Senate leaders threw cold water on a push to legalize online lottery sales as part of the state’s fiscal 2024 budget, saying the House and Gov. Maura Healey-backed provision “needs more time to be vetted.”
The Senate unveiled a $55.8 billion budget proposal Tuesday morning, a week after the state reported a massive drop in tax revenues for the month of April that has since pushed parallel debates on tax reform to the forefront of the Beacon Hill agenda.
Senate Ways and Means Chair Rep. Michael Rodrigues said the state lottery consistently sets revenue records, a point he used to squash concerns the gambling service would fall victim to the rise of digital sports betting.
“We’ve also heard very clearly from our current lottery agents, all of the convenience stores that are currently servicing that, that they have issues with online lottery,” Rodrigues told reporters. “We don’t think it will generate the type of revenue that they’re proposing to generate.”
House leaders included online lottery in their budget proposal released last month, predicting the digital expansion would generate $200 million in revenue for an early education and care grant program.
But Rodrigues said the Senate wanted to put “real money” behind Commonwealth Cares for Children grants. The Senate proposed funding them at $475 million with $245 million coming from an early education and care trust fund.
After a $1.5 billion drop in state tax revenues, Rodrigues said the Senate is still committed to taking up a tax relief bill “soon after we put the FY24 budget to bed.” The chamber’s fiscal 2024 budget commits $575 million to future tax relief legislation, though details are scarce.
“It’s a good responsible estimate, one that we want to make sure we put a hold on the balance sheet, and one that if it comes in a little higher or comes in a little lower, it’d be easy to adjust,” Rodrigues said.
The Senate budget eyes one change to Chapter 62F, the once-obscure tax cap law that required the state to send $3B in tax reimbursements to residents last year.
Rodrigues said the Senate, like the House, plans to exclude revenue from the “Fair Share Amendment” from contributing to the tax cap, a move he framed as dedicating those dollars to education and transportation.
“We wanted to make sure that every dollar is invested in education and transportation and we go to a lot of effort to ensure that it’s open, it’s transparent, it’s accounted for,” he said.
Like the House, Senate leadership said they are splitting up an expected $1 billion in revenue from the “Fair Share Amendment” between transportation and education initiatives, shuttling $500 million to each sector.
Twenty million in “Fair Share” dollars is heading to MassReconnect, a program that would allow residents 25 years and older to obtain free associate degrees or certificates at public community colleges.
Another $15 million would be used to run fare free pilot programs at regional transit authorities.
“Funding our RTAs is the right thing to do for each and every resident who relies upon them and to ensure regional equity,” Senate President Karen Spilka said.
The Senate backed a $20 million proposal to offer no-cost calls for inmates at Houses of Correction or the Department of Correction and their families.
But the branch scrapped a measure offering free school meals at public schools.
“We feel that we should best address this as the governor proposed in a future supplemental budget,” Rodrigues said.