Earlier today, the Healey-Driscoll administration released its Fiscal Year (FY) 2025 budget proposal. The $58.13 billion spending plan includes critical investments in childcare, education, and transportation; and $1.3 billion in spending supported by income surtax revenues. The Governor’s budget increases funding over the FY 2024 General Appropriations Act (GAA) by $2.1 billion (3.7 percent); a rate of growth that reflects the modest revenue expectations for the upcoming fiscal year.

The Governor’s budget comes three weeks after the Healey administration announced a $1 billion tax revenue shortfall for FY 2024, which they propose to solve for using a combination of unanticipated non-tax revenues ($625 million) and mid-year spending cuts ($375 million net).