On January 22nd, the Healey-Driscoll administration filed its budget proposal for Fiscal Year (FY) 2026. The $62.07 billion spending plan increases spending over the FY 2025 General Appropriations Act (GAA) by $4.3 billion (7.4 percent) and over the administration’s estimated spending level of $60.26 billion by $1.8 billion (2.1 percent). 

For the third year in a row, spending in the state’s operating budget will be supported by revenues collected from the income surtax – an additional four percent tax on annual incomes over $1 million – which are constitutionally obligated towards education and transportation investments. In FY 2026, the amount of surtax-supported spending included in the operating budget is $1.95 billion.