Massachusetts’ House of Representatives Releases Proposed FY25 Budget
April 17, 2024
Written By: Tom Ryan, Senior Advisor on Policy, Government & Community Affairs And ISabella Gambill, Assistant Director of Climate, energy and resilience
On April 10th, the Massachusetts House Committee on Ways and Means released their state budget recommendations for fiscal year 2025. This proposal from the House’s budget writing shows the full House of Representatives priorities for next year as well as the status of the State’s financial health. We were very encouraged to see that the House budget plan contains many of the ideas suggested by A Better City in recent months, and also has general alignment with Governor Healey on key transportation and climate issues.
A few months ago, A Better City sent a letter that highlighted the need for increased state support for the MBTA, the opportunity to utilize the Fair Share surtax funding for infrastructure needs, and the challenges with decarbonization of existing buildings in the Commonwealth. In terms of transportation and support for the MBTA, the House budget certainly meets the moment. The House also strongly supports energy and environmental affairs programs, with a similar commitment to the Governor’s budget proposal with total funding representing about 1% of the overall budget.
You can view the full House Ways & Means plan through these links:
- House Ways and Means Budget page
- House Ways and Means Budget Executive Summary (from Chairman Aaron Michlewitz)
Here are some of our key takeaways on the issues we are following:
Transportation
The House plan would increase state support for the MBTA by $139 million, which includes a new line item to help with workforce training and recruitment ($40 million) and another for addressing climate adaptation and resiliency needs ($35 million). This increased state support is needed as the MBTA is facing a situation where they are required by the Federal Transit Administration to increase staffing in safety oversight roles and the number of bus drivers. There is also a need to increase spending on safety repairs, while fare collection revenue is still significantly lower than pre-pandemic levels. This state money is essential to avoid MBTA service reductions in the next year.
Transportation Infrastructure
The House is endorsing the Governor’s proposal to dedicate a portion of the Fair Share surtax (aka Millionaire’s Tax) to increase spending on transportation infrastructure. This concept was originally suggested to state government leaders by A Better City, so we are especially encouraged with this news. Currently, the surtax funding is only used for pay-as-you-go spending, which means it can only support smaller repairs efforts. The House and Governor both are proposing using $250 million to expand the state’s borrowing capacity, which will result in $1.1 billion of new transportation investments over the next five years.
Energy & Environment
The House budget proposes roughly the same amount of money for the Executive Office of Energy and Environmental Affairs (EEA) as the Governor’s budget proposal, with about 1% of the overall budget dedicated to climate work. The House proposes $18.6 million to the Office of the Secretary of EEA for the implementation of Massachusetts’ Clean Energy and Climate Plans, as well as $8.75 million to implement the Commonwealth’s first-ever Environmental Justice Strategy, and $9.98 million for climate change and preparedness, including improved data collection and analysis, and review of environmental justice impacts on communities of color.
The House also proposes: $30 million for a Clean Energy Investment Fund, including dedicated funding for environmental sector workforce development; $54 million to the Department of Environmental Protection, including funding towards an environmental health program (focused on both environmental and community health); $28 million to the Department of Conservation & Recreation for the maintenance of beaches, pools, and spray pools, including splash pads and other resources during heat emergencies; about $800 thousand in funding for urban and community forestry programs through the Inflation Reduction Act and USDA Urban and Community Forestry Grant; $1.23 million of federal funding to the Department of Energy Resources for a state energy plan; and $20.5 million to the Department of Public Utilities (DPU), including $1 million for the DPU’s transportation oversight division.
Conclusion
We are very encouraged by this House budget plan and want to give thanks to Speaker Ron Mariano and House Ways & Means Chairman Michlewitz. This budget shows the House is committed to improving public transit, acting on climate to protect our communities and critical infrastructure, and supporting the needs of our regional economy. We believe it is a step in the right direction for the Commonwealth and we look forward to monitoring the State Senate’s budget that will be released in May.
