What's inside the Mass. governor's $63.4 billion budget
Add Axios as your preferred source to
see more of our stories on Google.
Gov. Maura Healey unveils her fiscal 2027 budget bill. Photo: Steph Solis/Axios
Massachusetts Gov. Maura Healey on Wednesday proposed a $63.4 billion budget for fiscal 2027, a 3.8% increase from the last budget bill she signed in July.
Why it matters: The fallout from the "big beautiful bill" and other federal spending cuts continues to spell uncertainty for Massachusetts as it plans for fiscal 2027, which starts in July.
The big picture: The governor's proposal often looks vastly different than the annual spending bill signed into law every summer, but it could face increased scrutiny as Healey seeks reelection in November.
- While Healey said the bill marked a 1% spending increase and below the current 2.7% inflation rate, the overall spending actually exceeds that.
Driving the news: The budget includes no new taxes or broad-based service cuts, but it does eliminate GLP-1 coverage for state employees and caps their dental coverage at $1,000 (it's currently not capped), according to state budget writers.
- Budget writers say the benefit changes mirror plans in other states.
- Healey proposed no significant cuts to MassHealth and called for a one-year extension of the ConnectorCare pilot program, which helps middle-income earners get affordable health care.
- The bill would direct $470 million for the MBTA. That plus another $645 million infusion Healey proposed in a separate bill earlier this month would plug the MBTA's projected $560 million shortfall for fiscal 2027.
What they're saying: Healey said Massachusetts is protecting residents affected by federal cuts — even as the state faces $3.7 billion in federal funding losses.
- "Despite the wrongheaded and irresponsible cuts by Donald Trump and Republicans in Congress, we're finding a way to provide coverage for people in Massachusetts," Healey said.
Yes, but: The proposal not only outpaces inflation, but it also exceeds the projected increase in tax revenue the state expects to collect in fiscal 2027.
Zoom in: The state bill includes several policy riders, from removing red tape for outdoor alcohol service to letting state and local governments install speed cameras.
- The bill would also require rape kits to be stored for at least 15 years — a response to repeated reports of eroded or missing rape kits hampering sexual assault investigations.
- Healey included a proposal to make it easier for consumers to cancel online subscriptions.
What we're watching: House and Senate leaders will unveil their own budget bills in the next few months, so it remains to be seen whether Healey's plan to rescue the MBTA and avoid major MassHealth cuts will come to fruition.