BOSTON (WWLP) – Governor Healey filed a closeout budget bill on Wednesday that turns the page on fiscal year 2024 and sends a message to lawmakers that she will no longer wait for them to reach a compromise on clean energy.
The bill designates a total of $714 million to cover any deficiencies, has a net cost of $149 million to the state, and includes $590 million that will be put into reserve accounts to ensure future financial stability.
It also includes several provisions related to a clean energy permitting and siting bill that the legislature was unable to reach a compromise on before the end of the session on July 31.
Prior to the end of the session, both the House and Senate passed their own versions of massive clean energy permitting and siting bills that aim to integrate more clean energy sources into the modern grid.
Both bills were packed with policy priorities, and despite both branches working with the administration to finalize language or the reform, they have not yet reached a compromise six weeks later.
The governor acknowledged that the bill remains before a conference committee, but asked that they consider her bill “so that we can capitalize on the potential to grow our clean energy sector and advance our climate goals.”
The Senate negotiation lead, Senator Michael Barrett, told State House News Service that the provisions in the Governor’s bill indicate that she is “taking sides.”
“The governor is all but killing the negotiations,” said Barrett. “You can’t create an altogether second track that gives one side almost everything it seeks and still claim to be interested in a true compromise.”
House negotiation lead Representative Jeff Roy told State House News Service that this issue is too important to be left undone, and sees the governor’s bill as another opportunity for progress.
“I don’t think doing nothing is the appropriate option here,” said Roy. “In that sense, I’m encouraged by what the governor is attempting to do.”
Roy said the governor’s version of the bill includes two of the House’s top priorities–procuring additional energy storage and authorizing regional procurements.
It does not include financial relief for monthly gas bills or new methods to deal with plastic waste–two Senate priorities.
The Mass Coalition for Sustainable Energy and The Nature Conservancy praised Healey for taking the initiative to pass what they both consider to be critical legislation.
The Massachusetts Fiscal Alliance calls Governor Healey’s clean energy additions a “backhanded attempt” to “sneak in policy.”
“This is no way to govern,” said Mass Fiscal Alliance Spokesperson Paul Craney. “Lawmakers need to keep the Governor in check and not let this abuse in power occur.”
In addition to clean energy, Healey used this budget bill to allocate $225 million to support education and transportation initiatives.
This bill’s reserve deposits include putting another $265 million into the $8.8 billion rainy day fund. The surplus comes from the “millionaire’s tax”-a controversial 4% surtax on high-earning households.
As a result of this tax, tax collections exceeded last year’s by $1.636 billion, allowing for a budget gap of $233 million, and giving the state the liquidity needed to continue to invest in funds meant for future spending.
The rainy day fund, which is a surplus holding account that can be used under very specific circumstances to restore financial stability to the state, also includes capital gains tax revenues above a certain threshold.
In practice, instead of spending the surplus money, the state government is putting it in their piggy bank for designated uses. The money that is set aside does not contribute to balancing the budget.
In recent years, state lawmakers have been extremely hesitant to spend any of the money kept in that fund.
Healey’s movement on the supplemental budget bill aligns with last year’s timeline, when she filed her budget closeout on September 13.
Looking forward, Governor Healey’s $317 million in budget vetoes leaves the state some wiggle room if revenue collection is less than predicted.
Secretary Matthew Gorzkowicz says the Executive Office for Administration and Finance has already started to prepare to produce the fiscal year 2026 budget.
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