President’s Bulletin

Last year, the federal government approved a new initiative that would provide a dollar-for-dollar federal tax credit for individual contributions to scholarship-granting organizations funding K–12 tuition assistance in states that opt in. While designed to expand educational opportunity, the proposal carries fiscal and structural implications for state revenue, public education funding, and long-term workforce development.

Education policy is workforce policy. Changes to the funding opportunities for K–12 education directly affect talent pipelines, employer confidence, and the long-term competitiveness of our economy. Because talent is the foundation of innovation and growth, any proposal that reshapes education financing warrants careful scrutiny.

We will schedule a virtual briefing in March to examine the proposal’s mechanics, policy tradeoffs, and both potential benefits and unintended consequences — and to determine whether engagement aligns with Massachusetts’ long-term competitiveness and talent retention objectives.

The Council is participating in the Healey Administration’s newly formed Strategic Hub for Innovation, Exchange, and Leadership in Defense (SHIELD) Task Force.

Defense and dual-use technology represent a critical component of Massachusetts’ innovation economy, with direct implications for advanced manufacturing, applied research commercialization, and high-skill workforce retention.

The mission of SHIELD is “to catalyze opportunities for economic growth, job creation, talent recruitment/retention, and tech transition in Massachusetts’ Defense Sector by identifying key operational, technological, policy, ecosystem, and strategic challenges; promoting R&D initiatives and partnerships; building upon existing partnerships; supporting STEM education and workforce initiatives; and identifying federal and state funding opportunities.”

By the end of April, SHIELD will produce a new playbook for the Massachusetts defense sector with policy recommendations and actions to strengthen economic growth and leadership.

To ensure Council member priorities are directly reflected in this work, we are exploring interest in hosting a virtual input session for members. In addition to ongoing SHIELD meetings, the initiative will produce a formal report to the Administration aggregating findings and recommendations.

We welcome:

Given the Council’s leadership role across the innovation ecosystem, your input will help ensure the report accurately reflects both the opportunities and constraints facing this strategically important sector.

Please let me know if you would participate in a virtual input session or wish to contribute materials directly.

Governor Healey established the Competitiveness Council in late 2025 to advise the Administration on strengthening Massachusetts’ economic position, with particular focus on business incentives, regulation, innovation support, talent, and taxation.

Secretary of Economic Development Eric Paley has invited MHTC to participate in the Council’s Subcommittee on Tax and Business Climate. These discussions will focus on developing a clear analytical framework and defining the scope of key challenges related to tax policy and business incentives.

We will ensure that the data, policy principles, and structural reforms contained in our Competitiveness Agenda — including tax stability, regulatory predictability, disciplined spending growth, and policies that encourage capital formation — inform the Administration’s deliberations. This engagement is central to restoring a business climate that supports growth, investment, and job creation.

On February 16, I co-authored an op-ed in The Washington Post with Jim Stergios (Executive Director, Pioneer Institute) examining recent census data showing sustained net out-migration from Massachusetts and warning signs of declining economic competitiveness. The piece highlights the relationship between high costs, rapid state spending growth, and increasing business pressures — and argues that structural policy reforms are necessary to restore population growth, retain talent, and strengthen long-term economic dynamism.

The analysis underscores a core MassVision2050 premise: sustained innovation leadership requires population growth, capital formation, and a competitive cost structure. Without policy adjustments, the Commonwealth risks erosion in all three areas.

This weekend, Governor Healey announced her opposition to the 2026 ballot question proposing to reduce the income tax rate from 5% to 4% over three years. This development comes amid a broader and necessary debate about how Massachusetts restores population growth, employment momentum, and long-term economic competitiveness.

In response to statements made during the announcement, the Taxpayers for an Affordable Massachusetts ballot committee issued a public statement emphasizing that:

As we have consistently emphasized, this is an important debate that should be grounded in facts and focused on fiscal priorities, affordability, economic competitiveness, and long-term growth.

We and a broad coalition representing all sectors of the Commonwealth’s economy will continue to engage constructively. The income tax discussion is one component of a broader competitiveness strategy that must address tax structure, spending discipline, regulatory efficiency, workforce development, and innovation capacity in an integrated manner.

Given the pace of developments, we remind you of two upcoming virtual Competitiveness Agenda briefings:

These sessions will provide updates on recent policy developments and outline next steps in our advocacy and engagement strategy.

If you have not yet requested a link and would like to attend, please email Jenny Enfield at je***@**tc.org, who will forward the details.

Massachusetts’ competitive position will not improve by inertia. It requires disciplined fiscal policy, workforce alignment, and sustained innovation leadership. Through MassVision2050 and our Competitiveness Agenda, we remain committed to advancing policies that strengthen sector performance, retain and attract talent, and restore a durable growth trajectory for the Commonwealth.

Many thanks,
Chris