#2021-16 May 28, 2021

Senate Passes $47.7 Billion Senate Budget

After three days of debate, the Senate yesterday afternoon unanimously passed a $47.7 billion budget for FY2022.  During debate on the budget, Senators discussed their visions of how to invest state resources as the Commonwealth begins to recover from the COVID-19 pandemic.

After the vote, Senate President Karen Spilka (D-Ashland) said the budget puts Massachusetts on “stable fiscal footing” to begin statewide recovery efforts.  In addition, Senate Ways and Means Chairman Michael Rodrigues (D-Westport) said the bill will help get the state “back to better.”  While the House and Senate budgets are similar in many ways after being developed based on revenue projections of just over $30 billion in taxes for the next fiscal year, a range of issues will be subject to conference committee negotiations.  These include the film tax credit, fees on Uber and Lyft rides, and sports betting.

In addition, with both budgets not using any of the $5.3 billion in discretionary federal dollars the state is expecting to receive from the American Rescue Plan Act, State House leaders, may come under pressure to increase revenue estimates for FY2022.  The Senate did reject amendments to use federal funds to address shortfalls in the unemployment solvency fund; however, business groups continue to advocate for a long-term fix for the state’s unemployment insurance program.  Senators also deferred action on proposals to extend the authorizations for several pandemic state of emergency measures that are slated to expire on June 15.  House and Senate leaders are said to be working on a separate review of pandemic policies they might want to extend.

Overall, the Senate budget increases spending by approximately $1.3 billion over FY2021 after senators added $63.7 million to through the amendment process.  The Senate proposal also uses $1.55 billion in reserves, which would leave the balance of the state’s rainy-day fund at $1.15 billion.  Over the course of the debate, the Senate considered 923 amendments, many of which were included in large bundles which required only a single roll call vote to approve or disapprove.  Several other amendments were withdrawn after their sponsors discussed them on the floor.

We are pleased that the Senate adopted an MBA-supported amendment (#656) sponsored by Senator Anne Gobi (D-Spencer) that provides $50,000 in funding to assist homeowners who wish to test their foundations for the presence of pyrrhotite which causes the slow deterioration of the concrete when exposed to oxygen and water in the central part of the state.  We will continue to advocate for the inclusion of this funding in the final budget.  The House and Senate budgets now head to a six-member conference committee to iron out the difference between the two bills.

To read the Association’s letter to the Senate regarding several key amendments, click here.