Mass. House proposes budget in time of 'choppy waters'

After months of declining state tax revenues, the Massachusetts House of Representatives revealed a $57.9 billion annual budget proposal Wednesday that includes significant investments in public transportation and early education.

The top-line number represents a 3.3% increase over last year's spending — less than the 3.7% increase Gov. Maura Healey called for in January.

"This fiscal year is not going to be like the last few," House Speaker Ron Mariano said at a State House press briefing Wednesday.

The budget announcement comes amid a tightening fiscal climate. State tax revenues came in under expectations for over six months straight, spurring Healey to make mid-year budget cuts. Administration officials estimate the state's emergency shelter system — which is housing a record number of homeless families and new migrants to Massachusetts — will cost nearly $1 billion next year.

"Despite the revenue challenges that we now face, it is still our responsibility to balance these challenges with the need to allocate funding where it is most needed," Mariano said.

The House proposal calls for $555 million for the MBTA — a record amount for the beleaguered public transit agency. Mariano praised recent repair work on the system and commended its new general manager, Phil Eng.

"We have a train man, a man who can walk the tracks and not electrocute himself," Mariano said. "It's a gentleman that we feel is going to make an impact."

The budget calls for $184 million for Regional Transit Authorities in other parts of the state.

The House budget also allocates $475 million to fully fund the Commonwealth Cares for Children grants for early education and child care. It would change the funding formula to limit how much for-profit, multi-state agencies like Bright Horizons could receive.

Like Healey's budget proposal, the House version also preserves the program providing free school meals to all Massachusetts public school students.

It also approves the closure of the men's prison at MCI Concord, allocates $35 million to support no-cost calls in state correctional facilities, and creates a new Disaster Relief and Resiliency Fund to help communities hit by severe storms and flooding.

On the whole, the House plan comes in about $150 million less than the governor's budget. House Ways and Means Chair Aaron Michlewitz said they cut money for snow and ice removal, unrestricted general government aid, and funds for temporary staff.

"The past year has been a bit of a market correction," Michlewitz said. However, "we still have the ability to navigate through these choppy waters and still meet the needs of our residents."

One area of ongoing negotiation will be funding for the state emergency shelter program. The house budget allocates $500 million for the system, about half what the administration predicts it will actually cost to run it.

"Things could change next year and we want to maintain as much control over this process as we can," Mariano said.

Mariano warned that without federal aid from Washington, "I think there is a point in time where you can't fund this. I don't know when that will be."

Meanwhile, House and Senate negotiators are still privately working out a supplemental budget to cover unpaid costs the system incurred last year.

The full $57.9 billion annual House budget proposal was formally introduced in the chamber Wednesday afternoon. Debate is scheduled to start April 24.

The State Senate will file its own budget proposal later in the Spring. And while the new fiscal year starts July 1, the legislature has not passed a budget on time in the last 13 years.