Governor’s closeout supplemental budget includes workforce reporting updates

Gov. Maura Healey filed a $2.24 billion supplemental budget on Sept. 23 that would enable the Commonwealth to close the books on fiscal 2026.

The bill proposes a variety of investments and policy changes that the administration said are intended to benefit state programs, offer cost protections to residents, and address a variety of healthcare goals.

One provision is intended to ensure that the Frances Perkins Workplace Equity Act remains effective despite looming federal regulatory changes. A recently proposed federal rulemaking would eliminate the federal EEO-1 through EEO-6 workforce demographic reporting that is the foundation for the Massachusetts’ wage equity reporting.

The governor is proposing to transfer responsibility for collecting workforce demographic data to the Executive Office of Labor and Workforce Development and establish a backstop provision outlining a state reporting requirement should federal reports be eliminated.

Also of interest to municipalities are proposals for $1.3 million for local fire projects and grants, and $4.3 million for regional transit.

The bill would create a state-level Health Care Stabilization Fund intended to support emerging healthcare-related needs, including costs expected to result from federal policy changes.

The bill would also provide $41.5 million to the Department of Transitional Assistance to adapt to federal policy changes that are pressuring states to reduce error rates for SNAP benefits.

In an effort to address inflation attributed to conflict in the Persian Gulf, the governor is proposing a two-month suspension of the state’s gas tax, which would reduce gas tax revenue by an estimated $120 million. The governor’s bill would offset these losses with revenue from the Fair Share income tax surtax.

The governor is also proposing a cap on the resale of concert tickets, limiting the price to 110% of the face value of the original ticket.

Funding provisions include allocations for programming for new parents, MassHealth, sheriff’s accounts, and the Cannabis Control Commission.

Policy provisions include extensions for businesses to come into compliance with updated tax policy changes; updates to processes related to the formation and operation of corporations; policy addressing veterans’ access to medical marijuana licenses; and a removal of the requirement for electric utilities to procure electric supply on a six-month basis (a change intended to help lower electricity rates).

In her letter to the Legislature, Healey urged lawmakers also to consider her recently filed proposal to provide $100 million in one-time funding to school districts.

She also urged the Legislature to add the “common-sense, non-controversial reforms” from her Municipal Empowerment Act to its revisions of the closeout supplemental budget.

The bill has been referred to the House Committee on Ways and Means.