The Massachusetts Senate Committee on Ways and Means released the proposed Senate budget for Fiscal Year 2025 (FY25) on May 7, 2024 and the Senate is scheduled to begin debate on the proposed budget on May 21, 2024. The Commonwealth’s FY25 budget runs from July 1, 2024 to June 30, 2025 and serves as an important legislative vehicle to fund state programs and services, local initiatives, as well as policy priorities.
The proposed Senate budget recommends a total of $57.9 billion in spending, a $1.8 billion increase over the FY24 General Appropriations Act (GAA). This sensible spending recommendation is based on a tax revenue estimate of $41.5 billion for FY25, which is $208 million less than revenues assumed in the FY24 GAA. This represents nearly flat growth, as agreed upon during the Consensus Revenue process in January, plus $1.3 billion in revenue generated from the Fair Share surtax.
As the Commonwealth adjusts to a changing economic landscape and ongoing tax revenue volatility, the Senate’s proposed FY25 budget adheres to disciplined and responsible fiscal stewardship. It does not raise taxes, nor does it draw down available reserves from the Stabilization Fund or the Transitional Escrow Fund, while at the same time judicially utilizing one-time resources to maintain balance.
The Senate’s budget continues responsible and sustainable planning for the future by continuing to grow the “Rainy Day Fund,” already at a historic high of over $8 billion. The Senate’s proposal would build the Commonwealth’s reserves to a healthy balance in excess of $9 billion at the close of FY25.
Governor Healey released her proposed FY25 budget in January and the House of Representatives passed a proposed FY25 budget in late May. To view either of these proposals, visit the Massachusetts Budget Tracker.
Senate FY25 Budget Proposal Information (May 2024)
Press Release: Senate Ways and Means Releases Fiscal Year 2025 Budget Recommendations
Full Senate Ways and Means FY25 Budget Proposal (S.4)
Senate Ways and Means FY25 Budget Proposal Executive Summary