Governor Deval Patrick's Five Year Capital Investment Plan FY2014 - FY2018

Governor's Capital Investment Plan FY2014

Administration Accomplishments and Initiatives


Despite the overwhelming need for capital investments and the limited resources available to fund them, the Patrick Administration has made significant strides in improving the Commonwealth’s capital investment program since taking office in January 2007.  The following highlights summarize some of the Administration’s accomplishments in the areas of capital investments and capital finance.

First-Ever Debt Affordability Policy - The Patrick Administration developed and published the first-ever debt affordability policy, which has been positively reviewed by credit rating agencies.  This analysis has been updated annually and the current analysis is presented in Appendix A.

First-Ever Five-Year Capital Investment Plan - The Administration published the first-ever comprehensive and transparent five-year capital investment plan based on the new debt affordability policy.  This report represents the Administration’s seventh annual five-year capital investment plan and has been developed within the parameters set forth in the debt affordability policy.

Bond Bills - After publication of its first five-year capital investment plan in the summer of 2007, the Governor filed a series of multi-year bond bills authorizing over $16 B in capital investments that, together with the $1.8 B Immediate Needs Bond Bill passed earlier in 2007, reflected the capital investment priorities for the Commonwealth included in the five-year plan.  The Legislature overwhelmingly approved each of the bond bills.  In August 2010, the Governor signed into law an economic development bill that included new bond authorization for certain economic development programs.  In 2011 and 2012, the Governor approved two $200 M bond bills for local Chapter 90 road and bridge construction, and in 2012, an additional $885 M in bond authorization to continue transportation projects through FY2013 and leverage federal funding.  In March 2013, the Governor filed a series of multi-year bond bills which reflected the capital investment priorities for the Commonwealth.  These bills included authorizations supporting transportation infrastructure, environmental and energy infrastructure, housing, military facilities, state facilities, and information technology improvements.  Currently, the Legislature has approved and the Governor has signed, a $300 M bill for local Chapter 90 road and bridge construction, a $375 M capital supplemental bill which allowed ongoing information technology and facility improvement projects to continue without interruption and a $1.4 B housing bill which funds 11 programs.  The remaining bills are currently under consideration by the Legislature.  The bond bills are described in more detail in Appendix B.

Completion of Key Projects - A number of important new capital projects and programs have been initiated and completed by the Administration, including: the new Worcester Recovery Center project, the Emerging Technologies and Innovation Center at the Lowell campus of the University of Massachusetts, new courthouses in Taunton, Salem and Fall River and many more. The Administration also initiated and continues to work on the Green Line Extension, South Coast Rail and the Accelerated Bridge Program. These and many other capital investment project highlights are described later in this report in the respective investment category sections.

Accelerated Bridge Program - The Administration, working with the Legislature and the Treasurer, developed the $3 B Accelerated Bridge Program which reduced the number of structurally-deficient bridges by nearly 20 percent and created 17,000 construction jobs throughout the state.  This program builds conditions for long-term economic growth and saves the Commonwealth hundreds of millions of dollars in avoided construction cost inflation and deferred maintenance costs.  In this plan, we fund this program through the completion of construction, with a focus on five major bridges throughout the Commonwealth. 

Integrated Facilities Management - The Administration has taken steps to improve maintenance and accessibility of state facilities through the Division of Capital Asset Management’s (DCAMM) Integrated Facilities Management (IFM) initiative.  Funding in the capital budget is dedicated for small capital maintenance and repair projects as facilities become integrated into DCAMM’s management portfolio.  By dedicating more funding to these types of projects and standardizing the level of ongoing maintenance, the Commonwealth will defer less of its capital investment needs and avoid larger, more expensive capital project needs in the future. 

Energy Efficiency Requirements for State Building Projects - Governor Patrick issued Executive Order 484 in April 2007 which, among other things, established the Governor’s “Leading by Example Program” requiring that all state agencies reduce their environmental impact by promoting energy conservation and clean energy practices.  The Administration has also set high minimum “green building” standards for all new state building projects and aims to go above and beyond such standards wherever possible, including plans for certain buildings to be energy neutral.

Clean Energy Investment Program – In January 2010, the Governor created the Clean Energy Investment Program as a means to affordably finance energy efficiency and renewable energy improvements to state facilities. These investments are crucial to achieving the goals of Executive Order 484.

Accelerated Energy Program – In this capital investment plan, the Patrick Administration has reaffirmed its commitment to energy efficiency through the continued funding of the Accelerated Energy Program (AEP).  Modeled on the highly-successful Accelerated Bridge Program, and using the innovative funding mechanism of the Clean Energy Investment Program (CEIP) as well as assistance from energy utilities, the Accelerated Energy Program will “green” 700 sites in 700 working days.

Innovative Financing Initiatives – In addition to the Clean Energy Investment Program mentioned above, the Administration has actively pursued various other financing initiatives which effectively leverage state resources to fund more capital project needs.  These initiatives include:  increased allocation of private activity bond volume for multi-family affordable housing projects that leverage related federal tax credits and help fund millions of dollars in affordable housing projects, and improvements in the existing public housing supply; “I-Cubed” legislation to finance infrastructure improvements needed to support private development with the new state tax revenues generated from the development; and enhanced review of IT projects to better determine their return on investment. 

Oversight and Greater Transparency through the State Finance and Governance Board (formerly the Finance Advisory Board) - Through new gubernatorial appointments, staff support provided by the Executive Office for Administration and Finance (A&F), and greater oversight responsibilities included in recent legislation, the Administration has strengthened the role of the this board. With these improvements, the Board ensures transparency, accountability and best practices among state entities that borrow, invest and manage public funds.  In furtherance of promoting transparency, accountability and best practices, the Board has adopted regulations with respect to debt issuance and derivative transactions.  In the context of the turmoil in the financial markets since 2008, this oversight is critical to ensure public confidence in the sound management of public funds.

Creation of MassWorks Infrastructure Program – The Administration created the MassWorks Infrastructure Program to consolidate state infrastructure grant programs that support economic development and to provide one-stop shopping for municipalities seeking to participate in these programs.  This program coordinates state review of applications and decision-making.


top of page link top of page