The High Tech Agenda

State Business Competitiveness, Government News, & Public Policy Updates

Massachusetts’ loss of residents to other states is accelerating, according to newly released U.S. Census Bureau data. The Commonwealth experienced a net outmigration of more than 30,000 people last year—an alarming trend with direct consequences for workforce availability, the tax base, economic competitiveness, and long-term growth.

Most departing residents moved to lower-cost, lower-tax states such as Florida and New Hampshire, highlighting mounting affordability pressures and intensifying interstate competition for talent and investment. Taken together, these data underscore the urgency of the moment—and the importance of the Council’s leadership in advancing the fundamental reforms needed to restore investment, job creation, and broad-based economic growth across Massachusetts.

Amidst these demographic and competitive challenges, Governor Healey kicked off the annual state budget process last week, filing a more than $63 billion spending proposal for FY27. The Council recognizes the Governor’s efforts to address some of the drivers of spending growth—including health care spending—while investing in critical priorities such as education, transportation, and workforce development. Unfortunately, the Governor’s budget would continue the recent trend of state spending growth that outpaces both revenue growth and inflation, relying on reserves and the redirection of surtax revenue to balance the budget.

The Governor’s proposal marks the first step in the FY27 budget process, and the Council will play an active role in shaping and advancing a fiscally responsible budget that strengthens the Commonwealth’s economic competitiveness, in close coordination with the Administration and the Legislature.

You can read the Council’s full statement on the Governor’s budget here. 

In December, the Secretary of State certified two ballot questions backed by the Council and a growing coalition of business leaders, small business owners, and taxpayers. These proposals would reduce the state’s income tax from 5% to 4% over three years and reform the state’s existing revenue growth limit to better curb the growth of state spending. In the coming months, the Legislature will hold public hearings on these proposals and the other ten questions certified for the November ballot.

New research developed by the Mass Opportunity Alliance (MOA) analyzes the potential fiscal and economic impacts of gradually reducing the income tax. Unlike several incomplete and inaccurate assessments that have been reported, this analysis draws on hundreds of historical budget, revenue, and economic data points to assess how state revenues and economic growth could evolve under the proposal.

Key findings include:

A recording of the roundtable is available here.

While state policymakers are advancing some constructive ideas to improve Massachusetts’ economic competitiveness, the Council is closely monitoring several proposals that would move the Commonwealth in the opposite direction—by increasing costs for residents, businesses, and employers.

Among the most concerning is a proposal to authorize a new local-option sales tax, allowing cities and towns to impose rates of up to 5% on top of the existing 6.25% state sales tax. Massachusetts already has the 13th-highest state sales tax rate in the nation; adopting a local-option sales tax would give the Commonwealth the highest combined state and local sales tax burden in the country.

At the same time, despite billions of dollars in new transportation funding generated by the income surtax, some of the same advocates are calling for additional taxes and fees. Their proposals include higher tolls, congestion pricing, increased ride-share fees, and new local-option taxes on motor vehicles and parking garages. Continued tax increases are not the solution to Massachusetts’ transportation challenges. As our colleagues at Pioneer Institute have noted, “This is not a revenue problem. It is a management and accountability problem.”

While most other states have cut taxes in recent years, a handful of states—including Massachusetts—are considering new income surtax or wealth taxes as a solution to close budget gaps, rather than reining in spending.

MassVision2050 News & Updates

The Council launched its new MassVision2050 AI Leadership Initiative with a virtual, member-only executive discussion on January 26, hosted by MilliporeSigma. The Initiative is designed to help senior leaders navigate how artificial intelligence is reshaping cybersecurity risk, governance frameworks, and workforce requirements across Massachusetts’ innovation economy.

Attendees were treated to candid perspectives from James Kugler, CEO of EMD Digital, and Subbu Iyer, Head of the Analytics Center of Excellence at MilliporeSigma, who shared how a global life sciences organization is operationalizing AI in real time. Drawing on both enterprise and cross-institutional experience, the discussion explored how organizations can responsibly scale AI, democratize access to data, and embed governance and trust into rapidly evolving digital environments.

Key themes backed by specific examples included:

Speakers also underscored that AI governance is no longer theoretical—it is a core requirement for cyber resilience, risk management, and long-term competitiveness.

A summary of key takeaways and insights from the discussion is available upon request to Council members. Members can contact Jenny Enfield at je***@**tc.org to obtain a copy.

On January 27, the Council hosted a MassVision2050 Engaged Workforce webinar in partnership with the nonprofit STEMatch, spotlighting proven, scalable approaches to addressing persistent workforce challenges across Massachusetts’ technology sector. 

The session featured Chris Zannetos, Founder and CEO of STEMatch, alongside Roger Alix-Gaudreau, Vice President of B2B Engineering at Tripadvisor, who shared an employer’s perspective on partnering with STEMatch’s COMPETE program. The discussion underscored the significant, and often overlooked, potential of community college students as a source of job-ready technical talent. 

Participants heard results from the COMPETE program, including:

Tripadvisor highlighted the business value of this model, noting the quality, motivation, and job-readiness of students, as well as the operational benefits of partnering with a nonprofit intermediary. 

For employers seeking practical, cost-effective ways to strengthen workforce diversity and access emerging job-ready talent, STEMatch offers a proven partnership model already delivering results across Massachusetts. 

Council members interested in learning more or exploring partnership opportunities are encouraged to connect with Chris Zannetos at ch***@******ch.org.

As cyber risk grows in scale, complexity, and financial impact—and as artificial intelligence introduces new layers of opportunity and exposure—the Council will convene senior leaders for a MassVision2050 Cybersecurity Community program: Cyber Risk, Resilience & Governance in the Age of AI, on Wednesday, May 13, 2026.

The discussion will also position AI governance as a core element of cyber resilience maturity. As AI tools proliferate across enterprises, leaders must balance speed and innovation with security, data protection, and regulatory compliance. Speakers will share practical best practices for governance frameworks, including leadership oversight, alignment with enterprise data and risk strategies, and approaches to mitigating shadow AI and unintended data leakage.

The program will conclude with a networking reception, providing an opportunity for peer exchange and continued discussion.

Registration will open soon. Members should expect a formal invitation with event details and registration information.

For more information or to get involved, please contact Jenny Enfield at je***@**tc.org. 

The Council’s 2026 Annual Meeting will offer senior executives, partners, and stakeholders an opportunity to gather on June 2 for a cocktail reception and exchange focused on competitiveness, MassVision2050 priorities, and engagement in the 2026 policy and election cycle.

Event details and formal invitations will be distributed soon.

Support the MassVision2050 Mission

Advancing Massachusetts’ long-term economic competitiveness, innovation capacity, and workforce strength requires sustained leadership—and meaningful investment. The Massachusetts High Technology Council’s work to advance the MassVision2050 agenda is made possible through the engagement and financial support of our members and partners.

Organizations can support the Council’s mission through several avenues, including charitable contributions to the MassVision Foundation, support for the Mass Opportunity Alliance, and sponsorship of MassVision2050 initiatives. These investments directly enable rigorous, data-driven policy analysis, cross-sector collaboration, and scalable initiatives that strengthen the Commonwealth’s innovation economy and expand opportunity statewide.

We are grateful for the continued leadership of our members and welcome conversations with organizations interested in deepening their partnership with the Council and advancing a shared vision for Massachusetts’ future.

To confirm your support or explore the funding approach that best aligns with your goals, please contact Council President Chris Anderson at ch***@**tc.org.