BOSTON– Today, the Senate Committee on Ways and Means announced a $45.985 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.

“As I have often said, Massachusetts is a Commonwealth—which means that we take care of each other—and that’s what this budget does,” stated Senate President Karen E. Spilka (D-Ashland). “I am immensely proud of Chair Rodrigues, his team, Vice Chair Friedman and Assistant Vice Chair Lewis and the entire Senate Committee on Ways and Means for the budget they have released today under very difficult circumstances. This budget utilizes a judicious use of reserves and targeted revenue initiatives while making notable investments in the areas of life most impacted by our current crisis to help us build towards an equitable recovery.”

“As a member of the Ways and Means Committee, I am pleased with the investments we were able to make in this budget during what is a very difficult year by all accounts,” said Senator Anne M. Gobi (D-Spencer). “This is a positive step towards improving lives and livelihoods, and gives much needed support to those who have been waiting for funding level allocations to plan for the coming year.”

The Committee’s budget recommends a total of $45.985 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 $27.592 billion, which provides for $3.558 billion less in available revenue than the original consensus revenue estimate of $31.151 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.

The Committee’s budget protects Massachusetts students and educational institutions by preserving the Senate’s stated priority investments, despite an unprecedented fiscal climate. Continuing the Senate’s long-standing support of targeted investments in education, this budget holds harmless Chapter 70 funding in a manner consistent with the agreement reached between the Senate, House and Administration in July by providing $5.283 billion, an increase of $107.6 million over FY20.

This additional level of investment will allow all school districts to maintain foundation spending levels while accounting for enrollment and inflation changes. The budget also includes $345 million for the Special Education (SPED) Circuit Breaker, reimbursing school districts for the cost of educating students with disabilities at the statutorily required 75% reimbursement rate. In addition to ensuring stability for the state’s K-12 population, the Committee’s budget takes steps to invest in childcare providers and higher education institutions—both of which are of critical importance to the state’s economy and recovery in midst of the COVID-19 pandemic.

Education investments include: