Highlights

• Massachusetts has a $120B long term liability; pensions and health insurance for retirees and $20B in bond debt
• The administration and legislature are blocking the audit supported by voters
• Massachusetts is the least Affordable state in the USA
• Mass migration is at 450,000 over the last 5 years primarily in the age group 25-44
• The state ranks 4th highest in the nation for net international migration
• Massachusetts lost 17,549 employer businesses from 2022 to 2024 and the jobs associated with them
• Massachusetts has dropped from first in business formation in 2010’s to last in 2020-2024
• Gov Healey has increased the state budget by 21% over the last 4 years
  • She has funded temporary housing and Home Base programs for immigrants
  • She has authorized local communities to impose new taxes for meals, candy and auto excise tax to help plug deficits
  • She has proposed an increase of only 17% local aid which has decreased in all 4 years
  • Her solution to the housing crisis is to eliminate single family zoning in support of multi-family housing
  • She supports eliminating Proposition 2 ½
  • She proposed the miles driven tax because gas tax
• Minogue proposes to lower taxes and increase local aid by 40%
  • M. Minogue directed ABioMed through a complete strategic pivot propelling the company from near obscurity to $1.2B in annual revenue
  • Minogue supports an audit of every state agency especially the legislature and Health Care Systems and cap state spending
  • Work to cut waste and fraud in all branches of government
  • He proposes to significantly improve the business environment; add new businesses:  make Massachusetts a sought-after business community

Situation Analysis

The Massachusetts economy is sustainable, largely driven by life sciences, high technology, health care, and higher education. However, it faces significant structural risks and economic vulnerability, with liabilities reaching $120 billion in fiscal year 2023[1] and a bond debt of $20 billion. According to the Reason Foundation, Massachusetts ranks as the sixth-most indebted state, with approximately $17,100 in state and local government debt per resident[2].

Total liabilities, including long-term public pension and retiree healthcare obligations, amount to $120.09 billion, with per-resident debt of $6,571—substantially higher than the national median of $2,609[3]. External threats, such as a projected $3.7 billion cut in federal funding, population outmigration, and business losses further complicate the financial climate.

The Millionaire’s Tax in Massachusetts generates over $2.4 billion annually but masks budget gaps since it is allocated for education and transportation. The state, mandated to balance its budget, faces annual shortfalls addressed through cuts, bonds, or the Stabilization Fund, which exceeds $8.1 billion. Healthcare costs are a growing burden, with MassHealth expenditures projected at $22.7 billion by 2027 and premiums for the Mass Connector surging 36-40% since 2023

Massachusetts municipalities are experiencing financial constraints due to state aid declining. If Massachusetts had funded localities at the national average, they could have received an additional $3.14 billion in 2023, translating to a 15% increase in property tax collections. Currently, local aid is $1,673 per person, ranking Massachusetts 39th among states, while the national average is $2,118.

The state’s tax competitiveness has worsened,[4] dropping from 30th to 43rd, with a significant decline in business formation and a marked increase in utility costs. Massachusetts lost 17,549 employer businesses from 2022 to 2024, including well-known brands, ranked last in the nation for new business formation and faced substantial layoffs (1.59 million), highlighting concerns over high taxes and regulatory burdens. Additionally, the state has seen a net loss of 127,500 residents between 2022 and 2025, primarily affecting working-age adults, while maintaining its population due to increased international migration[5].

Gov. Healey Positions

Governor Maura Healey has used mid-year cuts to Mass Health and local infrastructure to balance the budget. She is promoting tax increases, the Municipal Empowerment Act, enabling local governments to raise specific taxes. She has offered targeted tax incentives for high-tech sectors to retain businesses. However, high energy and housing costs continue to challenge smaller businesses and the workforce. Healey proposed a miles driven tax to recover lost revenue from electric vehicle adoption, along with the elimination of Proposition 2½ which restricts property tax increases. Addressing the housing shortage, she suggested removing single-family zoning, only 28,500 housing units were permitted during her term. Massachusetts rated poorly for housing affordability and high median home prices[6]. Healey advocates for rent control and the Affordable Homes Act to increase state-subsidized housing, promote commercial-to-residential conversion, and supports green building standards and new subsidies for first-time homebuyers all negatively impacting the housing crisis.

Mike Minogue Position

Mike Minogue transformed the struggling medical device company into a $1.2 billion revenue generator. He plans to conduct audits (all agencies and Health Care), stop overspending, and reduce taxes. His proposals include cutting utility fees, lowering housing costs by streamlining regulations, and canceling unfunded mandates like the MBTA and Net Zero mandates. Minogue supports an all-encompassing energy approach, advocating for diverse energy sources. He opposes Massachusetts being a sanctuary state and seeks to increase law enforcement resources. He aims to improve education funding through the Federal Scholarship Tax Credit, offering parents more schooling options and a $1700 tax credit.  Minogue will grow jobs by retaining and recruiting entrepreneurs and businesses, streamline regulations for builders, developers, and businesses and will lease and sell underutilized government-owned non-conservation land. 

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[1] [U.S. Census Bureau, Bureau of Economic Analysis, Reason Foundation Government Finance ACFR extracts and State Pension Tracker, Moody’s Investors Service, NASBO. Last updated 2026.]

[2] Mass Fiscal  Proposition2½: Keeping Property Taxes Low Since 1980, April 2026

[3] The state’s Annual Comprehensive Financial Report

[4] CNBC’s 2025 Top States for Business rankings

Pioneer institute Study Finds Widening Gap Between Innovation and Broader State Economy. Aug 5 2026

Mass Fiscal Alliance January 2026

 Headquarters relocations: When, Who, Where and Why  ConnectCRE May 8 2025

Top HQ relocation Trends;  Pebb Capital <ay 13, 2025

Business Insights: The Shifting Landscape of Headquarters Relocatuion : 2026 Update   CBRE April 3, 2026

[5] IRS Migration Data

[6] Coastal Moving Services (2026 housing affordability rankings): https://coastalmovingservices.com/city-state-guides/states-ranked-by-housing-affordability-2025/