Massachusetts Gov. Charlie Baker on Thursday signed the state’s fiscal year 2023 (FY23) budget — a $52.7 billion spending plan.
The budget fully finances the ongoing implementation of the Law on Student Opportunities, which implemented the recommendations of the Foundation’s 2015 Budget Review Committee for Education Reform, the governor’s office announced on 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, according to the release.
The FY23 budget is balanced, does not rely on one-time revenue sources and does not raise any new taxes or fees, the statement said. Instead, it’s using $315 million to support permanent tax cuts that the Legislature is expected to pass soon.
Several of the expected tax cuts were proposed in Baker’s original FY23 budget plan, including raising the cap on the rental deduction, expanding the tax credit for seniors and caregivers, and property tax reforms.
“Since taking office, our administration has worked closely with the Legislature to ensure that the budget is structurally sound and protected from unpredictable economic fluctuations,” Baker said in a statement.
“I am pleased to sign another budget that maintains this commitment with investments that help Massachusetts families and communities grow and prosper.”
The FY23 budget is based on a tax revenue projection of $39.6 billion, which is $2.66 billion more than the FY23 tax projection set in January, according to the release.
The budget calls for a deposit of nearly $1.5 billion into the Massachusetts Stabilization Fund, which would increase the fund’s balance from an already historically high level of $6.9 billion to $8.4 billion, according to the release.
If all goes according to plan, that would mean the stabilization fund has grown by $7.3 billion since Baker took office in 2015, the statement said.
Massachusetts FY23 Budget Highlights:
- Fully funds implementation of the Student Opportunity Act, adding $651.8 million during FY22
- An increase of $494.9 million in Chapter 70 funding, including an increase in minimum aid per pupil from $30 to $60, for a total investment of $5.998 billion
- A $67.7 million increase in special education spending
- An $89.2 million increase in charter school fee funding
- $110 million for a free school meal pilot program for K-12 students
- $30 million for college and career enhancement
- $15 million for scholarships and loan forgiveness programs for public school teachers
Early childhood education and care
- $1.2 billion for the Department of Early Education and Care
- $250 million to support the stabilization of child care facilities
- $175 million for a new endowment fund dedicated to supporting early childhood education and care
- $1.6 billion for the University of Massachusetts Department of Higher Education and state universities and colleges
- A total of $190 million in financial aid
- $18 million to support the expansion of the MASSGrant Plus program, which helps low-income students
- 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
- $1.2 billion in unrestricted state funding for cities and towns
Housing and homelessness
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 professional careers
- $15 million for MassHire one-stop career centers
- $600,000 to research workforce development strategies
Health and social services
- $230 million for Chapter 257 financing for human service providers
- $115 million to expand outpatient and emergency behavioral health services at MassHealth
- $73.2 million to expand the Medicare Savings Program
- $720.4 million for the Executive Office on Aging
- $24.9 million in grants to local councils on aging
- $7.9 million for senior housing
- $2.5 million for geriatric mental health services
- It is fully funded by the Turning 22 program
- $1.2 billion for the Department for Children and Families
- $13.4 million for foster families
- $174.2 million for veterans services and military homes in Chelsea and Holyoke
- $15 million in grants to local health departments to help communities respond to the COVID-19 pandemic
Prevention and treatment of substance addiction
- $597.2 million for substance abuse prevention and treatment services
Sexual assault and domestic violence
- $132 million for prevention and treatment services for victims of sexual assault and domestic violence
- 1.5 million dollars of new investments in the fight against human trafficking
- $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 transportation authorities
Energy and 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 public safety and state police laboratory operations
- $12.3 million for Shannon’s anti-gang and youth violence prevention grant program
- $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 Commission on Peace Officer Training and Standards and four other new commissions created in the 2020 police reform bill.
- Eliminates all probation and parole fees
To view the FY23 budget, click here.
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