Unveiling the 2024 Massachusetts House Ways and Means Budget

 Massachusetts continues to proceed with its budget process - the House Ways and Means Committee’s appropriation totaled $57.91 billion representing a $150 million decrease from the Governor’s budget which stands at $58.1 billion. Last week, Representatives filed 1,495 amendments to the FY2025 House Budget, and if history proves itself again, the price tag will likely grow as amendments are integrated.

So, what are the major differences between the two budgets? Standing at the top is spending for the strained emergency shelter system, with the House earmarking $500 million, approximately half of Healey's $915 million requirement. This disparity reflects the challenge of accommodating an influx of migrant and homeless families amidst a growing fiscal dilemma. House Speaker Ron Mariano emphasized the importance of maintaining control over budgetary decisions amid uncertain federal support. The $500 million comes from his previous assumptions that Washington would provide assistance. As negotiations continue behind closed doors, the fate of the current supplemental budget and the utilization of surplus funds remain pivotal factors in addressing the escalating costs of the shelter system. 

Another key difference between the budgets is how the “Millionaires Tax” (tax revenue to spend on education and transportation) is divided up. The House allocated $695 million to education and $605 million to transportation whereas Healey allocated $750 million to education and $605 million to transportation. Specifically in regard to transportation, the House proposes a 9.29% decrease in funds for MassDOT and a 0.32% decrease in spending for the MBTA, compared to Healey’s proposal. 

In terms of Health and Human Services, two major differences stood out, funding for MassHealth nursing home supplemental rates and inpatient facilities for mental health. The House proposed $632 million compared to Healey’s proposed $582 million for nursing home rates. Governor Healey's budget allocates less money for nursing home rates compared to the House's proposal as her administration is prioritizing funding towards expanding and creating new programs to support thousands of people transitioning out of nursing facilities and into independent living, as part of an agreement reached in a federal class action lawsuit. This shift reflects a broader initiative to transform long-term services for people with disabilities in Massachusetts. There was also a $61 million dollar difference between funds allocated for the Department of Mental Health inpatient facilities with the House giving $324 million and the Governor giving $385 million. 

Funds for public safety departments varied between the two budgets: the House set up 5.8% of the appropriation to go to the Executive Office of Public Safety while the Governor proposed 2.8% of the appropriation go to the office. Three key line-items stand out - for the Department of Corrections the House is allocating $781 million and the Governor allocating $791 million. A possible reason for the $10 million difference? The closing of MCI-Concord. Another difference of note is the Project Safe Neighborhood Initiative which provides law enforcement agencies with grants to promote community safety. Healey allocated $2 million, the House proposes nothing. The third difference comes to funding for judgment settlements and legal fees. The House proposes $1 million compared to Healey’s $15 million ask. 

We are currently at the second stage of the budget process; the House is expected to take up the budget bill at the end of April where representatives’ amendments will be debated. Following the house debates, the Senate will next create a modified version of the budget after a similar deliberation procedure. After that, a Conference Committee will be set up to address discrepancies between the House and Senate versions. This committee, which is made up of members from both chambers and different political parties, attempts to create a single budget bill that incorporates changes from both sides. The combined budget is then put to a vote in each house and sent to Governor Healey for approval or veto, at which point it is finally enacted. 

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