BOSTON — More money for public transportation, education, housing, and workforce development are among the highlights of the House of Representatives’ version of next year’s state budget, which was rolled out Wednesday.
The $57.9 billion House budget — which is about $150 million more than Gov. Maura Healey’s preliminary budget — boosts local aid in the fiscal year that begins on July 1 to more than $1.25 billion. It also calls for spending $6.86 billion on Chapter 70 school aid, also an increase over the current fiscal year.
House Ways and Mean Chairman Aaron Michlewitz, D-Boston, said the plan will “allow the commonwealth’s economy to grow, while remaining competitive, and also recognizing the financial realities” facing the state government following several months of declining revenue.
“This budget aims to do that with major investments in housing, education and workforce development … all while keeping Massachusetts a competitive engine,” he told reporters at a briefing where he touted the state’s fiscal outlook. “We still have the ability to navigate through these choppy waters and meet the needs of our residents.”
House Democrats shrugged off Healey’s calls to cap spending increases at 2.9% over the previous fiscal year, proposing to hike spending by 3.3% next fiscal year.
House Speaker Ron Mariano said despite the increased spending, the Legislature will need to tighten the state’s fiscal belt in the next year amid economic uncertainty and diminishing revenue collection.
“This fiscal year is not going to be like the past few,” the Quincy Democrat said in remarks Wednesday. “And there will be an ever greater demand for fiscal responsibility throughout this budget cycle.”
A key provision of the plan calls for spending what House leaders described as a “record” $555 million for the Massachusetts Bay Transportation Authority in the next fiscal year to cover the cost upgrades and training new workers at the beleaguered agency.
If approved, the House plan would earmark $314 million for direct operating costs at the MBTA, $184 million for the state’s 15 Regional Transit Authorities, and $75 million for MBTA capital investments.
The plan also calls for spending $40 million to create an MBTA Academy to oversee recruiting and training efforts, and create a pipeline for skilled workers.
Another $20 million would be set aside for reduced fares for riders with low incomes, which was recently approved by the MBTA’s Board of Directors.
The plan also calls for spending $1 billion in proceeds from the millionaires’ tax on a range of education and transportation programs, along with new initiatives. The new voter-approved law, which went into effect in January, set a 4% surtax on incomes above $1 million.
The House plan calls for $475 million to continue the Commonwealth Cares for Children program, which has provided grants to about 7,500 child care providers to help them keep their doors open during the pandemic.
It also recommends spending $35 million to provide “unlimited” free phone calls for inmates at state prisons, correctional facilities and county jails.
Increased funding for job training, housing, higher education, and expanding behavioral health services also are part of the proposal.
Healey unveiled a $56.1 billion budget in January that called for capping spending increases at 2.9% across the board, citing the state’s declining revenue collections.
Debate on the spending plan comes amid concerns about the state’s finances with taxes and other revenue coming in below benchmarks in recent months despite a slight uptick in the previous month, as well as federal pandemic aid drying up.
Healey wielded her executive powers in February to slash $375 million from the current fiscal year budget to close a gap between spending and revenue.
The so-called 9C cuts, which didn’t require legislative approval, hit a variety of state agencies and departments, with one of the largest reductions being a $294 million cut at the state’s Medicaid program for fee-for-service payments.
Lawmakers are expected to file hundreds of proposed amendments to the House’s spending package, the fate of which will be debated in closed-door leadership negotiations.
The budget also needs to be approved by the state Senate before heading to Healey’s desk for review.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.