Tom Ryan
As the legislative session nears the finish line, lawmakers are still considering several proposals designed to strengthen the Massachusetts economy. Gov. Maura Healey released a new economic development package focused on attracting international businesses and offering incentives to artificial intelligence firms. There is also some momentum behind other legislation to extend restaurant hours and create outdoor social zones during the summer of 2026.
These ideas deserve serious consideration, but they should not divert attention or resources away from the foundation that created decades of economic success in this area. Massachusetts and Greater Boston should stay true to what we are good at and stay focused on what works here.
This region is the place for one of the strongest economies in the world, because we have invested and cultivated our higher education, health care and medical research institutions, and our innovative businesses. We have a highly skilled workforce and transportation infrastructure that connects people to these world-class universities, hospitals and business districts. Our successes are a result of state leaders consistently supporting infrastructure that makes Massachusetts different from other states.
Rather than chasing every new trend, such as the debate over data centers or AI, Massachusetts state government should continue investing in these foundations that drive our prosperity. Fortunately, many parts of Gov. Healey’s legislative agenda would do just that.
Optimizing Fair Share Revenue
Gov. Healey came into office just as the voters approved the Fair Share surtax on incomes above $1 million dollars. This new tax generates billions annually that can only be used for education and transportation programs. Legislative leaders recently agreed on a plan to spend $1.4 billion of these funds, but they have held back on some proposals made by the governor that could optimize the economic return from Fair Share dollars.
Last fall, the governor proposed the Mass Drive Act, which would use Fair Share and some existing state funds to provide $400 million for research institutions, universities, hospitals and life science organizations to offset federal cuts.
The plan would protect one of Massachusetts’s most important economic engines but also make a powerful statement to other parts of the country about our state priorities. This bill should be a cornerstone of any economic development package that advances through the legislature.
There are also real opportunities to use Fair Share for economic growth, by investing in transportation infrastructure.
One of the best economic multipliers is spending on infrastructure projects because of the jobs and materials. Over the past two years, Fair Share funding has supported capital investments for commuter rail vehicles, track improvements, accessibility projects and modernization efforts located all throughout the commonwealth.
Gov. Healey has proposed expanding the amount of Fair Share money that can be used directly on long-term financing for transportation capital investments, but the Legislature has yet to act on this plan. Considering that Fair Share generates over $3 billion annually, and the governor wants to use $1 billion for transportation infrastructure, this is a balanced approach that deserves support.
Don’t Hesitate on the Future of Allston
The state should also move with urgency on projects that improve highways, add public transit connections and create new areas for private development.
The I-90 Allston Multimodal Project, if done properly, would do all of this and deliver significant economic benefits to the region. It can unlock more than 40 acres of development, support new housing, improve transit and bicycle connections, and create new public space along the Charles River.
The business community, environmental organizations, transportation advocates, and community stakeholders have spent a decade shaping and improving this project. Despite the consensus and potential for this unique location, the state is hiring another consultant to review the project for the next year. This will hold up the environmental permitting, add years of costs and put off the day when we can realize the benefits of the project.
Massachusetts has a proud history of using infrastructure investments to support our economy and enhance our region. We built the Greenway parks system on top of the Central Artery Tunnel, created the entire Seaport District and connected the Orange Line to Assembly Row. The next great project can be Allston and the state should be moving with urgency to build it.
Massachusetts already possesses extraordinary institutions, people and talent. There are many challenges now, but we should not be trying to reinvent ourselves and our economy. Let’s stay focused on our strengths, embrace Gov. Healey’s plans for the Fair Share revenue – and create even greater prosperity in the years ahead.
Tom Ryan is senior advisor on policy, government and community affairs at A Better City, a business-backed organization focused on transportation, land use and environmental policies.
