Massachusetts

Massachusetts

Budget Cycle
Annual

Budget Links

FY2025 (enacted)
FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)

Enacted Budget – Fiscal Year 2025

Massachusetts Governor Maura Healey signed the state’s fiscal 2025 budget into law on July 29. The fiscal 2025 budget provides for general appropriations of $57.7 billion, after line-item vetoes of $317 million to ensure budget balance, representing a 1.1 percent increase over fiscal 2024 projected spending and a 3.0 percent increase over originally enacted appropriations for fiscal 2024. The state’s January 2024 consensus revenue forecast had projected state tax revenues at $40.2 billion in fiscal 2025, a 2.0 percent increase over revised fiscal 2024 estimates at that time, in addition to $1.3 billion from the voter-approved 4 percent “fair share” surtax for education and transportation initiatives.  As of June 26, the Commonwealth Stabilization (or “rainy day”) Fund had a balance of $8.44 billion.  

The enacted budget directs $761.5 million in fair share revenue to education, including funding to make community college free for all students under the MassEducate program, provide free school meals, support a new evidence-based Literacy Launch Initiative, and invest in early education and child care provider rates and Commonwealth Cares for Children (C3) grants. The remaining $538.5 million in fair share revenue will support transportation investments including regional transit grants and fare assistance, funding for municipal roads and bridges, and a transfer to the Commonwealth Transportation Fund. The budget also fully funds the state’s K-12 funding formula under the Student Opportunity Act with a 4 percent increase in state support over fiscal 2024 and provides a 3 percent increase for unrestricted local aid. For housing and homelessness, the budget directs $326 million for emergency assistance (EA) to support the state’s ongoing shelter response, $219 million for a low-income rental voucher program, and $57 million to help EA-eligible families find permanent housing. The budget dedicates 1 percent of overall spending to energy and the environment for a second consecutive year, while also funding increases to various health and human services programs and an 11 percent increase for veterans’ services. The enacted budget also makes strategic investments in economic development, workforce development, public safety, and technology and cybersecurity.

Enacted Budget Information
Fiscal Year 2025 Enacted Budget

Budget Filing Letter & Veto Documents

Budget Downloads

Governor’s Press Release

Consensus Revenue Forecast (January 2024)

Comptroller Commonwealth Stabilization Fund Reporting Module

Proposed Budget - Fiscal Year 2025

On January 24, Massachusetts Governor Maura Healey introduced her fiscal 2025 budget recommendation. The budget proposes gross spending in fiscal 2025 of $56.2 billion, a 2.9 percent increase over fiscal 2024, excluding spending from the Fair Share surtax and Medical Assistance Trust Fund. When including $1.3 billion in education and transportation fund spending from projected income surtax revenue and $682 million from the Medical Assistance Trust Fund, total appropriations in the governor’s budget recommendation for fiscal 2025 are $58.1 billion. When expenditures from Federal, Trust and ISF funds are included, total spending in fiscal 2025 is projected at $85.1 billion. The budget is based on a consensus tax revenue estimate of $40.2 billion, not including surtax revenue, a 2 percent increase above revised fiscal 2024 estimates but a 0.5 percent decrease compared to projections used to build the fiscal 2024 General Appropriations Act (GAA). The figure incorporates the impact of the second full year of a tax relief package proposed by the governor and signed into law last year. After a series of tax revenue transfers, $32.4 billion in net tax revenue is available to support spending, a 1.6 percent decrease from the fiscal 2024 GAA. Total available tax and non-tax revenue for all budgeted funds is estimated at $57.9 billion (including $53.5 billion in general fund revenue).  The budget proposes to continue using some excess capital gains to grow the balance in the Stabilization Fund (rainy day fund), which is projected to have an ending balance in fiscal 2025 of $9.1 billion. The governor also proposes to use interest earned on the Stabilization Fund to support matching funds to compete for various federal grant opportunities. Including the rainy day fund, reserved balances, and the undesignated balance, the state’s total balance is projected at $9.7 billion at the end of fiscal 2025.

Proposed Budget Highlights 

The governor’s fiscal 2025 budget recommendation makes key investments in education, transportation, housing, climate, workforce development, and health care, while responsibly controlling overall spending growth in a tightening fiscal environment. Key spending priorities in these areas include:

Education & Local Aid

• Proposes $11.8 billion in overall spending for childcare, K-12, and higher education.
• $271 million (4 percent) increase in education aid under the Student Opportunity Act.
• $150 million in Fair Share revenue to maintain $475 million for Commonwealth Cares for Children (C3) grants to early education and care system providers.
• $75 million in Fair Share revenue for childcare financial assistance, with total state support for childcare subsidies of $914 million.
• $21 million in Fair Share revenue (total investment of $38.6 million) for the Commonwealth Preschool Partnership Program, a targeted effort to expand access to high-quality preschool.
• $30 million in Fair Share revenue for literacy instruction.
• $492 million to fully fund the Special Education Circuit Breaker.
• $38 million (3 percent) increase in general aid to local governments.
• $80 million in Fair Share revenue to sustain the expansion of MASSGrant Plus financial aid.
• $24 million for MassReconnect (a $4 million or 20 percent increase).

Transportation

• $250 million in Fair Share revenue to increase Commonwealth Transportation Fund borrowing capacity to support major infrastructure projects.
• $124 million in Fair Share revenue to cities and towns to support maintenance of local roads and sidewalks (includes $24 million designated for rural road aid).
• $45 million in Fair Share revenue to enable the Massachusetts Bay Transportation Authority (MBTA) to implement low-income fare relief.
• Doubles the state operating support to the MBTA.
• $15 million in Fair Share revenue to support fare equity at Regional Transit Authorities.

Housing

• $325 million for Emergency Assistance Family Shelter (EA) program.
• $219 million for the Massachusetts Rental Voucher Program, a 22 percent increase.
• $112 million in subsidies for Local Housing Authorities.
• $197.4 million for Residential Assistance for Families in Transition.
• $57.3 million for HomeBase to connect EA-eligible families with permanent housing.

Climate & Environment

• Invests $572.1 million (1 percent of total spending) overall into climate and environmental programs, including building a clean energy workforce, clean transportation, food security, and environmental justice.
• Establishes a permanent Disaster Relief and Resiliency Fund, to be funded with 10 percent of excess capital gains tax revenue, in addition to other public or private sources.

Workforce Development

• $15.7 million for the Summer Jobs Program for At-Risk Youth (Youthworks).
• $10.4 million for Career Technical Institutes aiming to close skills training gaps.
• $10 million for MassHire Career Centers to provide regional workforce training and placement services.
• $3.8 million for Registered Apprenticeship Program.

Health & Human Services

• Year-over-year spending increase in MassHealth, the state’s Medicaid and CHIP program, of $730 million gross ($440 million net), including:
  • $70 million in targeted rate investments that address workforce challenges for community-based nursing and direct care workers.
  • $60 million in rate investments in behavioral health, primary care and maternity care.
  • $10 million investment to implement 90-day pre-release MassHealth coverage for incarcerated individuals.
  • $5 million to increase wheelchair repair rates.
• Year-over-year spending increase in other health and human services programs (excluding MassHealth) of $781.3 million (9 percent), including:
  • $217 million annual increase in the Chapter 257 Reserve to make historic investment in human service provider rate increases, benchmarking rates to the 53rd percentile of Bureau of Labor Statistics wages.
  • $249.9 million to annualize fiscal 2024 provider rate increases.
  • $36.6 million for new targeted investments.

Proposed Budget Information 
Fiscal Year 2025 Budget Proposal

Governor's Message

Budget Briefs

Press Release

Revenue Forecast (January 2024)