Massachusetts State Budget Hub: FY2027 Numbers, Revenue and Controversies
Massachusetts budget data hub · Updated Oct. 23, 2026
Gov. Maura Healey signed the $63.42 billion fiscal 2027 budget on July 9, 2026, with no vetoes, according to her office. This hub tracks where the money comes from, where it goes, how the budget has grown since FY2016, and the fights on Beacon Hill.
$63.42B
FY2027 budget total
Ch. 137, Acts of 2026
+66%
Growth since FY2016 ($38.1B), not adjusted for inflation
The consensus revenue estimate appears in section 1 of the conference report. No standalone consensus revenue agreement was found on a state website.
Budget history, FY2016–FY2027
From FY2016 to FY2027, the budget total as signed grew from $38.1 billion to $63.42 billion, an increase of 66% based on the table below. The largest one-year jump was FY2023 at 10.7%, and the smallest was FY2018 at 1.3%. Every year in the period was larger than the one before.
Chart built from the table below. Navy = total as signed; gold = percent change from prior year.
Basis: total as signed by the governor, after line-item vetoes and before any legislative overrides, as reported at signing. Dates are governor signing dates.
Notes: Totals are rounded as officially or publicly reported, so percent changes are approximate. ¹ News reports at signing said $256 million; the A&F budget summary lists $264.1 million in vetoes, which is used here. ² MMA later reported a $167 million veto total. ³ Gross figure; Healey’s signing letter put the net reduction at $205 million after revenue offsets, per WBUR. FY2024 is reported only as “$56 billion,” so its change figures are less precise. The legislature’s Acts pages may list a later “approved” date where vetoed items were finalized. Veto totals for FY2016–FY2019 are from the A&F (Executive Office for Administration and Finance) budget summaries.
Budget in context
Raw dollar totals overstate growth because prices, population and the economy all grew too. The charts below put each year’s total as signed (from the history table above) against federal data from the Census Bureau, the Bureau of Labor Statistics and the Bureau of Economic Analysis, retrieved from FRED on Oct. 23, 2026.
Budget growth vs. inflation
Consumer prices (CPI-U, U.S. city average, FRED series CPIAUCNS) rose 39.9% from June 2015 (238.638) to June 2026 (333.952). In June 2026 dollars, the FY2016 budget equals $53.32 billion ($38.1B × 333.952 ÷ 238.638). The FY2027 budget is 18.9% larger than that, compared with 66.5% growth before adjusting for inflation.
Budget growth vs. inflation. Each year’s total is converted to June 2026 dollars using CPI-U for the June before the fiscal year began.
Spending per resident
Dividing each year’s budget by the Census Bureau’s July 1 population estimate for the year the fiscal year began (FRED MAPOP, vintage 2025) gives $5,605 per resident in FY2016 and $8,513 in FY2026, up 51.9%. Adjusted to June 2026 dollars, per-resident spending rose 12.4%, from $7,844 to $8,813. FY2027 is omitted because the July 2026 population estimate has not been published.
Budget per resident, FY2016–FY2026. Data in the table below.
Budget as a share of the state economy
Measured against Massachusetts gross domestic product for the calendar year in which each fiscal year began (FRED MANGSP, BEA, through 2025), the budget ranged from 7.3% to 7.8%, and was 7.7% in FY2016 and 7.5% in FY2026. Against total state personal income (FRED MAOTOT, BEA, average of four quarters), it fell from 9.0% to 8.6%.
Budget as a share of Massachusetts GDP, FY2016–FY2026. Data in the table below.
Budget in context: derived figures. Per resident = total ÷ MAPOP for the calendar year the fiscal year began. June 2026 $ = total × CPI-U June 2026 ÷ CPI-U June before the fiscal year. GDP and personal income use the calendar year the fiscal year began.
Fiscal year
Total as signed
Population (July 1, prior year)
Per resident
In June 2026 $
% of state GDP
% of personal income
FY2016
$38.1B
6.797M
$5,605
$53.3B
7.7%
9.0%
FY2017
$38.92B
6.827M
$5,701
$53.9B
7.6%
8.9%
FY2018
$39.43B
6.864M
$5,745
$53.8B
7.4%
8.6%
FY2019
$41.7B
6.886M
$6,056
$55.3B
7.5%
8.6%
FY2020
$43.321B
6.895M
$6,283
$56.5B
7.4%
8.5%
FY2021
$45.9B
6.985M
$6,571
$59.5B
7.8%
8.5%
FY2022
$47.6B
6.997M
$6,803
$58.5B
7.3%
8.1%
FY2023
$52.7B
7.025M
$7,501
$59.4B
7.6%
8.8%
FY2024
$56B
7.073M
$7,917
$61.3B
7.6%
8.7%
FY2025
$57.78B
7.139M
$8,094
$61.4B
7.4%
8.5%
FY2026
$60.9B
7.154M
$8,513
$63.1B
7.5%
8.6%
FY2027
$63.42B
not yet published
—
$63.4B
—
—
Jobs and household income
The Massachusetts unemployment rate was 4.3% in September 2026, down from 4.6% in September 2025 and above the 3.0% recorded in September 2019 (BLS, seasonally adjusted, FRED MAUR). The rate peaked at 17.8% in April 2020. Median household income in Massachusetts was $118,500 in 2025, up from $67,860 in 2015 in current dollars (Census Bureau Current Population Survey, FRED MEHOINUSMAA646N). That series comes from the CPS, not the American Community Survey, which reports different values.
Massachusetts labor and income context. Unemployment: FRED MAUR, seasonally adjusted, September of each year (October 2025 not published). Income: FRED MEHOINUSMAA646N, current dollars.
Year
Unemployment, September (%)
Median household income
2015
—
$67,860
2016
3.8%
$72,270
2017
3.8%
$76,240
2018
3.3%
$86,350
2019
3.0%
$87,710
2020
9.6%
$87,810
2021
4.7%
$86,570
2022
3.6%
$93,550
2023
3.5%
$106,500
2024
4.1%
$112,300
2025
4.6%
$118,500
Budget timeline
January 2026: State officials set a consensus revenue estimate of $44.9 billion, including $2.7 billion in Fair Share surtax revenue (MassBudget). Healey filed her budget proposal (House 2) that month.
May 5, 2026: The Senate Ways and Means Committee released its plan, built on $42.2 billion in tax revenue excluding the surtax (Senate No. 4).
June 2026: Healey signed a $1.35 billion Fair Share supplemental budget (Legislature).
June 30, 2026: Lawmakers released the conference agreement, and Healey signed an interim budget to keep government running (State House News).
July 9, 2026: Healey signed the full budget without vetoes.
Where the money comes from
Most of the budget rests on state taxes. The personal income tax, corporate taxes and the sales tax are the core sources, and the Fair Share surtax, a voter-approved 4% surtax on the highest incomes, adds $2.7 billion that must go to education and transportation (MassBudget). Part of the sales tax is dedicated by law to the MBTA and the Massachusetts School Building Authority before the budget is written; the MBTA transfer is projected at $1.44 billion, up just 1.3%.
The budget also raises the amount of capital gains tax revenue it can spend to $2.25 billion, freeing $470 million that would otherwise flow to savings accounts, MassBudget reported. Besides the $51.2 million rainy day deposit, it sends $150 million to the Retiree Benefits Trust Fund and $20 million to a Disaster Relief Fund. Federal reimbursements, especially for MassHealth, are a major non-tax source, and MassBudget said expected federal cuts would reduce those collections in FY2027.
The latest full-year tax data show how heavily the state relies on the income tax. DOR collected $45.542 billion in FY2026, 4.2% more than FY2025 and $1.928 billion above benchmark. Income tax made up 63.1%, the sales tax 21.5%, corporate and business taxes 9.2% and all other taxes 6.2%. Corporate collections fell 10.7% from FY2025 (DOR).
Income tax$28.751B · 63.1%
Sales and use tax$9.79B · 21.5%
Corporate and business tax$4.17B · 9.2%
All other taxes$2.83B · 6.2%
FY2026 (July 2025–June 2026) preliminary collections from the Department of Revenue, the latest full year. Share = amount ÷ $45.542 billion. Income tax includes $3.380 billion in Fair Share surtax revenue, as certified by DOR on July 20, 2026.
Where the money goes
MassHealth (Senate plan, gross)$22.74B · 35.9%
K-12 education incl. Chapter 70$10.4B · 16.4%
Chapter 70 school aid (part of K-12)$7.66B · 12.1%
Higher education$2.2B · 3.5%
Early education and care$1.87B · 2.9%
Unrestricted local aid$1.363B · 2.1%
Housing programs$1.21B · 1.9%
MBTA operating subsidy$0.465B · 0.7%
Share = amount ÷ $63.42 billion. Chapter 70 is part of K-12, so rows overlap and do not sum. MassHealth is the Senate Ways and Means figure because the enacted total was not stated in the fact sheets; other figures are enacted amounts from MassBudget and the Legislature; the MBTA figure is the direct subsidy only, excluding the $1.44 billion sales tax transfer. Line items are in the table below.
MassHealth. The state’s Medicaid program is the largest item in the budget. The Senate Ways and Means plan funded it at $22.74 billion gross and said it covers more than 1.9 million residents. The final enacted MassHealth total was not stated in the fact sheets reviewed for this hub; the line items are in the Legislature’s FY2027 budget.
Education. MassBudget counts $10.4 billion for K-12, up 4.9%, including the final year of the Student Opportunity Act. The budget also revives the Foundation Budget Review Commission to study the Chapter 70 formula, with a report due Oct. 31, 2028.
Fair Share spending. The governor’s office lists $1.73 billion for education, including $180 million for universal free school meals and $137 million for free community college, and $970 million for transportation from the surtax (Mass.gov).
Massachusetts budget controversies
Emergency shelter costs (FY2027 budget, July 2026)
The budget cuts Emergency Assistance family shelter funding 6% to $259.9 million. House leaders said the $258.6 million in their version reflected $17.1 million in savings from a smaller shelter portfolio. MassBudget said newer restrictions have reduced the number of families in shelter but that homelessness remains elevated, while noting $5 million in new shelter diversion funding partly offsets the cut (MassBudget).
Using Fair Share money for a gas tax holiday (Oct. 21, 2026)
Healey proposed a two-month suspension of the 24-cent gas tax, covering the roughly $120 million cost with Fair Share surtax revenue. House leaders left it out of a $2.35 billion supplemental budget. House Speaker Ron Mariano said, “Why do I want to be in that political fight?” according to Axios. Ways and Means Chair Aaron Michlewitz told WBUR the House did not feel “comfortable” diverting the money from transportation needs.
No vetoes on a $63.4 billion budget (July 2026)
Healey said she made no vetoes because she “thought it was a good budget.” Paul Craney of the Massachusetts Fiscal Alliance said, “Not enacting a single spending veto in a budget this large is not fiscal discipline, it is a sign she has checked out” (State House News).
A late budget (July 2026)
Healey signed the budget nine days after the fiscal year began, so the state ran on an interim budget she signed June 30 (State House News).
The state auditor’s audit of the Legislature (2025–2026)
Voters approved a 2024 law letting Auditor Diana DiZoglio audit the Legislature with 72% of the vote. Legislative leaders have argued an audit would violate the separation of powers. After a Supreme Judicial Court order, DiZoglio narrowed her lawsuit to four record types, including each chamber’s budgets and “balance forward” accounts (CommonWealth Beacon). The Senate voted 33-6 on May 28, 2026, to turn over those records (Boston Globe). A House bill would limit the auditor’s review to four administrative categories; Mariano wrote that DiZoglio lacks impartiality (State House News).
Federal funding cuts (ongoing)
MassBudget said the 2025 federal tax and spending law will cut federal support for MassHealth and SNAP, with many of the biggest cuts starting in FY2028. Healey’s proposed Health Care Stabilization Fund for expected federal cuts was not in the House’s October supplemental budget (WBUR).
MBTA funding (FY2027)
The MBTA’s direct budget subsidy fell $5 million to $465.2 million, and its sales tax transfer grows more slowly than inflation, MassBudget reported. Legislative leaders said the subsidy plus $595 million in Fair Share supplemental money adds up to more than $1 billion for the MBTA in FY2027 (Legislature).
State spending and immigrants
Massachusetts does not budget direct cash payments specifically for undocumented immigrants. The state does fund emergency, housing and social services that some immigrants can use, either regardless of status or as members of groups such as asylum seekers and parolees. The main areas reported are below.
Emergency Assistance shelter
The state spent $978 million in fiscal 2025 and $894 million in fiscal 2024 on the emergency shelter system and related services, according to state data reported by WBUR. Demand surged starting in January 2022 amid an influx of migrants, high housing prices and rising living costs. In a December 2023 report, state officials counted 3,516 of 7,531 families in the system, just under half, as having entered as migrants, refugees or asylum seekers (NBC Boston). After enrollment caps and new rules, including a bar on anyone not lawfully present, the caseload fell from more than 7,600 families in July 2024 to 2,047 in November 2025 (WBUR). By March 2026, 1,522 families were in roughly 3,300 units, and state officials plan to contract for 3,000 to 3,200 units starting July 1 (NBC Boston). FY2027 shelter funding is covered under Controversies above.
Public education
The Center for Immigration Studies, a group that advocates lower immigration, estimates that about 25,000 children in Massachusetts schools are in the country illegally. At average spending of nearly $23,000 per student, it puts the base cost at $575 million a year (CIS). That is a CIS estimate. The state does not publish an official figure.
Immigration legal defense
Lawmakers put $5 million into an immigration legal defense fund in the FY2026 budget. The Massachusetts Immigrant & Refugee Coalition runs the program. In April 2026, Senate President Karen Spilka said she wanted to add $1 million in a supplemental spending bill. The coalition asked for $15 million in the next budget (WBUR).
Incarceration
A study by the Center for Immigration Studies, released by the Massachusetts Fiscal Alliance, estimated the cost of jailing noncitizens in the country illegally who were convicted of serious or multiple crimes at about $27 million in FY2022 (Mass. Fiscal Alliance). The estimate is based on the 43,811 jail days Massachusetts reported to the U.S. Justice Department for partial federal reimbursement under the State Criminal Alien Assistance Program (SCAAP) (CIS). No official state figure for the total cost was found.
Latest budget news
Oct. 21–22, 2026: The House took up a $2.35 billion supplemental budget, mostly $1.8 billion for MassHealth, without the gas tax holiday. The bill goes to the Senate; Michlewitz hopes to get a final version to Healey by Nov. 15 (WBUR).
Oct. 21, 2026: The House bill also proposes banning constitutional officers from using taxpayer money for ads featuring their name, voice or likeness (WBUR).
FAQ
How big is the Massachusetts FY2027 budget?
The FY2027 General Appropriations Act totals $63.42 billion, about 4% more than FY2026, according to the governor’s office and legislative leaders.
Did Gov. Healey veto anything in the FY2027 budget?
No. Gov. Maura Healey signed the budget on July 9, 2026, without any vetoes or amendments, a spokesperson told State House News Service, so there were no veto overrides.
How much Fair Share surtax money is in the budget?
The budget uses $2.7 billion in Fair Share surtax revenue for education and transportation. A separate $1.35 billion Fair Share supplemental budget was signed in June 2026.
How much is in the Massachusetts rainy day fund?
The budget adds $51 million to the Stabilization Fund. Legislative leaders said the balance is on track to reach $8.2 billion by the end of FY2027.
When does the FY2027 fiscal year run?
Massachusetts fiscal year 2027 runs from July 1, 2026, to June 30, 2027.
How much has the Massachusetts budget grown since 2016?
The budget grew from $38.1 billion in FY2016 to $63.42 billion in FY2027, about 66%. Adjusted for inflation with the CPI-U, real growth was about 19%.
How much does the state budget spend per resident?
The FY2026 budget of $60.9 billion equals about $8,513 per resident, based on the Census Bureau’s July 2025 population estimate of 7.154 million. In FY2016 the figure was about $5,605.
What is the biggest source of state tax revenue?
The personal income tax. It brought in $28.751 billion of $45.542 billion in FY2026 tax collections, about 63%, according to the Department of Revenue.
What is the largest item in the budget?
MassHealth, the state Medicaid program. The Senate Ways and Means plan funded it at $22.74 billion gross ($9.32 billion net of federal reimbursement) and said it covers more than 1.9 million residents.
The budget includes cost-of-living changes for retired public employees, with a new COLA reserve fund, and extends the ConnectorCare expansion pilot through 2027, according to the Legislature’s fact sheet. The governor’s office posts the full act at mass.gov/gaa.
Photo: Massachusetts State House, Boston, by Daderot via Wikimedia Commons, CC0 (public domain).
