Doug Howgate, President, Massachusetts Taxpayers Foundation
In an interview with Invest:, Doug Howgate, president of the Massachusetts Taxpayers Foundation, discussed Massachusetts’ fiscal health and the influence of federal policies on the state’s economic stability. He highlighted the critical role of housing and transportation investments in retaining talent and residents.
How do you see the economic landscape affecting Massachusetts’ fiscal health?
Massachusetts’ fiscal health remains strong. Over the past year or so, we’ve been examining how both the pandemic and longer-term demographic and economic trends are affecting the region. Our priority is to ensure that our talented workforce, which our economy relies on, continues to be a comparative strength, especially in Greater Boston. That’s been a cornerstone of our success for a long time. Of course, the last few years have shifted some dynamics, particularly in terms of location decisions and where people are choosing to invest. Any policies that lower costs for investment in Massachusetts, especially in Greater Boston, are beneficial.
What is the mission of the Massachusetts Taxpayers Foundation, and how does it shape public policy in the region?
We’re a nonprofit, nonpartisan research organization, essentially a think tank focused on state, economic, and public finance policy here in Massachusetts. We’ve been around for over 90 years, and our work aims to shape public policy decisions that support the long-term sustainable economic health of the Commonwealth. We cover a lot of ground, including the state budget, tax policy, and broader issues like transportation, healthcare, education, and demographics. Our goal is to inform both the public and policymakers while helping guide the public policy conversation.
How concerned are you about outmigration, and what policies should the state prioritize to retain key talent and residents?
We’re definitely concerned. We’re in a time when people, especially those with resources, can easily relocate, so we need to be mindful of policies that could put us at a disadvantage compared to other regions. Our research emphasizes the importance of public policies that encourage people to stay and invest in Massachusetts. Housing and transportation are central to this, but we also need to address how various policies impact both wealthy residents and younger, working-age individuals who are critical to our economy.
As a foundation, we’ve focused heavily on housing and transportation. We’ve published research on stabilizing funding for the MBTA to ensure progress in workforce reliability. Continued investment in this is essential. On housing, we’re exploring ways to increase both affordable and market-rate options. We also have a long-standing commitment to early education, helping the state stabilize funding in that area. Additionally, we’ve been addressing state spending. Pandemic-era spending caused significant growth, and with uncertain revenue ahead, maintaining sustainable budget levels is crucial.
What partnerships does the Massachusetts Taxpayers Foundation have in place to advance advocacy and workforce development efforts?
We collaborate with a variety of stakeholders, both inside and outside of government. Formal partnerships depend on the issue, but we always aim to engage with a broad range of people to ensure they understand our perspective and to work together toward positive outcomes. We host many events — tomorrow, we have one on the Competitive Index, and another for MTF members on Thursday to discuss the state’s fiscal outlook. We’re always working with different partners around the Commonwealth on these issues.
How are education reforms like MassEducate impacting workforce development and business sentiment in Massachusetts?
We’ve been focusing on the state’s workforce development system, ensuring there’s a connection between K-12, higher education, and key workforce sectors — especially for communities that have historically been disconnected from emerging opportunities. Given the demographic challenges Massachusetts and other Northeastern states face, it’s crucial to connect our workforce to these growing sectors. That’s a key priority for us.
With biotech and clean energy growing, what role do tax incentives and public-private partnerships play in sustaining that growth?
Massachusetts has shown the value of public and private sectors working together to advance industries that play to the state’s strengths. It’s important, though, that public funds don’t crowd out private investment, and the government shouldn’t be in the business of picking individual winners and losers. However, fostering an ecosystem of investment and support for sectors where we already lead — or have the potential to lead — should be part of the strategy. The state’s economic development plan, released about a year ago, reflects that approach.
How is the Massachusetts Taxpayers Foundation preparing for economic challenges to ensure its sustainability?
Like any small nonprofit, we focus on providing value to those who support us. That means offering unique insights, contributing to policy discussions in a meaningful way, and working constructively with a wide range of partners. We’ve had success over the last few years by sticking to that model, and we’ll continue to build on it as we navigate future challenges.
How can businesses in the region collaborate with the Massachusetts Taxpayers Foundation’s efforts?
Whether they’re from the private sector — large or small businesses in either mature or emerging industries — higher education, or the nonprofit world, our best work happens when all these entities collaborate with each other and the public sector. When our region has seen major successes, those partnerships were the key ingredients. I expect that same collaboration will be essential going forward.
What fiscal measures should the state prioritize to ensure economic stability?
It’s hard to look at the world today and not see risks for any region. External events or shifts in where people choose to live can challenge even strong economies. But our core strengths — like our talented workforce and the key economic sectors here — are still solid. We need to keep building on what we do well, but we also must recognize that some factors people may have tolerated in the past might push them to other regions now. So, we need to be aware of that and adjust accordingly.
