Governor Maura Healey submitted a supplemental budget on September 13th to ensure that Massachusetts closes Fiscal Year 2023 in a balanced financial state. This budget serves multiple purposes, including covering spending deficiencies, supporting new collective bargaining agreements, and providing shelter and services for families experiencing homelessness.
See the Governor’s letter and the budget allocations.
Key points about the supplemental budget include:
- Homelessness Support: The budget proposes using $250 million in one-time resources from the Transitional Escrow Fund to cover ongoing costs related to providing temporary shelter to families experiencing homelessness. This action follows a state of emergency declaration due to increased family homelessness and limited shelter availability. These funds help pay for Emergency Assistance shelter placements, services, and increased school costs (see Line Item 1599-0514 on page 11 of the document)
- Financial Allocation: The budget allocates $2.15 billion gross / $833.3 million net to address spending shortfalls and continue a MassHealth payment strategy that helps manage the impact of reduced COVID-19 reimbursements. A significant portion, $2.11 billion gross / $798.8 million net, is dedicated to MassHealth.
- Policy Corrections: The budget includes several policy corrections related to recent legislation, including changes to the universal free school meals policy, support for municipalities impacted by natural disasters, simplification of a tax credit for small businesses hiring National Guard members, and the elimination of copays for MassHealth members. It also addresses administrative updates and the sunset of daily COVID-19 reporting requirements.
- Collective Bargaining: A separate $200 million reserve is established to fund new collective bargaining agreements between the administration and public employee unions.
The supplemental budget aims to close the books on Fiscal Year 2023 while making necessary policy adjustments and funding allocations.