GOVERNOR PATRICK moved quickly yesterday to release state funds and accelerate state borrowing to prime the pump of the Massachusetts economy before a recession can take hold. Citing "the cost of inaction," Patrick outlined a broad economic development plan at MIT's school of management that invests in growth industries, trains workers, creates thousands of jobs - and does not depend on building casinos.
The center of the plan is based on good old-fashioned Keynesian stimulus: $3.8 billion in construction bonds to finally repair hundreds of the state's structurally deficient bridges. This public-safety initiative is bound to be popular. And it's politically savvy, because it brings money and jobs to far-off corners of the state that often feel neglected. Patrick made a point yesterday of mentioning a steel bridge over the Connecticut River in tiny Gill.
Time is of the essence in staving off the worst effects of the recession, and Patrick seemed almost impatient to get started. He promised that the bridge repair initiative "will have shovels in the ground and people at work in 90 days." He stopped $20 million in development grants to the troubled Columbus Center hotel, condo, and retail project in Boston, which is now on hold for 18 months, so the money can go to work more quickly elsewhere. (We also hope it will be used not for high-end private projects but for the kind of public development for which the grants were intended.)
State Treasurer Timothy Cahill likes the infrastructure spending but expressed caveats yesterday about the size of the proposal, and the fact that the bonds will be paid off over 30 years, increasing interest costs overall. "This isn't going to be easy, or cheap," he said. And he doesn't think the fix-it list should include properties owned by the MBTA and the Turnpike Authority.
Still, Patrick's plan also works to rebuild the state's human infrastructure. His quick release of $18 million in job-training grants - if targeted at healthcare and other growth sectors - could help the state hold onto its enviable status as a place where unemployment has actually been going down.
Flanked by legislative leaders who helped scuttle his casino proposal, Patrick was eager to point to plans for creating new jobs. But he also was forced to acknowledge that state government alone can't "ride to the rescue" when global economic factors are at work. He has asked his state agency heads to identify $150 million in immediate cuts that could be made if revenues take a sharp downturn. Patrick's best hope - and the state's - is that his economic stimulus proposals work fast, keeping Massachusetts just ahead of the recession's scythe.
