Politics

Here’s what’s in the $52.7 billion state budget Charlie Baker just signed

The Fiscal Year 23 budget is in balance, does not rely on one-time revenue sources, and does not raise any new taxes or fees.

The Massachusetts State House. Shutterstock

July 29, 2022

Massachusetts Gov. Charlie Baker signed the state’s Fiscal Year 2023 (FY23) budget Thursday — a spending plan worth $52.7 billion.

The budget fully funds the continued execution of the Student Opportunity Act, which implemented the 2015 Foundation Budget Review Commission’s recommendations for education reform, a news release from the governor’s office said Thursday.

The budget also includes record investments in early education and child care, housing, college financial aid, economic and workforce development, behavioral health care, and local aid, the release said.

The FY23 budget is in balance, does not rely on one-time revenue sources, and does not raise any new taxes or fees, according to the release. Instead, it uses $315 million to support permanent tax cuts that are expected to be passed soon by the Legislature.

Several of the expected tax cuts were proposed in Baker’s original FY23 budget plan, including an increase to the rental deduction cap, expansions of the dependent care and senior circuit breaker tax credits, and estate tax reforms.

“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,” Baker said in the release.

“I am pleased to sign another budget that maintains this commitment while making investments that help Massachusetts families and communities grow and thrive.”

The FY23 budget is based on a $39.6 billion tax revenue forecast, which is $2.66 billion higher than the FY23 tax projection set in January, the release said.

The budget anticipates a deposit into the Massachusetts 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, according to the release.

If all goes as planned, this would mean the Stabilization Fund grew by $7.3 billion since Baker came into office in 2015, the release said.

Massachusetts FY23 budget highlights:

K-12 Education

Fully funds the implementation of the Student Opportunity Act, adding $651.8 million over FY22
A $494.9 million increase in Chapter 70 funding, including an increase in minimum per-pupil aid from $30 to $60, for a total investment of $5.998 billion
A $67.7 million increase in spending for special education
A $89.2 million increase in funding for charter school reimbursement
$110 million for a pilot free school meal program for students in K-12 schools
$30 million to improve college and career pathways
$15 million for scholarships and loan forgiveness programs for public school teachers

Early Education and Childcare

$1.2 billion for the Department of Early Education and Care
$250 million to support childcare facility stabilization
$175 million for a new trust fund dedicated to supporting early childhood education and care

Higher Education

$1.6 billion for the Department of Higher Education, University of Massachusetts, and state universities and community colleges
$190 million total for financial aid
$18 million to support expansion of the MASSGrant Plus program, which helps low-income undergraduates
A $15 million increase in financial aid at the University of Massachusetts
$22 million in financial aid for Massachusetts students attending private colleges and universities

Municipal Governments

$1.2 billion in unrestricted government funds for cities and towns

Housing and Homelessness

$884.6 million for the Department of Housing and Community Development, which is a 51% increase above FY22
$219.4 million for the emergency assistance family shelter system
$154.3 million for the Massachusetts Rental Voucher Program
$150 million for the Residential Assistance for Families in Transition program, an increase of $128 million above FY22
$110 million for homeless shelters
$92 million for local housing authorities
$59.4 million for the HomeBASE Household Assistance program

Economic Development

$32.2 million for the Small Business Technical Assistance Grant Program
$20 million for the Community Empowerment and Reinvestment Grant program
$10.7 million to support the tourism and hospitality sector

Labor and Workforce Development

$28.5 million for the YouthWorks Summer Jobs Program
$23.9 million for Career Technical Institutes, which provide pathways to high-demand vocational trade careers
$15 million for MassHire one-stop career centers
$600,000 for research into 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
$73.2 million to expand the Medicare Savings Program
$720.4 million for the Executive Office of Elder Affairs
$24.9 million for grants to local Councils on Aging
$7.9 million for supportive senior housing
$2.5 million for geriatric mental health services
Fully funds the Turning 22 program
$1.2 billion for the Department of Children and Families
$13.4 million for foster families
$174.2 million for Veterans’ Services and the Chelsea and Holyoke Soldiers’ Homes
$15 million in grants to local health departments to help communities respond to the COVID-19 pandemic

Substance Addiction Prevention and Treatment

$597.2 million for substance addiction prevention and treatment services

Sexual Assault and Domestic Violence

$132 million for services to prevent and treat victims of sexual assault and domestic violence
$1.5 million in new investments to combat human trafficking

Transportation

$1.55 billion for the MBTA
$457 million for the Massachusetts Department of Transportation
$266 million for a reserve to support MBTA safety improvements and workforce initiatives
$96.5 million for Regional Transit Authorities

Energy and the Environment

$134 million for the Department of Conservation and Recreation
$45.4 million for the Environmental Protection Administration
$30.6 million for the Massachusetts Emergency Food Assistance Program
$5.4 million for climate change preparedness

Criminal Justice and Public Safety

$445.1 million for State Police public safety and crime lab operations
$12.3 million for the Shannon grant program for anti-gang and youth violence prevention
$10.4 million to fully fund tuition and fee waivers for National Guard members
$11.7 million for the Municipal Police Training Commission
$5.8 million to support the Peace Officer Standards and Training Commission and four other new commissions created in the 2020 Police Reform bill
Eliminates all parole and probation fees

To view the FY23 budget, click here.