On January 26, 2022, the Baker-Polito Administration filed its Fiscal Year 2023 (FY23) budget proposal, a $48.5 billion plan that continues to support economic growth across Massachusetts and sustains efforts to address the COVID-19 pandemic, while fully funds the Student Opportunity Act, and making key investments in other critical areas, including housing and health care.
Read the press release for more details.
Alongside this fiscally responsible and balanced budget proposal, submitted as House 2, the Baker-Polito Administration is filing a comprehensive tax proposal to provide relief for housing and childcare costs, eliminate the income tax for hundreds of thousands of low-income taxpayers, and maintain Massachusetts’ competitiveness. The proposed changes would allow nearly $700 million to remain in the hands of taxpayers on an annual basis starting immediately in tax year 2022.
“Our Fiscal Year 2023 budget will help position Massachusetts strongly for the future by making key investments to support economic growth, sustain our nation-leading educational system, and support the health and wellbeing of our residents,” said Governor Charlie Baker. “At the same time, we are able to grow our reserves to historic levels and offer a tax relief proposal that will provide substantial relief for low-income seniors and working families. We look forward to working with our legislative colleagues to adopt a spending plan for FY23 that supports a strong and equitable economic recovery across the Commonwealth.”
“The FY23 budget recommendation maintains our Administration’s strong support for cities and towns with another increase in local aid consistent with tax revenue growth alongside other substantial investments to help the economic growth and development of Massachusetts communities,” said Lieutenant Governor Karyn Polito.“This plan takes advantage of our strong fiscal position to increase opportunity for individuals and families and continues our work in priority areas including treatment and prevention of substance addiction, sexual assault and domestic violence, promoting equality and diversity, and increasing access to education, job skills training, and high-value careers.”
“The Baker-Polito Administration is proud to submit an FY23 budget that is fiscally responsible, brings the Rainy Day Fund to record levels, and makes significant investments to support those who need it most, all while affording tax cuts that will help hundreds of thousands of taxpayers across the Commonwealth,”said Administration and Finance Secretary Michael J. Heffernan. “We look forward to collaborating with the Legislature in the coming months to finalize a spending plan that continues to support growth, opportunity, and recovery across the state while limiting future budgetary risk.”
To access the Governor’s filing letter, budget message, and specific account information click here.