Spending jumps 6 percent while local aid stagnates, gimmicks abound, and fiscal warnings go ignored

The Massachusetts Fiscal Alliance criticized the $61 billion state budget unveiled over the weekend as a reckless expansion of state spending that ignores mounting warnings about declining tax revenues and places new burdens on struggling municipalities.

“Beacon Hill leaders are trying to have it both ways. They’re talking about caution and restraint while greenlighting billions in new spending, using one-time gimmicks to paper over structural imbalances, and shortchanging local aid to the cities and towns they claim to represent,” said Paul Diego Craney, Executive Director for the Massachusetts Fiscal Alliance.

Despite the Massachusetts Taxpayers Foundation warning that revenues may fall $1 billion below expectations, the Legislature increased state spending by more than $3.3 billion compared to last year. At the same time, unrestricted local aid was barely touched, rising by only $14 million, which will be split among 351 municipalities.

“Local governments are in crisis. Budgets are breaking, override votes are stacking up, and yet Beacon Hill refuses to share the wealth. They’re prioritizing their own pet projects while towns are forced to cut core services and raise taxes on residents,” said Craney.

The budget also includes a 12 percent increase for Attorney General Andrea Campbell’s office, a $9 million bump that lawmakers claim is needed to defend Massachusetts from federal policy changes.

“It looks a lot like a reward for silence. The voters passed a law requiring the legislature to be audited, and the Attorney General has refused to enforce it. Now her office gets a massive budget increase,” said Craney.

While the budget narrative focuses on responsibility, the reality tells a different story. The Healey administration is racing to close migrant hotel shelters, but instead of cutting costs, migrants are simply being moved into the expensive HomeBase program.

“This is budgetary shell gaming. The administration wants the headlines that say shelters are closing, but what’s really happening is they’re shifting the costs to another already existing program that will cost taxpayers tens of thousands per year per person. It’s a gimmick, not a solution, and taxpayers are footing the bill,” said Craney.

Despite not raising taxes directly, the budget relies heavily on one-time revenue sources and a full drawdown of the surtax on high earners, which was originally sold to voters as dedicated funding for education and transportation.

“Once again, Beacon Hill is using the income surtax as a slush fund for whatever they want, with no accountability to the taxpayers who were promised results. They’re pulling every trick in the book to keep growing government while avoiding the hard decisions,” noted Craney.

“Instead of tightening their belts, Beacon Hill insiders are patting themselves on the back while pushing the consequences onto the next fiscal year and the next administration. It’s unsustainable, it’s unfair, and it’s yet another reminder why taxpayers need to pay closer attention to what’s happening under the golden dome of the State House,” closed Craney.