By Bob Katzen
House 150-5, approved and sent to the Senate a $1.8 billion supplemental budget that funds $885 million in public transportation including $740 million for the MBTA; $417 million for public education; and millions for several fiscal year 2026 deficiencies.
The $1.8 billion bill is funded in part by $1.3 billion from the 2022 voter-approved constitutional amendment, known by supporters as the Millionaire’s Tax and the Fair Share Amendment, which imposes a surtax of an additional 4 percent income tax, in addition to the current flat 5 percent one, on taxpayers’ earnings of more than $1 million annually. Language in the constitutional amendment requires that “subject to appropriation, the revenue will go to fund quality public education, affordable public colleges and universities, and for the repair and maintenance of roads, bridges and public transportation.”
MBTA funding in the supplemental budget includes $525 million for the Deficiency Reserve; $125 million for the Workforce and Safety Reserve; $60 million for physical infrastructure with a focus on the core subway system; and $20 million for low-income reduced fares.
Education funding includes $150 million for Special Education Circuit Breaker costs; $150 million to fund Early Education Child Care costs; $8 million for childcare providers; $7.5 million for the loan forgiveness program for these providers; a $20 million endowment Match for UMass and other state colleges and universities; and $5.1 million for Tomorrow’s Teachers Loan Forgiveness program.
Another provision would permanently decouple Massachusetts from recently approved federal tax provisions that reduce federal taxes if voters approve a possible November 2016 state ballot question that would lower the state income tax rate from 5 percent to 4 percent.
Other provisions include $10 million for FIFA Boston for World Cup related expenses; establishment of a food donation tax credit of up to $5,000 per individual for farm businesses based on the amount of food donated to a nonprofit food distribution organization; and ratification of eight Collective Bargaining Agreements.
“From significant investments in public transportation and public education, to support for Department of Transitional Assistance caseworkers and expenses related to the World Cup, to fiscally prudent tax conformity measures – this legislation is representative of the responsible approach that the House will continue to take as we navigate a period of significant economic uncertainty,” said House Speaker Ron Mariano (D-Quincy).
“The use of these one-time surplus funds provides us with a unique opportunity to better strengthen the commonwealth in numerous ways,” said Rep. Aaron Michlewitz (D-Boston), Chair of the House Committee on Ways and Means. “By further improving our educational and transportation sectors, we will build off the work we have done in the last several budget cycles with a judicious use of the Fair Share funds. The tax changes contained in this bill will help support the state’s economic competitiveness, while giving us time to absorb the expected loss in revenue.”
“I voted against … the supplemental [budget] simply because there is too much unnecessary spending in this bill,” said Rep. John Gaskey (R-Carver). “This was essentially an earmark bill. If it had been narrowly focused on public safety, it would’ve been a good bill. Unfortunately, it becomes a free-for-all bill to hand out cash driving further spending.”
Some opponents criticized the language in the bill that would permanently decouple Massachusetts from key federal tax provisions if voters approve a possible November 2026 ballot question to lower the state income tax rate from 5 percent to 4 percent. They said this would tie the hands of future policymakers and denies Massachusetts taxpayers the benefit of federal tax relief.
“This is not fiscal responsibility,” said Paul Craney, Executive Director of the Massachusetts Fiscal Alliance. “This is political retaliation against taxpayers. Beacon Hill leadership is telling voters that if they choose to lower their own taxes, the Legislature will step in and make sure they don’t see the full benefit. It’s petty, and an outrageous abuse of power. They cannot help themselves. Even before the ink is dry on federal tax changes, Beacon Hill politicians are already scheming ways to block relief and keep more money in government hands. That’s exactly why voters are demanding change, change that actually delivers transparency with legislative audits, openness in public records and policies that prioritize taxpayers over seemingly limitless growth in state government spending.”
(A “Yes” vote is for the bill. A “No” vote is against it.)
Rep. Christine Barber Yes Rep. Mike Connolly Yes Rep. Paul Donato Didn’t Vote Rep. Erika Uyterhoeven Yes