Gov. Maura Healey said Thursday she does not plan to offer up a tax or fee increase in Massachusetts to account for millions in proposed new spending next fiscal year even as state revenues face a $1 billion slowdown.
Healey plans to file her fiscal 2025 state budget proposal next week, which will direct state dollars to mental health and education initiatives as well as “double the operational funding support” for the MBTA, though it was not exactly clear what the governor had in mind.
After House Speaker Ron Mariano and Senate President Karen Spilka quickly batted down the idea of raising taxes Wednesday night, Healey offered a simple “no” on Thursday when asked if she was considering the idea.
Healey said Massachusetts is still seeing revenue growth year-over-year.
“It’s growing at a slower rate. I promised last night (to) the people that I’m only going to file a budget that is fiscally responsible. That’s what you’re gonna see next week. It’s balanced and makes strategic investments,” Healey told reporters in the halls of the State House.
Healey reversed court last week when she cut $375 million from the fiscal year 2024 budget and scraped together $625 million in non-tax revenues to plug an expected $1 billion budget gap this fiscal year. She said in December that she was not considering budget cuts.
But money issues were not top-of-mind Wednesday night as Healey made clear in her fist State of the Commonwealth address that she was looking to spend more money in her fiscal 2025 state budget.
Healey said she plans to propose “record levels” of money for local roads and bridges, a five-year literacy program for school districts, $10 million for youth mental health, a no-cost HVAC training program, and potentially millions more for the MBTA.
Healey pointed to income from a 4% surtax on incomes over $1 million that is set aside for education and transportation.
“We’re gonna make the very best use of that money,” she said.
Mariano said the Legislature and Healey just lowered taxes through a $1 billion-a-year tax cut package signed into law last year.
“We just lowered taxes. We’re not schizophrenic,” he said.
Spilka said raising taxes “is not something that I believe we are looking at.”
“I believe that we will take a look and closely monitor our revenue for the coming months, for the coming year,” Spilka said.