Healey sets first-ever goals to spend state dollars with LGBTQ- and disability-owned businesses

Gov. Maura Healey is for the first time creating a statewide goal for how much Massachusetts government agencies should spend with businesses owned by LGBTQ+ people and people with disabilities.

The state has been tracking its business with these firms for the past several years, but has never set a specific goal for the value of state contracts they should get. For the upcoming fiscal year, the state will aim to spend $18 million with each group.

In fiscal year 2022, the state spent just over $15 million with “disability businesses” and $9.7 million with LGBT firms, according to the annual report from the Supplier Diversity Office. The report does not indicate whether those totals were entirely direct contracts from state agencies or also included "indirect" spending, which is work passed on by non-disadvantaged prime contractors.

For minority-owned businesses, the state counts both direct and "indirect" spending. In 2022, Asian American businesses got $170 million worth of state business; Black-owned companies got $114 million; and Hispanic firms got $58 million. Those were all dramatic increases over prior years.

Out of 4,500 certified diverse businesses in the state’s directory, as of last July, 375 are LGBT owned and 85 are disability owned.

In 2020, in the wake of GBH News reporting that found the value of state contracts won by minority-owned firms had declined over two decades, then-Gov. Charlie Baker elevated the Supplier Diversity Office to a standalone agency.

He later dramatically increased the office’s budget and authority to push agencies to do business with minority firms.

Healey also announced Friday the launch of a new interactive online site that will help agencies and private companies find disadvantaged businesses in their area that they might hire.

“Our administration is committed to increasing opportunities for them to do business with the state, which will not only help their businesses grow but will also support the state’s equitable economic development,” Healey said in a statement. “We are proud to be expanding the state’s spending benchmarks to include businesses owned by LGBTQIA+ individuals and individuals with disabilities, as well as implementing a new tool to make it easier for organizations to connect with diverse business partners.”

Grace Moreno, executive director of the Massachusetts LGBT Chamber of Commerce, joined Healey in the statement.

The governor “recognizes that an important way to lure businesses to Massachusetts is to show that our state is a welcoming place to do business for all people, including those identifying as LGBTQ,” Moreno wrote. “This announcement is yet another step in that direction. It helps LGBTQ businesses grow and thrive in Massachusetts while helping to expand our economy.”