“It won’t be the last headline that we read in that regard,” Massachusetts Taxpayers Foundation President Eileen McAnneny said after the host of a forum on the state budget read a breaking news alert about the company’s plans. Companies are “much more attuned to relative cost differences,” she said.

But erasing the gap is worth it for all of us. By one estimate, the racial wealth gap has cost the American economy $16 trillion over the last 20 years. Closer to home, the Massachusetts Taxpayers Foundation estimated that closing racial wealth gaps in Massachusetts could raise the state GDP by $25 billion over the next five years.

Earlier today, Governor Baker filed a combination economic development and COVID recovery bill that includes $1.3 billion in capital authorization, $2.3 billion in direct spending of remaining federal ARPA funds and 137 policy sections. This Brief provides an initial summary of the provisions of the Administration’s proposal. MTF will weigh in with greater detail on the current state of ARPA spending in Massachusetts in a subsequent bulletin.

A recent analysis from the Massachusetts Taxpayers Foundation, a pro-business research group, showed Massachusetts’ gross state product would increase by $25 billion over five years if we were to close gaps in these key areas. According to the same report, leveling college graduation rates of Black and Latinx students to that of white students in Massachusetts would result in an additional $22 billion in state revenues over ten years. 

Another study from The Massachusetts Taxpayers Foundation supports that argument. It found that if Massachusetts could close the economic divide, the state's gross domestic produce would increase by $25 billion over five years. "Just to put that in context, that's the equivalent of creating about 100,000 more jobs," said Eileen McAnneny, the foundation's president.

The Massachusetts Taxpayers Foundation, a highly respected and nonpartisan think tank, released a report last month showing racial disparities in every facet of life. By many measures, these disparities are greater in Massachusetts than they are nationally.

The MBCS – a coalition of 27 diverse business organizations from across the state that advocates for equitable skills development policies – and the MBAE Affiliate Network – comprised of 37 chambers of commerce and industry associations from across Massachusetts – support these bills because they expand opportunities for high school students to earn industry-recognized credentials (IRCs) that are tied to labor market demand and high-wage jobs.

The Massachusetts Business Coalition on Skills (MBCS) appreciates your ongoing efforts to prepare an FY 2022 budget that prioritizes economic recovery and invests in workforce skills development. The MBCS is a coalition of 27 diverse business organizations from across the state that advocates for equitable skills development policies so our current and future workforce can meet employers’ needs.

Tackling the racial wealth gap is a top priority for the Black Economic Council, which is located in one of the most inequitable cities in the country. According to a 2021 report by the Massachusetts Taxpayers Foundation, the median net worth of a white household in the U.S. in 2013 was 11 times greater than that of a Black household. In Boston, the median net worth of white household was 31,000 times greater than that of a Black household in 2014.