$1.35 BILLION SUPPLEMENTAL BUDGET (H 5470)

By Bob Katzen

House 153-0, Senate 37-3, approved and sent to Gov. Maura Healey a $1.35 billion fiscal 2026 supplemental budget that includes $558 million for education and $794 million for transportation.

Some of the funding will come from the $1.3 billion generated by 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.”

Education provisions include $152 million for special education reimbursements; $150 million for making childcare more affordable and accessible; and $40 million to help young learners read, including $20 million for high-dosage tutoring and $20 million for classroom programs designed to accelerate reading skills for kids in kindergarten through third grade.

Transportation provisions include $595 million for the MBTA including $450 million to keep the T running; $60 million for maintenance and upgrades to physical infrastructure with an emphasis on commuter rail improvements; $50.4 million to improve workforce and safety; $20 million to make fares more affordable for low-income riders; and $15 million for water transportation infrastructure across the state.

Other provisions create a new tax exemption, capped at $35 million per year, on building materials used in the construction of affordable, moderate-income and middle-income housing projects; a permanent extension of the state’s temporary 20-cent fee on Uber, Lyft and other rideshare trips; $100 million to help cities and towns recover from major storms over the winter; $1 million to help public school districts implement bell-to-bell cell phone-free policies; and $1 million toward free legal services for immigrants and refugees who need help navigating the courts.

“This legislation reflects exactly the responsible, forward-looking governance that Massachusetts families deserve,” said Senate President Karen Spilka (D-Ashland). “It makes significant investments in our schools and transit, paired with fiscally prudent steps to protect our state finances during a period of uncertainty. From making childcare more affordable to keeping the T running to helping immigrants access legal protections, this package addresses the needs of residents across the commonwealth.”

“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 Massachusetts must continue to take during this period of significant fiscal uncertainty, while still ensuring robust state support for vital projects,” said House Speaker Ron Mariano (D-Quincy).

“Reflecting the priorities of my Senate colleagues, this package makes meaningful investments in education and transportation that touch all corners of the commonwealth,” said Sen. Mike Rodrigues (D-Westport), chair of the Senate Committee on Ways and Means. “The bill prioritizes municipal winter relief and targeted tax incentives to jumpstart housing production. With its passage, we are bolstering our public transportation system, supporting statewide education initiatives, training the next generation of doctors and teachers and taking proactive steps to responsibly mitigate the fallout from federal tax changes.”

“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.”

“The supplemental budget included a legal defense fund for non-citizens, as well as tax provisions that prevented tax relief for residents—the very people funding that defense fund through their own taxes and who could face penalties if they tried to reduce their tax burden,” said Sen. Ryan Fattman (R-Sutton) one of only three legislators to vote against the budget.

Sens. Kelly Dooner (R-Taunton) and Peter Durant (R-Spencer), the other two senators who voted against the budget, did not respond to repeated requests by Beacon Hill Roll Call asking them why they voted against it.

“Only in Massachusetts, do they pass a supplemental budget while passing their annual budget at the same time,” said Paul Craney, executive director of the Mass Fiscal Alliance. “This short term budget was filled with policies that would exclude tax benefits that were passed by Congress, in order for Statehouse politicians to keep more of our tax dollars. It once again shows how Statehouse lawmakers can never tax you enough.”

(A “Yes” vote is for the $1.35 billion budget. A “No” vote is against it.)

Rep. Christine Barber Yes Rep. Mike Connolly Yes Rep. Paul Donato Yes Rep. Erika Uyterhoeven Yes Sen. Patricia Jehlen Yes

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