January 26, 2022
PUBLIC FINANCE > Budget > FY 2023

Governor Baker’s FY 2023 Budget

Governor Baker’s Budget – Five Things to Know

Among the many elements in Governor Baker’s budget, several proposals and assumptions stand out as being particularly notable.  Each of these items will play a significant role in the budget process in the months ahead.  

  1. The Governor’s budget assumes approximately $700 million in tax reductions he proposed in separate legislation. These changes are designed to reduce the cost of living and improve Massachusetts’ competitiveness;
  2. This budget does not include any federal Fiscal Recovery Funds or anticipated budget surplus spending;
  3. The budget includes a major reduction in both MassHealth spend and associated federal revenue due to the expected end of the federal Public Health Emergency, which will allow MassHealth to re-determine member eligibility, but also mean the end of $1 billion in enhanced federal reimbursements;
  4. The FY 2023 budget contains a revised hospital assessment that will help support more than $1 billion in new off-budget spending related to the state’s Medicaid Waiver reauthorization; and
  5. The cost of implementing the Student Opportunity Act rises dramatically in the second year, which is reflected in Governor Baker’s proposed $485.2 million increase for Chapter 70.  This increase would be even greater if inflation growth was not capped at 4.5 percent by statute.