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BRPC: $815 Million Invested In Berkshire County Since 2012
By Andy McKeever, iBerkshires Staff
03:08AM / Friday, November 20, 2015
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PITTSFIELD, Mass. — There has been at least $235 million in public monies and $580 million in private investment in the county over the past three years in ongoing or completed projects.
 
But those figures haven't translated to employment or wage increases.
 
The Berkshire Regional Planning Commission approved Thursday the annual Comprehensive Economic Development Strategy performance report. The report outlines the status of an array of economic development projects — including improvements to the Pittsfield Municipal Airport, renovations at Williams College, and the Hoosac Wind Farm. 
 
"I expect that to be underestimated because that is just the stuff we know," said BRPC Planner Brian Domina. 
 
The CEDS was developed in 2011 and is updated each year. The largest aspect of it is a list of 50 priority projects ongoing in the region but the plan also details economic conditions and trends. The entire process is crafted so that some areas in the county will be eligible to receive U.S. Economic Development Agency grant funds. Each year a performance report is submitted to the federal agency.
 
"Since we've started the annual reports, we've keep a running list of annual investment," Domina said. "It doesn't seem like it all the time but there is a lot of investment going on in the region."
 
Some BRPC members were impressed that more than $800 million has been invested in economic development projects but questioned the results of the investment. Many of the projects were focused on improving quality of life, attracting tourism, or protecting the environment and hasn't directly led to jobs.
 
"It seems like a lot of money to be floating around here," said member Jim Lovejoy. "That sounds like a lot of money to me and yet I don't see it corresponding to increasing employment or wages." 
 
Chairwoman Sheila Irvin said it has been a benefit for the local construction industry, which had a much more difficult time finding work just a few years ago.
 
The concerns that the investment hasn't translated to jobs or wages isn't unfounded. Domina said the average weekly wages for Berkshire residents rose by 9 percent from 2009 to 2014. But, the rate of inflation was 10.3 percent — buying power has been decreasing. While the Berkshires saw a decrease in unemployment in 2014, the 6.5 percent rate is higher than the state and the national averages for the first time since 2000. Median household income dropped by .9 percent between 2009 and 2013 while in the same period it rose statewide by 3.7 percent and by 2.2 percent nationally. 
 
While those statistics paint a fairly poor picture of the Berkshire economy, just looking at the last two years shows some promising increases for the future. 
 
"Median household income has been declining since the start of the recession and it finally showed an increase in 2013," Domina said. 
 
Additionally, Domina said employment organizations are forecasting unemployment to drop to below federal and state averages. And in just the 2013 numbers, "We've seen the first increase in the labor force since 2009 and the same thing with the number of employed persons since 2006."
 
The full CEDS performance report is available here.
 
In other business, BRPC Executive Director Nathaniel Karns said two Berkshire County towns have signed community compact contracts with the state and another 19 have applied. The community compact program was started by Gov. Charlie Baker once he took office. 
 
The contracts ask the municipalities to adopt one to three goals to accomplish in the next two years. The administration outlines a list of best practices municipalities can choose to focus on in education, energy and environment, financial management, housing and economic development, information technology, regionalization, and transportation. More specifically, towns can focus on adopting complete streets policies or becoming a green community or buying new financial bookkeeping programs.
 
Karns said many of the practices are "just basic good business practices." The program helps towns focus on achievable short-term goals. 
 
"These contracts are good for two years. What we don't know is what happens if you don't achieve something in two years," he said.
 
Clarksburg has a contract with will focus on regionalization, specifically focusing on sharing inspection services with other towns and conserving energy. Adams signed a contract focused on preparing for economic development and trying to share services with the Adams-Cheshire Regional School District. See story here.
 
Nineteen other Berkshire communities submitted applications, which includes both cities. Interestingly, every town south of Pittsfield has applied but besides Adams, Clarksburg, and North Adams, no towns up north have applied. Karns said a common theme he's heard from the towns — the contracts aren't made available by the state until signed — is that they are focused on regionalization and shared services in the school systems. 
 
In return, the state has promised those with contracts technical assistance to achieve the goals, provides some state resources, and gives towns with contracts bonus points in some grants programs such as the MassWorks program.
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