Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
MMA Executive Director Adam Chapdelaine testifies at a hearing on the Surplus Surtax Supplemental Budget bill during an April 3 meeting of the Joint Ways and Means Committee.
The Senate Ways and Means Committee today proposed a $1.28 billion supplemental budget bill that primarily leverages surplus surtax funds from fiscal 2024 to designate $613 million for education investments and $670 million for transportation.
By statute, funds from the surtax on annual incomes over $1 million can only be used for education and transportation programs.
The Senate proposal (S. 2512) includes important investments in transportation and education, with a theme of “regional equity.” Of note, the bill includes supplemental funding for the Chapter 90 local road and bridge maintenance program, the Special Education Circuit Breaker, and for school construction cost relief.
“These targeted surtax proposals are great news for municipalities all across the Commonwealth,” said MMA Executive Director Adam Chapdelaine. “Strategic investments through a lens of regional equity will further empower our communities and bolster critical services provided by our cities and towns.”
Here are highlights from the Senate bill relevant to cities and towns:
Municipal infrastructure:
• $190 million for shovel-ready transportation improvements, which includes:
– $165 million for supplemental funding for Chapter 90, with 50% distributed based on road mileage
– $25 million for municipally owned small bridges and culverts
Regional equity in transportation:
• $105 million for regional transit initiatives, which includes:
– $50 million for capital improvements for regional transit authorities
– $25 million for RTA workforce recruitment and retention
– $20 million for ferry infrastructure improvements
– $10 million for micro-transit shuttles and Last Mile grants to support a multi-modal transit system
• $200 million for the MBTA deficiency fund
Special education:
• $248 million total for Special Education Circuit Breaker reimbursements ($190 million to complement funding in the fiscal 2026 state budget and $58 million for the current fiscal year, using funds from the Student Opportunity Act Trust Fund)
School construction:
• $50 million to support cities, towns and school districts experiencing extraordinary school project increases due to inflation
The funding proposed for municipal governments would either require compliance with the MBTA Communities Act or include a preference for municipalities taking “meaningful steps to produce new housing.”
On April 3, Chapdelaine testified before the Joint Committee on Ways and Means, which heard testimony from invited stakeholders about how the state should leverage the $1.3 billion in surplus surtax revenue from fiscal 2024. He highlighted several key opportunities for investment, including local roads, bridges and culverts, as well as needs within school districts.
The Senate is expected to debate its bill in a formal session next week. Once finalized, the Senate bill will have to be reconciled with the version passed by the House in April.
Due to many fiscal 2026 uses of these funds, the timeframe for this supplemental budget is likely to follow a similar cycle as the fiscal 2026 state budget over the next few months.