Remarks of Senate President Karen Spilka at the Greater Boston Chamber of Commerce Government Affairs Forum

As prepared for delivery

Good morning, everyone!

Thank you, Patrick, for that introduction – and for all of Suffolk's contributions to the Commonwealth. I'd also like to of course thank Jim Rooney for your leadership of the Greater Boston Chamber – I look forward to our conversation later.

I want to thank everyone at the chamber for the opportunity to be here today – and give a special shout out to Angelica Medina, Danielle Dorey, Casey Baines, and Chris Eicher for your work to put this event together. I'd also like to acknowledge my colleagues from the Senate who are joining us today, as well as my special guests and my staff, many of whom are here this morning – I'm lucky to have such a terrific team.

For more than a century, the chamber has played a central role in bringing together business leaders, elected officials and community stakeholders to tackle some of the biggest challenges facing this city and our Commonwealth. While I have only been here for a small fraction of that time, I'm immensely grateful for your partnership and your advocacy, and also your willingness to engage in what are often very complex and challenging conversations about how to move Boston and Massachusetts forward together.

This is a very important moment for this city, our state and our country. Businesses are facing pressure from rising healthcare and energy costs – while employers are struggling to find talent. Families are dealing with a cost of living that has gone from persistently high to untenable in some cases.

And all of this is unfolding against a backdrop of economic uncertainty and growing frustration with institutions of every kind. These examples illustrate how affordability remains the dominant issue in Massachusetts – there's just no two ways about it. A recent survey by our friends at the Mass Retailers Association found that eight of the top ten issues voters identify today as top concerns relate in some way to the cost of living.

Housing, healthcare, energy, groceries – the everyday costs of building a life here. This survey echoes the results of the Chamber's own 2026 Young Residents Survey, released just a few months ago.

Approximately twenty five per cent of those surveyed said they planned to leave Massachusetts in the next five years, citing the cost of housing and healthcare, among other things.

Our residents and employers want to know whether we understand these challenges, and they want to know whether we can deliver results for them.

We hear similar questions every day at the State House: Are we "focused enough on kitchen table issues?” Are we taking "too long to get things done?" And are we aware that Massachusetts is becoming a harder place to start a business, raise a family, and build a future?

To everyone raising those questions: we hear you. And I want to stress both the seriousness with which the Senate is approaching this moment – as well as the work underway to address it. So, today, I'd like to separate a little fact from fiction – and compare what's being said to what is actually getting done and the direction we're headed – because there is always more work to be done.

Let's start with our first piece of fiction: that Beacon Hill isn't really focused on what matters most right now.

Well, here's the fact: affordability is at the center of nearly every major conversation we're having in the Senate today – and has been for quite some time. That's because you cannot get the most out of Massachusetts if you cannot afford to live here, start a business here, or raise a family here.

It's just that simple. That's why the Senate continues to drive our affordability agenda – and why we are looking to key areas to bring costs down while maintaining our competitive edge and quality of life. If there's an issue that exemplifies how rapidly the affordability challenge in Massachusetts has grown, it's energy.

Even just a year ago, energy costs weren't really registering on the list of top concerns. Well, a winter of $600, $700, and $800 heating bills will change that quickly. That's why in the coming weeks, the Senate will advance an energy bill that balances our history of clean energy innovation and climate leadership with reforms to meaningfully cut costs. Through a combination of common-sense reforms, leaning into what works and re-examining practices that need to be updated, we can be on track to save ratepayers over $10 billion over 10 years. I know we need to get serious about reining in energy costs, and, working with our energy leaders, Senator Mike Barrett, I'm committed to doing so.

Another piece of our affordability agenda addresses a key issue I felt was important for the Senate to tackle this session – primary care delivery. These days, we are all too familiar with the struggle of trying to book a visit with our primary care doctor and hearing that we have to wait months – even years – to see them.

I've even heard people say the closest available primary care doctor was in New Hampshire!

That's why I'm proud to say that today – perhaps at this very moment – the Senate will be introducing a new primary care reimbursement model. Our bill, which the Senate will debate next week, seeks to address three main areas.

First, the plan sets a goal for us to spend at least 15 percent of our health care dollars on primary care over the next four years — without raising overall health care costs or premiums. To do this, we ask commercial insurers to give primary care providers steady monthly payments. This lets primary care doctors decide how to best use resources to support their patients.

Next, the plan makes sure Community Health Centers — who are a major provider of affordable primary care — won't be paid by commercial insurers at rates lower than what MassHealth pays. This helps strengthen CHCs and makes it easier for them to hire and keep staff.

Finally, our plan creates a program to encourage more medical students to go into primary care and behavioral health. Many students choose higher-paying specialties, so this bill would create a Medicaid Graduate Medical Education program to help CHCs and hospitals cover the cost of training these providers in community settings.

Together, I believe these steps will increase investment in primary care and help build a strong pipeline of new primary care doctors – with the end goal of lowering overall healthcare costs over time. I'd like to thank Senate healthcare finance chair Cindy Friedman for the years of work she's put into this issue -- and for working with stakeholders to deliver a comprehensive bill to the Senate floor.

Now, I'm not going to break any news today when I say that the cost of housing may be the biggest pain point we have as a Commonwealth. I am constantly hearing from employers that they can't recruit workers because those workers can't find a place to live. When a nurse, teacher, firefighter, recent college graduate or any young person looks at the cost of housing and wonders whether they have a future here, that is not only a problem for them – it's a problem for each of you.

That's why the Senate has been committed to including housing initiatives in a number of bills this session, and why our 2027 budget continues to build on the Affordable Homes Act – which represented the largest housing investment in state history.

That legislation also took practical steps like allowing underutilized commercial properties to be converted to housing, expanding tax credits for housing production, making infrastructure investments tied to housing production, and creating new funding tools for mixed-income and workforce housing.

Keeping on the subject of housing, I'd like to address another piece of fiction: that Beacon Hill spends too much time debating process and not enough time getting things done.

I will admit that I am probably not the best person to make this case – because I am a process person by nature – and an unapologetic detail person. Where some people enjoy talking about big ideas, I enjoy talking about what happens when the metaphorical rubber hits the road. Let me explain why.

Over the years, I've learned that some of the biggest barriers to progress are hidden in places most people never see. They're buried in permitting processes, approval timelines, outdated rules, and systems built for a different era. Businesses wrestle with these problems all the time. And while those things may sound small, they often determine whether big things happen at all.

To be clear, the Senate has never shied away from big challenges. I am proud of our willingness to tackle major issues when Massachusetts needs us to – as well as our ability to lead the country on so many things.

But passing a bill is only the beginning. The real work is making sure people can actually experience the benefits, and nowhere is that clearer than housing.

We all agree that Massachusetts needs more, but who among us wants to take on the maze of procedural hurdles, inconsistent review processes, duplicative approvals and uncertainty that drive up costs and delay construction?

Well, I do. Perhaps I'm a glutton for punishment. It's been suggested before.

But the technical issues around modernizing the housing approval process and removing barriers that stand between a proposed project and a completed one have very real consequences. In our recent Fair Share supplemental budget, the Senate created a new sales tax exemption on building materials for qualified multifamily housing projects – an idea I proposed after meeting with Canadian Consul General Bernadette Jordan to discuss the challenges around tariffs.

Again, not the kind of thing that usually generates headlines. But based on estimates derived from the Unlocking Housing Production Commission, that reform alone has the potential to help create 35,000 additional housing units over the coming decade.

That is what I mean when I say the details matter. Good governance is not only about setting ambitious goals. It's about identifying the barriers that prevent those goals from becoming reality and having the patience and discipline to address them.

Our housing challenges also require enthusiasm and creativity – and so I'd like to express my sincere thanks to the Senate chair of housing this session – Senator Julian Cyr – for all of his efforts in this area.

Now, let's move to another piece of fiction: that "Massachusetts is becoming a less hospitable place to start, grow and run a business."

I understand where this concern comes from. You are facing rising costs, dealing with workforce shortages, navigating economic uncertainty, and vying for talent in an increasingly competitive national and global economy.

Those are real challenges. But I still believe Massachusetts is the best place in America to start a business, grow a business and build a career. We have a life sciences ecosystem that is the envy of the globe – and we are leading in artificial intelligence, clean energy, advanced manufacturing and healthcare innovation. But we cannot take any of that for granted.

Success is not a birthright, competitiveness is not permanent, and if we want Massachusetts to remain a global leader, we have to keep earning it.

That's why this year's Senate budget increases investments in the things that drive long-term economic growth while once again doing so without imposing any new taxes or fees. And because we've remained fiscally disciplined, Massachusetts has more than $8 billion in our stabilization fund right now.

It's also why I was proud to work with Governor Healey, Speaker Mariano and many of you in this room on the last session's tax relief package. It wasn't always easy. But in the end, we came together around a package that reduced the capital gains tax, reformed the estate tax and provided relief for families, seniors and employers alike.

To me, that effort demonstrated something important: government and the business community do not have to agree on everything to make progress. When we focus on practical solutions, we can get meaningful things done.

I know many of you are interested in what comes next. The Senate is already working on an economic development bill designed to strengthen our competitive position, continue to help bring down housing prices, and support key industries. Because if affordability is job number one, competitiveness is a very close second.

Which brings me to our final "fact versus fiction" example: that Massachusetts is becoming too expensive and difficult for young people to build a future here.

And honestly? This one isn't fiction.

Massachusetts is home to some of the most important industries in the world. But our businesses are only as strong as our ability to attract, develop and retain talented people. The Senate recognizes that workforce development is inseparable from cost-of-living issues like housing, childcare, student debt and access to education.

That's why we created MassEducate and expanded access to free community college. It's why we're investing in vocational and technical education and creating new pathways into high-demand careers. It's why we've made public higher education here in Massachusetts one of the very best deals in the country. And it's why I spent years fighting for initiatives like Paid Family and Medical Leave. We know from the Young Residents Survey that work/life balance is important to our young people.

When I was a young mother, paid leave wasn't available. And throughout my career, I discovered firsthand how difficult it can be for families trying to balance work, caregiving and financial responsibility.

Those experiences shaped who I am and my priorities as a legislator, and I'm proud to say that, today, workers can take paid leave to care for a newborn child, an aging parent or a loved one facing a serious illness – and still contribute to our economic success.

The goal is simple: to help make Massachusetts a place where talented people can build careers, raise families and remain connected to the workforce.

We're applying that same thinking today through a proposal that would provide free medical school tuition for UMass students who commit to practicing primary care in underserved areas in Massachusetts. We need to be doing everything we can to encourage talented young people to stay here, build their futures here, and serve their communities here.

And, as we all know, long-term competitiveness starts long before someone enters the workforce. That's why we continue to invest in K-12 education and literacy initiatives that help prepare the next generation for success.

At the end of the day, retaining and developing talent is not separate from our affordability agenda. It is central to it. Because if the next generation cannot afford to build a future in Massachusetts, then eventually all of our other advantages begin to erode.

I am not willing to accept that – and I don't think anyone in this room is either.

I want Massachusetts to remain the place where talented young people come to learn, work, innovate – and stay. And it all starts with those of us here – through our ability to work together – and in common purpose.

I understand why some fictions have taken hold. People are skeptical state government can still move quickly enough to meet the challenges in front of us.

I get it.

Those concerns are real – and I think leaders have a responsibility to respond to them with seriousness, urgency and – most importantly – results. That's what the Senate's affordability agenda is about. It's about recognizing that if we want Massachusetts to remain competitive, innovative and prosperous, we have to make it easier for people to afford to live, work and build a future here.

The good news is that Massachusetts has never lacked for strengths. But if the last few years have shown us anything, it's that those strengths are not permanent. They have to be fought for every day. And they have to be earned again by every generation.

The thing I love about Boston—and Massachusetts more broadly—is that we have always done our best at the exact moment when people underestimated us. Time and again, we've proven that we can compete with places much larger than us — the proof is in the championship banners people said we had no business winning.

But we cannot assume that tomorrow's success will look like yesterday's success. We have to earn it. That means meeting the moment in front of us – day after day and moment after moment. The members of this Chamber have proven time and again that you are up to that challenge too, and so I look forward to continuing the work at hand - and the work ahead - in partnership with all of you.

Thank you for all that you do – and thank you for having me here today.

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