A presentation to the Massachusetts Economic Development Council 12-4-2009 What MassDevelopment is and what it offers. Statistical data about the Massachusetts and New England economy from the past eight years and what should be planned for the future.

1. Massachusetts Economic Development Council
Annual Meeting
December 4, 2009

2. Agency Background

3. 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

4. Where We Are
• Boston
• Devens
• Fall River
• Lawrence
• Springfield
• Worcester

5. 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).

6. Specialty Loan Programs
• Brownfields Redevelopment Fund
• Emerging Technology Fund
• Cultural Facilities Fund
6

7. 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

8. 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

9. 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

10. A Statistical Review of Changing
Conditions in Cities, the Commonwealth,
and New England
over the Past Eight Years:
People and Places

11. 2 Biggest Cities Grow, Others Shrink
1990 2000 2008
Boston 574,283 589,141 609,023
Lawrence 70,207 72,043 70,014
New Bedford 99,922 93,768 91,365
Pittsfield 48,622 45,793 42,652
Springfield 156,983 152,082 150,640
Worcester 169,759 172,648 175,011
• Population figures from the U.S. Census Bureau.

12. Massachusetts Population Ages
2000 2006-2008
Under 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.

13. Massachusetts Data Points/Deltas
2001 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.

14. New England Data Points/Deltas
2001 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.

15. A Statistical Review of Changing
Conditions in the Commonwealth
over the Past Eight Years:
Expenses and Revenues

16. 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

17. State Spending: FY01 versus FY09
FY01 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%

18. Background for the Revenue Chart
• Raw data come from the Massachusetts Taxpayers
Foundation
• Revenues are adjusted for inflation and displayed in
millions of dollars

19. Revenues: FY01 versus FY09
FY01 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

20. What These Changing Conditions
Mean for Massachusetts

21. 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

22. 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

23. 800-445-8030
www.massdevelopment.com
twitter.com/MassDev