1. Federal 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

2. RECAP: Greater Boston’s Key Challenges & Scan of the Competition Mary Jo Meisner, Vice President for Communications, Community Relations and Public Affairs The Boston Foundation

3. Greater Boston MSA Population 1969-1999

4. Greater Boston MSA Employment 1969-1999

5. …Since 2001, MA’s pop. & employment have declined relative to the U.S. Source: New England Economic Partnership

6. Metro Boston’s 1990s economic engines are now lagging

7. With a high and rising cost of living

8. Our region now has the highest family costs among competitors

9. 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%. Yet the housing affordability gap in Greater Boston continues to widen Threshold of Affordability Ratio of Median Income to Income Needed to Purchase the Median-Priced House

10. The region has grown only due to immigrants, with recent net losses

11. With global & regional competitors catching up

12. Yet our public higher education funding is erratic & lower than competitor states

13. Despite gains, MCAS proficiency is stuck in neutral, scores for young children are falling, and dropout rates are rising

14. And waiting lists are rising for the first rungs of educational opportunity: Basic literacy & English classes

15. To 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…”

16. Our mutually reinforcing assets are now out of alignment, with housing costs our weakest link Regional Networks and Collaboration Infrastructure Costs Demographics and Immigration Regional Brand Education Mutual Reinforcement Regional Networks and Collaboration Infra- structure Costs Demographics and Immigration Regional Brand Education Unaligned Links … when there are engines that are not contributing you may be only as strong as your weakest link. Forces Within the Dynamic System Contributing to Growth Strongest Link Weakest Link

17. We 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

18. But our competitors have Big Ideas, too: Often the same ideas… For example:

19. Chicago Metropolis 2020: a business- inspired, broadly inclusive plan for the 21 st century

21. NC’s Research Triangle: ‘Where the minds of the world meet’

22. Research Triangle Park

23. Innovation Philadelphia: local innovation/global partners, student retention initiative, wifi

24. Multiple languages at phila.gov

25. Central Florida: ‘Putting the pieces together’

26. The San Francisco Bay Area

27. A NEW MODEL: Coordinated, Distributed Leadership John LaWare Leadership Forum Open, Dynamic Civic Leadership World Class Human Capital21 st Century Infrastructure21 st Century Jobs and Economic Strategies Regional Branding & Marketing New England Council Boston Fed 5 th Century Trustees Pre-K-11 Education Early Education for All Campaign Great Schools Campaign Regulatory Reform/Home Rule: Rappaport & Pioneer Institutes Sovereign Bank MAPC MMA, Mass Taxpayers, CURP Innovation Economy Jobs Economic Stimulus Bill Jobs for Massachusetts Global Massachusetts 2015 Higher Education Senate Task Force on Pub Higher Ed. MetroBoston College Presidents’ Alliance Transportation Multi-stakeholder CURP Initiative Workforce Training SkillWorks Community - Industry Partnerships Housing Commonwealth Housing Task Force Health Care Multi-stakeholder initiatives Energy Mass Tech Collab., NE Council; Technology Access/Solutions MA Technology Leadership Council Regional Planning MAPC’s MetroFuture New Leadership Pipeline Cultural Facilities Economic Stimulus Bill/Match

28. Federal 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

29. Chapter 40R & 40S … and Beyond Getting the Incentives Right: Housing Barry Bluestone Director, Center for Urban & Regional Policy Northeastern University

30. New Single Family Home Permits – Greater Boston

31. The 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 NU’s Center for Urban and Regional Policy to encourage new housing construction

32. Principles 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.

33. 40R 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

34. 40R 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

35. The 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

36. A 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)

37. Declining Local Aid

38. Local Spending Lagging

39. Residential Property Tax Stress in the Commonwealth

40. 40S 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

41. The Costs/Benefits of Chapter 40S No costs until FY 2008 < $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.

42. A 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

43. 40S 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

44. To 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

45. Federal 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

46. Building an Integrated System of Educational Excellence Maura Banta Corporate Community Relations Manager IBM

47. Our global & regional competitors are advancing in educational attainment

48. Education & immigrants – the key to the future workforce Source: MassInc, US Census, CPS data. Educational Attainment: Immigrant Labor Force arriving in MA 90 - 00

49. And despite investment and gains, MCAS proficiency is stuck in neutral

50. Our funding of public higher education is erratic & among the lowest

51. The OVERARCHING GOAL: An Excellent Pre K- 16 & Workforce Development System Public & Private Colleges, Universities K-12 Early Education Lifelong Learning Workforce Development Adult Literacy & English Skills (ABE/ESOL) Out-of-School Enrichment Healthy Child Development

52. Broad 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

53. Excellent 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

54. Workforce/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

55. The First Rung of the Ladder: Early Education…

56. Federal 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

57. Understanding the Importance of Early Education Mara G. Aspinall President Genzyme Genetics

58. The Early Years Are Learning Years Sources: Public expenditures: RAND analysis. Percent of total brain growth Cumulative percent of public dollars spent on children

59. Early Education Pays in Better Child Outcomes Source: Reynolds, "Journal of the American Medical Association.

60. Early 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.

61. An 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

62. H.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

63. What 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

64. www.earlyeducationforall.org

65. Federal 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

66. Developing a Brand Name for New England Lynn Browne 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 –Boston’s 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: It’s 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

76. Federal 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