How late is the State budget? Really? What is in the state budget is the more important question!

Chris Lisinski (@ChrisLisinski) tweeted on Mon, Jul 31, 2023:

Just how late was the annual state budget lawmakers sent to Gov. Healey on Monday?

Only three other budgets since FY2000 have been completed later, one of which was in 2020 when the COVID-19 pandemic upended everything, per @masstaxpayersfd data. #mapoli  https://t.co/MjQF0gjlqs 

What is in the state budget is the more important question!

Shared from Twitter -> https://t.co/ypnCUKs33L

"Less than 24 hours after negotiators inked a compromise on a $56.2 billion annual spending plan, House and Senate lawmakers, with little debate, voted Monday to send the fiscal year 2024 package to Governor Maura Healey.

The chambers’ action on the budget legislation, representing a record level of spending, came nearly a month after the July 1 deadline for the start of the new fiscal year.

The budget is now in Healey’s hands for the next 10 days, and what happens next remains to be seen. Lawmakers used the governor’s budget proposal as a roadmap in crafting their own, but she could seek to further shape the spending plan, the first of her term in the corner office."

Continue reading the Boston Globe article (subscription may be required)

https://www.bostonglobe.com/2023/07/31/metro/massachusetts-budget-2024/

The Conference Committee report on the FY 2024 budget can be found ->

https://malegislature.gov/Budget/ConferenceCommittee

The link to the actual legislation document H 4040 ->    https://malegislature.gov/Bills/193/H4040

The continuation legislation to fund August in lieu of the final budget. Signed by Gov Healey on July 31, 2023 -> https://malegislature.gov/Bills/193/H4022

Via MA Senate Twitter ->  https://twitter.com/MA_Senate/status/1685851177802403840

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MA Senate Overwhelmingly Approves Fiscal Year 2024 Budget

The Massachusetts Senate approved on Thursday a $55.9 billion budget for Fiscal Year 2024 (FY24). Following a robust, spirited, and engaging debate process, the Senate approved 478 amendments, adding $82.2 million in spending to the budget. As the Commonwealth continues to emerge from the COVID-19 pandemic, the Senate’s budget prioritizes upholding fiscal discipline and responsibility, and supports the long-term economic health of the state. The Senate budget delivers historic levels of investment in education, housing, regional transportation, health care, workforce development, climate preparedness, and much more, while centering equity and opportunity as part of a broader, more comprehensive strategy to make Massachusetts more affordable, inclusive, and competitive.

“I am so proud that this chamber voted resoundingly for a transformative budget built on the simple principle that our success as a Commonwealth is tied to the success of every single person who calls Massachusetts home,” stated Senate President Karen E. Spilka (D-Ashland). “Massachusetts will be competitive so long as people from all over the world can come here to fulfill their dreams – whether by going back to school, advancing their career, starting a business, or finding affordable housing and child care to raise a family. At a time when our world-class educational institutions are more needed now than ever, this budget adds a new chapter in Massachusetts’ storied tradition of making education accessible to all through our Student Opportunity Plan. I want to thank Chair Rodrigues, Vice Chair Friedman, Assistant Vice Chair Comerford, the Committee and all my Senate colleagues for their thoughtful and collaborative work on this budget.”

“In my five years as Chair of Ways and Means, I’ve never experienced a smoother or more democratic process than the Fiscal Year 2024 budget the Senate just approved here today,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “The chamber focused on an overarching goal to meet (and in many cases exceed) the pressing needs of our communities, and the Commonwealth at large. This budget is a forward-thinking and responsive proposal that greatly facilitates our long-term economic health and expands access to opportunities to reinvigorate and reinvest in our workforce economy, lessen the wealth-income divide, and empower our communities as we build an inclusive post-pandemic future that equitably benefits all. Focusing on shared priorities and upholding fiscal responsibility, the Senate specifically targeted investments collectively in education, transportation, local aid, health care, housing assistance, workforce development, greatly strengthened the social service safety net. The Commonwealth’s economic foundation is now positioned to deftly deflect ongoing challenges and weather future uncertainty. Thank you to my colleagues in the Senate, especially my colleagues on the Committee, whose advocacy, collaboration, and dedication helped to inform and shape this comprehensive budget plan. A special heartfelt thank you to the Ways and Means staff, whose diligent work over the last several months was largely responsible for producing this budget, their tireless efforts did not go unnoticed! Lastly, a huge and sincere thank you to Senate President Spilka for her resolute and compassionate leadership as we work together to rebuild our economy and bolster our state’s long-term economic health.”

“I am proud of the Senate’s proposed budget for Fiscal Year 2024, which builds off prior fiscal year investments to deliver a comprehensive, impactful set of services and programs for the residents of the Commonwealth,” said Senator Cindy F. Friedman (D-Arlington), Vice Chair of the Senate Committee on Ways and Means. “I am particularly proud of the provisions that safeguard preventive health care services like cancer screenings and access to medications for chronic conditions, in the wake of a partisan federal court ruling that threatens access to these important, life-saving health care services. In Massachusetts, we will continue to protect access to commonsense health care for all our residents.”

“Historic investment in food security and the Commonwealth's food system. Record investment in regional transit authorities. Transformative levels of higher education funding,” said Senator Joanne Comerford (D-Northampton), Assistant Vice Chair of the Senate Committee on Ways and Means and Senate Chair of the Joint Committee on Higher Education. “I am proud of the many ways that this budget rises to meet the need of the Commonwealth’s people while strategically stoking opportunity and growth, maximizing equity, tackling pressing challenges, and seizing the promise of our time. Thank you to Senate President Karen Spilka and Chair Michael Rodrigues for their leadership in crafting this compassionate and responsible budget proposal.”

The Committee’s budget recommends a total of $55.8 billion in spending, a $3.4 billion increase over the Fiscal Year 2023 (FY23) Budget. This spending recommendation is based on a tax revenue estimate of $40.41 billion for FY24, representing 1.6 per cent growth with an additional $1 billion from the new Fair Share surtax, as agreed upon during the Consensus Revenue process in January.

Remaining vigilant about the current fiscal environment, the Committee’s FY24 budget adheres to sound fiscal discipline and builds up available reserves for the state’s Stabilization Fund. The fund has grown to a record high of $7.16 billion and is projected to close FY24 at $9.07 billion. ensuring that the Commonwealth continues to have the means to uphold fiscal responsibility during a time of ongoing economic volatility.

The Senate’s FY24 budget also sets aside $575 million to pay for a progressive tax relief package that will center equity and chip away at the headwinds that threaten Massachusetts competitiveness. This tax package will be discussed and debated following the conclusion of the FY24 budget process.

Fair Share Investments

Consistent with the consensus revenue agreement reached with the Administration and House in January, the Senate’s FY24 budget includes $1 billion in revenues generated from the Fair Share ballot initiative voters approved in November 2022, which established a new surtax of 4 per cent on annual income above $1 million and invests these new public dollars to improve the state’s education and transportation sectors.

To safeguard this new source of revenue, the Senate’s FY24 budget also establishes an Education and Transportation Fund to account for these Fair Share funds in an open and transparent manner. This will ensure the public is visibly informed about how much revenue is collected from the new surtax and how much of this revenue is being dedicated to improving public education and transportation systems in accordance with the ballot initiative.

Notable Fair Share Education investments include: 

• $125 million for Higher Education Capital Funding, focused on reducing backlog of deferred maintenance projects
• $100 million for Financial Aid Expansion to expand financial aid programs for in-state students attending state universities through MASSGrant Plus, bringing the total proposal for this program to $275 million, more than doubling the amount of scholarship funding provided by the state just two fiscal years prior
• $100 million for Massachusetts School Building Authority Capital Supports for cities, towns and school districts experiencing extraordinary school project costs impacted by post-COVID inflationary pressures
• $30 million for Student Support Services to ensure students in the Commonwealth have success on the post-secondary level through wraparound supports, bringing the total program investment to $44 million
• $25 million to reduce the waiting list for the income-eligible child care assistance program, which will create approximately 2,200 new slots for children
• $25 million for capital investments in early education and care programs to build capacity and ensure the ability of programs to safely accommodate additional slots
• $20 million for Mass Reconnect, as a first step toward free community college in the Commonwealth for those aged 25 and older
• $20 million for a Free Community College Program for nursing students as a pilot to support a high-need workforce area and build toward universal free community college in the fall of 2024
• $15 million for Free Community College Implementation Supports to collect necessary data, develop best practices, and build capacity for free community college in the fall of 2024
• $15 million for the Commonwealth Preschool Partnership Initiative, which empowers school districts to expand prekindergarten and preschool opportunities through public-private partnerships; this funding is on top of an additional $15 million in non-Fair Share funding for this initiative
• $15 million to expand upon the Senate-championed program that supports early education and care staff members with paying for their own personal child care
• $10 million for Early College and Innovation Pathways

 

Notable Transportation investments include:

• $190 million for MBTA Capital Investments for critical capital resources for both the subway and commuter rail systems
• $100 million for Regional Transit Funding and Grants, which will exclusively be used to support the work of the Regional Transit Authorities that serve the Commonwealth, more than doubling the total funding for RTAs to $194 million, including:
• $56 million to be distributed to RTAs for operating assistance, with special attention paid to those RTAs with historically low state operating assistance
• $25 million for an innovation grant program for transportation providers across the Commonwealth for initiatives such as electrification, infrastructure, capital investments, new and innovative service delivery models, expanded service hours or weekend service, rural connectivity, and connectivity improvements across regional transit authority service areas
• $15 million for fare-free pilot program grants to provide six months of fare-free RTA service across the Commonwealth
• $4 million through the Community Transit Grant Program to support expanded mobility options for older adults, people with disabilities and low-income individuals
• $100 million in supplemental aid for roads and bridges, half of which will be expended consistent with the Chapter 90 program, while the other half will be spent with a focus on the total mileage of participating municipalities
• $50 million for a reserve to provide matching funds for transportation projects that are eligible for federal funds, which will help the state better compete for increased federal transportation funding made available by the Biden Administration
• $50 million for Highway Bridge Preservation, to ensure that consistent funds are provided to make sure that critical infrastructure does not fall into disrepair
• $5 million for MBTA Means-Tested Fares, which will cover initial exploration of the feasibility of implementing a means-tested fare program at the MBTA
• $5 million for Water Transportation, which will cover one-time expenses for a pilot program covering operational assistance for ferry services

Education

The Senate Ways and Means FY24 budget proposal takes the first step toward implementing the Senate’s Student Opportunity Plan by making high-quality education more accessible and by making record investments to support students across the full breadth of the Commonwealth’s education system, from Massachusetts’ youngest learners to adults re-entering higher education. 

Recognizing that investments in our early education and care system support the underlying economic competitiveness of the Commonwealth, the Senate’s budget makes a historic $1.5 billion investment in early education and care. This is the largest-ever proposed annual appropriation for early education and care in Massachusetts history. For context, this area of the budget has increased by more than 77 percent (more than $660 million) over the budget from three fiscal years prior. The FY24 budget will maintain operational support for providers, support the early education and care workforce, and prioritize accessibility and affordability throughout our early education and care system.

Notably, this will be the first fiscal year in which the annual state budget includes a full year of funding for C3 grants, signaling a historic commitment to maintain this crucial lifeline for our early education and care sector. Funded at $475 million, this program, which is open to all early education and care providers, provides monthly payments to programs throughout Massachusetts. These grants, which are received by 88% of early education and care programs in the Commonwealth, have empowered programs to raise salaries, to hire additional staff, to maintain their enrollment levels, and to avoid tuition increases. Without the continuation of these grants, 751 providers (which serve over 15,000 children) have indicated that they would have to close their doors.

Other notable funding includes:

• $45 million for the center-based childcare rate reserve for reimbursement rates for subsidized care, including:
• $20 million in line-item appropriations, and
• $25 million in expected leftover funds from Fiscal Year 2023
• $30 million for the Commonwealth Preschool Partnership Initiative, which empowers school districts to expand prekindergarten and preschool opportunities through public-private partnerships. This is double the amount that was appropriated for this initiative in FY23.
• $25 million in new funding to reduce the waiting list for income-eligible child care assistance program, which will create approximately 2,200 new slots for children
• $25 million in new funding for capital investments in early education and care programs to build capacity and ensure the ability of programs to safely accommodate additional slots
• $17.5 million for grants to Head Start programs, which provide crucial early education and child care services to low-income families
• $15 million, an increase of $5 million over FY23, to assist early education and care staff members with paying for their own personal child care
• $10 million for professional development and higher education opportunities for early educators, to assist with recruitment and retention challenges in the workforce
• $5 million, an increase of $1.5 million over FY23, for mental health consultation services in early education and care programs
• In addition to these appropriations, the Fiscal Year 2024 budget includes a policy section that will allow subsidized early education and care programs to provide child care discounts to their own staff members.

For K-12 education, the Senate commits once again to fully funding and implementing the Student Opportunity Act (SOA) by FY 2027, investing $6.59 billion in Chapter 70 funding, an increase of $604 million over FY 2023, as well as doubling minimum Chapter 70 aid from $30 to $60 per pupil. This investment ensures that the state remains on schedule to fully implement the Student Opportunity Act by FY2027 and ensures that all school districts are equipped with the resources to deliver high quality educational opportunities to their students.

In addition to these record investments in early education and public K-12 education, the Committee’s budget expands pathways to affordable public higher education for all by building capacity for free community college for all students in Fall 2024. Laying the groundwork for this momentous change to make higher education more accessible, the Senate budget includes $275 million for the scholarship reserve, $55 million to accelerate and build up capacity to support free community college across all campuses by fall of 2024, and $40 million for free community college programs for students aged 25 or older and for students pursuing degrees in nursing starting in the fall of 2023, thereby addressing a critical need felt across the state.

The Committee’s budget also welcomes students regardless of their race, national origin, citizenship, or immigration status, making clear that all high school students who attend for three years and graduate from a Massachusetts high school are eligible to receive in-state tuition at our public institutions of higher education.

Other education investments include:

• $503.8 million for the special education circuit breaker
• $230.3 million for charter school reimbursements
• $97.1 million to reimburse school districts for regional school transportation costs, representing a 90% reimbursement rate
• $15 million for Rural School Aid supports
• $15 million for Early College programs and $12.6 million for the state’s Dual Enrollment initiative, both of which provide high school students with increased opportunities for post-graduate success
• $5 million to support implementation of the Massachusetts Inclusive Concurrent Higher Education law, including:
• $3 million for grants offered through the Massachusetts Inclusive Concurrent Enrollment initiative to help high school students with intellectual disabilities ages 18–22 access higher education opportunities, and
• $2 million for the Massachusetts Inclusive Concurrent Enrollment Trust Fund
• $2.5 million for the Civics Education Trust Fund, after an increase of $1 million through the amendment process, to promote civics education and civic engagement throughout the Commonwealth.
• $2 million for the Genocide Education Trust Fund, continuing our commitment to educate middle and high school students on the history of genocide.
• $1 million, adopted through the amendment process, for the Department of Higher Education to support Hunger-Free Campuses for both two- and four-year public institutions of higher education and minority serving institutions

Health, Mental Health & Family Care

The Senate budget funds MassHealth at a total of $19.93 billion, providing more than 2.3 million people with continued access to affordable, accessible, and comprehensive health care services. Other health investments include:

• $2.9 billion for a range of services and focused supports for people with intellectual and developmental disabilities
• $597.7 million for Department of Mental Health adult support services, including assisted outpatient programming and comprehensive care coordination among health care providers.
• $582 million for nursing facility Medicaid rates, including:
• $112 million in additional base rate payments to maintain competitive wages in the Commonwealth’s nursing facility workforce
• $213.3 million for a complete range of substance use disorder treatment and intervention services to support these individuals and their families
• $119.8 million for children’s mental health services, after an increase of $500K through the amendment process for the establishment of Behavioral Health Pilot Program for K-12 Schools
• $71.2 million for domestic violence prevention services
• $42.9 million for Early Intervention services, ensuring supports remain accessible and available to infants and young toddlers with developmental delays and disabilities
• $33.8 million for Family Resource Centers to grow and improve the mental health resources and programming available to families
• $26.3 million for grants to local Councils on Aging to increase assistance per elder to $14 from $12 in FY 2023
• $25 million for emergency department diversion initiatives for children, adolescents, and adults
• $21.5 million for family and adolescent health, including:
• $9.2 million for comprehensive family planning services, and
• $6.7 million to enhance federal Title X family planning funding
• $20 million to recapitalize the Behavioral Health, Access, Outreach and Support Trust Fund to support targeted behavioral health initiatives
• $19.2 million to support student behavioral health services at the University of Massachusetts, state universities, community colleges, K-12 schools and early education centers
• $15 million for grants to support local and regional boards of health, continuing our efforts to build upon the successful State Action for Public Health Excellence (SAPHE) Program
• $12.8 million for Elder Nutrition Meals on Wheels, after an increase of $1 million through the amendment process
• $6 million for Social Emotional Learning Grants to help K-12 schools bolster social emotional learning supports for students, including $1 million to provide mental health screenings for K-12 students
• $5 million for Children Advocacy Centers to improve the critical supports available to children that have been neglected or sexually abused
• $4.6 million for the Office of the Child Advocate
• $3.8 million for the Massachusetts Center on Child Wellbeing & Trauma
• $2 million for grants for improvements in reproductive health access, infrastructure, and safety
• $1 million, adopted through the amendment process, for the Public University Health Center Sexual and Reproductive Health Preparation Fund for the purpose of reimbursements to public universities for abortion medications
• $1 million, adopted through the amendment process, for the development, expansion and operation of freestanding birth centers and support for community-based maternal health services

The Senate’s FY24 budget codifies into law the federal Affordable Care Act’s (ACA) provisions that protect access to preventive services. By enshrining the ACA protections into state law, insurance carriers across the Commonwealth will be required to provide coverage for preventive services without imposing cost-sharing such as co-pays and deductibles. With this vital step, the Senate is protecting access to preventive health care services for millions of our residents, including screenings for cancer, diabetes, HIV, and depression, as well as preventive medications such as statins, immunizations, and PrEP (pre-exposure prophylaxis for HIV), and further protecting the rights and freedoms of residents to make their own health care choices without federal interference.

Through the amendment process, the Senate also took a crucial step toward expanding access to reproductive health by allowing pharmacists to dispense hormonal contraceptives. 

Expanding & Protecting Opportunities

The Senate remains committed to continuing an equitable recovery, expanding opportunity, and supporting the state’s long-term economic health. To that end, the Committee’s budget includes a record investment in the annual child’s clothing allowance, providing $450 per child for eligible families to buy clothes for the upcoming school year. The budget also includes a 10 per cent increase to Transitional Aid to Families with Dependent Children (TAFDC) and Emergency Aid to the Elderly, Disabled and Children (EAEDC) benefit levels compared to June 2023 to help families move out of deep poverty.

Economic opportunity investments include:

• $444.7 million for Transitional Assistance to Families with Dependent Children (TAFDC) and $201.4 million for Emergency Aid to Elderly, Disabled and Children (EAEDC) to provide the necessary support as caseloads increase and to continue the Deep Poverty increases
• $60 million for adult basic education services to improve access to skills necessary to join the workforce
• $36 million for the Massachusetts Emergency Food Assistance Program, after an increase of $1 million through the amendment process
• $20 million for the Workforce Competitiveness Trust Fund to connect unemployed and under-employed workers with higher paying jobs
• $21 million in Healthy Incentives Programs to maintain access to healthy food options for households in need
• $15 million for a Community Empowerment and Reinvestment Grant Program to provide economic support to communities disproportionately impacted by the criminal justice system
• $15.4 million for Career Technical Institutes to increase our skilled worker population and provide residents access to career technical training opportunities
• $5.8 million for the Innovation Pathways program to continue to connect students to trainings and post-secondary opportunities in the industry sector with a focus on STEM fields
• $5 million for community foundations to provide emergency economic relief to historically underserved populations
• $5 million for the Secure Jobs Connect Program, providing job placement resources and assistance for homeless individuals
• $2.5 million for the Massachusetts Cybersecurity Innovation Fund, including $1.5 million to further partnerships with community colleges and state universities to provide cybersecurity workforce training to students and cybersecurity services to municipalities, non-profits, and small businesses
• $600,000 through the amendment process for the Massachusetts Downtown Initiative, which will provide municipalities with technical assistance to promote compact, walkable downtowns that have a vibrant mix of commercial and residential uses, cultural and recreational amenities, and access to public transportation.

Housing

As the Senate puts in motion plans to make the Commonwealth  more inclusive, home affordability remains on the top of residents’ minds. To that end, the Senate’s FY24 budget makes a historic $1.05 billion investment in housing, dedicating resources programs that support housing stability, residential assistance, and homelessness assistance.

The budget prioritizes relief for families and individuals who continue to face challenges brought on by the pandemic and financial insecurity, including $324 million for Emergency Assistance Family Shelters and $195 million for Residential Assistance for Families in Transition (RAFT), which will provide rental assistance that a household can receive at $7,000. Other housing investments include:

$200 million for the Massachusetts Rental Voucher Program (MRVP), including $20.4 million in funds carried forward from FY 2023, creating more than 750 new vouchers and allowing the program to move to a payment standard with a benefit of 110% of the federal small-area fair market rental price, significantly broadening housing options for those served by the program

• $110.8 million for assistance for homeless individuals
• $107 million for assistance to local housing authorities
• $39.6 million for the HomeBASE diversion and rapid re-housing programs, bolstering assistance under this program to two years with a per household maximum benefit of $20,000
• $26 million for the Alternative Housing Voucher Program (AHVP), including $9.1 million in funds carried forward from FY 2023. This funding increase will create 250 new vouchers and will pair with $2.5 million for grants to improve or create accessible housing units. Both programs will also benefit from the inclusion of project-based vouchers in AHVP, which will stimulate the building of new deeply affordable and accessible homes
• $7.6 million for sponsor-based supportive permanent housing
• $6.4 million for the Home and Healthy for Good re-housing and supportive services program, including:
• $250,000 for homeless LGBTQ youth
• $500,000 through the amendment process for a matched savings, coaching, and support program for first-generation, first-time homebuyers across the Commonwealth

 

In addition to these record supports, the budget makes permanent a COVID-era renter protection that slows down the court process in eviction proceedings when the tenant has a pending rental assistance application. 

Community Support

The Committee’s budget – in addition to funding traditional accounts like Chapter 70 education aid – further demonstrates the Senate’s commitment to state-local partnerships, dedicating meaningful resources that touch all regions and meet the needs of communities across the Commonwealth. This includes $1.27 billion in funding for Unrestricted General Government Aid (UGGA), an increase of $39.4 million over FY 2023, to support additional resources for cities and towns. In addition to traditional sources of local aid, the Committee’s budget increases payments in lieu of taxes (PILOT) for state-owned land to $51.5 million, an increase of $6.5 million over FY 2023. PILOT funding is a vital source of supplemental local aid for cities and towns working to protect and improve access to essential services and programs during recovery from the pandemic. Other local investments include:

• $194 million for Regional Transit Authorities (RTAs) to support regional public transportation systems, including $100 million from Fair Share funds to support our RTAs that help to connect all regions of our Commonwealth.
• $47.3 million for libraries, including $16.7 million for regional library local aid, after an increase of $750,000 through the amendment process, $17.6 million for municipal libraries and $6.2 million for technology and automated resource networks.
• $25 million for the Massachusetts Cultural Council to support local arts, culture and creative economy initiatives.

The FY24 Senate Budget will soon be available on the Massachusetts legislature’s website: https://malegislature.gov/Budget/FY2024/SenateBudget. 

A conference committee will now be appointed to reconcile differences between the versions of the budget passed by the Senate and House of Representatives.

MA Senate Overwhelmingly Approves Fiscal Year 2024 Budget

MA Senate releases their FY 2024 budget

May 9, 2023

Dear Members of the Massachusetts State Senate,

     For the fifth time as Chair of the Senate Committee on Ways and Means, I have the honor to present the Committee’s annual recommendations for the General Appropriations Act—the Fiscal Year 2024 (FY 2024) Budget. 

     Thank you to Senate President Karen Spilka for her ongoing friendship, sage counsel, steady leadership, and continued confidence in me to lead the Committee as we work together to move Massachusetts forward towards a more inclusive and resilient post-pandemic future. 

     I would like to also thank our partners in the House, Chair Aaron Michlewitz and his team in the House Committee on Ways and Means, and in the Healey-Driscoll Administration, Secretary Matthew Gorzkowicz and his team in the Executive Office for Administration and Finance. Without their collaboration, cooperation and partnership throughout the budget development process, support for our residents, our communities, and our long-term economic health would not be possible. 

     Together, over these last four years, we have carefully navigated the COVID-19 pandemic and its many challenges. Adapting to a new normal utilizing an approach rooted in collaboration with our partners across state government, we addressed urgent needs and protected our most vulnerable populations. We maintained stability, built up our reserves, and made meaningful investments to support an equitable recovery for our people. 

     It was an approach that worked. Today, our Rainy Day Fund is projected to close FY 2024 with a historic balance of $9 billion, and we have $1.7 billion in surplus resources available for future use. More recently, Standard & Poor’s (S&P) ratings agency upgraded our state’s bond rating, a recognition that our long-standing adherence to sound fiscal discipline and efforts to reinforce the Commonwealth’s economic foundation is paying dividends.

Continue reading the Message from the Chair - Michael J. Rodrigues, Chair, Senate Committee on Ways and Means online =>    https://malegislature.gov/Budget/SenateWaysMeansBudget 

Mass Municipal Assoc covers the budget release ->  https://www.mma.org/senate-budget-committee-releases-fiscal-2024-proposal/

Common Wealth Magazine covers the budget release ->    https://commonwealthmagazine.org/state-government/senate-budget-embraces-in-state-tuition-for-undocumented-students/

Senate President Karen Spilka and Senate Ways and Means Chair Michael Rodrigues. (Photo by Bruce Mohl)

The MA House Ways & Means budget: via Commonwealth Magazine, Boston Globe, and direct link to budget

Via CommonWealth Magazine: What follows is an explainer about what’s in the House Ways and Means budget proposal for fiscal 2024.

"How big is the House Ways and Means budget?

It comes in at nearly $56.2 billion, and that’s before lawmakers start adding earmarked spending during the budget debate that starts April 26. The budget is about $170 million higher than Gov. Maura Healey’s proposal because the governor wants to give more money back in the form of tax relief while the House would phase in many of its tax breaks over time, allowing the branch to spend more money now.

That spending total seems like a lot of money.

It is a lot. For perspective, the state budget in fiscal 2016 was $38.4 billion. Over the last eight years, the state budget has grown by $17.8 billion, or 46 percent."

Continue reading the article online ->

https://commonwealthmagazine.org/gambling/what-you-need-to-know-about-the-house-budget-proposal/

Boston Globe coverage on the budget -> 

https://www.bostonglobe.com/2023/04/12/metro/mass-house-unveils-millionaires-tax-plan/

The House Ways & Means budget can be found online -> 

https://malegislature.gov/Budget/HouseWaysMeansBudget 

MassBudget provides a budget browser to view comparisons between and among categories and years  https://massbudget.org/budget-browser/

The MA House Ways & Means budget: via Commonwealth Magazine, Boston Globe, and direct link to budget

Healey-Driscoll Administration filed their Fiscal Year 2024 budget recommendation

The Healey-Driscoll Administration today filed its Fiscal Year 2024 (FY24) budget recommendation, a $55.5 billion blueprint for Massachusetts’ future that makes historic investments in climate action, public education and transportation, and workforce development. It also lays out Governor Healey’s plans for first-time use of Fair Share revenue, including the creation of a new Education and Transportation Fund. This budget is being filed alongside the $750 million Healey-Driscoll tax relief package and Article 87 legislation to create the Executive Office of Housing and Livable Communities.  

“Our FY24 budget is what Massachusetts needs to meet this moment and build a strong economy, livable communities and a sustainable future,” said Governor Healey. “Combined with our tax relief proposal, we will set Massachusetts up for success by lowering costs, growing our competitiveness, and delivering on the promise of our people. Additionally, we are taking aggressive action to address our housing crisis by creating the Executive Office of Housing and Livable Communities led by a housing secretary who will coordinate across state government and with cities and towns to move us forward on our housing goals.” 

“Massachusetts is made up of 351 cities and towns that each play an important role in helping Massachusetts reach its potential – from educating our kids, to keeping us safe, to investing in places where we build vibrant, healthy, livable communities,” said Lieutenant Governor Driscoll. “That’s why our budget proposes historic investments in local aid, a down payment on the future of our cities and towns, schools, and kids, and fully funds the Student Opportunity Act with the largest ever increase for K-12 schools in Massachusetts’ history.” 

This budget, filed as House 1, puts forward a responsible proposal to utilize $1 billion in new spending from the Fair Share Amendment. Governor Healey is establishing a new Education and Transportation Fund to ensure that the money collected is used exclusively and transparently for education and transportation.  

On education, House 1 fully funds the Student Opportunity Act with historic investments in Chapter 70 school aid and other local aid accounts. It supports state-subsidized early education and care, increasing child care slots and putting the state on a path toward universal Pre-K, starting in Gateway Cities. It also expands access for high school students to quality early college and career pathways, creates the new MassReconnect program to make community college free for students aged 25 and older, and locks in a four-year tuition freeze across the UMass system. 

On transportation, House 1 includes start-up funding for a means-tested program for thousands of low-income MBTA riders, and to spur progress on key projects like West-East Rail, the Red-Blue Connector, and the electrification of the state’s bus fleet. The administration will also recommend funding for new hiring and training supports for the MBTA in an upcoming supplemental budget to help meet their goal of hiring 1,000 additional workers this year. This budget also dedicates funding within various departments in the Executive Branch to maximize the state’s ability to compete for federal grant dollars with matching funds for infrastructure and other projects. 

The budget follows through on Governor Healey’s commitment to dedicate 1 percent of the state’s overall operating budget to the Executive Office of Energy and Environmental Affairs. The administration will be tripling the budget of the Massachusetts Clean Energy Center to empower local entrepreneurs, decarbonize buildings and make our state the global capital of the clean energy economy.  

The administration is also filing Article 87 legislation to create a new Executive Office of Housing and Livable Communities, headed by a Cabinet level Secretary, that will be charged with dramatically expanding the work now done by the Department of Housing and Community Development. The Executive Office of Housing and Economic Development will be renamed the Executive Office of Economic Development. 

Alongside this balanced budget proposal, the Healey-Driscoll Administration will be filing a comprehensive tax package fully paid for in the FY24 budget at a cost of $742 million on the budget to address the challenges of affordability, equity and competitiveness confronting our families, employers and those who might be considering leaving Massachusetts.  

“We approached this budget with the goal of building a responsible and sustainable spending plan for the Commonwealth that invests thoughtfully in its people, its economy and its future, We’re proud to be able recommend historic investments in areas like higher education and climate, while also delivering on tax relief for families and developing a transparent plan to use new Fair Share revenue to improve our education and transportation systems as voters intended,” said Secretary for Administration and Finance Matthew J. Gorzkowicz. 

House 1 Overview 

House 1 proposes $55.5 billion in gross spending, which represents 4.1 percent spending growth over fiscal year 2023 made possible by the $40.41 billion consensus tax revenue growth estimate of 1.6 percent, as well as $1 billion from Fair Share and other sources of revenue. 

This budget does not utilize any funding from the Stabilization Fund, which has grown to a record high $6.938 billion and is projected to finish fiscal year 2024 at $8.962 billion. The recommendation assumes $1.946 billion in capital gains tax revenue, of which $466 million will be transferred to the Stabilization Fund and other long term liability funds for pension and retiree health insurance costs.  

The budget recommendation maintains the state’s commitment to fully fund its pension liability by 2036 with $4.105 billion in fiscal year 2024, a $361 million increase over the fiscal year 2023 contributions. Projected sales tax revenues will enable a $1.463 billion transfer to support the operations of the Massachusetts Bay Transportation Authority (MBTA), an increase of $138 million over the fiscal year 2023 budgeted contribution, and $1.3 billion will be transferred to the Massachusetts School Building Authority to support school construction across the Commonwealth.  

Fair Share 

The voters of Massachusetts in November 2022 approved a new 4 percent surtax on income above $1 million. They did so with the understanding that the new revenue generated from the tax on higher-income earners would be used to promote high-quality education, repair and maintain roads and bridges and improve our public transit system. 

This budget proposes to keep that commitment by establishing a new Education and Transportation Fund that would receive all surtax revenues and ensure that the money collected is restricted for the use of education and transportation in the most transparent way possible. House 1 also recommends a mechanism to ensure that while all funds remain dedicated to those purposes, they are used in a manner that is sustainable and protected against future downturns and fluctuations in the revenue stream. 

The proposal recommends the establishment of a required minimum fund balance that would be used only in the event of significant revenue decline to preserve base programs funded from Fair Share tax revenue. This balance would grow annually to account for inflation. 

To ensure predictability, a cap would be established on recurring spending with revenue collected above the cap used to support one-time investments in pilot programs, start-up grants, studies, one-time capital investments such as bridges, railroad right-of-way improvements, and other non-recurring projects. 

Continue reading the press release online -> 

https://www.mass.gov/news/governor-healey-and-lieutenant-governor-driscoll-file-fiscal-year-2024-budget-tax-relief-and-housing-bills

The Governor’s filing letter, budget message and specific account information are available here ->  https://budget.digital.mass.gov/govbudget/fy24/

The Governor’s filing letter, budget message and specific account information

Senate President Karen Spilka Statement on Tax Relief

Statement from Senate President Karen E. Spilka (D-Ashland):

"Having consistently stated my support for permanent progressive tax relief, I am excited to see Governor Healey's proposal to provide much-needed financial relief to Massachusetts residents. While the Senate will need time to dive into the details, I am particularly pleased to see support for families, parents with childcare needs, seniors, and persons with disabilities reflected in this proposal. With affordability a top concern on everyone's minds, I look forward to continuing this conversation with my Senate colleagues and partners in the Administration and the House so that we can move forward with tax relief soon this session."

 

“which we do expect to reverse in the second half of this fiscal year”

"STATE REVENUE collections missed the mark by nearly 5 percent in January, with the $3.834 billion that the Department of Revenue reeled in landing $192 million, or 4.8 percent, shy of the previous January’s collections and $185 million or 4.6 percent below the monthly benchmark.

It is the first time since June 2020 that DOR has announced that tax collections have failed to live up to the administration’s monthly expectation. The $21.643 billion that DOR has collected through seven months of fiscal year 2023 is $229 million, or 1 percent less, than actual collections in the same period of fiscal 2022. Tax receipts are the primary source of funding for this year’s state budget, which grew by 10 percent.

The sluggish January numbers may affect the appetite of the Healey administration and the Legislature for tax cuts this year."

Continue reading the article online at CommonWealth Magazine ->

https://commonwealthmagazine.org/uncategorized/state-tax-revenues-miss-mark-for-first-time-since-june-2020/ 

Some of the variability in forecast vs. actual is due to the "pass thru entity" or PTE accounting for which there is a good explanation of in this article.

The golden dome of the State House. (Photo by Andy Metzger)

Consensus on the MA revenue forecast remains to be set but 2 hours of hearing updates gets it started

"TOP BUDGET OFFICIALS from the Legislature say they intend to abide by the will of the voters and make sure all revenue from the new millionaire tax goes to “new initiatives” in transportation and education.

Exactly what would qualify as a “new initiative” hasn’t been decided yet (is a new bus or subway car a new initiative?), nor has any decision been made on whether the money would be evenly split between education and transportation.

“That’s all to be discussed,” said Sen. Michael Rodrigues, the chair of the Senate Ways and Means Committee."

Continue reading the article

https://commonwealthmagazine.org/state-government/special-treatment-considered-for-revenue-from-millionaire-tax/

"STATE REVENUES are expected to rise slightly in the coming fiscal year, but top budget officials from the Legislature and Healey administration say it’s still unclear whether there is enough money to enact permanent tax cuts.

At the end of last year’s legislative session, former governor Charles Baker and Senate leaders wanted to press ahead with $500 million in permanent tax cuts in addition to nearly $3 billion in one-time refunds from the state’s tax cap law."

Continue reading the article

https://commonwealthmagazine.org/state-government/top-budget-officials-still-undecided-on-tax-cuts/

"State revenue officials said Tuesday they could collect at least $1.4 billion — and perhaps up to $1.7 billion — next fiscal year from Massachusetts’ newly enshrined tax on its wealthiest earners, kick-starting months of debate over how to steer the new injection of tax money.

The projection, offered Tuesday in a legislative hearing, marked the first official estimate state officials have provided on what they think the so-called “millionaires tax” will contribute to coffers in its first year since taking effect Jan. 1. Narrowly passed by voters on the November ballot, the measure increases the state’s 5 percent income tax rate to 9 percent on annual income exceeding $1 million."

Continue reading the article in the Boston Globe (subscription may be required)

https://www.bostonglobe.com/2023/01/24/metro/new-millionaires-tax-could-generate-least-14-billion-next-year-state-officials-project/

The 2 hour hearing that generated these articles is available for video replay on your schedule  https://malegislature.gov/Events/SpecialEvents/Detail/403/Video1

The Big 3 on budget issues: From left, Matthew Gorzkowicz, Gov. Maura Healey's secretary of administration and finance; Sen. Michael Rodrigues, chair of the Senate Ways and Means Committee; and Rep. Aaron Michlewitz, chair of the House Ways and Means Committee. (Photo by Bruce Mohl)

Fiscal year 2024 budget cycle timeline changes slightly with a new Governor

The Town of Franklin starts the Fiscal Year 2024 budget cycle as soon as the tax rate is set for FY 2023. The budget cycle flowchart is posted on the Town page ->

https://www.franklinma.gov/sites/g/files/vyhlif6896/f/uploads/new_budget_process.pdf

The assumptions on State aid (Chap 70, etc.) usually come in January with the release of the Governor's Budget. The first year of the legislative 2 year cycle the release is call H1, the second year H2. With a new Governor, the timeline starts later in their first term.

"House 1; House 2

The Governor's budget recommendations for the next fiscal year. According to the Constitution, it must be filed within 3 weeks of the convening of the Legislature in January. Newly-elected governors must file House 1 within 8 weeks. In the second year of a legislative session, the Governor's budget is referred to as House 2."

Incoming Governor Healey is required to release their new budget on or before March 1, 2023.

Last year, we recorded a budget cycle conversation with Comptroller Chris Sandini and Treasurer/Collector Kerri Bertone. We get into the budget cycle and all the ins and outs of the details. The only thing that has changed is during the recording we were talking of the possible AAA rating. Since then, the Town has officially been awarded that. You listen to that discussion here:

https://www.franklinmatters.org/2022/08/inside-town-of-franklin-budget-cycle.html

Visit the Town Budget page for all the info on the cycle and recent budgets

https://www.franklinma.gov/town-budget

The State budget terminology listing can be found online ->

https://www.mass.gov/service-details/budget-terminology

The full State budget timeline can be found ->

https://www.mass.gov/service-details/budget-process-timeline

The FY 2023 & Prior info can be found online ->

https://www.mass.gov/operating-budgets-fy23-and-previous

Town of Franklin budget cycle

"commitments and authorizations under state law that are not fully kept by the Commonwealth"

"THE STATE HAS a $1.2 billion shortfall in aid promised to cities, towns, and school districts, Auditor Suzanne Bump concluded in a report released Thursday. 

The report looked at several major categories of state aid and identified $711.4 million in unfunded mandates related to school aid; $448.3 million related to school transportation; and $103.3 million in government aid, mainly related to the Community Preservation Act. 

“The state should be accountable to fulfill its funding obligations to cities and towns,” Bump said in an interview. “These are mandates that have long been on the books, and it just seems it’s easier to focus on the new and forget about the old.” 

State law prohibits unfunded mandates, requiring the Legislature to fund anything it requires cities and towns to do. But practically, lawmakers have often ignored those obligations. For example, they regularly appropriate only a portion of mandated expenses for school transportation.  

“Insufficient state appropriations or allocations have left programs underfunded, and some programs have seen financial obligations completely ignored despite a commitment under law,” the report says. "

Continue reading the CommonWealth Magazine article online ->

https://commonwealthmagazine.org/state-government/auditor-identifies-1-2-billion-in-unfunded-mandates/

Read your copy of the report online ->  https://www.mass.gov/report/fulfilling-the-promise-of-local-aid-by-strengthening-state-local-partnerships

or download the PDF version -> https://www.mass.gov/doc/report-fulfilling-the-promise-of-local-aid-by-strengthening-state-local-partnerships/download

State Auditor Suzanne Bump

CommonWealth Magazine: after all the he said/she said, tax credit might be less than Gov Baker claimed

"AS THEIR CAREFULLY crafted plans for tax relief and massive spending outlays began to slip away with last Thursday’s stunning news about a 1986 tax law, frustrated Democrats on Beacon Hill went into spin mode.

First, late Friday afternoon, Rep. Christine Barber of Somerville took to the House floor to suggest that plans by the Baker administration to sweep a $225 million fund may have been part of the administration’s move to trigger the 36-year-old law that the Baker administration a day earlier said could force nearly $3 billion in tax relief later this year, or about 7 percent of the income taxes paid in 2021.

“It’s becoming clear that to cover closing costs for 2022 and to possibly pay for the $2.8 billion that will go to the taxpayers under Chapter 62F, there may have been some other need for these funds,” Barber said. “I hope that those funds were not used at the expense of covering low and moderate income families’ health care, but that looks like what might be happening. But we know that rather than spend these funds that were in the Commonwealth Care Trust Fund, the governor swept those funds out and then replaced this new program that we created with a study.”

Continue reading the article online

https://commonwealthmagazine.org/state-government/dems-feel-baker-knew-of-looming-tax-break-blockbuster/ 

"STATE OFFICIALS said on Thursday that tax revenues grew by more than 20 percent in the most recently completed fiscal year, but that growth will nevertheless yield a tax cap credit that is probably more than $600 million less than what the Baker administration estimated last week.

The tax cap is a 1986 law that sets “allowable” tax revenue the state can take in during a given year and requires collections in excess of that amount to be returned to taxpayers in the form of a credit."

Continue reading the article online

https://commonwealthmagazine.org/state-government/tax-cap-giveback-appears-not-as-big-as-forecasted/

CommonWealth Magazine: after all the he said/she said, tax credit might be less than Gov Baker claimed

Governor Charlie Baker Signs Fiscal Year 2023 Budget

Governor Charlie Baker today (7/28/22) signed the Fiscal Year 2023 (FY23) budget, a $52.7 billion spending plan that supports the Commonwealth’s communities, families, businesses, and workers. The budget fully funds the continued implementation of the Student Opportunity Act, while expanding proven programs and making record investments in early education and childcare, housing and homeownership, college financial aid, economic and workforce development, behavioral health care and local aid.

The FY23 budget is in balance, does not rely on one-time revenue sources, and does not raise any new taxes or fees; rather, it incorporates $315 million to support permanent tax reductions that are expected to be enacted through separate legislation pending in the Legislature. Several of the expected tax measures were first proposed in the Administration’s FY23 budget plan filed in January, including an increase to the rental deduction cap, expansions of the dependent care and senior circuit breaker tax credits, and estate tax reforms.

“With the Commonwealth in a historically strong fiscal position, the FY23 budget supports tax relief for hundreds of thousands of taxpayers, while making record investments in education and local aid,” said Governor Charlie Baker. “Since coming into office, our Administration has worked closely with the Legislature to ensure the budget is structurally sound and protected from unpredictable economic fluctuations, and I am pleased to sign another budget that maintains this commitment while making investments help Massachusetts’ families and communities grow and thrive.”

“The FY23 budget maintains our Administration’s strong support for the Commonwealth’s cities and towns and expands services in acute areas of need, like housing stability, education and childcare access, workforce development, transportation, substance addiction treatment and behavioral health care,” said Lieutenant Governor Karyn Polito. “This funding will further our work to encourage the economic growth of our communities, promote equitable access to opportunity and support the health and wellbeing of all residents.”

The FY23 budget incorporates an upgraded $39.576 billion base tax revenue forecast, an increase of $2.66 billion above the total FY23 consensus tax projection set in January. This revenue supports a total of $52.7 billion in gross spending, excluding the Medical Assistance Trust Fund transfer, which reflects approximately 9.3% growth in appropriations over Fiscal Year 2022 (FY22).

As enacted, the budget anticipates a sizable deposit into the Stabilization Fund of nearly $1.5 billion, which would increase the balance of the Fund from an already historic high of $6.9 billion to $8.4 billion. This would represent a $7.3 billion increase in the balance of the Stabilization Fund since the Baker-Polito Administration came into office in 2015 – an achievement made possible by the Administration and Legislature’s close collaboration and commitment to responsible management of the Commonwealth’s finances. 

“Fiscal responsibility has been a cornerstone of the Baker-Polito Administration, and we are proud of the work that has been done over the last seven years to bring the budget into structural balance and build up reserves, which will protect the Commonwealth from economic volatility and ensure the continuity of vital government services in the long-term,” said Administration and Finance Secretary Michael J. Heffernan. “We thank our colleagues in the Legislature for their partnership in developing this impactful spending plan that sustains critical supports for the Commonwealth’s communities, families, and workers.”

The revenue upgrade incorporated into the budget also affords a number of substantial one-time transfers and reserves in FY23, including: a $266 million reserve to support MBTA safety and workforce initiatives; a $175 million transfer to a new trust fund dedicated to supporting high-quality early education and care; a $150 million transfer to the Student Opportunity Act Investment Fund; $100 million for a supplemental transfer to the Commonwealth’s Pension Liability Fund; and $100 million for a transfer to the State Retiree Benefits Trust Fund.

Investing in Massachusetts’ Future

The FY23 budget makes record investments in the Massachusetts education system across all levels, from childcare to higher education. It continues to fully fund the implementation of the Student Opportunity Act with a $5.998 billion annual Chapter 70 investment, along with a $67.7 million increase over FY22 for special education circuit breaker reimbursement for cities and towns and a $89.2 million increase in charter school reimbursement funding. The Governor also signed a new one-time investment of $110 million that will support a pilot free school meal program for students in K-12 schools.

In addition to the $175 million trust fund transfer to support high-quality early education and care, the FY23 budget provides a total of $1.184 billion for the Department of Early Education and Care (EEC). Notably, this includes $250 million for grants to help stabilize early education and childcare providers through the pandemic recovery period, $60 million for childcare provider rate increases and funding to support the full implementation of a more equitable parent fee scale that will result in virtually all subsidized families paying a fee that is 7% of their income or less in FY23.

The FY23 budget also provides $1.61 billion for college affordability, degree completion, and workforce readiness. This funding supports more than $190 million in support for financial aid, which includes an expansion of the MASSGrant Plus program that will enable all low-income, in-state undergraduate students to attend public higher education without incurring debt for mandatory tuition and mandatory fees. The budget also includes over $30 million to scale up college and career pathway programs for high school students with a focus on equity and recruitment of high-need student populations.

The budget furthers supports job readiness and efforts to connect students and workers to high-demand career pathways with increased funding for programs within the Executive Office for Labor and Workforce Development (EOLWD). It includes $28.5 million for the YouthWorks Summer Jobs program, $23.9 million in total funding for the Career Technical Initiative, $17 million for the Workforce Competitiveness Trust Fund, and $15 million for MassHire one-stop career centers.

As Massachusetts’ economic recovery continues, the budget supports the Baker-Polito Administration’s focus on promoting equitable growth and opportunity for communities and businesses across the Commonwealth. The budget provides $32.2 million for the Small Business Technical Assistance Grant Program, which supports diverse entrepreneurs and small businesses, along with $20 million for the Community Empowerment and Reinvestment Grant program, $17.2 million for local economic development projects, and $10.7 million to support Massachusetts tourism and hospitality. 

The FY23 budget builds on the Administration’s efforts to promote equality and opportunity for communities of color with more than $50 million across the budget supporting targeted programs and initiatives aligned with the recommendations of the Governor’s Black Advisory Commission (BAC) and Latino Advisory Commission (LAC). The budget also fully funds the Supplier Diversity Office (SDO), which promotes diversity, equity, and inclusion in state contracting and ensures accountability and compliance with diversity goals.

To continue supporting local communities throughout Massachusetts, the FY23 budget increases the Unrestricted General Government Aid (UGGA) investment by $63.1 million above FY22, for a total of $1.231 billion. A further $20.7 million in funding is provided for Community Compact-related programs including best practices and regionalization and efficiency grants.

Recognizing the challenges of the housing market, particularly in the aftermath of COVID-19, the FY23 budget makes investments to create long-lasting improvements in housing stability and access to homeownership. Building on the Eviction Diversion Initiative (EDI), the budget implements major reforms and significantly increases funding for rental assistance, re-housing benefits and housing vouchers. Along with eligibility expansions that will multiply the number of households served and increase benefits, the budget invests a historic $150 million in Residential Assistance for Families in Transition (RAFT), an increase of $128 million (582%) above FY22, and it provides $59.4 million for HomeBASE, a 129% increase vs. FY22. It also supports $110 million for homeless individual shelters, a 90% increase above FY22, and $154.3 million for Massachusetts Rental Voucher Program (MRVP), which will support enhanced benefits and reforms that will give families more housing choice and flexibility.

The budget sustains support for core health care programs and makes investments to expand services for the most vulnerable, while improving access to health care for all residents. Within the $19.480 billion gross / $7.301 billion net MassHealth budget, $115 million will fund nursing facility staffing rate increases and supplemental payments. The MassHealth budget also incorporates a gross increase of $73.2 million to expand the Medicare Savings Program, which will reduce out-of-pocket health care spending and prescription drug costs for approximately 65,000 low-income seniors and disabled individuals.

The MassHealth budget includes $115 million to support the expansion of outpatient and urgent behavioral health services; further FY23 investments in behavioral health care include $20 million for a clinical behavioral health worker loan forgiveness program and a $20 million for a trust dedicated to supporting the expansion of access to and utilization of behavioral health services.

The COVID-19 pandemic exacerbated substance addiction issues across Massachusetts, and the FY23 budget continues to ramp up funding to combat this public health crisis. The budget includes $597.2 million in total funding for a wide range of harm reduction, treatment, and recovery programs that support individuals struggling with substance addiction and programs that work to prevent substance addiction through education, prescription monitoring, and more.

The budget also continues efforts to ensure survivors of sexual assault and domestic violence have access to necessary services and supports, a priority of the Baker-Polito Administration. $132 million in total FY23 funding is allocated for services to prevent and treat sexual assault and domestic violence, a 104% increase in funding since FY15.

Outside Sections and Earmarks

As part of the budget-signing, Governor Baker vetoed $475,000 in gross spending, signed 153 outside sections, and returned 41 to the Legislature with proposed amendments.

Notable outside sections returned with amendment include:

• Adding the most important provisions from the Administration’s dangerousness bill into the section that would provide free phone calls to inmates.
• Amending an outside section relating to the Children and Family Legal Representation Trust Fund to require that money in the fund may only be spent on expanded guardian ad litem appointments in care and protection cases
• Requiring the Health Connector to study implementation steps and costs of a Connector Care pilot program

FY23 Budget Highlights:

K-12 Education

• Fully funds the implementation of the landmark Student Opportunity Act, adding a total of $651.8 million in new spending above FY22:
• $494.9 million increase in Chapter 70 funding, including an increase in minimum per-pupil aid from $30 to $60, for a total Chapter 70 investment of $5.998 billion
• $67.7 million increase for special education circuit breaker reimbursement for local cities and towns
• $89.2 million in additional funding for charter school reimbursement
• $150 million for a one-time transfer to the Student Opportunity Act investment trust fund
• $110 million for a pilot free school meal program for students in K-12 schools
• Over $30 million to scale up college and career pathways
• $15 million for scholarships and loan forgiveness programs for public school teachers

Early Education and Childcare

• $1.184 billion for Early Education and Care (EEC), including:
• $250 million to support continued stabilization of childcare facilities
• $60 million for center-based childcare provider rate increases
• In addition to the above funding, a one-time $175 million transfer to a new trust fund dedicated to supporting high-quality early education and care

Higher Education

$1.61 billion for the Department of Higher Education, University of Massachusetts, and state universities and community colleges, including:

• More than $190 million to support financial aid, including $18 million to support an expansion of the MASSGrant Plus program that will enable all low-income, in-state undergraduate students to attend public higher education without incurring debt for mandatory tuition and mandatory fees and $15 million for financial aid increases at the University of Massachusetts
• $22 million in financial aid for Massachusetts students attending private institutions
• $8.8 million for foster care financial aid and fee waiver programs to maintain support for over 1,400 students attending private and public campuses who are currently or were previously in DCF custody and care, or who have been adopted through DCF

Supporting Local Government

Total investment of $1.231 billion in Unrestricted General Government Aid (UGGA) for local cities and towns

• $20.7 million for Community Compact related programs including best practices and regionalization and efficiency grants, an increase of 63% above FY22, including $5 million for the Public Safety Staffing Grant Program and $3 million for district local technical assistance

Housing and Homelessness

$884.6 million for the Department of Housing and Community Development, a $300.5 million (51%) increase above FY22, which includes:

• $219.4 million for the Emergency Assistance family shelter system
• $154.3 million for MRVP to support more than 10,000 vouchers in FY23
• $150 million for Residential Assistance for Families in Transition (RAFT), an increase of $128 million above FY22
• $110 million for Homeless Individual Shelters and $5 million to continue an innovative model to create new housing opportunities with wraparound services for chronically homeless individuals
• $92 million in funding for Local Housing Authorities
• $59.4 million for HomeBASE Household Assistance
• $12.5 million for a collaborative program through which the Department of Mental Health provides mental health services and DHCD provides rental assistance

Economic Development

• $32.2 million for the Small Business Technical Assistance Grant Program for entrepreneurs and small businesses, especially those owned by women, immigrants, veterans, and people of color
• $20 million for the Community Empowerment and Reinvestment Grant program to support development in socially and economically disadvantaged communities
• $10.7 million to support the Massachusetts tourism and hospitality sector

Labor and Workforce Development

• $28.5 million for the YouthWorks Summer Jobs Program to subsidize summer job opportunities and provide soft job skills education for youths
• $23.9 million in total funding for Career Technical Institutes, which provide pathways to high-demand vocational trade careers, including plumbing, HVAC, manufacturing, and robotics
• $15 million for MassHire one-stop career centers
• $600,000 for a new appropriation to expand research and analytics capabilities to enhance data-driven workforce development strategies

Health and Human Services

• $230 million for Chapter 257 human service provider funding
• $115 million to expand outpatient and urgent behavioral health services at MassHealth, plus an additional $20 million at the Department of Mental Health for clinical behavioral health worker loan forgiveness
• $73.2 million gross to expand the Medicare Savings Program, reducing out-of-pocket health care spending and drug costs for approximately 65,000 low-income older adults and disabled individuals
• $720.4 million for the Executive Office of Elder Affairs, including $24.9 million for grants to Local Councils on Aging, $7.9 million for supportive senior housing, and $2.5 million for geriatric mental health services
• Fully funds the Turning 22 program at the Department of Development Services and other agencies
• $1.2 billion for the Department of Children and Families (DCF), an increase of $368.7 million (45%) since 2015, including $13.4 million to support families that are fostering children in DCF care and to encourage recruitment of new foster families
• $174.2 million in funding for Veterans’ Services and the Chelsea and Holyoke Soldiers’ Homes, which includes a $13.2 million (37%) increase above FY22 for the Chelsea Soldiers’ Home to support the Fall 2022 opening of a new 154-bed state-of-the-art Community Living Center
• $15 million in grants to local health departments to support municipalities' capacity to respond to the COVID-19 pandemic

Substance Addiction Prevention and Treatment

• $597.2 million for substance addiction prevention and treatment services across the budget, an increase of $478 million since FY15

Sexual Assault and Domestic Violence

• $132 million, a 104% increase since FY15, in support of services to prevent and treat victims of sexual assault and domestic violence, including $1.5 million in new investments to combat human trafficking

Promoting Equality and Opportunity

• More than $50 million supporting the recommendations of the Black Advisory Commission (BAC) and the Latino Advisory Commission (LAC)

Transportation

• $1.55 billion in total budget transfers for the MBTA
• $457 million for the Massachusetts Department of Transportation (MassDOT), including $95 million for snow and ice operations and $3.4 million to support implementation of new funds provided through the Infrastructure Investment and Jobs Act
• $266 million for a reserve to support MBTA safety improvements and workforce initiatives
• $96.5 million for Regional Transit Authorities
• $11.6 million for the Merit Rating Board

Energy and the Environment

• $134 million for the Department of Conservation and Recreation, including funding for the Summer Nights program and the Swim Safe Massachusetts program to enhance and promote water safety
• $45.4 million for Environmental Protection Administration
• $30.6 million for the Massachusetts Emergency Food Assistance Program
• $5.4 million for climate change and adaptation preparedness

Criminal Justice and Public Safety

• $445.1 million for the State police public safety and crime lab operations, including funding to support the 87th and 88th Massachusetts State Police Recruit Training Troops
• $12.3 million in funding for the Shannon Grant program to fund anti-gang and youth violence prevention efforts
• $10.4 million to fully fund tuition and fee waivers for National Guard members
• $11.7 million for the Municipal Police Training Commission to implement bridge academies, expand training capacity, and annualize training requirements such as de-escalation and school resource officer trainings
• $5.8 million to support the Peace Officer Standards and Training (POST) Commission and four other new commissions created in the Police Reform bill
• Eliminates all parole and probation fees, building upon the 2018 Criminal Justice Reform legislation which eliminated fees for parolees on supervision for less than a year

Securing and Modernizing Government IT

$163.3 million for the Executive Office of Technology Services and Security to support:

• Management of Cyber Security Operations Center (SOC)
• Continued migration of applications and infrastructure to cloud, third-party on-premise, and Software as a Service (SaaS)
• Continuation of EOTSS customer engagement initiative to enhance IT and security service offerings across Commonwealth agencies 
• IT strategy consulting services in support of priority state agency and cross-secretariat initiatives
• Business intelligence (BI) and data analytics support for state agencies
• Centralized software and IT contract compliance program

To view the FY23 budget, click here

https://budget.digital.mass.gov/summary/fy23/

Video of the Governor's press conference when he signed the legislation including the follow-up questions from the press present  https://youtu.be/l_81lhjV3zE