HOUSE DOCKET, NO. 1 FILED ON: 1/27/2021
HOUSE . . . . . . . . . . . . . . . No. 1
The Commonwealth of Massachusetts
_________________
OFFICE OF THE GOVERNOR
COMMONWEALTH OF MASSACHUSETTS
STATE HOUSE · BOSTON, MA 02133
(617) 725-4000
CHARLES D. BAKER KARYN POLITO
GOVERNOR LIEUTENANT GOVERNOR
January 27, 2021
To the Honorable Senate and House of Representatives,
Today, we submit to you our Fiscal Year 2022 (FY22) House 1 budget recommendation
which protects core government services, provides significant support for local cities and towns,
and encourages economic growth and development without raising taxes on residents, as we
promote a strong, equitable recovery from the COVID-19 public health emergency.
This balanced budget proposal includes substantial investments and maintains financial
discipline as the Commonwealth begins to transition away from one-time revenue and spending
needed to combat the pandemic. These one-time initiatives have utilized various state and federal
resources, both on and off-budget, to help ensure public health and address a variety of needs.
The proposal also keeps the Administration’s promise to the Commonwealth’s cities and towns
by ensuring unrestricted local aid increases at the same rate as consensus tax revenue growth.
Through this proposal, the Administration is recommending fully funding the first year of
the landmark Student Opportunity Act with $246.3 million in new funding added for initiatives
laid out in this legislation. This includes an increase of $197.7 million in Chapter 70 funding,
with a particular focus on school districts serving low-income students. The Administration’s
proposal also provides increased funding for charter schools and special education circuit breaker
reimbursement. Additionally, the Administration is proposing to allow municipalities to count
federal dollars towards their Chapter 70 required local contribution increases, a commonsense
measure to provide important flexibility and needed fiscal relief to cities and towns.
 House 1 recommends $45.6 billion in gross spending, a decrease of 0.7% over the Fiscal
Year 2021 (FY21) projected spending, (excluding transfer to the Medical Assistance Trust
Fund). This year-over-year decrease accounts for current tax projections and is primarily driven
by caseload and cost decreases at MassHealth which previously experienced significant cost
increases in FY21 due to the pandemic.
This budget recommendation authorizes a withdrawal of up to $1.6 billion from the
Stabilization Fund to help ensure the continuation of essential government services and
responsibly preserve financial reserves for Fiscal Year 2023 and beyond. Working together, the
Legislature and this Administration have been able to grow the Stabilization Fund since 2015,
which now enables us to face the budget challenges associated with COVID-19 while still
making substantial investments in education, economic development, and our communities – all
without raising taxes on our residents.
Improvements in tax collections or new federal revenue will allow the amount of this
withdrawal to be reduced. This current Stabilization Fund withdrawal accounts for less than
3.5% of the total proposed FY22 budget and would leave the fund with a balance of
approximately $1.11 billion.
Consistent with previous budget proposals, House 1 maintains the Administration’s
commitment to being a reliable partner for municipalities. This Administration is proposing an
increase in the Unrestricted General Governmental Aid (UGGA) investment that is equivalent to
the expected 3.5% tax revenue growth in the consensus revenue forecast announced on January
15, 2021. This translates to a $39.5 million increase and a $1.168 billion total investment, which
would be $222 million (23.5%) more than the Fiscal Year 2015 investment. House 1 also
includes $4 million for Community Compact-related programs including best practices and
regionalization and efficiency grants, as well as $3 million for district local technical assistance
and $4.8 million for the Public Safety Staffing Grant Program. These programs provide all 351
cities and towns with access to grant funding and resources to ensure quality services for their
residents.
This proposal preserves pre-COVID-19 pandemic eligibility and benefit levels for social
safety net programs such as MassHealth, Transitional Aid to Families with Dependent Children
(TAFDC), child-care vouchers, Prescription Advantage, Homecare, Chapter 115 veteran
benefits, and the Turning 22 program.
To continue promoting racial equality and opportunity, this proposal includes over $30
million to support the recommendations of the Black Advisory Commission and Latino Advisory
Commission. This includes investments in teacher diversity, small business development,
financial literacy, job placement programming, and workforce training. The recommendation
provides $2.5 million in funding to support the newly created Supplier Diversity Office’s work
to increase and improve state contracting opportunities for minority-owned businesses.
House 1 invests substantial funding towards critical priorities including $96 million to
address sexual assault and domestic violence and $357.3 million for substance misuse treatment
and prevention, an increase of $22.1 million (7%) above the FY21 budget. With this
recommendation, the Administration is also continuing strong support for transportation, early
and higher education, housing, workforce development, behavioral health, the environment, and
economic development.
This budget includes a total investment of $16.9 million in additional funding for
transforming vocational high schools into Career Technical Institutes and training 20,000 new
workers in skilled trades and technical fields over four years. This initiative will increase student
demand, involve businesses in program development and credentials, reduce barriers to
licensure, and create incentives for completion and post-graduate employment.
The Commonwealth continues to benefit from the strong partnership between our
Administration and the House and Senate. We look forward to developing a final spending plan
for Fiscal Year 2022 that invests in essential government services and critical priorities while
ensuring fiscal discipline and stability for current and future budgets. We appreciate your prompt
consideration of these recommendations.
Sincerely
Charles D. Baker,
Governor
 HOUSE . . . . . . . . . . . . . . . No. 1
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Second General Court
(2021-2022)
_______________
An Act making appropriations for the Fiscal Year 2022 for the maintenance of the departments,
boards, commissions, institutions, and certain activities of the Commonwealth, for interest,
sinking fund, and serial bond requirements, and for certain permanent improvements.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. To provide for the operations of the several departments, boards,
2 commissions and institutions and other services of the commonwealth, and for certain permanent
3 improvements and to meet certain requirements of law, the sums set forth in sections 2, 2B, 2D,
4 2E and 3, for the purposes and subject to the conditions specified in sections 2, 2B, 2D, 2E and 3,
5 are hereby appropriated from the General Fund unless specifically designated otherwise, subject
6 to laws regulating the disbursement of public funds for the fiscal year ending June 30, 2022. All
7 sums appropriated under this act, including supplemental and deficiency budgets, shall be
8 expended in a manner reflecting and encouraging a policy of nondiscrimination and equal
9 opportunity for members of minority groups, women and disabled persons. All officials and
10 employees of an agency, board, department, commission or division receiving monies under this
11 act shall take affirmative steps to ensure equality of opportunity in the internal affairs of state
12 government, as well as in their relations with the public, including those persons and
13 organizations doing business with the commonwealth. Each agency, board, department,
14 commission or division, in spending appropriated sums and discharging its statutory
15 responsibilities, shall adopt measures to ensure equal opportunity in the areas of hiring,
16 promotion, demotion or transfer, recruitment, layoff or termination, rates of compensation, in-
17 service or apprenticeship training programs and all terms and conditions of employment.
SECTION 1A. In accordance with Articles LXIII and CVII of the Amendments to the
Constitution and section 6D of chapter 29 of the General Laws, it is hereby declared that the
amounts of revenue set forth in this section by source for the respective funds of the
commonwealth for the fiscal year ending June 30, 2022 are necessary and sufficient to provide
the means to defray the appropriations from such funds for this fiscal year as set forth and
authorized in sections 2, 2B and 2E. The comptroller shall keep a distinct account of actual
receipts from each such source by each such fund to furnish the executive office for
administration and finance and the house and senate committees on ways and means with
quarterly statements comparing such receipts with the projected receipts set forth in this section
and to include a full statement comparing such actual and projected receipts in the annual report
for the fiscal year ending June 30, 2022 pursuant to subsection (a) of section 12 of chapter 7A of
the General Laws. The quarterly and annual reports shall also include detailed statements of any
other sources of revenue for the budgeted funds in addition to those specified in this section.
Fiscal Year 2022 Revenue by Source Fund (in Millions)
Commo
n-
Source All wealth Other
Budgete General Transp Majo Other
d Fund or- r Funds*
Funds tation Funds *
Fund *
Fiscal 2022 Consensus Tax Revenue Estimate
Alcoholic Beverages 94.6 94.6 0.0 0.0 0.0
Banks 17.0 17.0 0.0 0.0 0.0
Cigarettes 304.8 304.8 0.0 0.0 0.0
Corporations 2,612.5 2,612.5 0.0 0.0 0.0
Deeds 334.1 334.1 0.0 0.0 0.0
Income 17,417.6 17,417.6 0.0 0.0 0.0
Inheritance and Estate 492.5 492.5 0.0 0.0 0.0
Insurance 479.6 455.0 0.0 0.0 24.5
Marijuana Excise 115.3 0.0 0.0 115.3 0.0
Motor Fuel 692.2 0.0 691.3 0.0 0.9
Public Utilities 0.0 0.0 0.0 0.0 0.0
Room Occupancy 149.7 149.7 0.0 0.0 0.0
Sales - Regular 5,377.1 3,520.7 0.0 0.0 1,856.4
Sales - Meals 1,049.3 1,049.3 0.0 0.0 0.0
Sales - Motor Vehicles 962.2 0.0 630.0 0.0 332.2
Miscellaneous 21.4 21.4 0.0 0.0 0.0
Fiscal 2022 Consensus Tax Revenue Estimate 30,120.0 26,469.4 1,321.3 115.3 2,214.0
3
 Commo
n-
Source All wealth Other
Budgete General Transp Majo Other
d Fund or- r Funds*
Funds tation Funds *
Fund *
Tax Transfers
Annual Contribution to the State Pension (3,415.2) (3,415.2 0.0 0.0 0.0
System )
Sales Tax Transfer to the MBTA (1,174.3) 0.0 0.0 0.0 (1,174.
3)
Sales Tax Transfer to the MSBA (1,014.3) 0.0 0.0 0.0 (1,014.
3)
UI Surcharge to the Workforce Training Trust (24.5) 0.0 0.0 0.0 (24.5)
Fund
Excess Capital Gains Tax to Stabilization Fund (148.1) (148.1) 0.0 0.0 0.0
Excess Capital Gains Tax to State Retiree (8.2) (8.2) 0.0 0.0 0.0
Benefits Trust Fund
Excess Capital Gains Tax to Pension Liability (8.2) (8.2) 0.0 0.0 0.0
Fund
Subtotal, Tax Transfers (5,792.8) (3,579.7 0.0 0.0 (2,213.
) 1)
Fiscal 2022 Consensus Tax Revenue 24,327.2 22,889.7 1,321.3 115.3 0.9
Available for Budget
House 1 Tax Initiatives and Other Tax
Revenue
Tax-Related Settlements & Judgments 50.0 50.0 0.0 0.0 0.0
Opioid gross receipts tax 5.0 5.0 0.0 0.0 0.0
Charitable Deduction Delay 64.0 64.0 0.0 0.0 0.0
Life Sciences 5.0 5.0 0.0 0.0 0.0
MEFA college savings tax deduction (2.3) (2.3) 0.0 0.0 0.0
Subtotal, House 1 Tax Initiatives and Other 121.7 121.7 0.0 0.0 0.0
Tax Revenue
Total Taxes Available for the Fiscal 2022 24,448.9 23,011.4 1,321.3 115.3 0.9
Budget
4
 Commo
n-
Source All wealth Other
Budgete General Transp Majo Other
d Fund or- r Funds*
Funds tation Funds *
Fund *
Non-Tax Revenue
Federal Reimbursements 12,563.6 12,555.6 0.0 0.0 8.0
Departmental Revenues 5,211.8 4,455.3 685.5 45.6 25.4
Consolidated Transfers, excl. Stabilization Fund 2,258.4 1,883.6 31.4 176.0 167.4
Subtotal, Non-Tax Revenue Total 20,033.8 18,894.5 716.9 221.6 200.8
Grand Total 44,482.7 41,905.9 2,038.2 336.9 201.7
* Other major funds include the Local Capital Projects Fund, Gaming Local Aid Fund,
Education Fund, Gaming Economic Development Fund, Marijuana Regulation Fund, and the
Underground Storage Tank Petroleum Product Cleanup Fund
** Other funds include the Commonwealth Stabilization Fund, Public Safety Training Fund,
Inland Fish & Game Fund, Marine Recreational Fisheries Development Fund, and Behavioral
Health Outreach, Access and Support Trust Fund, as well as revenue transferred to the
Massachusetts Bay Transportation Authority, Massachusetts School Building Authority, and the
Workforce Training Trust Fund
5
SECTION 1B. The comptroller shall keep a distinct account of actual receipts of non-tax
revenues by each department, board, commission or institution to furnish the executive office for
administration and finance and the house and senate committees on ways and means with
quarterly statements comparing such receipts with projected receipts set forth herein and to
include a full statement comparing such receipts with projected receipts in the annual report for
the fiscal year ending on June 30, 2022 pursuant to subsection (a) of section 12 of chapter 7A of
the General Laws. The quarterly and annual reports shall also include detailed statements of any
other sources of revenue for the budgeted funds i