The House and Senate are preparing to enact a Fiscal Year (FY) 2026 budget, totaling $61.03  billion in line-item spending. The compromise budget includes $443.4 million less in spending than the final House budget and $395.1 million more in spending than the Senate budget, meaning that the Conference Report includes $941.2 million less than Governor Healey’s original spending plan. The FY 2026 conference report proposes spending growth of $3.3 billion, or 5.6 percent over the FY 2025 General Appropriations Act (GAA).

In spite of the significant reduction in spending, the FY 2026 Conference Report does not adjust the non-surtax tax revenue assumptions established during the Consensus Revenue process in January. The Conference Report assumes $41.214 billion in non-surtax collections. As MTF noted in its recent Conference Preview series, the economic picture has darkened since January and it is likely that the Healey administration will revise revenue assumptions at some point in the summer or fall.