Senate Democrats released a $1.3 billion spending bill Thursday that uses surplus dollars generated by an income surtax to pay for education and transportation projects, but marks a significant departure from a proposal that cleared the House last month.
The supplemental budget that senators are expected to vote on next week comes during a busy time on Beacon Hill, as lawmakers corral the fiscal year 2026 budget and deal with federal funding uncertainty spurred by the Trump administration.
The Senate’s surtax spending bill proposes shuttling $613 million to education initiatives and $670 million to transportation projects, compared to the House’s plan that sends $828 million to transportation and $353 million to education.
Senate budget chief Michael Rodrigues said he wanted to “maintain as close to a 50-50 split as possible between education and transportation,” the two categories lawmakers are required to spend cash on from the voter-approved law known as the millionaire’s tax or “Fair Share Amendment.”
“There are some serious concerns, especially from our local school districts, around SPED — special education cost increases — and about the need to provide the ability for increased career technical initiative programs both at our vocational schools and comprehensive high schools,” the Westport Democrat told reporters. “We thought this was a very good split.”
Money from the 4% surtax on incomes over $1 million has served as a boon to lawmakers over the past several years as the state experienced less-than-ideal revenue hauls and federal funding cuts.
Massachusetts expects to collect $2.4 billion in revenue from the surtax in fiscal year 2026, or slightly more than the $2.2 billion the voter-approved law brought in fiscal year 2024, according to Gov. Maura Healey’s administration.
Senate Democrats included $370 million for the MBTA in the supplemental spending bill, far less than the more than $700 million the House wrote in. The Senate’s version of the spending plan also includes $248 million for special education costs.
Rodrigues said the spending bill features another $5 million for transportation and traffic safety concerns related to the FIFA World Cup, which is scheduled to host seven games at Gillette Stadium in Foxboro.
“There’s going to be an impact on public transportation to and from Gillette Stadium unlike anything they’ve seen before,” he said. “This isn’t just a Patriots game. These are World Cup matches. These are going to be intended by fans from around the world, many from Europe, who are accustomed to a much more robust public transportation system.”