Governor Maura Healey has unveiled her proposed $63 billion budget for fiscal year 2027, marking a 3.8% increase in spending compared to the previous year’s budget. This proposal follows her recent State of the Commonwealth address.
The projected revenue growth for the state stands at 2.9%, which means that the proposed spending would outpace anticipated collections. Over the past decade, Massachusetts state budgets have grown by nearly 56%. For comparison, Governor Baker’s fiscal year 2017 budget proposal was $40.5 billion.
Key elements in Healey’s proposal include changes to state subscription laws that would require an easier process for cancellations, efforts to simplify permitting processes for youth employment, and funding for a Paid Family and Medical Leave (PFML) grant program aimed at helping businesses with fewer than 50 employees manage costs associated with temporary worker absences due to PFML use.
“The increased spending that exceeds projected revenue collections is concerning,” according to a statement from NFIB/Massachusetts.
The Massachusetts House is expected to present its own version of the budget in the spring, potentially adopting some parts of Healey’s plan. The National Federation of Independent Business (NFIB) has stated it will provide updates as developments occur during the ongoing budget process.
