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Healey Files $63.4 Billion FY27 Budget With MBTA Lifeline and MassHealth Limits

The filing sets up a debate over using surtax revenue to bolster the MBTA and limiting MassHealth benefits to restrain costs.

Overview

  • Spending would rise 3.8% from last summer’s budget to $63.36 billion with no new taxes or fees, built on a 2.9% tax revenue growth forecast.
  • The plan steers more than $1.1 billion to the MBTA via $470 million in surtax-backed operating aid and a separate $645 million bill using surplus surtax funds, as the agency faces a projected $560 million shortfall.
  • MassHealth changes include ending coverage of GLP‑1 drugs for weight loss and instituting a $1,000 annual cap on adult dental benefits, with program spending set at $22.7 billion.
  • Balancing maneuvers include spending $2.7 billion in FY27 surtax revenue, phasing in federal tax code changes to save more than $400 million, and revising the pension funding schedule to free $277 million.
  • The proposal boosts local aid by 4.4%, sends $7.6 billion in Chapter 70 school aid, seeks $1.2 billion in Chapter 90 road and bridge funding over four years, and advances policies to end debt-based license suspensions and authorize speed cameras in school and work zones.