$296m Stimulus Plan Proposed - House Bill Has a Fund for Culture

By Scott S. Greenberger, Globe Staff | July 29, 2005

Massachusetts museums, theaters, and historical sites would get between $25 million and $29 million in state money this year under a measure House Speaker Salvatore F. DiMasi unveiled yesterday at the State House.

The new Cultural Facilities Fund, part of a $296 million economic stimulus package DiMasi is proposing for fiscal 2006, would be among the first of its kind in the nation. Aimed at enriching the lives of Massachusetts residents, the fund is also supposed to bolster the state's economy by shoring up attractions that bring tourists and their dollars to the Bay State.

''Arts and culture is not a frill, but a valuable asset for our economy," said Dan Hunter, director of Massachusetts Advocates for the Arts, Sciences, & Humanities. ''Tourism is the second-largest industry in the state. This bill invests in the infrastructure of tourism, because nobody comes here for the weather; they come here for the culture, the museums, the performances, and the theaters."

A 2004 survey of 126 of the state's cultural organizations by Massachusetts Advocates for the Arts, Sciences, & Humanities, the Boston Foundation, and the Massachusetts Cultural Council indicated that the groups surveyed had roughly $1.1 billion in bricks-and-mortar needs over the next five years. The survey also concluded that the average age of cultural facilities in Massachusetts is 93 years.

DiMasi's proposal sets aside $13 million for the cultural facilities fund, and those dollars would be supplemented with money raised by bonds secured by half of the annual increase in state revenue from the hotel tax. As a result, the total amount available is expected to be twice that figure. Cultural groups would apply for grants; to get them, they would be required to raise private matching money.

In addition to the money for cultural institutions, DiMasi's measure would allocate $32.5 million for job training and adult education programs; $30 million to redevelop brownfields, or sites contaminated by past toxic uses; and $10 million for the Massachusetts Community Development Corporation. It also would expand the Historical Rehabilitation Tax Credit and establish a $200 million capital fund to pay for infrastructure improvements for business relocation and expansion.

In all, the 120-page bill includes some three dozen intiatives.

''We believe that this legislation will create new jobs and create the atmosphere for businesses here in Massachusetts to grow, as well as induce other companies from out of state to come here," DiMasi said. He acknowledged that it is impossible to say how many jobs would be created by the bill.

The initial reaction to DiMasi's proposal was positive.

In March, Governor Mitt Romney proposed his own stimulus package, which also included the $200 million capital fund for infrastructure improvements. Romney spokesman Eric Fehrnstrom said yesterday that the House bill ''has some very positive features" and that the governor supports action on Beacon Hill to spur economic growth.

''With 10 consecutive months of job gains, we're experiencing strong economic growth in Massachusetts, but we need to keep our foot on the gas pedal," Fehrnstrom said.

Ann C. Dufresne, a spokeswoman for Senate President Robert E. Travaglini, said the Senate has supported economic stimulus packages in the past and is open to DiMasi's ideas.

Rick Lord of Associated Industries of Massachusetts described the package as ''a great first step" that will help Massachusetts compete with other states, and nations for jobs.

Michael J. Widmer of the Massachusetts Taxpayers Foundation, a business-funded nonprofit that monitors state spending, described the cost of the package as ''manageable."

''The strength of the legislation is its breadth," Widmer said. ''What they've done is focus on a wide range of smaller, focused initiatives, which I think as a general matter makes sense."

The leaders of cultural institutions across the state were enthusiastic. Kate Maguire, executive director of the Berkshire Theater Festival, a complex of theaters and rehearsal halls in Stockbridge, said her institution simply can't afford to renovate its aging facilities without help. The group's main theater, The Playhouse, is 77 years old, and the barn where scenery is built is a century old. Both buildings need electrical work and other repairs, she said. ''We all struggle just to keep operations going. . . . it's critical for us to maintain our facilities."

This story ran in the Boston Globe on 7/29/05.