The Governor’s Fiscal Year (FY) 2019 budget proposal level funds much of state government, includes some targeted initiatives – including an expanded earned income tax credit (EITC) and new services for people struggling with and recovering from mental illness – and proposes small reductions in funding, after accounting for inflation, for higher education and other areas.
A ballot question has been proposed that would support investments in education and transportation with revenue from an additional 4% tax on income over a million dollars a year. This factsheet examines this proposal and how it relates to longer term economic and policy trends in Massachusetts.
The Fiscal Year (FY) 2019 budget year could be the most eventful in decades, with major changes in federal policy looming and ballot questions that could reshape state tax policy likely to appear on the November ballot. This year’s budget will be written in a climate of uncertainty, and against a backdrop of ongoing fiscal challenges.
This Budget Monitor describes the funding decisions in each major section of the state budget for Fiscal Year 2018. It includes the vetoes and overrides as well as supplementary funding since the Legislature’s budget. The document compares these current FY 2018 funding levels with final FY 2017 levels and, in some cases, historic funding.
At this point, the Fiscal Year 2018 (FY 2018) state budget looks a lot like the FY 2017 budget. After adjusting for inflation, the proposed spending amount falls below FY 2017 levels and we see essentially status-quo funding levels in each major category. One major area of the budget remains in limbo: MassHealth.
The Legislature enacted a Fiscal Year 2018 (FY 2018) budget that assumes less revenue will be available than initially projected and accordingly provides less in funding than the budgets approved by both the House and Senate. This overview provide a brief summary of significant elements of the budget.
With a Conference Committee of three Representatives and three Senators meeting on Monday to meld the proposals of the two branches into a final budget to present to the Governor, we are entering the final stages of the annual budget debate. The House and Senate proposals have a lot in common, but also significant differences that will need to be worked out. MassBudget’s new Budget Monitor describes the major amendments adopted during the Senate budget debate and examines the differences between the House and Senate proposals.