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Gov. Maura Healey moved Wednesday to pause most hiring in state government's executive branch in the face of what her office described as "widespread economic uncertainty at the national level and a tightening budget outlook" for the fiscal year that starts July 1.
Healey announced a "hiring freeze" will take effect May 27, blocking executive branch agencies and departments from bringing on most new employees. The administration will not offer a formal waiver process, and exemptions will be available for some positions such as public safety officers and direct care providers.
The governor's office warned of "further anticipated federal funding cuts and spending pressures created by ongoing inflation and demand for services."
The hiring freeze announcement came nine days after the Department of Revenue reported that April tax collections beat projections by more than $1 billion, driven largely by surtax and capital gains tax revenues that are restricted in their usage. Administration and Finance Secretary Matthew Gorzkowicz said Tuesday that non-surtax collections are coming in "flat or slightly below benchmark" through 10 months of fiscal 2025.
Budget-writers in Massachusetts are sweating the prospect of declining federal funding, especially to Medicaid, as Republicans in Congress advance a package of tax reform and spending cuts.
Healey and top Democrats in the Legislature so far have opted not to revise their revenue collection forecast for fiscal year 2026, which they crafted in January. Their fiscal year 2026 budget proposals under consideration would raise state spending between 6.3% and 7.4% over the version Healey signed last summer.
"The people of Massachusetts expect us to protect and maximize their tax dollars, and that's exactly what we're doing," Healey said in a statement. "Tariffs and funding cuts from Washington are causing so much economic damage and instability. We are taking this step to prepare for more uncertain economic times, protect taxpayer dollars, and move our state forward while ensuring funding will be available for the vital services people need."
It's the second straight year that Healey has imposed new limits on executive branch hiring. In April 2024, the administration implemented what officials at the time called "hiring controls" -- not a "freeze" -- that required Executive Office for Administration and Finance approval of new employees.
Those measures expired Nov. 1. Officials said the policies saved about $21 million.
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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