2 min read November 2022 — With the midterm elections in the rearview mirror, Massachusetts is in a transition period as Democratic Gov.-elect Maura Healey and Republican outgoing Gov. Charlie Baker are working together to usher in a new era in state government.
Healey, currently serving as state attorney general, ran on a platform that called for investments in key areas such as education, workforce training, affordable housing and public transportation. She also broke barriers as the first woman and openly gay person to be elected Massachusetts governor. “Equity is at the center of my work and focus,” Healey said, as cited by Wbur. “There is tremendous capacity to build out new and different ways of doing things across all realms in government that are going to make a meaningful difference in people’s lives that allow everyone to thrive.”
As she prepares to enter office next year, there are revitalization plans in place in key sectors of the Massachusetts transportation system, which continue to experience issues, such as derailments, fires and shutdowns. Healey plans to overhaul the Massachusetts Bay Transportation Authority (MBTA) management, install safety officers and expand electrification and low-cost programs.
In response to the nationwide skilled workforce shortage, Healey will also have to find ways to engage with leaders across industries to incentivize a more skilled workforce. Dan Waldman, president & CEO of Waldman & Associates, sees potential in Greater Boston’s outlying areas to solve this problem. “In Boston, I think we have such a strong system. We have a great education hub — all the universities produce these entrepreneurs, especially Harvard and MIT with their funding opportunities,” Waldman told Invest:. Healey’s MassReconnect plan also intends to center community colleges as the solution to workforce issues by funding certificates and degrees for residents over 25 years old. The Healey campaign has provided scarce details on the cost of the program or potential funding sources.
The governor-elect’s programs will likely draw funding from the newly approved “Millionaire” tax, also known as the “Fair Share Amendment,” which is likely to be set aside for transportation and education, according to Axios. Fifty-two percent of Massachusetts voters cast ballots in favor of levying the additional 4% tax on the income of individuals earning over $1 million a year.
The move has met divided opinions about its potential effect on the economy of the state. Waldman told Invest: that he was watching the measure closely for its possible effect of incentivizing real estate buyers and sellers to move to more tax-friendly environments. “Boston is such a great place to live,” Waldman said, adding that he’d “hate to see people who can buy and sell real estate take their business to Florida.”
For his part, Taylor Johnson, CEO and founder of Northstar Group at Keller Williams Realty Evolution, said that the tax “will change the way that developers take on projects by changing underwriting costs when they look at new projects.” Johnson added: “I can see that potentially causing a decrease in prices because of sellers having to lower property costs.” This would be intended to attract more squeamish developers and also result in reduced prices in other sectors of the Boston real estate market.
For many, the tax increase is being seen as an opportunity to make the Massachusetts tax system more fair, according to GBH News. Tufts University’s Center for State Policy Analysis said the tax change would apply to less than 1% of households and generate $1.3 billion in revenue in 2023.
It remains to be seen whether these tax changes will have any significant impact on the region but if the funds are used effectively, the state could see major improvements in infrastructure and other areas going forward.
For more information:
