Senator Joyce Shares State of the State's Economy with College of Management Students

By Mary Ann Machanic

State Senator Brian A. Joyce addressed a standing-room-only audience of students at the November 12 Senior Executive Forum sponsored by the College of Management. The senator noted that Massachusetts' fiscal situation was "grim" and compared recent conditions in the Commonwealth to that of a "perfect storm."

According to Joyce, the trouble began in the summer of 2001. Three major conditions coalesced that caused serious negative economic consequences for the state: a drop in tax revenues caused by the decline of the stock market and the aftermath of the September 11 terrorist attacks; a rapid increase in mandated state expenses; and old tax cuts that were finally completely phased in. Instead of a four percent growth in revenue, Massachusetts experienced a 15 percent decline and the state was forced to cut expenditures and raise revenues to balance the budget.

Joyce cited education and health care costs as the biggest economic problems for Massachusetts. He pointed out that the Education Reform Act of 1993 resulted in a big investment in public schools (K-12) that is now beginning to pay off, as evidenced by recent MCAS results. Health care costs also continue to rise for everyone.

So, what can state government do? According to Senator Joyce: continue to invest in education, a social as well as economic investment; address health care costs; and add an economic stimulus package. Joyce was clear that though the "perfect economic storm" is not of our making, Massachusetts has been better prepared to weather the rough patches because of the rainy day fund that was built up in more prosperous times. The senator, like the rest of the audience, hopes to return to prosperous times soon.

Image: State Senator Brian A. Joyce shares his prognosis on economic conditions in Massachusetts as a special guest for the November 12 Senior Executive Forum sponsored by the College of Management. Joyce, serving his fourth term in the senate, represents the Norfolk, Bristol, and Plymouth county district. (Photo by Harry Brett)

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