Washington gridlock threatens Mass. recovery

From The Beacon, October 2011

In a rare development for Massachusetts, our state economy has been outperforming the overall U.S. economy during the past year. Here at home, this has blunted the nasty blows that post-recession stagnation brings to employment, housing, business investment, consumer confidence, and public sector budgets.

The latest MassBenchmarks economic forecast for the Bay State predicts that, through December, our economic growth will be at least three times the national average. That’s certainly good news, but this is only a temporary respite from the recession-like losses and backsliding that will come if Capitol Hill fails to deliver a strong and balanced recovery plan for the nation as a whole.

We cannot expect the Massachusetts economy to be shielded from the national and global crisis. Our economic assets – in health care, education, finance, technology, research, and life sciences – have attracted moderate investment and provided for some job growth, stability and a reason to be confident that we are well-placed to thrive once the nation is on the right track.

Our assets, however, are not impervious to the economic distress that grips the rest of the country (and much of the world, for that matter). A Wall Street collapse, another housing bust, and massive federal budget cuts are all very real threats that would stop any Massachusetts recovery in its tracks.

With so much at stake, and with so much pain and worry washing over families and businesses, it is no surprise that public frustration with the gridlock in Washington, D.C., is at a historic high. As citizens cry out for unity, moderation and action, the partisan finger-pointing and brinksmanship displayed on Capitol Hill hits all the wrong notes. The lack of confidence in our national leaders was one of the central reasons that the U.S. government’s bond rating was downgraded this past summer. In a noteworthy contrast, Standard and Poor’s last month upgraded the credit rating for Massachusetts, citing state officials’ cooperation and strong management of the state’s debt, finances and budget.

With the national economy balanced on a razor’s edge between recovery and a return to recession, the MMA Board of Directors has called on Congress and the president to act immediately on key priorities to invest in our economic renewal. At its Sept. 13 meeting, the board issued a strong statement to federal leaders, underscoring the essential tenet that our economy will not improve until there is a stronger and more powerful partnership between the federal government and our cities and towns. The board called on all members of Congress to immediately enact two front-burner priorities to invest in communities and get our economy back on track.

First, Congress should pass the American Jobs Act presented by President Barack Obama, especially those provisions that provide essential funds and resources for the economic development of our cities, towns and states, and the provision of key services to our residents. These programs include $30 billion to retain and hire teachers in local budgets; $5 billion to retain and hire first responders in local budgets; $50 billion in Transportation Investment Generating Economic Recovery grants (TIGER) and Transportation Infrastructure and Innovation Act funds (TIFIA) to leverage essential construction and infrastructure improvements; $30 billion for school building modifications; $15 billion for Project Rebuild; $5 billion for Pathways Back to Work; and $10 billion for a national infrastructure bank, a proposal first made by Sen. John Kerry of Massachusetts.

Second, Congress should immediately reauthorize the federal surface transportation funding program (SAFETEA-LU) to repair, maintain and build highways, bridges and transit systems at current spending levels for at least two years, including reauthorization of the existing federal fuels taxes to pay for these infrastructure investments. This is an urgent matter because the current program, and the gas tax that pays for it, are on the brink of expiring and are being kept alive by short-term extensions that provide no certainty or stability. If Congress fails to reauthorize the program at current levels, Massachusetts will face the loss of $580 million in annual transportation funding.

Further, the House should reject the proposal by the chair of the Transportation and Infrastructure Committee, Rep. John Mica of Florida, to slash federal highway funding by 34 percent, a cut that would cost our state $216.3 million a year. The Federal Highway Administration estimates that a reduction of that magnitude would eliminate 7,522 jobs in Massachusetts alone. This program must be fully funded to keep our transportation system moving, keep construction workers on the job, and build our local economy.

The MMA Board stated it perfectly: “[W]e ask our partners in the federal government to act swiftly and certainly to put people back to work with the American Jobs Act and to rebuild our crumbling infrastructure with the reauthorization of our federal transportation programs. This is a time for partnership, not partisanship, and we ask all members of the House of Representatives and Senate to join municipal leaders in passing these priorities to invest in our neighborhoods and communities. Our economy depends on it.”