Gov. signs $4B economic development law with policy changes, local funding

Gov. Maura Healey today signed a $4 billion economic development bill that includes funding for a range of grants and programs that benefit cities and towns, as well as reforms to the civil service system and support for public health services.

The multi-year package was sent to the governor last week after the House and Senate approved a compromise bill released by a conference committee after months of work by negotiators.

“Cities and towns greatly appreciate the opportunities unlocked by the Mass Leads Act, and are grateful to the Healey-Driscoll administration and the Legislature for their dedicated work on this important legislation,” said MMA Executive Director Adam Chapdelaine. “The package includes critical reforms to our civil service laws, bolsters support to local and regional public health, and provides significant funding for impactful local infrastructure programs such as MassWorks, the Rural Development Fund, library construction, and much more. Local leaders have a range of tools to further the economic vitality of communities across the Commonwealth — and are eager to get to work.”

The package includes:
• $400 million for MassWorks grants for local infrastructure
• $100 million for the Rural Development Fund
• $150 million for the Public Library Construction Program to help municipalities with building updates and rehabilitation
• $100 million for grants, through the Seaport Economic Council, to provide support for the state’s 78 coastal municipalities to withstand and adapt to the impacts of climate change
• $200 million for the Clean Energy Investment Fund to promote job creation, and economic and workforce development in the area of climate technology

The law does include language, which had been opposed by the MMA, that will require municipalities to be in compliance with the MBTA Communities Act (Sec. 3A of Ch. 40A) for much of the local funding authorized in the law. This is intended to align with existing funding already identified as at-risk for noncompliant MBTA Communities, but the MMA is concerned that these provisions could also complicate eligibility for municipalities that aren’t within the MBTA service area.

Policy provisions
The economic development package includes a number of policy changes, including reforms to the civil service system that would give communities more options for filling essential municipal jobs. The MMA had strongly supported the compromise civil service reform, which includes a new “hybrid” pathway that civil service departments can use to more easily identify and hire candidates for municipal police and fire positions outside of the traditional exam process. The Legislature’s bill would also expand flexibility for residency requirements, and support and expand cadet programs. The law includes a provision that allows active special legislation to exempt positions/departments that was filed before July 31, 2024, to not require further action by the Legislature, but rather some subsequent filings with the state’s Human Resources Department, the Civil Service Commission, and the Legislature.

The law includes a number of other policy items supported by the MMA, including an amended State Action for Public Health Excellence (SAPHE) 2.0 program that will create a statewide action plan for bolstering local and regional public health services across Massachusetts while providing important fiscal safeguards for municipalities.

Another policy provision will require local consultation on priority development sites.

The law will remove current limits on political candidates using campaign funds for child care expenses incurred during campaign activities, something that has been allowed by federal election laws for years.