Democrats tangle over how to spend that "millionaire tax" money

Beacon Hill lawmakers sprang to life this month to debate competing visions for what the state should spend tax dollars on, including where to send revenue from the new "millionaires' tax."

Why it matters: Massachusetts faces mounting bills for housing homeless families, ever-expanding health care costs and other government business.

• The lethargic Legislature doesn't pass much outside the budget, meaning the spending plan is the most consequential piece of what electeds actually get done.

Follow the money: Normal tax revenue has been down while the new surtax is coming in strong.

• It's already brought in around $1.8 billion this year, $800 million more than expected.

The intrigue: Senate President Karen Spilka has some big ideas for the new revenue.

• The Senate wants to make community college totally free and expand financial aid for four-year students.
• Regional transit authorities — bus systems outside metro Boston's MBTA — would go fare-free.

The House also has plans for the new money that's flowing into state coffers a lot faster than expected.

• House Speaker Ron Mariano's plan would give more to the MBTA in the short-term as the agency struggles with reliability, ridership and a looming budget shortfall.

How it works: Gov. Maura Healey files a budget early in the year based on what the executive offices expect they'll spend, plus her own priorities for expansion or cutbacks.

• If they're feeling charitable to the governor, House leaders might look over the draft before passing their own, sometimes wildly different budget.
• The Senate, not to be outdone, then debates a third version with their own priorities, usually while thumbing their noses at their colleagues in the House.

Between the lines : It's only those last two versions, the House's and the Senate's, that need to be reconciled into one document that's satisfactory to the majority of the Legislature.

• And by "majority" we mean the handful of top Democratic leaders that will negotiate the final bill.

The bottom line: The real decisions will be made in the coming weeks when top Dems clash over their chambers' priorities behind closed doors.

• What emerges will set the tone for how the state supports itself and its citizens for a year — and which people and programs will benefit from the surtax windfall.

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