The Commonwealth's Economically Targeted Investment (ETI) program is subject to legal and regulatory restraints that require the Treasurer to strictly adhere to fiduciary obligations to make pension fund investment decisions based on best possible returns. Steve would not risk the public's money on speculative investments any more than he would do that with his own business or personal finances.
However, Steve Grossman believes that Massachusetts can do more, within the bounds of fiscal prudence, to invest in its own future. Accordingly, Steve will be looking at long-term prospects rather than short-term gain as a key investment criterion. By doing so, promising Massachusetts companies would be able to make a pitch now for investment based on their projected future growth.
Massachusetts's economy has suffered through repeated boom and bust cycles over the last half century. Today, however, we are seeing a disturbing trend in which, even during periods of growth, emerging businesses are selling to out-of-state investors or corporations at an early stage so that the degree of Massachusetts economic gain resulting from Massachusetts innovation is undercut. As Treasurer, Steve Grossman will focus the state's Economically Targeted Investment ("ETI") program on ways to provide alternative financing opportunities to Bay State entrepreneurs so that they will not have to prematurely sell off huge investment stakes in their companies, thus allowing them to fully launch their businesses and keep much-need jobs in Massachusetts.
Significant progress, however, will require public-private partnerships. Steve will use his relationships with the financial community and his knowledge of the needs of business people to forge investment programs that can grow jobs in Massachusetts. We still have great educational institutions that turn out brilliant entrepreneurs whose innovations are economic game-changers. The challenge is to ensure that they do business, create jobs, and stimulate support industries right here in Massachusetts.