BOSTON (11/12/2020) – Today, the Senate Committee on Ways and Means announced a $45.98 billion budget for Fiscal Year 2021 (FY21). The Committee’s budget is a responsible and balanced plan that ensures fiscal stability and recommends targeted investments to protect access to core essential services, address urgent needs, and support efforts to build an equitable recovery for the Commonwealth in response to the COVID-19 pandemic.
“I am proud of this budget – it is a significant step toward addressing the real and immediate needs of the Commonwealth as our state continues to combat the effects of the coronavirus pandemic,” said Senator Cindy Friedman (D-Arlington), Vice Chair of the Senate Committee on Ways and Means. “The spending priorities reflect our strong commitment to protecting the fundamental needs of our residents, such as childcare, housing, food security and healthcare.”
The Committee’s budget recommends a total of $45.98 billion in spending, a 5.5% increase over the Fiscal Year 2020 (FY20) General Appropriations Act. This spending recommendation is based on a revised tax revenue estimate of $27.59 billion, which provides for $3.55 billion less in available revenue than the original consensus revenue estimate of $31.15 billion, as originally agreed upon in January. To close this anticipated revenue shortfall, the FY21 budget includes $1.5 billion from the Stabilization Fund, ensuring a majority of the Stabilization Fund balance remains for future years, $1.38 billion in available federal supports, and more than $400 million in new revenue initiatives. It also avoids drastic budget cuts while leaving the Commonwealth in a sound fiscal position moving forward.… Read more.
