Maura Healey ready to cut local project spending if Massachusetts hits financial downturn

Gov Maura Healey noted her budget office is ready to slash millions in legislative earmarks for local projects and will seek the extraordinary power to cut spending across all state administration in an effort to prep for promising federal funding cuts that could spell catastrophe for Massachusetts The first-term Democrat also broadcasted plans Friday to extend an executive branch hiring freeze through fiscal year pause salary increases for specific employees under her purview and eliminate soundness insurance coverage of a weight-loss drug for masses workers Healey is setting herself up to weather a promising financial tragedy that her aides argue could be brought on by the massive tax break and spending cuts bill President Donald Trump is scheduled to sign Friday and his repeated decisions to reduce wide swaths of federal funding The governor who is up for reelection next year made the announcements the same day she signed and vetoed about million from a roughly billion state budget that maps out spending for the next months We are also signing this budget in a moment of great dysfunction in Washington The president is poised to sign a bill that s going to kick hundreds of thousands of Massachusetts residents off their healthcare care increase force and groceries prices and cost people their jobs she mentioned in a declaration Healey detailed her plans hours before Trump was expected to stamp his approval on a nearly -page-long bill that is chock-full of tax breaks spending cuts and money for Republican priorities like national defense and the deportation of immigrants Administration and Finance Secretary Matthew Gorzkowicz noted the Healey administration was not directly resorting to cutting local earmarks to balance the state budget but instead planned to wait to shuttle cash to municipalities until later this fall or about several months longer than usual He revealed the delay would give state budget writers time to assess federal funding impacts But he made clear that Healey would entertain cutting local earmarks if economists predict a financial downturn in state revenues or Massachusetts finds itself facing any other financial difficulties He did not provide an explicit timeline for when a decision would be made on whether to release cash for local earmarks but explained he has a statutory responsibility to certify that there is sufficient money on hand to pay the state s bill by Oct Any cuts to local earmarks would be sure to draw pushback from state lawmakers who shepherd the requests through the annual budget process and often take credit for the financial victories when cities and towns in their legislative districts eventually put the money to use As Healey put her name to the fiscal year budget she also filed a million supplemental spending bill that would give her office expanded urgency budget-cutting powers often referred to as C cuts Massachusetts law allows a governor to cut spending during emergencies only within the executive branch if they determine there is not enough money to pay the state s bills Healey slashed million in after the state missed revenue projections for six straight months But Gorzkowicz disclosed the proposal Healey filed Friday attempts to go further The bill would allow the Healey administration to slash spending across the entire state budget only in fiscal year if revenues come in million below initial projections or federal guidelines changes leave a million hole in the budget That means if the measure is approved as written Healey and Gorzkowicz could reduce spending across a vast array of programs and agencies as well as other constitutional offices like the Attorney General s Office the Legislature or the State Auditor s Office In another move to contain costs Gorzkowicz reported the Healey administration plans to forgo a salary increase for roughly non-union managers in the executive branch that was scheduled to take effect in January He stated the move will save about million Budget writers will also extend an executive branch hiring freeze that Healey put in place in May to cover the next months Gorzkowicz disclosed the longer pause on hiring new employees is an essential piece to making sure the Healey administration can live within lower budget appropriations and manage a responsible bottom line Healey also decided to veto million from the nearly billion fiscal year budget she signed including million to eliminate coverage for GLP- weight-loss drugs under fitness insurance plans for masses employees Gorzkowicz reported the decision is consistent with what commercial insurance providers have decided to do in the last year and comes after there was a sizable budget deficiency at the Group Insurance Commission the agency that manages general employees wellbeing insurance The administration commented in a report Gov Healey is directing GIC to approve a mid-year strength insurance plan change for state employees to eliminate coverage in all cases except when medically necessary such as for patients with diabetes