House Passes FY25 Surtax Surplus Supplemental Budget

The Massachusetts House of Representatives today passed a $1.3 billion supplemental budget that consists of surplus funds generated from the Fair Share surtax. This supplemental budget includes $353 million for education related investments, and $828 million for transportation related investments.

“Ensuring that every Massachusetts resident has access to a safe and reliable public transportation system, and that every student in the Commonwealth receives a high-quality education, are two of the most fundamental responsibilities that we have as elected officials. The investments being made in this supplemental budget are representative of the House’s continued focus on meeting those responsibilities, and were made possible as a result of years of fiscally responsible, consensus driven budgeting,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Chairman Michlewitz and the House Committee on Ways and Means for working diligently to craft this supplemental budget, as well as all my colleagues in the House for voting to advance this vital funding. The House looks forward to building on these investments in the FY26 budget, and to continuing to deliver improvements to the Commonwealth’s most fundamental institutions and services.”

“The use of these one-time surplus of funds are a unique opportunity for us to better strength the Commonwealth in numerous ways. By further improving our educational and transportation sectors we will build off the work we have done in the last several budget cycles with a judicious use of the Fair Share funds,” said Representative Aaron Michlewitz (D-Boston), Chair of the House Committee on Ways & Means. “I want to thank Speaker Mariano and all our House colleagues for their input and support on this critical funding legislation.”

The supplemental budget passed today includes revenues generated from the Fair Share ballot initiative voters approved in November 2022, which established a new surtax of four percent on annual income above $1 million and invests these new public dollars to improve the state’s education and transportation sectors.

Key investments include:

Education

  • $190 million for Circuit Breaker reimbursements, which provide financial assistance to public school districts to offset the cost of delivering high-cost special education services to students.
  • $50 million for capital improvements at vocational schools
  • $40 million for early education and care (EEC) workforce, affordability, and quality improvement supports
  • $10 million for universal school meals for every public-school student in the Commonwealth
  • $10 million for DHE Endowment Match
  • $10 million for University of Massachusetts Endowment Match
  • $10 million for Green SchoolWorks to decarbonize and increase efficiency in our schools through green energy projects
  • $8.5 million for ESOL services waitlist

Transportation

  • $400 million for MBTA Workforce and Safety Reserve
  • $300 million for MBTA Deficiency Fund
  • $60 million for MBTA physical infrastructure
  • $25 million for MTTF Transfer RTA Workforce Development
  • $20 million for reduced MBTA fares for riders with low incomes
  • $13 million for MBTA Sumner Tunnel reimbursement
  • $10 million for unpaved roads

Additional Investments

  • $58 million from the Student Opportunity Act (SOA) Investment Fund for payment of additional reimbursements in FY25
  • $5 million for the Holocaust Museum Boston

This supplemental budget also tasks the Inspector General with publishing a report on best practices for providing transportation services, including the procurement of those services, to help contain ever-increasing costs to cities and towns throughout the Commonwealth.

The bill passed the House of Representatives 140-14. It now goes to the Senate for its consideration.

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