Gov. Maura Healey said her administration is prepping a wide-ranging economic development bill to file early next year as Massachusetts’s revenue picture continues to draw concern.
The exact details of a the proposal are still scarce outside of a 66-page statutorily required economic development plan Healey released last week and promoted to the public during a Tuesday afternoon event inside the State House.
Healey said she hopes to file the legislation “as soon as possible” and the administration has taken into account lower-than-expected tax revenues during the first months of fiscal year 2024. She declined to put a dollar figure on the legislation when asked how much it would cost.
“Obviously, we’ve given a lot of thought and consideration to different parts we’d like to see included,” Healey said.
Economic Development Secretary Yvonne Hao said the administration is “really excited to partner with our legislative folks and also with the (Executive Office of) Administration and Finance to come back in the new year to submit an economic development bill.”
Hao pointed to the economic development plan as a roadmap for what could be included in the legislation, specifically calling out putting more dollars towards a public infrastructure grant program and reauthorizing a life sciences initiative.
“We want to be ambitious in areas like climate tech, and also tourism. And so there’s a lot in the plan and the goal, hopefully, is to work closely with our legislative partners to put that into the bill,” she said.
A potential economic development bill from the Healey administration comes as tax revenues continue to tumble in the first months of fiscal year 2024. The Department of Revenue reported last week that November collections put the state’s revenue picture below projections used to craft the fiscal 2024 state budget.
Healey said revenues are top of mind in “anything we do.”
“But look, we’re about moving forward. We’re about moving forward with energy, with intentionality, and bringing home great results and opportunities for the state,” she said.
The last economic development bill under former Gov. Charlie Baker’s administration was signed into law in November 2022 and ran just over $3.7 billion. Beacon Hill legislators had originally used the proposal as a vehicle for tax cuts that would not come to pass until this year
Healey’s economic development plan covers a wide range of issues that affect the state’s economy, including transportation challenges, investing in infrastructure, consistent branding, attracting talent, housing, and climate technology.
The document is broken down into three categories — fundamentals, talent, and sectors — with specific initiatives for each area. In a letter accompanying the plan, Healey and Lt. Gov. Kim Driscoll said Massachusetts faces a “complex economic landscape” after the COVID-19 pandemic, global conflicts, and high inflation.
Senate President Karen Spilka said the plan is “honest about the headwinds that we face.”
“This plan presents a comprehensive and sweeping vision. And, I’ve been in the Legislature long enough to appreciate that the secret to success lies in the details,” Spilka said.
