Governor Maura Healey stated on Wednesday that she is not “imposing” a hiring freeze on agencies under her control, even though an internal memo sent the day before urges administration officials to “immediately pause” hiring processes and seek pre-approval before posting new jobs.
Healey’s determination to limit the independence of executive branch agencies and secretariats to acquire new employees without approval from her budget office comes during declining state revenues that have prompted Beacon Hill to control spending. However, Healey’s critics, including the MassGOP, stated that the action was taken too late to prevent “damage.”
During an unrelated event in West Barnstable, Healey mentioned that she is not completely halting hiring and is permitting exceptions to the approval process in an effort to “manage within the budget.”
“This ensures that our agencies, when considering postings and positions, are taking the time to question whether it’s truly necessary to fill those positions at this time,” she said. “But I am insisting that we tighten our belts and exercise judgment and fiscal responsibility as we assess the revenue picture and the remaining deficit before the end of the fiscal year.”
In a memo to cabinet secretaries and agency heads sent Tuesday, the state’s interim chief human resources officer, Melissa Pullin, stated that hires, rehires, or transfers into an executive department agency will “be permitted only where affordable within existing payroll caps” unless they fall under a list of exemptions.
“Agencies should immediately pause their hiring processes, including scheduling any new interviews or extending offers,” the memo said, according to a copy provided to the Herald.
The memo did not describe the tightened hiring measures as a hiring freeze but did inform all executive branch agencies that they were required starting Wednesday through the end of June to submit waivers to fill open or new positions.
For current job postings that do not fall under an exemption, agencies must either remove the job posting and notify applicants that the “the job opening has been temporarily suspended due to fiscal constraints” or apply for a waiver from the state’s budget office no later than April 16 at 5 p.m., the memo said.
“For positions that do not fall in the exception categories, agencies can request a waiver to hire for individual positions from their (Administration and Finance) analyst. Approval must be granted prior to posting and a copy of the (Administration and Finance) approval must be attached to the MassCareers requisition and offers,” the memo said.
However, the communication may have caused confusion among officials outside of the state’s budget office, with one source stating that the rules were described late Tuesday night as a “temporary hiring freeze” applying to all full-time positions funded on operating or capital accounts.
Healey mentioned that the new hiring rules are “not hard and fast” and bringing on new employees will be done on a “case-by-case” basis.
The speaker stated that she is not implementing a restriction on hiring. Instead, she is urging agencies to use hiring controls to ensure that money is spent wisely for the remainder of the fiscal year, as it is her responsibility to stay within budget.
The memo lists many exemptions, including roles such as bacteriologists, child care licensing specialists, clinical social workers, corrections officers, firefighters, human services coordinators, state police troopers, physicians, and various types of nurses.
The decision to limit the hiring process comes as state revenues have consistently fallen below expectations since the start of fiscal year 2024. dropping below a revised estimate that reduced expectations by $1 billion.
The amount of money that can be saved by limiting hiring is still uncertain. A spokesperson from the Executive Office of Administration and Finance said they do not anticipate substantial savings, but more clarity should come as the fiscal year end approaches.
Poor tax returns have led conservative groups to urge spending cuts amidst large expenditures like the emergency shelter system, costing $1 billion per year, for local families and migrants. MassGOP Chair Amy Carnevale suggested that cabinet secretaries should forgo the raises they received this year for the benefit of the Commonwealth. “Why don’t Democrats follow their own principles and reduce executives’ salaries for the good of the Commonwealth?” she stated.
Tax figures released on Wednesday provided some hope that revenues could recover.
The state collected just over $4 billion from taxpayers in March, which is almost 5% higher than the same time last year and 3.3% above the month's projected amount, according to the Department of Revenue.
Massachusetts is currently facing a $145 million deficit for fiscal year 2024, and April, a critical tax collection month, will be closely watched.
The released tax figures for Wednesday indicated that revenues may have a chance of rebounding.
The state received slightly over $4 billion from taxpayers in March, almost 5% more than the same time last year and 3.3% above the month's expected amount, according to the Department of Revenue.
“While March revenues are more positive than anticipated, we still have a responsibility to stay within budget. Therefore, we believe that this hiring controls initiative, which will be in place until the end of the fiscal year, is necessary and crucial,” Healey stated.
