February 2005

 
Volume 28, Number 1
February 2005

Tech Employers Have Positive Climate Outlook as Annual Meeting Approaches
Keynote Speakers Kennedy, Romney Make Progress for Hanscom AFB, Natick SSC

The results of the Council’s 2005 CEO High Tech Business Climate Survey are in and indicate that this will be a positive year for job creation in the state’s diverse technology economy.  The survey, conducted each year since 1987, shows that more than half of the Massachusetts technology CEOs plan to add jobs in the next 12 months.  Of the more than 100 technology CEOs polled, a vast majority believe that Massachusetts has a positive climate for innovation firms.
 
“These positive numbers indicate that, despite the recent downturn, Massachusetts is a very good place for innovation and entrepreneurs,” said Council President Christopher R. Anderson.  “We still need to work with Beacon Hill leaders to make Massachusetts more competitive for the future, but the short-term job growth projections are welcome news for employers and employees alike.”
 
Anderson noted that 84 percent of the CEOs responding to the survey view Massachusetts as a good or outstanding place to run a high tech company – stable from last year and up from 64 percent in 2003.  Only 14 percent view Massachusetts as a fair place to do business in 2005, a number that peaked at 32 percent during the recent downturn, compared with a 55 percent average rating from 1990-1992. 

Hiring on Agenda for MA Tech Employers

For the first time in this survey, CEOs were asked about their employment plans for 2005.  In a very positive sign for the state economy, 52 percent plan to create new jobs, while only six percent plan to cut back this year.  Of those planning to hire, 78 percent attribute the increase to an anticipated sales increase.

Kennedy, Romney Headline Council Annual Meeting

On March 4, the Council will welcome Senator Edward M. Kennedy and Governor Mitt Romney as special guest speakers for the Council’s 2005 Annual Meeting (Newton Marriott, 12:30 – 2:30 pm).  This is a rare joint public appearance for Massachusetts’s Senior Senator and Chief Executive, who have been working closely with the Council on the efforts to preserve and expand Hanscom Air Force Base and the Natick Soldier Systems Center, and other issues critical to the Commonwealth’s competitiveness. 

For more information visit www.mhtc.org, or contact Jane Stoy at jane@mhtc.org or (781) 890-6482. 

The Council’s affiliated organization, the Massachusetts Defense Technology Initiative (MassDTI), is preparing for the next crucial phase of its strategy on behalf of the nation’s military installations in Massachusetts. With the federal government nearing the finish line in its next round of military base closures, MassDTI is stepping up its aggressive campaign to enhance the missions at Hanscom Air Force Base and the Natick Soldier Systems Center.  

State Approves $261 Plan for Expansion at Hanscom, Natick

On February 4, Governor Romney signed a $261 million bill to enhance the missions of Hanscom Air Force Base and Natick Soldier Systems Center.  The legislation, filed by Romney, was unanimously approved by the Legislature a day earlier.  This bond bill formally codifies the state’s commitment to the bases as delivered to the Pentagon by Romney and Sen. Kennedy last year.  The state funding is contingent on the Department of Defense keeping the bases open and bringing new military mission to Hanscom and Natick. 

For MassDTI, the passage of the legislation was “the culmination of an innovative and cooperative effort between all levels of Massachusetts government and the state's defense technology community,” said Council President Christopher Anderson.  MassDTI and MHTC would like to thank the state Legislature for their swift action on this crucial economic development bill.

Recap of MassDTI Efforts

Highlights of the more than a year-long MassDTI effort include:

• Building an effective partnership.  Spearheaded by the MA High Technology Council, MassDTI is a unique collaboration of business, government and academic interests.  Led by Senator Kennedy and Governor Romney, the organization is guided by a leadership committee comprised of the state’s Congressional delegation and leaders in technology, academia, science and the military. 
• Proposing bold plans for base enhancement.  MassDTI has developed innovative plans to expand and enhance the military missions of the two bases.  The Hanscom AFB “Mission Capacity Expansion Plan” will create up to 1.25 million SF of new space on existing base property for R&D -- enabling the base to absorb new missions, create 4,000 new jobs, and ease local traffic.  The Natick “Mission Enhancement Plan” will expand existing structures to accommodate added research and development operations. 
• Quantifying the bases’ enormous economic impact.  The campaign commissioned a research study by UMass/Donohue Institute, which concluded that the two bases represent 33,000 quality jobs, $1.88 billion in annual payroll, and $3.2 billion in annual economic activity. 
• Making the case to military leaders.  State officials and MassDTI have hosted base inspection tours by top Pentagon brass.  Co-chairs Kennedy and Romney have repeatedly carried the campaign directly to top military leaders in Washington, Virginia and Ohio. 

With legislative approval of the bond secured, MassDTI is preparing the next phase of its campaign.  Decisions made over the next few months as part of the Base Realignment and Closure (BRAC) process will have a profound impact on this region’s workforce and economy.  By March 15, President George W. Bush will appoint the nine-member BRAC Commission responsible for reviewing the base closure list issued by the Pentagon this May. 

Working closely with Sen. Kennedy and Gov. Romney and our Congressional delegation, MassDTI is mounting a focused campaign to bring the arguments for expanding the Hanscom and Natick bases directly to the BRAC commissioners.  MassDTI is funded privately by technology employers with matching funds provided by the Commonwealth.  To learn how you can support the effort, or to learn more about the campaign, please visit www.massdti.com.

Romney Delivers State of State, Files Budget

Romney led off the New Year with two major events for the executive branch, the annual State of the State Address and the release of his Fiscal Year 2006 budget proposal.  Romney’s State of the State address had a strong focus on his education and economic development agenda for 2005.   In particular, he called for an expansion of the MCAS graduation requirement to include the Science portion of the test—something that is crucial in preparing a strong tech-based Massachusetts workforce.

“Today’s students are tomorrow’s scientists and engineers,” said Romney.  “We need to ask ourselves whether our students are being given the tools to preserve the state’s workforce advantage and thrive in tomorrow’s science based economy.”

He followed up the speech with the January 26 release of his $23.2 billion budget proposal, up from $22.7 billion for the current fiscal year.  Romney’s budget will strengthen the competitiveness of Massachusetts’ tech economies and is balanced without any new broad-based taxes and calls for a reduction in the state’s income tax to five percent. 

Legislature Active in New Year

The Legislature has also been active in the New Year by reorganizing its committee structure and previewing an economic agenda.  The new legislative committee structure would reduce the overall number of legislative committees, while increasing the number of joint committees, underscoring a renewed sense of cooperation between the House and Senate.  One new committee of particular interest is the Committee on Economic Development and Emerging Technologies, chaired by Senator Jack Hart and Representative Dan Bosley.  One of the first tasks of the new committee will be to lead efforts to create a new economic stimulus bill.  The $100 million Economic Stimulus Act of 2003 included many priorities for the Council.

Stem Cell Debate Heats Up

It is clear that one legislative priority for 2005 will be state support for some form of embryonic stem cell research.  In an opinion piece for Mass High Tech, Council President Christopher Anderson wrote that stem cell research holds promise for Massachusetts, but the state should view it as “part of a balanced economic strategy that reinforces our strengths in technology and academic research.”  To read the entire column, visit www.mhtc.org.