A new analysis from the Massachusetts Budget and Policy Center finds that new Fair Share revenue in the Fiscal Year (FY) 2024 budget makes important investments in education and transportation, though the legislature was forced to make difficult choices over what to fund.

The Fiscal Year 2024 budget is the first state budget to include money raised from the Fair Share Amendment. Approved by voters last November, Fair Share amended the state constitution to include a 4 percent surtax on taxable income over $1 million. Last week Governor Healey issued multiple vetoes on the Legislature’s budget for Fiscal Year 2024, which began July 1, but none of the vetoes were on spending funded by the first $1 billion dedicated from the Fair Share surtax.

“This is a historic moment for Massachusetts,” said Jason Wright, Senior Policy Analyst at MassBudget. “The Fair Share Amendment is doing what voters intended by delivering a fairer tax system and more critical investments in education and transportation. These investments will make our Commonwealth a more affordable, livable place and show what can be accomplished when the Commonwealth raises the revenue it needs from those best able to afford it.”  

The analysis shows Lawmakers identified more priorities than they had Fair Share dollars to invest. Two-thirds of the line items funded by Fair Share this year were provided with fewer dollars than the amounts sought by the Governor, House, or Senate.

“Fair Share dollars will support $1 billion in spending in FY 2024 that will have a positive impact on communities across our Commonwealth. This means buses that run more often, less debt taken on to attend college, and fewer children going hungry at school, among other benefits,” added Wright. “There are other unmet needs in our Commonwealth, however. Legislators should be wary of introducing tax cuts for the wealthiest that would erode the ability of future budgets to address those needs.” 

The new MassBudget analysis, “Your Fair Share Dollars at Work: Critical Investments and Hard Choices” can be read here.

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