THE EVERETT ADVOCATE – FRIDAY, FEBRUARY 4, 2022 Page 9 BAKER | FROM PAGE 8 and continues our work in priority areas including treatment and prevention of substance addiction, sexual assault and domestic violence, promoting equality and diversity, and increasing access to education, job skills training, and high-value careers.” “The Baker-Polito Administration is proud to submit an FY23 budget that is fiscally responsible, brings the Rainy Day Fund to record levels, and makes significant investments to support those who need it most, all while affording tax cuts that will help hundreds of thousands of taxpayers across the Commonwealth,” said Administration and Finance Secretary Michael Heffernan. “We look forward to collaborating with the Legislature in the coming months to finalize a spending plan that continues to support growth, opportunity, and recovery across the state while limiting future budgetary risk.” Tax relief proposal The comprehensive tax relief plan filed alongside the FY23 budget includes proposals that will provide $700 million in tax relief to low-income families and residents and maintain Massachusetts’s competitiveness. With a strong revenue picture and the budget projecting a significant deposit in to the Stabilization Fund, the Commonwealth can afford to provide this relief for working families and seniors. The plan proposes to: • Double the maximum Senior Circuit Breaker Credit to lower the overall tax burden for more than 100,000 low-income homeowners aged 65-plus • Increase the rental deduction cap from $3,000 to $5,000, allowing approximately 881,000 Massachusetts renters to keep approximately $77 million more annually • Double the dependent care credit to $480 for one qualifying individual and $960 for two or more, and double the household dependent care credit rate to $360 for one qualifying individual and $720 for two or more – to benefit more than 700,000 families • Increase the Massachusetts Adjusted Gross Income (AGI) thresholds for “no tax status” to $12,400 for single filers, $24,800 for joint filers and $18,650 for head of households, which will provide direct relief to more than 234,000 low-income filers • Double the estate tax threshold and eliminate the current “cliff effect” that taxes the full amount below the threshold • Change the short-term capital gains tax rate to 5% to align the Commonwealth with most other states House 2 Fiscal Overview The proposed FY23 budget is based on the $36.915 billion consensus tax revenue estimate, which anticipates a 2.7 percent growth in total collections over revised FY22 tax estimates. House 2 recommends a total of $48.5 billion in authorized spending and transfers, excluding the Medical Assistance Trust Fund transfer, which is approximately 0.5 percent above FY22. Through fiscally responsible policies and in close collaboration with the Legislature, the Baker-Polito Administration has brought the budget into structural balance and built up financial reserves to historic high levels. With a current balance of $4.64 billion, the Stabilization Fund is already more than four times greater than its balance at the start of the Administration. The House 2 budget includes a $749 million increase to the Stabilization Fund, which, in combination with projected FY22 transfers, will grow the fund to an all-time high of $6.64 billion by the end of FY23. Providing record investments in Massachusetts students In the House 2 budget, an increase of $591.4 million is recommended to fully fund the Student Opportunity Act, including $485 million in Chapter 70 funding, with a focus on school districts serving low-income students, for a total of $5.989 billion. The FY23 proposal also includes a $41 million increase over FY22 for special education circuit breaker reimbursement for cities and towns, and a $64.8 million increase in charter school reimbursement funding. House 2 recommends $31.1 million to scale up college and career pathway programs for high school students with a focus on equity and recruitment of high-need student populations. This funding will allow more than 17,100 students, representing six percent of all Massachusetts high schoolers, to enroll in these programs. The FY23 budget proposal also includes a $1.45 billion investment for college readiness, affordability and degree completion. This funding includes more than $155 million (M) in financial aid grants, including $18M to support an expansion of the MASSGrant Plus program that will enable all low-income, in-state undergraduate students to attend public higher education without incurring debt for mandatory tuition and mandatory fees – the largest increase in financial aid in over two decades. Investing in housing stability The COVID-19 pandemic has intensified the state’s existing housing challenges and brought further economic instability for many across the Commonwealth. In House 2, the Administration proposes historic reforms and investments in rental assistance, rehousing benefits and housing vouchers to expedite recovery and create long-lasting improvements in housing stability and access to homeownership. Building on the Eviction Diversion Initiative (EDI), which has distributed more than $500M in state and federally funded rental assistance to individuals, families and landlords in crisis, House 2 significantly expands state funding and eligibility for the Residential Assistance for Families in Transition (RAFT) and HomeBASE programs, with the goal of reducing evictions and homelessness. The budget recommends $80M for RAFT, an increase of $58M (264 percent) above FY22, which will support a permanent benefit limit increase to $7,000 over 12 months, versus $4,000 pre-pandemic, and serve an estimated 15,000 households, up from 5,000 to 6,000 previously. For HomeBASE, $56.9M is recommended, a $30.9M (119 percent) increase above FY22, to serve more than 4,100 families in FY23, versus a projected 1,885 in FY22. It will also support an increase to the maximum benefit from $10,000 over one year to $20,000 over two years, which will allow for more extensive and flexible support to households. House 2 also proposes reforms to the Massachusetts Rental Voucher Program (MRVP) to maximize utilization of mobile vouchers and align benefits with federal rental assistance programs operated by the same local housing authorities. In FY23, $145.6M is projected to be available for MRVP, an increase since FY15, which will support a reduction in tenant rent share from 40 percent to 30 percent, projected to benefit more than 9,000 households across the Commonwealth – and a shift to a new payment model to give families more housing choice and flexibility. Expanding affordable childcare options House 2 provides $802M in funding for the Department of Early Education and Care (EEC), an increase of $273.9M (52 percent) since 2015. This funding includes $693.7M in funding for income-eligible and Department of Children and Families (DCF)- and Department of Transitional Assistance (DTA)-related childcare, which incorporates $53.9M to annualize the implementation of a more equitable parent fee scale that improves childcare affordability. The updated fee scale will result in virtually all subsidized families paying a fee that is seven percent of their inBAKER | SEE PAGE 14 Lawrence A. Simeone Jr. Attorney-at-Law ~ Since 1989 ~ * Corporate Litigation * Criminal/Civil * MCAD * Zoning/Land Court * Wetlands Litigation * Workmen’s Compensation * Landlord/Tenant Litigation * Real Estate Law * Construction Litigation * Tax Lein * Personal Injury * Bankruptcy * Wrongful Death * Zoning/Permitting Litigation 300 Broadway, Suite 1, Revere * 781-286-1560 Lsimeonejr@simeonelaw.net
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