Massachusetts State Treasurer Steve Grossman recently spoke with The Somerville Times about financial issues facing the state, as well as his upcoming bid for the Governor’s seat. — Photo by Claudia Ferro

By Jeremy F. van der Heiden

This is the first installment of a three-part series of our interview with Massachusetts State Treasurer Steve Grossman, who is currently campaigning in the gubernatorial race.

Treasurer Steve Grossman recently dropped into The Somerville Times newsroom for an interview, discussing his vision of the economy, women’s equality, small business empowerment and much more. Treasurer Grossman has a long history in politics and business.

A Newton native, he graduated from Princeton University and Harvard Business School and is the acting Chief Executive Officer of his company the Grossman Marketing Group. Grossman has held political positions ranging from Chairman of the Massachusetts Democratic Party and Democratic National Committee, to his most recent tenure as Treasurer, which began in 2010.

In this first part of the series, we will discuss Treasurer Grossman’s beliefs as they relate to the economic situation in Massachusetts, as well as what he feels still needs to be done to further stimulate economic growth in the commonwealth.

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The Somerville Times: What do you feel needs to be done to improve the jobs situation in Massachusetts?

Treasurer Steve Grossman: Well first of all, I think we need to recognize that, unless we are focused on job creation throughout Massachusetts … then we are not going to get the job done. We cannot have the vast majority of the jobs created in a fairly small region of the state and leave out the neighborhoods of Boston, leave out the 26 gateway communities – most of which are older industrial cities.

Many of [the gateway communities] have strategies, and I think I have the finger on the pulse of those strategies, so the question is how does the governor … his administration and state government intersect with job creation in a way that is going to propel communities forward and create the kinds of job opportunities that we know are available.

I really start with my experience. First of all, small businesses are the job creators … Rather than just lay out what I think is going on out there, I’ve held a series of roundtable discussions with small business owners from all over the state, when I ran for Treasurer, when I became Treasurer and in the last three and a half years.

I ask one question: What are the roadblocks and barriers you face, and how can we in government remove or lower those roadblocks? Then I have the good sense to stop talking and listen. My father said “one mouth and two ears, that’s what you have, use them in that proportion.”

When you ask small business owners, who really are the real heroes, what it is they need in order to realize their full potential, grow their businesses and create the jobs which in turn employ people, they’re not shy. First issue, access to capital. Over the past 100 years we had banks that were there for us every step of the way.

So when I heard access to capital and I became Treasurer, and I asked the question ‘where’s our money? Where are the state’s reserve deposits?’ And I found out that 60 percent of that money was sitting in banks in Europe, Australia and Asia, I said something is wrong with this picture. Massachusetts money should be in Massachusetts banks to be loaned to credit-worthy Massachusetts businesses to create jobs.

Over the past three and half years, we’ve taken money back; we’ve put $365 million into 54 banks – more than a third of them are community banks. They have to give us a competitive interest rate, so no tax-payer subsidy. They must loan the money to small businesses – with a particular focus on no quotas – on businesses owned by women, people of color, immigrants and veterans, and it’s worked.

And, while we don’t take credit for every loan, in the last three and a half years, those 54 banks have made over 9,000 loans with a value of over $1.4 billion. This has been a catalyst to small business lending.

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Treasurer Grossman went on to explain that the second issue facing small businesses involves permitting and regulation, commending Somerville’s government for its efforts to revolutionize these processes in such a way that boosts entrepreneurial growth. He noted that Mayor Joseph Curtatone has appeared to make City Hall a bit more agile and speedy, further improving the experience of business owners tied to the various rules.

In this same vein, Treasurer Grossman affirmed that the same type of overhaul needs to take place on the state level.

He also broached the topic of health insurance as it relates to small businesses.

“I disagree vehemently with the Obama administration on the issue of giving waivers,” he asserted. “We should have allowed our small business pilot plan … which would have reduced the cost of health insurance by 10 to 15 percent for small businesses; we should have allowed that to flourish. As Governor I am going to go back to the Administration and see if we cannot get a waiver.”

The gubernatorial candidate emphasized the importance of comprehension and integration among various efforts, ranging from economic development and vocational education to clean energy and housing, to make a real difference.

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TST: What other portions of your role as governor can help to level the playing field in a capitalist market like we live in?

TSG: First, as I mentioned, universal Pre-K. Twenty-five thousands kids woke up this morning and they have a place to go to learn how to read. If you’re not reading at grade level by the time you get to fourth grade and you get left behind, you may never catch up. Not to mention all those with special needs that also need that kind of support.

I want to freeze fees and tuitions at every one of our public colleges and universities over the next four years. Our students are drowning in debt. A lot of the parents and students are saying [they] cannot afford to go even to a community college; it’s still too much money.

Elizabeth Warren is absolutely right – it is unconscionable that the Federal Government makes a profit on the backs of students and parents with student loans. Those should be reduced.

Poverty is still the number one challenge we face. We have 800,000 people on food stamps as we’re talking this morning, all over the state. And we don’t even have earned sick time for everybody, which is why I support the earned sick time ballot question, and I think it will pass. I disagree with Charlie Baker, he doesn’t think earned sick time is the right thing; he wants to come up with another vehicle. Come on Charlie. Five days of earned sick time in the course of a whole year? I think that’s the right thing to do.

There are a whole series of things we can do to level this playing field. It has to do with our schools and – there’s a fundamental principle here: the zip code in which you were born should never determine the quality of education you receive.

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Treasurer Grossman went on to explain that he supports Governor Deval Patrick’s Foundation Reform Commission, noting that education reform is roughly 21 years old and the government needs to go back over these matters.

He once again commended Somerville for its ability to balance diversity and community, especially in terms of education.

“Somerville creates community schools that empower children,” Grossman said. “And, I think when you talk about poverty and low-income but good scores, I think it’s because we in Somerville – and I say we because I’ve been here a long time – this is more of a community that sees itself as a family. There’s something going on here that’s very special.”

In the next installment of this series, we will dive further into broad issues that are facing the commonwealth, as well as what Treasurer Grossman intends to do as Governor from economic, legislative and law enforcement perspectives.