Thursday, April 4, 2024

The fallout from Healey’s ‘hiring controls’

Presented by NextEra Energy: Lisa Kashinsky and Kelly Garrity's must-read rundown of what's up on Beacon Hill and beyond.
Apr 04, 2024 View in browser
 
Massachusetts Playbook logo

By Lisa Kashinsky, Kelly Garrity and Mia McCarthy

Presented by 

NextEra Energy

DON’T CALL IT A HIRING FREEZE — Maura Healey kept insisting the state of the state’s finances was fine.

The governor countered months of slumping tax revenues by touting Massachusetts’ “excellent” bond rating and strong reserves. She traversed the state to sell her administration’s “transformative investments” in child care, education and transportation.

But back on Beacon Hill, each fiscal move she made betrayed her concerns.

Healey cut $375 million from the budget in January and tapped $625 million in non-tax revenues to plug the rest of what was projected to be a billion-dollar shortfall. She built her next budget on flat tax-revenue projections and paired $2 billion more in spending with nearly $1 billion in cuts while also proposing new revenue sources.

And on Wednesday, she paused executive-branch hiring through the end of June — with a warning that the restrictions could extend beyond that.

Healey insists she’s “not imposing a hiring freeze.” Her administration claims that’s because not every job is going unfilled — some 200 positions, including in public safety and direct care, are exempt. Hiring for seasonal jobs and returns from leave are continuing. And agencies can apply for waivers.

But the memo her human resources chief sent to Cabinet secretaries and agency heads on Monday telling them to “immediately pause their hiring processes, including scheduling any new interviews or extending offers” — and to apply for waivers for current job postings by 5 p.m. on April 16 — is strict.

“What we’re asking our agencies to do is follow hiring controls to make sure that we’re making the best decisions in terms of spending money for the rest of the fiscal year because I have an obligation to manage within budget,” Healey told reporters at an unrelated event on Wednesday.

Maura Healey testifying before lawmakers

Gov. Maura Healey is pitching her budget for the next fiscal year while trying to rein in spending in the current one. | Joshua Qualls/Governor's press office courtesy photo

Democratic legislative leaders took Healey’s latest move in stride. “[We’re] not surprised. We’ve been watching our spending probably for a year,” House Speaker Ron Mariano told Playbook. Senate Ways and Means Chair Michael Rodrigues said in a statement that a hiring freeze is “not at all unusual, given the overall current revenue picture. We see it as a responsible and prudent move.”

But Healey’s critics are still pouncing on the state's precarious fiscal position — and what they view as the governor’s seeming reticence to publicly address the full extent of the state’s money woes.

“If the governor believes that the commonwealth is facing an economic downturn that would necessitate such a freeze, she should communicate to the public what she believes is the cause of the revenue shortfall and outline how the commonwealth will protect critical investments,” Progressive Massachusetts’ Jonathan Cohn told Playbook.

Progressives seized on the halted hiring to raise concerns that Healey’s billion-dollar tax-relief package was costing the state at a crucial moment by easing up taxes on the wealthy and corporations (while also aiding renters, seniors and families). And they argue the lost revenue could potentially affect the governor’s ability to act on her other priorities.

The hiring pause is “very concerning because, to Governor Healey’s credit, she’s laid out a bold agenda on housing, on climate action, on economic development,” state Sen. Jamie Eldridge told Playbook. “The reality is: If you don’t have the employees, especially people that are really experts in these areas, you’re not going to be able to implement that vision.”

But Lt. Gov. Kim Driscoll told The Boston Globe the administration has no regrets in moving forward with the tax-code changes.

Meanwhile, the MassGOP is blaming the situation on Healey’s pricey expansion of the upper echelons of state government and calling on her Cabinet secretaries to return the raises they received earlier this year.

The one bright spot in this fiscal doom and gloom: Tax collections came in above benchmark for the first time in eight months. Revenues were $182 million more this March than the same month last year, and $129 million above benchmark. But collections were still running $145 million behind year-to-date projections heading into the all-important month of April.

GOOD THURSDAY MORNING, MASSACHUSETTS. Is your job being affected by Healey’s new hiring rules? Email us: lkashinsky@politico.com and kgarrity@politico.com.

TODAY — Healey meets with Ambassador Alexander Yui of Taiwan at 10 a.m. at the State House. Boston Mayor Michelle Wu speaks at BPS’ Red Sox Hat Day at 9:30 a.m. in East Boston and attends a ribbon-cutting ceremony at BHA’s Lenox Apartments at 11 a.m. Rep. Ayanna Pressley holds a campaign rally at 5:30 p.m. at the IBEW Local 103 in Dorchester.

 

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DATELINE BEACON HILL

“Governor’s Council approves Healey’s blanket pardon for marijuana possession convictions,” by Matt Stout, The Boston Globe: “A state panel on Wednesday approved Governor Maura Healey’s blanket pardon of marijuana possession convictions, an action state officials believe could provide forgiveness for tens of thousands of people — and possibly more — convicted of misdemeanor offenses that, under current law, would no longer be a crime. The sweeping move applies to all adult state-level possession convictions handed down before mid-March of this year, forgiving criminal records that officials and advocates say have blocked some residents from getting housing, finding a job, or seeking an education. The Governor’s Council approved the proposal, 7-0, on Wednesday following a roughly 90-minute hearing in which no one spoke against the measure.”

“Massachusetts made history today,” Healey said in a statement. “I want to thank President Biden for his leadership on this issue, and I’m proud that Massachusetts was able to answer his call to action in this momentous way."

“Massachusetts searches for new Department of Correction Commissioner,” by Deborah Becker, WBUR: “The state Executive Office of Public Safety and Security said the governor's office is 'finalizing plans to establish a comprehensive search process' to identify and review prospective candidates for the next commissioner.”

“Less surveillance, more support: New leaders bring new approach to Mass. parole and probation,” by Paul Singer, GBH News: “Pamerson Ifill, the state’s new probation commissioner, is the first Black man to fill his position. Angelo Gomez, the new head of parole officers, is also the first person of color to hold his job. Now the two state officials — who say they grew up on the other side of law enforcement — want to change the departments that have long been seen by many as part of state-funded punishment.”

FROM THE HUB

“Boston city councilor opposes Mayor Wu’s plan to raise commercial tax rates,” by Gayla Cawley, Boston Herald: “Boston City Councilor Ed Flynn came out in opposition to the mayor’s proposed plan to raise property taxes on businesses beyond the state limit, saying that such a move would negatively impact an already struggling downtown office market.”

“Boston pushing for 15-20 mph citywide speed limit after pedestrian deaths,” by Gayla Cawley, Boston Herald: “In the wake of two pedestrian fatalities, including the death of a 4-year-old girl, over the past week, the Boston City Council plans to explore a citywide reduction of the speed limit from 25 to 20 mph to enhance street safety.”

 

Access New York bill updates and Congressional activity in areas that matter to you, and use our exclusive insights to see what’s on the Albany agenda. Learn more.

 
 
YAHD SIGNS AND BUMPAH STICKAHS

CAIN’S CASH DASH — Quincy City Council President Ian Cain is looking to raise $120,000 to help him get on the ballot against Sen. Elizabeth Warren, according to a donation-solicitation email sent on Wednesday and obtained by Playbook.

“In Massachusetts it takes 10,000 signatures to get on the ballot which will cost us roughly about $120,000 in outreach & door knocking etc. Would you consider an initial contribution to help us get on the ballot?” reads the email from Rebecca Schieber, a managing director at GOP consulting firm Targeted Victory who lists herself as a “senior advisor” to Cain’s Republican campaign-in-waiting. The message also includes a link to Cain’s WinRed page and a red-white-and-blue logo that reads “Ian Cain for Us.”

Cain only has about a month left to collect signatures. But he declined to say whether any donations would pay for staff to help gather those names.

“We are committed to getting on the ballot in a much shorter timeframe than the other candidates," Cain said in an email to Playbook. "[B]ut of course this is a significant endeavor."

PEAKE’S PICK — Outgoing state Rep. Sarah Peake is backing Hadley Luddy to succeed her in representing the 4th Barnstable District. “Simply put, she has what it takes,” Peake said of Luddy, a Democrat who’s the CEO of the Homeless Prevention Council on the Cape. It’s unclear who Peake wants to see take over her post as second assistant majority leader.

 

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FROM THE DELEGATION

EMPTY SEAT — Sen. Ed Markey hosted his field hearing on the problems with for-profit health care on Wednesday with one notable absence: Steward Health Care CEO Ralph de la Torre. But Markey and Sen. Elizabeth Warren, who also participated in the hearing, saved a seat for the embattled chief executive even after he declined an invitation to attend.

“Shame on Dr. de la Torre,” Warren said during the hearing at the State House. “He owes the residents of Massachusetts an explanation for his part in looting Steward hospitals. His refusal to appear at today's hearing is cowardly.”

Throughout the two-hour hearing on the impact of private equity in health care, the senators heard testimony from doctors and nurses under Steward-owned hospitals, plus a private equity researcher.

But they also took the opportunity to skewer de la Torre — who owns two yachts while the system he oversees is on the brink of bankruptcy — for “prioritizing corporate greed” over patient health care.

“Dr. de la Torre promised to deliver really good health care, but he failed. He failed the health providers, he failed communities, he failed to show up here today to answer even the most basic questions about what he has done,” Markey said. “Dr. de la Torre’s chair is as empty as the promises he made to the public.”

The senators also used the opportunity to unveil new proposals to strengthen oversight of private money in health care, including legislation that would put restrictions on investors buying health care companies and ban real estate purchases that would destabilize health care operations.

 

SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, the newsletter taking you inside pivotal discussions at the most influential gatherings in the world, including WEF in Davos, Milken Global in Beverly Hills, to UNGA in NYC and many more. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.

 
 
FROM THE 413

“Springfield mayor, MGM executives meet to talk about possible casino sale,” by Jeanette DeForge, Springfield Republican: “Mayor Domenic J. Sarno said he met on Wednesday with Bill Hornbuckle, president and chief executive officer of MGM International, and Louis Theros, chief operating officer of the city’s casino, about the discussion about a possible sale of MGM Springfield. Sarno did not reveal any details of the conversation. ‘This is an ongoing process and there will be further communication and dialogue with regards to any possible sale,’ he said in a statement.”

WHAT ELSE YOU SHOULD BE READING

“Surreptitious simulation,” by Dan Atkinson, BINJ: “Earlier this year, the Massachusetts State Police announced that it was looking to pay up to $1 million to covertly intercept cell phone information and track locations through a controversial device that civil liberties advocates say can suppress free speech and lead to questionable prosecutions. Months later, the department purchased one such cell-site simulator. … [S]tate Sen. Jamie Eldridge, chair of the Joint Committee on the Judiciary, agreed with [concerns from] civil liberties advocates and said he planned to investigate and take action to create government oversight.”

“Facing delays, MBTA says Worcester’s Union Station’s new platform opens this spring,” by Adam Bass, MassLive.

“Plan to turn former Cape Cod nursing home into family shelter sparks concern amid migrant crisis,” by Lance Reynolds, Boston Herald.

 

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MEANWHILE IN NEW HAMPSHIRE

“New Hampshire state Sen. Becky Whitley forms exploratory committee as she considers 2nd District run,” by Adam Sexton, WMUR.

HEARD ‘ROUND THE BUBBLAH

TRANSITIONS — Joe Bernardi has joined Foley & Lardner’s Boston office.

HAPPY BIRTHDAY — to former Sen. Mo Cowan, Michael Forbes Wilcox, former Springfield City Councilor Jesse Lederman and Sam Doran of SHNS.

Want to make an impact? POLITICO Massachusetts has a variety of solutions available for partners looking to reach and activate the most influential people in the Bay State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness among this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com.

 

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