Proposed Budget - Fiscal Year 2026
On January 22, Massachusetts Governor Maura Healey introduced a fiscal 2026 budget recommendation. The budget recommends spending in fiscal 2026 of $59.58 billion, a 2.6 percent increase over fiscal 2025, excluding spending from the Fair Share surtax and Medical Assistance Trust Fund. When including $1.95 billion in education and transportation fund spending from projected income surtax revenue and $548 million from the Medical Assistance Trust Fund, total appropriations in the recommendation for fiscal 2026 are $62.1 billion. When expenditures from Federal, Trust and ISF funds are included, total spending in fiscal 2026 is projected at $87.5 billion. The budget is based on a consensus tax revenue estimate of $41.2 billion, not including surtax revenue, a 2.2 percent increase above fiscal 2025 estimates. After a series of tax revenue transfers to the pension fund, rainy day fund, school building authority, public transit, and worker training trust fund, $32.9 billion in net tax revenue is available to support spending, a 1.3 percent increase from the current fiscal 2025 benchmark. Total available tax and non-tax revenue for all budgeted funds is estimated at $62.3 billion (including $56.9 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 reach a balance in fiscal 2026 of $8.33 billion. 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 2026.