Cell compositions for tissue engineering are provided which contain a population of autologous, minimally passaged dermal fibroblasts in combination with a tissue engineering matrix or scaffold, or material forming a matrix or scaffold. In one embodiment, the population of fibroblasts is genetically engineered to secrete a therapeutic protein in an amount effective to induce tissue growth or tissue repair when the cell composition is transplanted into a subject in need thereof. For example, the therapeutic protein can be a bone morphogenic protein when the tissue to be treated is bone tissue. A preferred bone morphogenic protein is BMP-2.