Sherman Center at the University of Massachusetts Medical School – Worcester, University of Massachusetts Dartmouth’s Biomanufacturing facility, and the Joslin Diabetes Center and the Dana Farber Cancer Institute.
• The Commonwealth will contribute $2.1 million to MassVenture’s START program which will continue to provide grants to help growing companies commercialize technologies developed under Small Business Innovation Research (SBIR) contracts.
• The Commonwealth will provide $21.9 million to the Massachusetts Broadband Institute (MBI) in FY13 to invest capital funds in long-lived, carrier-neutral infrastructure assets to more adequately equip residents and businesses to compete in the 21^st century global economy by bringing broadband internet access to all of Massachusetts. 
• In FY13, the MassWorks Infrastructure Program will announce its second annual funding awards for public infrastructure projects. MassWorks also has a number of significant, ongoing projects that it will continue to support in FY13 including the construction of the new MBTA station at Assembly Square, the reconstruction of Acushnet Avenue in New Bedford, roadway infrastructure to support the redevelopment of the Ludlow Mills and many others.
• I-Cubed projects are underway at Assembly Square in Somerville and Fan Pier in Boston.  These are expected to leverage $1 Billion in private investment and create over 1,000 construction and 2,000 permanent jobs.