Funding allocations and needs at play as Guv’s budget gets a hearing

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Lions and tigers and budgets, oh my!

Echoing off the walls of Gardner Auditorium at the very first budget hearing this week came the voices of the Healey administration, in defense of its $63.36 billion fiscal year 2027 budget and in a moment where "everything's about balance," Gov. Maura Healey told lawmakers.  

Initial budget conversations between lawmakers and the administration reflected tough decisions at play in a fiscally strenuous time. The administration expects health care costs to be the biggest challenge in managing the budget; Healey is "ready to engage" in conversations about school financing challenges; and top lawmakers think Massachusetts' economic resilience will weather persistent federal storm clouds. 

Secretary of State William Galvin offered a reality check on just how much money it will cost to put together the materials for what could be 12 ballot measures in November, and Treasurer Deb Goldberg said the Lottery is set to meet its fiscal 2026 projections, ahead of expectations of a flat net profit in fiscal 2027. That reflects shifts in the gaming marketplace, she said, including the uptick of online gaming options. 

Attorney General Andrea Campbell and Auditor Diana DiZoglio were among officials testifying on Wednesday — a day after another piece of the legislative audit saga unfolded. DiZoglio on Tuesday asked a single justice on the Supreme Judicial Court to grant her permission to hire her own legal representation through the appointment of a special assistant attorney general. 

It's her latest attempt to retain representation in court to sue the Legislature for its refusal to be audited in accordance with a 2024 law, which she claims Campbell is helping stymie. DiZoglio's filing also asks the court to directly compel legislative leaders to comply with document requests under the ballot law.

Join us for Keller @ Large LIVE in conversation with House Speaker Ron Mariano and Senate President Karen Spilka on Wednesday, February 25, at the MCLE. Register!

The Group Insurance Commission on Thursday delayed a vote on controversial state employee benefit changes, including the elimination of coverage for GLP-1 drugs for weight loss and an increase in copays for emergency room and urgent care visits. The delay "seriously puts at risk our ability to just be ready for annual enrollment that starts on April 1," per GIC Executive Director Matt Veno. And the GIC is still awaiting — and dependent upon — a near-term infusion of $300 million from the state (again, more health care costs). 

The MBTA also is in line for an infusion, though its timeline is more elongated. The agency's CFO said Thursday that the T, which seems to be perpetually facing structural deficits it cannot mend by itself, is reliant on the $1.1 billion in operating support proposed in Healey's fiscal 2027 plan. Of that, $645 million is slated to come from the surtax on high earners. The total would fund the T through fiscal 2027 and three-quarters of 2028.

Funding for the FIFA World Cup is also "being ironed out," according to House Ways and Means Chair Aaron Michlewitz. He gathered with Boston Mayor Michelle Wu and Gov. Maura Healey downtown this week to announce that fan celebrations for the World Cup will be concentrated at City Hall Plaza.  

Michlewitz said about half of the $10 million that the Legislature approved last year for the seven matches will support FanFest, but that "we still have some work to do" to determine if additional state aid will go to things like fan experiences or security measures. The legislative vehicle and monetary figure is dependent upon what the state needs to cover, he added.

The North End Democrat has, himself, entered Budget Land, though some other live wires in the House remain — energy affordability legislation chief among them. He said this week that the chamber wants to take up the topic before diving into its fiscal 2027 budget in late April, but wants "to try to get it right, as opposed to just getting it done quickly." Ratepayers trying to stay warm this winter are also hoping the state gets this right.

Immigration is also on the House's near-term docket, Michlewitz said, though the complexities of the issue make him less sure of whether that timeline is a reality. And the Senate has immigration on its mind, too. On Wednesday, Democrat Sen. William Brownsberger led a group of six senators in filing a bill (SD 3677) meant to protect residents if their constitutional rights are violated by federal law enforcement. 

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Artificial intelligence was a topic actively churning in the House this week, when reps voted on Wednesday to pass two bills that would put limits and disclosure rules on the use of artificial intelligence in electioneering. It came just a few days after Super Bowl screens last Sunday were packed with AI advertisements, and one day before Healey reportedly told a tech crowd on Thursday evening that her office is choosing to lean into the tools. 

The administration is rolling out a ChatGPT-powered AI assistant for executive branch workers, which Healey's office said makes Massachusetts the "first state to adopt the technology" for the entire branch, comprised of nearly 40,000 state workers. Healey delivered the news at a gathering at Whoop headquarters, according to the Globe. Once the news was announced more broadly, the National Association of Government Employees, which represents about 15,000 state employees in Massachusetts, said the governor's team was "rushing" the introduction of AI. The union had "demanded to bargain" over the rollout, NAGE said, with some state workers already expressing fears that AI could take away significant job duties.

@ ISSUE SIT DOWN: NBC 10. The show is on a one-month hiatus due to NBC’s coverage of the Olympics.

ON THE RECORD: 11 a.m., WCVB. The guest is Gov. Maura Healey.

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Division Chief, Office of the Massachusetts Attorney General

Special Assistant, Office of Congressman Seth Moulton

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Comptroller, Massachusetts Association of Approved Special Education Schools

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