Massachusetts Gov. Maura Healey will have to make cuts to her $56 billion budget for fiscal year 2024, according to media reports out of Boston.
This comes amid lagging state revenues, which underperformed for the last six months of 2023. Massachusetts tax revenues were $769 million below projections for these six months in total.
Healey will reportedly cut about $375 million from her budget as revenues can no longer cover all originally planned budget costs.
Like the vast majority of states, Massachusetts’ Constitution requires that the state has a balanced budget. Section 9C of the State Constitution “requires that when projected revenue is less than projected spending, the Governor must act to ensure that the budget is brought into balance.”
As recently as December, Healey emphasized that she was not planning on making any budget cuts to her 2024 fiscal year budget, despite significant tax revenue shortages at the time.
According to Boston 25 News, a source said cuts to the budget will affect locally earmarked funds.
Gov. Healey signed her 2024 fiscal year budget in August. According to an official press release, the budget makes “historic investments in schools, child care, workforce development, public transit, housing, climate resiliency, and other key areas that will help make Massachusetts more affordable, competitive, and equitable.”