Today, Governor Maura Healey released her proposed budget for Fiscal Year 2027 (FY 2027). This proposal starts the FY 2027 budget cycle and outlines the governor’s plan to spend over $62.8 billion, including $2.7 billion in Fair Share surtax spending, a nearly 4 percent increase over FY 2026. The governor’s FY 2027 proposal was filed alongside a supplemental budget proposal for the current fiscal year (FY 2026) with recommended uses for the $1.15 billion in additional one-time Fair Share spending.
Statement from Viviana Abreu-Hernandez, Ph.D., MassBudget President
“The Commonwealth continues to benefit greatly from the Fair Share surtax. The governor’s FY 2027 budget proposal shows that due to the Fair Share revenue, the state can continue to invest in education and transportation services, programs, and infrastructure.
We are pleased to see that the budget proposal, with support from the Fair Share, continues to fund operational grants for child care providers, free buses through the Regional Transit Authorities (RTAs) across the state, and free school meals for all Massachusetts children to name a few. The proposal also supports the final year of the Student Opportunity Act. We are also glad to see funding to support new vouchers through the state’s rental voucher program.
While the governor’s proposed budget calls for critical investments in education and transportation, there are areas where it falls short. The proposal does not adequately fund upstream housing programs that prevent displacement of residents at risk of eviction or foreclosure. Keeping families and individuals stably housed and having a solid commitment to housing affordability should always be a state priority, both in terms of spending and revenues.
The voter supported Fair Share surtax has been vital for the ongoing transformational investments in education and transportation in the Commonwealth. However, considering the significant and harmful federal budget cuts that the state is facing, Fair Share is not enough. It is imperative that the state find ways to step up state investment to protect the quality of life of all Massachusetts residents.
The state has several options to raise revenue without harming its people. Massachusetts can prevent billion-dollar corporations from dodging taxes by bringing in more of the profits currently shifted to off-shore tax havens. The state can also give cities and towns the ability to enact a local transfer fee to raise revenue and address affordable housing needs. Finally, the Commonwealth can opt out entirely of the five most expensive federal corporate tax cuts under the One Big Beautiful Bill Act (OB3) which will reduce state revenue by hundreds of millions of dollars. As one of the wealthiest states in the country, Massachusetts can make the necessary investments to ensure all our communities – independently of their racial or socioeconomic composition – are safe and thriving.”
Want to hear more about the state budget and the effect of federal funding cuts?
Announcing our next PolicyTALKS event on March 3rd at 9:30AM on Zoom!
Join MassBudget’s PolicyTALKS for a conversation about how federal government funding cuts will impact Massachusetts and the proposed FY 2027 state budget, including revenue projections, new tax proposals, and key state spending priorities.
