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A new report from the Greater Boston Chamber of Commerce projects a $5.9 billion anthem to the state’s economy and $515 million in lost tax revenue.
A new report commissioned by the Greater Boston Chamber of Commerce warns that federal policy changes proposed by the Trump administration could strip Massachusetts of $5.9 billion in economic output and $515 million in tax revenue — the largest per capita loss of any state.
The analysis, conducted by Econsult Solutions Inc., highlights the outsized role that higher education and health care play in Massachusetts’ economy. The report says these sectors are particularly vulnerable to federal cost-cutting and funding caps.
According to the report, the state’s higher education and health systems generate $155.9 billion in economic output and support more than 858,000 jobs statewide, contributing roughly $4.1 billion in tax revenue yearly.
Roughly a quarter of those jobs — about 222,900 positions — are in industries beyond health care and education, such as real estate, retail, and hospitality, underscoring how deeply those sectors ripple through the state’s economy.
According to the study, graduates of Massachusetts’ higher education institutions also enjoy a significant “wage premium,” earning 15 percent to 50 percent more on average than non-graduates.
The study includes data from 88 colleges and universities and 93 health systems statewide.
However, the report warns that proposed federal cost caps and cuts to research grants could undermine that economic engine, eliminating an estimated $2.6 billion in statewide output and 8,700 jobs.
“Our higher education and health care systems have been facing the headwinds of increasing costs and changing demographics for the past decade or more,” James Rooney, president and CEO of the Greater Boston Chamber of Commerce, wrote in a letter in the report.
He continued, “But as we confront unpredictable changes to federal and state policy, and escalating rhetoric directed at hospitals and universities, we risk taking for granted how fortunate the Commonwealth is for hosting a diverse array of community colleges, public and private universities, and local, regional, and large hospitals.”
He said the report was a way to “dig deeper” and find the “true impact” the higher education and hospital systems have on the economy.
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