On Wednesday, March 4th, Governor Charlie Baker and Lieutenant Governor Karyn Polito filed their first budget proposal, which holds spending to a sustainable 3% increase while investing in key priorities including local aid, education, and transportation.
The fiscally responsible plan brings spending in line with revenue growth for the first time in several years and puts the Commonwealth on the path towards economic growth and stability.
Some other key highlights include:
A $34 million increase, or 3.6%, in unrestricted local aid to $980 million
- A $105.3 million increase in Chapter 70 funding, which increases funding for all 321 school districts
- A phase in of the Earned Income Tax Credit to 30% of the federal limit while phasing out the Film Tax Credit
- Funding local aid by 75% of revenue growth, a 3.6% increase
- Increasing transportation spending by 20%, including $187 million, or a 53% increase, in direct aid to the MBTA
- An early retirement incentive program to responsibly reduce the state’s administrative spending
To learn more, visit the Governor’s Budget Homepage.