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On October 27th, I had the opportunity to speak at Governor Deval
Patrick's Economic Summit in Boston to discuss current efforts to
stimulate our economy and create jobs in Massachusetts. Following are
the prepared remarks I gave at that event:
As we all know, these are tough economic times for the Commonwealth.
Like the rest of the nation and the world, Massachusetts is struggling
with the ongoing recession.
The nation’s unemployment rate continues to creep closer to 10
percent, with the latest calculations showing joblessness in the U.S.
at 9.8 percent – the highest average since June of 1983. Massachusetts’
latest numbers show us at 9.3 percent – the highest unemployment rate
since 1976.
After the bottom fell out of the economy just over a year ago, we
knew we were going to have to think outside the box and find ways to
save money. As I said at that time, adversity breeds opportunity. As a
result, we passed transportation and pension reform legislation that
will provide cost savings for the Commonwealth.
While these reforms save money, and even with the draconian budget
we had to pass for this fiscal year, the Commonwealth is still not
making ends meet.
The Governor announced he will have to make an additional $600
million in budget cuts for this fiscal year. That means he will have to
exercise his 9C powers that allow him to make budget cuts. He has also
indicated that layoffs and additional furloughs are likely to
occur.
The next few fiscal years will be challenging. It is important to
note, however, that economic experts say Massachusetts is weathering
this storm far better than other states. And it is our hope that we
will come out of this recession quicker than most.
In order to do that, we need to keep thinking outside the box and
seize the opportunities available for economic development while
continuing to support our well-established sectors.
A great example of this is the next generation of cellulosic
biofuels.
Unlike the current generation of biofuels, which is made from
corn-based ethanol, these biofuels will be made from algae, cranberries
and wood byproducts – materials that are found in the Plymouth and
Barnstable District.
Further promoting this sector not only gives us another economic
foothold, but also works toward a cleaner, greener environment.
Additionally, industries like film production have the potential to
create even more jobs with permanent infrastructure in place. A studio
project means jobs during the construction phase and permanent jobs
once it is up and running. It will also increase tourism, which is sure
to be a boost for hotels, restaurants, businesses and local
attractions.
We also must continue to look outside the box and find efficiencies
in our state agencies and entities. We were able to streamline our
transportation agencies, and now we need to look at our 31 economic
development agencies and see whether they are being effective and what
duplication of services is occurring.
I recognize that families and local governments are working hard to
use their money in the most efficient way possible. We should not
expect anything less from the Commonwealth’s government.
There are major challenges and difficult decisions ahead. There is
little doubt it will get more difficult before we see the light at the
end of the tunnel. But it is the investments in economic development,
the support of our traditional industries, and the efficiencies we can
adopt that are going to save money and create the jobs we need to pull
us out of the fiscal crisis.
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