MassBudget Statement: Senate Ways and Means FY 2027 Budget Proposal

Today, the Massachusetts Senate Ways and Means (SWM) committee released their proposed budget for Fiscal Year (FY) 2027. This follows the House of Representatives finalizing their FY 2027 budget proposal last week. The SWM proposal outlines a plan to spend over $63.3 billion for the upcoming fiscal year beginning July 1, of which $2.7 billion is revenue from the Fair Share surtax. The Senate passed a FY 2026 supplemental budget last month, which included $1.38 billion in Fair Share surtax funds. Taken together with the FY 2027 SWM budget proposal, the Senate would invest $4 billion in new Fair Share dollars in education and transportation.

Statement from Viviana Abreu-Hernandez, Ph.D., MassBudget President

“The SWM FY 2027 budget proposal makes critical new investments. The proposal once again shows the value and importance of the Fair Share surtax by maintaining funding for key education and transportation programs and services in the Commonwealth.

We are pleased to see increased support for fare-free buses for Regional Transit Authorities in the SWM proposal. Bus fares are one of the most regressive forms of state revenue as they are predominantly paid for by riders with lower incomes. The SWM proposal increases support for this transportation program to offer free bus fares so riders can easily access school, work, healthcare and other appointments, and access other critical services. 

We also appreciate the continued commitment to providing grants to child care providers to preserve a solid infrastructure for the child care system. This investment is of particular importance because Massachusetts childcare costs are higher than the national average. These grants were first started by the federal government during the COVID-19 pandemic and have been continued by the state in part with Fair Share surtax revenue. 

We are also encouraged to see that the SWM budget proposal includes a Foundation Budget Review Commission to examine K-12 education funding. As we are in the final year of the Student Opportunity Act, this is an ideal moment to revisit how our schools get funded. Long-needed improvements are necessary to ensure equitable distribution and adequate funding to address the current pressing needs of students and districts across the Commonwealth.

The SWM proposal also includes a substantial increase for the state’s rental voucher program which will allow for new vouchers for households to access stable and affordable housing. This investment is also crucial as the state is facing an unprecedented housing affordability crisis.  

The SWM proposed a small cut to a key housing assistance program that helps individuals and families to avoid eviction or foreclosure and address other housing emergencies. With the current housing affordability crisis, we need to be investing more resources into programs that work to help keep people housed. 

While the SWM proposal includes funding for Department of Transitional Assistance (DTA) caseworkers that would likely maintain the same number of caseworkers as the end of 2025, increased funding is needed to ensure the DTA staff can keep up with increased demand. Staff capacity to adequately serve clients that need support applying for the Supplemental Nutrition Assistance Program (SNAP) and other federally funded human services may affect the federal funding the Commonwealth gets to serve vulnerable populations for years to come.

The SWM proposal does not include any significant revenue raisers. The federal government has continued to cut taxes for wealthy corporations and individuals while eliminating or reducing funding for anti-poverty programs like SNAP and Medicaid. Yet, in Massachusetts, we have seen the unprecedented progress that can be made at the state level when people pay their fair share. The Fair Share surtax - a national model in equity driven taxation - has allowed for tremendous progress in education and transportation infrastructure and program investments. We can do even more to counteract the harmful efforts of the federal government by continuing to raise progressive revenue at the state level. One way to raise hundreds of millions of dollars to support vulnerable populations across the state is to close a tax loophole that allows multinational corporations to avoid state taxes by hiding profits offshore.” 

MassBudget will issue a preliminary analysis of the SWM’s FY 2027 budget proposal in the days to follow.

Ain't Nothin' Goin' On But the Rent

Join MassBudget’s PolicyTALKS on June 9 where we will explore the increasing burden of rent across the Commonwealth, the social and economic impacts of unaffordable housing, and what the state can doabout it.

An increasing number of Massachusetts residents are experiencing a housing affordability crisis. The ever-increasing burden of rent significantly impacts many aspects of people’s lives and communities, such as social determinants of health, access to transportation, and impact on climate change.

MassBudget is a trusted voice for rigorous research and deep and critical public policy analysis. MassBudget specifically focuses on understanding the state budget through an equity lens.

Through our PolicyTALKS, we will provide a platform for informed dialogue and practical policy recommendations that lead to a racially and economically just Commonwealth.