Gov. Maura Healey’s office has confirmed a proposal to offer state union workers buyouts and retirement incentives, citing the impact of federal cuts, after SEIU Local 509 alerted members the state may be looking to reduce the workforce.
“Governor Healey has taken action to protect our budget in light of President Trump’s billions of dollars in cuts to Massachusetts, including implementing hiring controls,” a spokesperson for the governor said in a statement late Monday. “While President Trump continues to hurt our economy, Governor Healey is considering additional steps to protect taxpayer dollars while continuing the high level of service that the people of Massachusetts deserve.”
SEIU Local 509 alerted members of a proposal presented by the state to “all state worker unions” to reduce the number of full-time employees across the Commonwealth, in an email reported by the Herald on Monday.
“The Commonwealth has proposed $10,000 for a voluntary resignation and $20,000 for retirement,” SEIU Local 509 President Dave Foley emailed union members. “Our understanding is that when these positions become vacant, they would not be backfilled and would be eliminated.”
The Massachusetts Nurses Association, which represents over 1,000 RNs and health professionals at state agencies and state operated psychiatric and public health hospitals, said they have also been talks about the proposal with the state.
The MNA statement said they have “a number of questions as to the specifics and the agencies to be most impacted.”
“But more importantly, we are concerned about any effort to reduce staff at our state operated facilities and programs,” said David Schildmeier, MNA Public Communications Director.
The nurses’ unions noted facilities like state-operated psychiatric and public health hospitals that care for “some of the most vulnerable adults and children” are already “woefully understaffed.”
“We cannot balance the state budget on the backs of the most vulnerable, and we question why, instead of cutting staff, we aren’t accessing the state’s rainy day fund as a means of protecting our public health infrastructure,” said Schildmeier.
SEIU Local 509 had not agreed to the proposal Monday and stated chapter presidents planned to “meet with the state to receive more information,” Foley said.
A spokesperson for Local 509 said Monday they do not have more information than what was stated in the email to members, including which positions and what other unions may be impacted.
SEIU Local 509 represents a range of Massachusetts public sector employees, including those at the Department of Children and Families, Department of Public Health, Commission on Judicial Conduct, MassAbility, Department of Elementary and Secondary Education, MassHealth, and more state agencies.
The incentives offered in the proposal are not an early retirement program in which employees could access pensions early, according to the SEIU’s communication. The $10,000 or $20,000 options would be a “one-time lump sum payment to employees.”
“There are many outstanding questions that remain about this proposal, such as what positions and agencies would be eligible to enroll in this program and receive this incentive,” Foley said, noting a “strongly shared skepticism among all” of the chapter presidents.
Foley said the presidents had “reducing staffing levels would negatively impact both our members and the essential services we provide,” and the union would continue to keep members updated.
Spending strains amid the uncertainty of federal funding have continued to be a topic on Beacon Hill this year. In an Oct. 15 revenue certification letter to Healey and lawmakers, Secretary of Administration and Finance Matthew Gorzkowicz said the Department of Revenue expected at least a $650 million state tax revenue decrease this year due to federal tax code changes.
Gorzkowicz said “forecasts anticipate a slowing economy rather than a recession” roughly in line with the December 2024 forecasts that underpinned the start of the fiscal year 2026 process.
The secretary said he is prepared to recommend so-called 9C cuts — unilateral mid-year budgets cuts the governor can make — “or other appropriate measures to maintain budget balance” if conditions warrant. Healey requested lawmakers expand her 9C powers to more state accounts over the summer, but legislative leaders have not signaled they will do so.
Former Gov. Charlie Baker used his 9C authority in 2016 to make $98 million in mid-year budget cuts.
— Material from State House News Service contributed.
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