February 2025 Newsletter

The Opening Round for the FY 2026 Budget

The first FY 2026 budget plan of the new legislative session was released on January 22nd, with Governor Healey proposing significant new investments in health care, education, and transportation. MTF also analyzed the first proposal, put forward by Governor Healey, to use surplus surtax resources available for spending on education and transportation capital and one-time uses. 

In related news, the Governor announced a transportation finance plan that would stabilize MBTA finances for at least three years and provide $8 billion in additional capital investment over the next decade. The plan was based on the recommendations of the Transportation Finance Task Force formed in January 2024, which adopted MTF’s recommendations to use surtax resources to close the MBTA budget gap over the next several years and increase capital spending.

Make sure to check out our recent publications and register for our upcoming events to stay up to date on the budget development process and more!

Upcoming Events

February Member Briefing: Health Care Update

Please join MTF for the February Member Briefing on health care, which will include a presentation by MTF President Doug Howgate on health care spending in the Governor’s FY 2026 budget proposal, a look at potential federal impacts on the health care system, and an assessment of the public cost of the Steward Health Care crisis.



February 27th - 10:00 am - 11:00 am

Members can register here to attend virtually. Non-members, please contact Debbie Carroll for more information!

Tax Thought Leadership Meeting

Join MTF for our first Tax Thought Leadership event of the year, hosted by KPMG. The gathering will begin with an overview of the current state of tax collections and tax policy in Massachusetts. MTF President Doug Howgate will review recent tax trends, tax proposals in Governor Healey’s fiscal year 2026 budget, the state’s Unemployment Insurance shortfall, and other issues. The presentation will be followed by a discussion among attendees.  

KPMG - Two Financial Center

60 South Street

Boston, MA 02111

March 6th - 10:30 am - 12:00 pm

Members can register here to attend in person or virtually. Non-members, please contact Debbie Carroll for more information!

March Policy Conversation: EEA Secretary Rebecca Tepper

Please join MTF for the March Policy Conversation with Secretary of Energy and Environmental Affairs Rebecca Tepper. Secretary Tepper will join MTF members to discuss the administration’s priorities related to energy, climate resiliency, and supporting the Climatetech sector.

March 12th - 10:00 am - 11:00 am

Members can register here to attend in person or virtually. Non-members, please contact Debbie Carroll for more information!

State Budget and Taxes

MTF Provides Comprehensive Analysis of Gov. Healey's FY 2026 Budget Proposal

On January 22nd, Governor Healey released her FY 2026 budget plan, which proposes to increase spending by $4.3 billion (7.4 percent) over the FY 2026 GAA. MTF’s analysis summarizes new spending, reviews $1.9 billion in new revenue initiatives, and highlights notable policy proposals found in the spending plan.

>>Read MTF's Analysis of the Governor's FY 2026 Budget

Media Coverage

>>MassLive

>>Boston Herald

>>Politico

>>CommonWealth Beacon

New Legislative Session

MTF Releases 2025-2026 Legislative Session Previews

As a new legislative session began, MTF provided policymakers and the public with nine session previews ranging from primers on the state budget process to public policy areas, such as health care, education, and transportation. Each of the session previews includes a background on the policy area, key actions from the last legislative session, and key questions that will inform action in the months to come.

>>Read MTF's New Legislative Session Previews

Media Coverage

>>State House News Service

>>MASSterList

Health Care

MTF Outlines the Public Costs of the Steward Health Care Crisis

On January 17th, MTF released a bulletin highlighting what is known and unknown about the state's financial plan to transfer the operation of five Steward Health Care hospitals to new providers. Since Steward Health Care filed for bankruptcy protection last year, the fallout from the crisis has touched myriad policy areas, including health care access, quality, financing, oversight, and the closure of two hospitals.

>>Read MTF's Bulletin on the Public Costs of the Steward Crisis

MTF Summarizes the PACT Act and An Act Enhancing the Market Review Process

On January 17th, MTF released a summary of the PACT Act and An Act Enhancing the Market Review Process as signed by the Governor. Our analysis includes a section-by-section bill summary and a cover memo highlighting the legislative history and the major topics and policy implications included in both bills.

>>Read MTF's Health Care Bill Summaries

MTF Policy Start Fellowship Update

This month was a busy one for Policy Start Fellow Alex Sheehan, where she assisted in reviewing Governor Healey's FY 2026 budget proposal, specifically looking at housing investments, and continued building her network. Within the last several weeks, Alex has participated in two shadow days with the Metropolitan Area Planning Council and the Citizen's Housing and Planning Association, where she got the chance to see first-hand their policy work in action. Thank you to our partners at these organizations for hosting Alex!

We are also excited to announce that our former Fellow, Leedya Senbetta, began her new job at the House Committee on Ways and Means as a Fiscal Analyst!

As part of the Fellowship program, MTF offers several professional development and networking opportunities. If you are interested in connecting with Alexandria, please reach out to MTF Policy Researcher and Operations Coordinator Pablo Suarez.

MTF On the Road

Over the past several weeks, MTF has brought our in-depth analysis of the state's finances and public policy discussions to a range of organizations. Some of our recent presentations have included an overview of the general budget process and a look at the Governor's FY 2026 budget proposal to the Fidelity Foundation, the MA Bankers Association, the MA Food Association, and the MA Association of School Superintendents.

We also participated in the MA CPAs Tax Virtual Conference to discuss the state's fiscal situation and demographic trends, moderated a panel discussion at Suffolk University's New State House Staff Orientation, and provided an overview of the legislative and state budget process to an advocacy training group with the YMCA.

Other presentations featuring MTF's public policy analysis included presentations on Strategies for Children's 9:30 Call and to the Massachusetts Business Coalition for Early Childhood Education on early education and care spending and investments in the Governor's FY 2026 budget proposal.

Are you interested in having MTF present to your organization? Reach out to MTF Director of Membership and Business Development Debbie Carroll for more information!

Recent MTF Events

MTF kept its members and other stakeholders up-to-date with a series of events over the past month.

-January Policy Conversation with Senator Cindy Friedman (1/16)

-January Member Briefing: Governor Healey's FY 2026 Budget (1/23)

-Annual Virtual Open House (1/24)

-February Policy Conversation with ANF Secretary Matt Gorzkowicz (2/13)