Massachusetts Economic Development Council Annual Meeting December 4, 2009
May 25, 2015
Massachusetts Economic Development CouncilAnnual Meeting
December 4, 2009
Agency Background
Who We Are
• Statewide finance and development arm
• Quasi-public authority formed from the Massachusetts Government Land Bank and the Massachusetts Industrial Finance Agency merger
• 175 employees in regional and satellite offices
Where We Are• Boston
• Devens
• Fall River
• Lawrence
• Springfield
• Worcester
What We Do/How We Help• Utilizing tax-exempt bonds; loans and guarantees; and
real-estate planning and development services, MassDevelopment offers customized financing and development solutions focusing on housing, job creation, real-estate development, and urban revitalization.
• During FY2009, MassDevelopment financed or managed 229 projects representing an investment of nearly $1.2 billion in the Massachusetts economy. These projects are supporting the creation of 5,159 new housing units & 6,636 jobs (3,295 permanent & 3,341 construction-related).
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Specialty Loan Programs
• Brownfields Redevelopment Fund
• Emerging Technology Fund
• Cultural Facilities Fund
Brownfields Redevelopment Fund• $30M Fund created in 1998
and recapitalized with $30M in 2006 to revitalize and redevelop neglected areas
• Offers – up to $100G interest-free
financing for site assessment
– up to $500G in flexible financing for cleanup loans
Emerging Technology Fund• $24.75M Fund created
in 2004 & recapitalized in 2006 & 2007 with additional $25M
• Loans from Fund encourage creation and expansion of production facilities by emerging technology (“teenage”) companies
• 20 companies financed to date
Cultural Facilities Fund• Since 2007, $37M
investment in 224 capital projects for nonprofit institutions (like EcoTarium of Worcester at left) that attract visitors to and create jobs in MA
• Run in partnership with MA Cultural Council
A Statistical Review of Changing Conditions in Cities, the Commonwealth,
and New England over the Past Eight Years:
People and Places
2 Biggest Cities Grow, Others Shrink1990 2000 2008
Boston 574,283 589,141 609,023Lawrence 70,207 72,043 70,014New Bedford 99,922 93,768 91,365Pittsfield 48,622 45,793 42,652Springfield 156,983 152,082 150,640Worcester 169,759 172,648 175,011
• Population figures from the U.S. Census Bureau.
Massachusetts Population Ages
2000 2006-2008Under 5 397,268 ( 6.3%) 382,036 ( 5.9%)18+ 4,849,033 (76.4%) 5,032,597 (77.8%)65+ 860,162 (13.5%) 862,493 (13.3%)
• Population figures from the U.S. Census Bureau.
Massachusetts Data Points/Deltas2001 2009 change
Population 6,407,269 6,497,697 + 1.4%Jobs 3,316,400 3,176,300 - 4.2%Housing Units 2,621,989 2,735,443 + 4.3%
• Population figures from the U.S. Census Bureau with most recent figure from 2008.
• Jobs data from the Bureau of Labor Statistics from September 2001 and September 2009.
• Housing units from the U.S. Census Bureau from 2000 and 2008.
New England Data Points/Deltas2001 2009 change
Population 13,922,517 14,303,542 + 2.7%Jobs 6,986,000 6,770,300 - 3.1%Housing Units 5,941,108 6,240,537 + 5.0%
• Population figures from the U.S. Census Bureau with most recent figure from 2008.
• Jobs data from the Federal Reserve Bank of Boston from October 2001 and October 2009.
• Housing units from the U.S. Census Bureau from 2000 and 2008.
A Statistical Review of Changing Conditions in the Commonwealth
over the Past Eight Years:Expenses and Revenues
Background for State Spending Chart
• Raw data come from the Massachusetts Budget and Policy Center
• Spending is adjusted for inflation and displayed in millions of dollars
• Category headings in abbreviated forms include:– Environment and Recreation– Infrastructure, Housing and Economic Development– Law and Public Safety
State Spending: FY01 versus FY09FY01 FY09 change
Education 7,896 6,998 -11.4%Environment 347 224 -35.5%Health Care 10,109 13,092 +29.5%Human Services 4,015 3,603 -10.3%Housing 1,996 1,437 -28.0%Public Safety 2,685 2,548 - 5.1%Local Aid 1,885 1,246 -33.9%Other 4,791 4,162 -13.1%Total 33,724 33,310 - 1.2%
Background for the Revenue Chart
• Raw data come from the Massachusetts Taxpayers Foundation
• Revenues are adjusted for inflation and displayed in millions of dollars
Revenues: FY01 versus FY09FY01 FY09 change
Income 12,088 10,577 - 12.5%Sales 4,585 3,869 - 15.6%Corporate 1,154 2,099 +81.9%Other* 2,594 1,714 - 54.7%Total 20,421 18,259 - 10.6%
* Includes alcohol, cigarette, gas, and hotel
What These Changing Conditions Mean for Massachusetts
Factors Affecting Change in …• Spending
– Continuing explosion in healthcare costs– Maturation of Massachusetts healthcare law– Impact of possible federal legislation
• Revenues– Increase in sales tax rate …– … offset by decrease in spending in Massachusetts?
• Population– Slow relative growth in New England– Federal redistricting following the 2010 elections
• Jobs
Additional Considerations• All politics is local
– Commonwealth not a single homogenous economy– Import and attractiveness of Gateway Cities
• The next big breakthrough – just around the corner?– In a targeted industry like the green economy– And/or in something unanticipated
• Possible ticking fiscal time bombs– Pensions– State debt– State debt service
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