BOSTON, Mass. (WWLP)--Governor Healey announced on Friday that her administration has reached a deal with the Biden administration to pay back Massachusetts' $2.1 billion dollar debt over the next decade. This debt is the result of a Baker-administration error--Healey's predecessor-- which mistakenly used federal pandemic relief funds to cover unemployment benefits. Governor Healey announces $2.5B for higher education in Massachusetts With interest, the state's debt would surpass $3 billion dollars, but Healey's office says they worked with the Department of Labor to reduce this debt by over $1 million dollars. The governor says this problem could be an opportunity for reform. "It is incredibly frustrating that the prior administration allowed this to happen, but we are going to use this as a moment to come together with the business and labor community to make meaningful reforms to the Unemployment Insurance system," said Healey. The Healey administration says businesses will not see increases in their unemployment insurance payments until at least 2026. Some Massachusetts business owners are still expressing concern about picking up the tab. "The Massachusetts UI system is arguably the most abused, costly and anti-employer system in the country. This high cost cannot be simply added to the very high cost of doing business in the Commonwealth," said Jon Hurst, President of the Retailers Association of Massachusetts. Some businesses suggest the state should draw from its $9 billion dollar rainy day fund to pay for their error. The settlement comes as budget-writers are already dealing with major expenditures and the unemployment insurance system is facing other financial issues. Payments will begin in December 2025, and will continue through December 2035.