MA Legislature Passes $56 Billion 2024 Fiscal Year Budget
The Massachusetts legislature voted to send the 2024 fiscal year budget to Governor Maura Healey’s desk on July 31st, nearly a month after the July 1st deadline. HB4040 passed in the Senate unanimously and in the House 156-2. Republican Representatives Nicholas Boldyga (R-Southwick) and Mark Lombardo (R-Billerica) voted against the passage of the budget. Healey will have 10 days to review the $56.2 billion spending plan, having the authority to veto or send amendments back to the State House. According to the National Conference of State Legislatures, Massachusetts will be one of the last states in the country to enact a fiscal 2024 budget.
The proposed budget would be a 6.6% increase compared to FY2023 $52.7 billion budget that was signed by former Governor Charlie Baker, which would make it the largest in the state’s history. Lawmakers this year also had about $1 billion for spending that came from the newly-passed “millionaire tax,” a law that created a 4% tax on annual income for any individual making above $1 million. Over 98% of spending in the Senate and House budgets was shared, with about $1.5 billion remaining in unique priorities as reported by the Massachusetts Taxpayers Foundation. One of those priorities was collective bargaining agreements, which saw a $200 million gap between the Senate and House proposals.
If the millionaire tax is signed into law, $522 million of this spending would be allocated to the education sector. Of that, $475 million is geared to be spent towards grant programs to strengthen the early childhood education system. The budget would also provide universal free school meals in elementary and secondary schools, in an effort to reduce food insecurity. If passed, the bill would also invest $50 million into clean infrastructure and repair for public schools.
Additionally, the proposed spending plan would invest $477 million into transportation for the Commonwealth. Of that, $205 million would be directed towards the MBTA, a transportation system that has been plagued with broken trains and delays. In this spending plan, $70 million would be spent on station repairs, along with $30 million directed towards track and signal improvements on subway lines. $90 million would go towards regional transportation and another $5 million would be allocated to water transportation. Along with spending towards infrastructure, lawmakers have proposed $20 million that would address ongoing workforce safety and retention, especially with bus drivers. The bill would also add two seats to the MBTA Board, one of which would be from the City of Boston.
Funding for higher education programs is also a focus in the proposed budget. A total of $50 million is proposed to cover the cost of tuition for community college nursing students and those who are over the age of 25 earning a first-time degree. The spending package also includes a program that would make undocumented students eligible to receive financial aid if they attended a Massachusetts high school or received a GED in the Commonwealth. These students would also qualify for in-state tuition at public universities and colleges, expanding the opportunity for higher education at a reduced cost.
The proposed budget would reinstate a pandemic-era protection for renters. If enacted, it would slow the court process in eviction proceedings for tenants with pending rental assistance applications. The policy was in effect until March 2023 when state lawmakers allowed it to expire.
The budget would also create the ConnectorCare pilot program to expand health care coverage across Massachusetts. The two-year program would extend eligibility for point-of-service cost-sharing subsidies or premium assistance for approved applicants up to 500% of the federal poverty line. The conference also voted to require MassHealth ambulance rates to be equal to Medicare rates.
The legislature’s compromise budget has earned the support of Ways and Means Committee Chair Aaron Michlewitz (D-Boston), who praised the work of the legislative body. “It is truly a reflection of the best and most critical initiatives that we contained in various budget proposals that have been presented this year,” he said on the floor of the House Chamber.
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