Executive Order  No. 645: Establishing the Commission on PILOT for State-Owned Land

WHEREAS, the Commonwealth owns over a half million acres of land located in municipalities throughout the state;

WHEREAS, such land includes state parks and forests, wildlife sanctuaries, state military camp grounds, and land used by veterans homes, correctional institutions, educational institutions, and other state agencies;

WHEREAS, under sections 13 through 17 of chapter 58 of the General Laws, the Commonwealth administers a payment in lieu of taxes (“PILOT”) program that provides funding to municipalities with state-owned land;

WHEREAS, the PILOT program for state-owned land was last substantially updated in 2016, by An Act Modernizing Municipal Finance and Government, section 108 of chapter 218 of the acts of 2016;

WHEREAS, funding for the Commonwealth’s PILOT program has increased in recent years, from $45 million in fiscal year 2023 to $53 million in fiscal year 2025; and

WHEREAS, the Healey-Driscoll Administration is committed to ensuring that municipalities receive a fair and equitable share of PILOT funding for state-owned land located in their communities;

NOW, THEREFORE, I, Maura Healey, Governor of the Commonwealth of Massachusetts, by virtue of the authority vested in me by the Constitution, Part 2, c. 2, § I, Art. I, do hereby order as follows:

Section 1:  Establishment of the Commission

There is hereby established within the Office of the Governor a Commission on PILOT for State-Owned Land (the “Commission”), charged with advising the Governor on potential reforms to the PILOT program.

Section 2: Membership

The Commission shall consist of the Secretary of Administration and Finance, or their designee, who shall serve as chair; the Secretary of Energy and Environmental Affairs, or their designee; the Chief of the Office of Climate Resilience and Innovation, or their designee; the Commissioner of the Department of Revenue, or their designee; the Commissioner of the Department of Conservation and Recreation, or their designee; the Commissioner of the Department of Fish and Game, or their designee; and the Director of Rural Affairs within the Executive Office of Economic Development, or their designee.

The Commission shall further include two members from a designation by the Speaker of the House of Representative and two members from a designation by the President of the Senate.

The Commission shall further include at least eight individuals to be appointed by the Governor, who shall have experience in rural governance, regional planning, local public administration, environmental economics, forestry, and responsible state fiscal policy.  Appointees of the Governor may include representatives of regional councils of governments and regional planning agencies from different regions across the Commonwealth; individuals with experience serving a small town or towns in Berkshire or Franklin County, including through town administration or membership in municipal associations such as the Small Town Administrators of Massachusetts; a representative of the Massachusetts Municipal Association; representatives from non-governmental organizations focused on public and private land conservation; representatives from the business community; individuals with expertise in state fiscal responsibility, transparency, and accountability; or members of the Rural Policy Advisory Commission or individuals with comparable expertise.  Members so appointed shall serve at the pleasure of the Governor, in an advisory capacity and without compensation, and are not intended to perform services for any state agency.

Section 3: Objectives of the Commission

The Commission shall evaluate potential adjustments to the state-owned land PILOT reimbursement program, with particular attention to geographic equity, fiscal sustainability, operational feasibility, and alignment with the state’s land conservation, biodiversity, and climate goals.

The commission shall:

1. analyze the history and structure of the state-owned land PILOT program and assess the fiscal, equity, and policy impacts of current reimbursement policies;
2. assess the impact of state land ownership on host communities and benefits to non-host communities, especially in the context of municipal budgets, local services, housing, economic development, and ecosystem services;
3. evaluate a range of potential policy adjustments;
4. identify tradeoffs between proposals in terms of fiscal cost, land use policy goals, administrative complexity, and equity; and
5. develop a set of short- and long-term recommendations to improve the state-owned land PILOT program, including proposals that identify innovative and feasible ways to cover associated costs, such as offsetting savings, programmatic efficiencies, public-private partnerships, or regional solutions, particularly in the context of constrained fiscal conditions.

Section 4: Report

The Commission shall report to the Governor on its findings, analysis, and policy options, addressing the objectives identified in section 3 of this Order. The Commission may provide interim reports on its findings, analysis, and policy options prior to providing its final report to the Governor.

The report may include recommended legislative, regulatory, or administrative actions and may also outline further areas for study or stakeholder engagement.  If legislative action is recommended, the Commission shall propose draft legislative language.

Section 5: Effective Date

This Executive Order shall take effect immediately and shall continue in effect until 30 days after the Commission has presented its findings and recommendations to the Governor.