State officials warned last week that Massachusetts could forfeit nearly $1 billion over two fiscal years because of the sweeping federal tax and spending law signed last summer by US President Donald Trump. They say revenue growth is expected to remain modest and cautious, as Massachusetts closes out the fiscal year and heads into the next budget year amid lingering state and federal uncertainty.
So that was the message delivered to Mass. House and Senate budget leaders during the annual budget hearing. That sets expectations for how much money lawmakers will have to spend next fiscal year.
State House News Service reporter Alison Kuznitz explains how this cautious growth might shape the budget when the state's already bracing for that nearly $1 billion in potential federal losses.
Alison Kuznitz, SHNS: This cautious growth is happening at a time when state budget writers [and] analysts are also worried about a drop in tax revenues, and this voter approved funding stream has really been a lifeline for Beacon Hill budget writers as they navigate how to fund transportation and education initiatives.
So this is going to put another hamper in how budget writers navigate the tight fiscal climate. And that doesn't even touch upon healthcare issues. Baystaters are going to be dealing with health care costs, and we still don't have a solution from lawmakers about how Beacon Hill can help out with sweeping Medicaid losses and rising health insurance premiums.
Carrie Healy, NEPM: The budget writing process continues. What's next?
After this consensus revenue hearing, we are going to get a consensus revenue estimate from Beacon Hill budget writers, and that's going to forge the foundation for how the administration, the House and the Senate, structure their budgets. And Governor Healey will be the first to release her budget, which is due out on January 18th.
Before we move on, Alison, last week, there was discussion among leaders about the ballot question that aims to cut the income tax rate by a percentage point.
Lawmakers calculated that that would cost the state nearly $1 billion in revenue. The Massachusetts Opportunity Alliance, which is backing the initiative, say cutting the tax rate would make the state a more appealing place to do business. But number crunching lawmakers don't buy that. The ballot question does need to go back before the Legislature. So could the Legislature just torpedo the question, or is it guaranteed to come before voters in November?
The ballot question was certified by Secretary of State Galvin's office on Thursday, so that means that it has a greater chance of going to the ballot. The Legislature has until May to act on the question. They can't necessarily torpedo it, but they can vote to pass it or substitute it. Most likely, they'll take no action in which ballot question supporters would then need to go out, collect a fresh round of thousands of signatures, and go through another certification process before voters can have their say.
So they could make it difficult.
They could. Or Beacon Hill budget writers could also choose to strike a bargain, since there are so many ballot questions on the horizon for 2026.
Moving on; after an anti-Semitic attack in Australia, Massachusetts leaders say they're moving ahead with new steps to confront antisemitism statewide. Top officials pledged to protect Jewish communities, and the state's Special Commission on Combating Antisemitism released a report recently that suggests ways to navigate this discrimination in schools and law enforcement, and in workplaces. What was the takeaway for lawmakers from that report?
The takeaway is that antisemitism is so pervasive in Massachusetts that Jewish students and professionals are feeling very scared to show their identity out in public. So lawmakers have committed to saying that this report and its dozens of recommendations are not just going to sit on a shelf.
For the administration, Governor Maura Healey has tapped her lieutenant governor to lead the charge in making sure that these recommendations are implemented throughout state government.
Before we go, some Clement Clarke Moore: ‘Twas the night before Christmas when all through the house not a creature was stirring, not even a mouse.’ Is that going to be pretty much like what's going to happen on Beacon Hill this week?
It should be, aside from a few last-minute holiday concerts and tourists coming through Beacon Hill.
So, pretty quiet?
Pretty quiet.
