Title: January 11, 2006
1Federal Reserve Bank of Boston The Boston Foundation Greater Boston Chamber of Commerce New England Council National Association of Industrial and Office Properties Associated Industries of Massachusetts Mass Insight
January 11, 2006
2RECAP Greater Bostons Key Challenges Scan of
the Competition
- Mary Jo Meisner, Vice President for
Communications, Community Relations and Public
Affairs - The Boston Foundation
3Greater Boston MSA Population 1969-1999
4Greater Boston MSA Employment 1969-1999
5 Since 2001, MAs pop. employment have
declined relative to the U.S.
Source New England Economic Partnership
6Metro Bostons 1990s economic engines are now
lagging
7With a high and rising cost of living
8Our region now has the highest family costs among
competitors
9Yet the housing affordability gap in Greater
Boston continues to widen
Ratio of Median Income to Income Needed to
Purchase the Median-Priced House
Threshold of Affordability
Source Median income from the Census (1990 and
2000) and Current Population Survey (2004).
House prices based on the OFHEO index. Income
needed based on a monthly payment including
principal and interest on a 30-year conventional
mortgage with 20 down, real estate taxes and
insurance, and a qualifying income of 28.
10The region has grown only due to immigrants, with
recent net losses
11With global regional competitors catching up
12Yet our public higher education funding is
erratic lower than competitor states
13Despite gains, MCAS proficiency is stuck in
neutral, scores for young children are falling,
and dropout rates are rising
14And waiting lists are rising for the first rungs
of educational opportunityBasic literacy
English classes
15To top it off Weak networks brand compared
to competitors
- NETWORKS
- More fragmentation, less collaboration, fewer
linkages - BRAND
- Old, cold, expensive, unwelcoming, and
anti-business a difficult place to get things
done
16Our mutually reinforcing assets are now out of
alignment, with housing costs our weakest link
Forces Within the Dynamic System Contributing to
Growth
Mutual Reinforcement
Unaligned Links
Weakest Link
Infra-structure Costs
Strongest Link
Regional Brand
Education
Education
Regional Brand
Demographics and Immigration
Regional Networks and Collaboration
Regional Networks and Collaboration
when there are engines that are not contributing
you may be only as strong as your weakest link.
17We Have Big Ideas
- Focus strategies on talent innovation
- Create a talent-friendly environment
- Drive growth from Greater Boston throughout the
Commonwealth - Be a leader in creating talent partnerships with
China, India and other innovation clusters
18But our competitors have Big Ideas, too
- Often the same ideas
- For example
19Chicago Metropolis 2020 a business-inspired,
broadly inclusive plan for the 21st century
20(No Transcript)
21NCs Research Triangle Where the minds of the
world meet
22Research Triangle Park
23Innovation Philadelphia local innovation/global
partners, student retention initiative, wifi
24Multiple languages at phila.gov
25Central Florida Putting the pieces together
26TheSan Francisco Bay Area
27A NEW MODEL Coordinated, Distributed Leadership
Open, Dynamic Civic Leadership
- Regulatory Reform/Home Rule
- Rappaport Pioneer Institutes
- Sovereign Bank
- MAPC
- MMA, Mass Taxpayers, CURP
New Leadership Pipeline
John LaWare Leadership Forum
World Class Human Capital
21st Century Infrastructure
21st Century Jobs and Economic Strategies
- Housing
- Commonwealth Housing Task Force
- Pre-K-11 Education
- Early Education for All Campaign
- Great Schools Campaign
- Innovation Economy Jobs
- Economic Stimulus Bill
- Jobs for Massachusetts
- Global Massachusetts 2015
-
-
- Transportation
- Multi-stakeholder CURP Initiative
- Higher Education
- Senate Task Force on Pub Higher Ed.
- MetroBoston College Presidents Alliance
- Energy
- Mass Tech Collab., NE Council
- Regional Branding
- Marketing
- New England Council
- Boston Fed
- 5th Century Trustees
- Technology Access/Solutions
- MA Technology Leadership Council
- Health Care
- Multi-stakeholder initiatives
- Regional Planning
- MAPCs MetroFuture
- Workforce Training
- SkillWorks
- Community - Industry Partnerships
Cultural Facilities Economic Stimulus Bill/Match
28Federal Reserve Bank of Boston The Boston Foundation Greater Boston Chamber of Commerce New England Council National Association of Industrial and Office Properties Associated Industries of Massachusetts Mass Insight
January 11, 2006
29Chapter 40R 40S and BeyondGetting the
Incentives Right Housing
Director, Center for Urban Regional
Policy Northeastern University
30New Single Family Home Permits Greater Boston
31The Commonwealth Housing Task Force
- Not a new organization but a federation of
business, labor, environmental groups, housing
developers advocates - Relies on housing studies report cards to
analyze the problem, craft new solutions - A partnership with NUs Center for Urban and
Regional Policy to encourage new housing
construction
32Principles for a New Approach to Housing
- INCREASE PRODUCTION EFFICIENTLY Zone enough land
to meet the demand for new housing when and where
it is needed. - SMART GROWTH Protect open space and enhance
historic preservation while providing more
housing. - GET INCENTIVES RIGHT For developers and for
local communities.
3340R Basics
- Overlay Districts near transit city, town and
village centers the olde New England model - As of right residential development, with
minimum allowable densities - 20 of the units affordable
- Mixed Use
3440R Incentives
-
- up to 20 units -- 10,000 201-500 units
-- 350,000 - 21-100 units -- 75,000 over 500 units
-- 600,000 - 101-200 units -- 200,000
-
- A one-time Bonus for each new or rehabbed unit
35The School Cost Problem
- A modest home in a typical community will have,
on average, 1 student - the home will contribute 2,000 - 2,500 annually
in property taxes for education, but the student
costs 7,000 - 10,000 to educate - community forced to reduce average education
expenditures per child, or increase taxes through
an override
36A Stumbling Block
- Communities reluctant to permit higher density
municipal finance implications are not favorable.
- School costs are a stumbling block (constraints
from Prop 2 ½ and declining local aid)
37Declining Local Aid
38Local Spending Lagging
39Residential Property Tax Stress in the
Commonwealth
4040S School-Cost Insurance
- Provides insurance for net new school costs
- By underwriting net school costs, the
Commonwealth provides an incentive for
communities to permit modest priced single family
home construction
41The Costs/Benefits of Chapter 40S
- No costs until FY 2008
- lt 2.0 million in 2008 ramping up to 35,000,000
in FY 2014 - Goal 11,000 new single family housing units
- Only 0.8 of the projected Chapter 70 School Aid
budget in 2014.
42A Contribution to Economic Development beyond
Housing
- New research at CURP -- working with NAIOP
underscores the critical role of local
municipalities in economic development - Firms locate in cities towns, not states
- Local fiscal capacity is essential to attracting
and retaining people AND firms - Must offset high private sector costs with
quality public services - Limit high local property taxes
4340S is only one aspect of local Aid Reform
- The Massachusetts Taxpayers Foundation recommends
an increase in local aid to 40 of state
generated revenues - an estimated increase of 1
billion back in FY2005
44To Ensure Prosperity
- Implement Chapter 40R 40S New incentives to
reduce the cost of living - Advocate for increased local aid investment in
cities towns to help them retain attract
business and jobs - Replicate federation approaches like the
Commonwealth Housing Task Force to create
consensus - Focus on leadership, partnership, and getting the
incentives right
45Federal Reserve Bank of Boston The Boston Foundation Greater Boston Chamber of Commerce New England Council National Association of Industrial and Office Properties Associated Industries of Massachusetts Mass Insight
January 11, 2006
46Building an Integrated System of Educational
Excellence
Corporate Community Relations Manager IBM
47Our global regional competitors are advancing
in educational attainment
48Education immigrants the key to the future
workforce
Educational Attainment Immigrant Labor Force
arriving in MA 90 - 00
Source MassInc, US Census, CPS data.
49And despite investment and gains, MCAS
proficiency is stuck in neutral
50Our funding of public higher education is
erratic among the lowest
51The OVERARCHING GOAL An Excellent Pre K- 16
Workforce Development System
Workforce Development
Lifelong Learning
Public Private Colleges, Universities
Adult Literacy English Skills (ABE/ESOL)
K-12
Out-of-School Enrichment
Early Education
Healthy Child Development
52Broad Agreement Among Business Leaders on Core
Goals
- Quality Early Education
- Quality Teaching/Teacher Training
- High Standards (Proficiency), Quality Measures
- Overcoming Disparities in School Quality
Student Outcomes - Excellence in Math Science
- Ready Access to Adult Basic Education
- (ESL, ABE)
- Importance of Public Higher Education
- Workforce Development At All Levels
53Excellent Business-Supported Initiatives Underway
- PRE K- 12
- Early Education for All Campaign
- Just for the Kids -Mass Business Alliance on
Education - Great Schools Campaign Mass Insight Education
- Rennie Center Research plus
- Teacher 21 Mass Business Roundtable
- NGA Grant to MA
- HIGHER EDUCATION
- Senate Task Force on Public Higher Education -
- Budget Recommendations
- R D Centers of Excellence Technology Road
Map/Mass Insight - STEM (Science, Technology, Engineering, Math) -
School to Career - Goldberg Seminar collaboration among institutions
54Workforce/Career Development
- SkillWorks
- A New Initiative
- 5-year, 15 million partnership Foundations,
City of Boston, Commonwealth of MA - Directly engages employers
- Targets health care and hospitality
- 30-40 million pending
- Economic Stimulus Bill
A fragmented system. But what works? Need
research pilots at all levels
55The First Rung of the Ladder Early Education
56Federal Reserve Bank of Boston The Boston Foundation Greater Boston Chamber of Commerce New England Council National Association of Industrial and Office Properties Associated Industries of Massachusetts Mass Insight
January 11, 2006
57Understanding the Importance of Early Education
President Genzyme Genetics
58The Early Years Are Learning Years
Sources Public expenditures RAND analysis.
59Early Education Pays in Better Child Outcomes
Source Reynolds, "Journal of the American
Medical Association.
60Early Education Returns 7.16 Per 1 Invested
(Lifetime savings per participant (based on age
27 follow-up) in 2001 constant dollars,
discounted 3 annually)
Sources Barnett, High/Scope Press.
61An Increasing Priority Across the Nation
- 3 States have Universal Pre-K
- Georgia
- Oklahoma
- Florida
- 12 States moving toward Universal Pre-K
- New York
- New Jersey
- North Carolina
- Early Ed a top priority in Gubernatorial
Elections - Virginia
- New Jersey
- 26 States increased Pre-K Investment in FY06
62H.4582 An Act Relative to Early Education and
Care
- CREATES
-
- The framework for a new voluntary, high-quality
universal early education program - Research-based standards
- Accountability via strong child assessment
program measurement
63What Can Business Civic Leaders Do?
- Join the Campaign
- Contribute expertise for economic policy
analysis - Participate in legislative advocacy
- Connect EEA with HR staff to engage your employees
64www.earlyeducationforall.org
65Federal Reserve Bank of Boston The Boston Foundation Greater Boston Chamber of Commerce New England Council National Association of Industrial and Office Properties Associated Industries of Massachusetts Mass Insight
January 11, 2006
66Developing a Brand Name for New England
Senior Vice President Federal Reserve Bank of
Boston
67- Mike Reopel of Deloitte Consulting
- New England does not offer potential investors a
clear positive message - Little marketing compared to competitor regions
- Region should develop and market its brand
- An easy fix
68- Mike continued
- New England states should work together
- Greater impact
- Region is more marketable than individual states
and cities - Bostons dynamism and culture complemented by
recreational opportunities and lower costs
elsewhere
69- Audience comments
- Massachusetts has a brand state is a difficult
place to do business - We need a positive theme that drives action
- Example Singapore as talent hub
-
70- What to do?
- Develop a positive message
- True
- Meaningful
- Brandable
- Market message aggressively
- Both governments and business
- Act to reinforce our message
71- What to do?
- Attack our negative image
- Fix problems
- Dispel inaccuracies
- Say less about things beyond our control
- Can we be more courteous/welcoming?
- Smiley face was invented by Harvey Ball of
Worcester
72- Elements of a positive regional message
- Innovative, entrepreneurial culture
- Sophisticated professional workers firms
- Magnificent research teaching institutions
- Abundant recreational cultural opportunities
- History everywhere
73- New England states already have a common website
Team New England - Marketing tag lines
- Massachusetts Its All Here
- You Belong in Connecticut
- Blue Sky Rhode Island Think Big, Start Small,
Scale Fast - Think Vermont
74- Could we
- Convey a more substantive message?
- Be clearly linked to our region?
75- What next?
- Form a task force to work on a regional brand
and a marketing strategy - Send ideas and suggestions to
- Susan Asci, New England Council
- Lynn Browne, Federal Reserve Bank of Boston
-
76Federal Reserve Bank of Boston The Boston Foundation Greater Boston Chamber of Commerce New England Council National Association of Industrial and Office Properties Associated Industries of Massachusetts Mass Insight
January 11, 2006