MASS. – On Thursday, Gov. Charlie Baker signed the Fiscal Year 2023 $52.7 billion budget, which includes $315 million to support permanent tax reductions.
WATCH BELOW: Gov. Baker Signs FY23 Budget
The budget fully funds the continued implementation of the Student Opportunity Act, with a $5.998 billion annual Chapter 70 investment, along with a $67.7 million increase over FY22 for special education circuit breaker reimbursement for cities and towns and a $89.2 million increase in charter school reimbursement funding.
The City of Worcester will receive $316.2 million in Chapter 70 funding and $48.1 million in unrestricted government federal aid. In all, Worcester will receive roughly $30 million more in disbursements and reimbursements than the city received in FY22.
To see all local aid distribution, click here.
“With the Commonwealth in a historically strong fiscal position, the FY23 budget supports tax relief for hundreds of thousands of taxpayers, while making record investments in education and local aid,” Baker said. “Since coming into office, our Administration has worked closely with the Legislature to ensure the budget is structurally sound and protected from unpredictable economic fluctuations, and I am pleased to sign another budget that maintains this commitment while making investments help Massachusetts’ families and communities grow and thrive.”
Baker also signed a new one-time investment of $110 million that will support a pilot free school meal program for students in K-12 schools.
The FY23 budget also provides $1.61 billion for college affordability, degree completion, and workforce readiness.
The FY23 budget incorporates the $315 million to support permanent tax reductions that are expected to be enacted through separate legislation pending in the state’s legislature. Several of the expected tax measures were first proposed in the Administration’s FY23 budget plan filed in January, including an increase to the rental deduction cap, expansions of the dependent care and senior circuit breaker tax credits, and estate tax reforms.
The FY23 budget incorporates an upgraded $39.576 billion base tax revenue forecast, an increase of $2.66 billion above the total FY23 consensus tax projection set in January. The revenue supports a total of $52.7 billion in gross spending, excluding the Medical Assistance Trust Fund transfer, which reflects approximately 9.3% growth in appropriations over Fiscal Year 2022 (FY22).
“The FY23 budget maintains our Administration’s strong support for the Commonwealth’s cities and towns and expands services in acute areas of need, like housing stability, education and childcare access, workforce development, transportation, substance addiction treatment and behavioral health care,” said Lt. Gov. Karyn Polito.“This funding will further our work to encourage the economic growth of our communities, promote equitable access to opportunity and support the health and wellbeing of all residents.”
For more budget highlights, click here. For a budget summary, click here.
Lead image courtesy: Office of Governor Charlie Baker and Lt. Governor Karyn Polito
