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In full transparency, the following is a press release submitted to SOURCE media from the Governor’s office.
BOSTON – Massachusetts Governor Charlie Baker today, July 28, 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 M 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.
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.
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:
$1.61 billion for the Department of Higher Education, University of Massachusetts, and state universities and community colleges, including:
$884.6 million for the Department of Housing and Community Development, a $300.5 million (51%) increase above FY22, which includes:
Substance Addiction Prevention and Treatment
Sexual Assault and Domestic Violence
Criminal Justice and Public Safety
Securing and Modernizing Government IT
$163.3 million for the Executive Office of Technology Services and Security to support:
To view the FY23 budget, click here.
email: editor@FraminghamSource.com call or text at 508-315-7176