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Baker-Polito Administration Files $1.6 Billion Fiscal Year 2021 Supplemental Budget

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Legislation relies on $5 billion surplus; includes $1 billion for unemployment relief and proposal to support local nonprofits


BOSTON – The Baker-Polito Administration today filed a final Fiscal Year 2021 (FY21) supplemental budget proposal that aims to improve Massachusetts’ economic competitiveness as the Commonwealth continues to recover from the COVID-19 pandemic. The $1.568 billon supplemental budget would provide $1 billion in unemployment insurance relief for employers, support greater resources for local charities and nonprofits and ensure that small businesses do not bear a tax burden for assistance received through pandemic relief programs. The legislation relies on a FY21 surplus of approximately $5 billion and would also make critical investments in housing, human services, and education.
 
“Thanks to careful management of the Commonwealth’s tax revenues and strong economic activity, Massachusetts has an unprecedented surplus at the close of Fiscal Year 2021, and this legislation ensures those resources are put to work to support local economies and small businesses,” said Governor Charlie Baker. “Our proposal to provide employers with unemployment insurance relief is fiscally responsible and would provide much-needed support for businesses and workers across the Commonwealth. By combining this bill with our $2.9 billion plan to spend a portion of Massachusetts’ federal funds on urgent priorities like homeownership, environmental infrastructure and job-training, the Commonwealth has an opportunity to leverage significant resources to promote further economic growth and support our hardest-hit communities.”
 
“This legislation provides an opportunity to reduce significant burdens on our employers, enabling them to hire and retain workers in communities across the Commonwealth,” said Lt. Governor Karyn Polito. “Thanks to strong economic activity by consumers and businesses, Massachusetts has a unique opportunity to leverage these surplus funds to further strengthen the economy and support our communities. We look forward to working with our partners in the Legislature to make these critical investments.”
 
The Administration’s supplemental budget proposes dedicating $1 billion of Massachusetts’ FY21 surplus toward the Unemployment Insurance Trust Fund. This affordable proposal would help stabilize the UI Trust Fund and lessen employers’ future UI obligations. The legislation also includes language to make the federal Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loan (EIDL) advances, Shuttered Venue Operators grants, Restaurant Revitalization Fund grants, and state MGCC grants nontaxable for all Massachusetts recipients, consistent with federal tax treatment.
 
The bill also proposes to finally implement the income tax charitable deduction, a measure that was first approved by voters nearly twenty years ago. Given the Commonwealth’s strong fiscal situation, the proposal is fiscally responsible and would support greater resources for the local charities and non-profits who supported vulnerable populations through the pandemic.
 
“The strong working relationship we enjoy with our colleagues in the House and Senate allowed us all to approach an uncommon fiscal year thoughtfully and deliberatively,” said Administration and Finance Secretary Michael J. Heffernan. “We are fortunate to end FY21 with an impressive surplus buoyed by rare federal activity. The Commonwealth must seize this opportunity to implement sensible fiscal policies like finally implementing a tax deduction to boost charity organizations that was approved by voters two decades ago, a measure that is affordable and should be done now.”
 
At the close of FY21, the Commonwealth’s Stabilization Fund now stands at a balance of $4.63 billion – the highest level ever by more than a billion dollars. The $5 billion surplus included more than $1 billion in excess capital gains deposited into the Stabilization Fund; another $1.1 billion of the surplus made a planned withdrawal from the Stabilization Fund no longer necessary.
 
In addition to the $1 billion UI transfer proposal, the legislation also proposes additional investments necessary to continue operating state government and invest in key priorities, including:
  • $405 million for a collective bargaining reserve to fund the retroactive and fiscal year 2022 (FY22) costs of agreements that are either in place or anticipated but not yet signed, thus mitigating pressure on the FY22 budget; 
  • $39 million to support rate increases for the human service workforce;
  • $20 million to support the workforce in Chapter 766-approved special education schools; 
  • $17 million to support an additional 800 temporary individual shelter beds throughout FY22 and pay for a one-time six-month 10% increase in provider rates, ensuring the Commonwealth’s individual shelter system has the resources necessary to protect vulnerable populations;
  • $5 million to pilot an evidence-based permanent supportive housing model for individuals experiencing homelessness, creating fast and sustainable pathways out of homelessness and;
  • $3 million in supplemental campus support for Quinsigamond Community College and Worcester State University as it absorbs nursing students displaced by the closure of Becker College.
 
The legislation also includes several other policy proposals including:
  • Allow survivors of servicemembers who die in training incidents to be eligible for a Medal of Liberty;
  • Grant MassHealth the authority to directly negotiate rebate agreements for certain medical supplies and other non-drug products;
  • Extend the municipal vulnerability preparedness grant program to tribes and other regional and local entities who are not municipalities; and,
  • Allow civil service evaluations to be in an electronic format and provide greater flexibility in administering civil service evaluations. 
To read the Governor’s filing letter, click here
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  • Surreal ValeCity online media
  • August 2 2022 Edition
    • Bethlehem Mayor J William Reynolds Interview Request
    • Martin on Main Festival 2022
    • Passion Exhibit Gallery Arte Azulejo
    • Kickoff to Christmas Press Conference Bethlehem
    • Blues Brews and BBQ 2022
    • Elections 2022 >
      • Kelly for Alaska >
        • Tshibaka Time for a Change Constitutional Rights
        • Murkowski Continues Charade Pressing Haaland
        • Kelly Tshibaka Statement Planned Trump Rally
        • Tshibaka Statement Supreme Court Ruling Abortion
        • Tshibaka Blasts Gun Control Deal
        • Murkowski Embraces Gun Control Package
        • Murkowski Erode 2nd Amendment Rights
        • Tshibaka Endorsed by Harold Hamm
        • Jimmy Carter Lisa Murkowski Create Obstacles
        • Tshibaka Murkowski Gross Disregard Workers
        • Kelly Tshibaka Leaked Draft Supreme Court
    • Gov Ivey Launch Small Business Grant Program
    • Gov Ivey Progress Report Attainment Goal
    • Covid Influenza Update July 3 - 9
    • 988 Suicide Crisis Lifeline
    • DHSS Becomes DOH and DFCS
    • Covid Influenza Update June 19 - 25
    • Covid Influenza Update June 26-July 2
    • Covid Flu Update June 12 - June 18
    • Gov Hutchinson Addresses Latino Leaders
    • Gov Hutchinson Reacts Revenue Report
    • Gov Hutchinson Building a Culture of Reading
    • Governor Announces Appointment Bill Jones
    • Governor Lauds Roe Reversal
    • Gov Hutchinson Weekly Address Supporting Teachers
    • Gov Lamont Support Small Business Growth
    • Gov Lamont Addressing Motor Vehicle Theft
    • Gov Lamont Seven New Technology Programs
    • Gov Lamont Update Coronavirus Response July 14
    • Gov Lamont Enabling Crucial Federal Support
    • Gov Lamont Statement Resignation Secretary Merrill
    • Gov Lamont Children Free Admission Museum
    • Gov Lamont Gas Tax Holiday Extended
    • Gov Lamont Appoints Mark Kohler
    • Gov Lamont Appoints Joann Ryan
    • Gov Lamont Statement West Virginia v EPA
    • Gov Lamont Update Coronavirus Response June 30 2022
    • Gov Lamont Commission Plan 250th Anniversary
    • Gov Lamont ParkConneCT Program
    • Gov Lamont Covered Connecticut Expands
    • Gov Lamont Appoints Kimberly Martone
    • Gov Lamont Flags Lowered Shinzo Abe
    • Gov Lamont Flags Lowered Highland Park
    • Gov Lamont Launch ReEmployCT
    • Gov Lamont Update Coronavirus Response July 7
    • Gov Lamont Oasis Pro Markets Expansion
    • Gov Lamont Invite Businesses States Restricting
    • Gov Lamont Minimum Wage Increase
    • Gov Lamont Update Coronavirus Response June 24
    • Gov Lamont Statement Roe v Wade
    • Gov Lamont New Credit Card Fees Waived
    • Baker Polito Vendor Public Safety Radio System
    • Gov Baker Nominates Julie A Lowre
    • Gov Baker Appoint Jordan M Maynard
    • Baker Polito Increases Visibility Executive Branch
    • Gov Baker Nominates Jason Yu-Ting Chan
    • Senior Advocacy Groups Urge Tax Cuts
    • Gov Baker Protect Reproductive Health Care
    • Baker Polito Further Improvement Supply Delivery
    • Baker Polito Supreme Court Gun Ruling
    • Gov Whitmer Appointments to Bench July 12
    • Time Names Detroit Greatest Places 2022
    • Gov Whitmer Budget Investments Public Safety
    • Gov Whitmer Refusing to Extradite Women
    • Gov Whitmer Disaster Declaration Ostego County
    • Gov Whitmer Fix Roads Eaton Houghton
    • Gov Whitmer Monthly Jobs Report July 2022
    • Gov Whitmer Signs 4th Balanced Budget
    • Gov Whitmer Fix Roads 13 Counties
    • Gov Whitmer Clean Water Grants Six Communities
    • Task Force Juvenile Justice Reform
    • Gov Whitmer Signs 900th Bipartisan Bill
    • Gov Whitmer Renaming Highways Fallen Officers
    • Gov Whitmer Growing Maritime Economy
    • Gov Whitmer Appointments Commissions July 19
    • Gov Whitmer Michigan Parents Council
    • Gov Whitmer Signs Education Budget
    • Lt Gov Gilchrist 6 million Investment Students
    • Gov Whitmer Projects Grow Life Sciences
    • Gov Whitmer Bonuses Childcare Professionals
    • Gov Whitmer AmeriCorps Funding Strengthen Communities
    • Gov Whitmer Congress Lower Healthcare Costs
    • Gov Whitmer Growing MI Business Program
    • Gov Whitmer Women Reproductive Health Care
    • Gov Whitmer Food Legislation Boosting Economy
    • Gov Whitmer Expanding Water Infrastructure Funding
    • Gov Whitmer Appointments Commissions June 30
    • Gov Whitmer Fix Damn Roads Macomb
    • Gov Whitmer Joint Statement Budget Deal
    • Gov Whitmer Celebrates Passage Balanced Budget
    • Gov Whitmer Celebrates Bipartisan Budget
    • Gov Whitmer Investments Connected Communities
    • Gov Whitmer Fix Roads Allegan
    • Gov Whitmer Helping Michigan Distilleries
    • Gov Whitmer Lowers Flags Victims Highland Park
    • Gov Whitmer MDHHS Launch Public Effort
    • Gov Whitmer Record Education Budget Investments
    • Gov Whitmer Fix Roads Berrien
    • Gov Whitmer Business Expansion Flint
    • Gov Whitmer Seeking Reproductive Health Care
    • Gov Whitmer Roundtable with Parents
    • Gov Whitmer Death Loren Courts
    • Lt Gov Gilchrist Thriving Seniors Tour
    • Gov Whitmer Bridge Projects Ingham
    • Gov Whitmer Immediate Consideration Abortion Lawsuit
    • Gov Whitmer HOLO Footwear Headquarters Grant Rapids
    • Gov Whitmer Lower Health Care Costs
    • Gov Whitmer Fix Roads Berrien
    • Gov Whitmer Motion Right to Abortion
    • Gov Whitmer Dobbs v Jackson
    • Gov Whitmer Infrastructure Grants 2 Businesses
    • Gov Parson Embark Trade Mission Germany
    • Gov Parson 988 Suicide Crisis Line
    • Gov Parson Signs HB 1878
    • Gov Parson Signs HB 2116
    • Gov Parson State Operating Budget Bills
    • Gov Parson Signs Eight Bills July 1
    • Gov Parson Issues Legislative Vetoes
    • Gov Parson 5 Appointments July 8
    • Gov Parson Three Judicial Appointments July 8
    • Gov Parson 9 Pardons June 2022
    • Gov Parson Increasing Kansas City Police Budget
    • Gov Parson End Elective Abortions
    • Vaccination Data Newly Eligible Population >
      • Gov Sisolak 2022 State of State Address
      • Reno Center Open Support Child Care Providers
      • Gov Sisolak Launches Nevada Climate Series
      • Gov Sisolak Strengthening Reproductive Health Care
      • Helmsley Charitable Trust Brings Virtual Crisis Care
      • Gov Sisolak Calling on Congress
      • First Lady Kathy Sisolak Gives Keynote Address
      • Gov Sisolak Flags Half Staff Abe Shinzo
      • Gov Sisolak Flags Half Staff Highland Park
      • Susan Brown Retiring Governor Finance Office
      • Gov Sisolak Appointments June 2022
      • Gov Sisolak Statement Sandra Douglass Morgan
      • Gov Sisolak Launches Child Care Fund
      • Governor First Lady Tour STEP2
    • Gov Sisolak Appoints Maria Gall
    • Extreme Heat Centralizes Available Resources
    • Gov Sisolak Joins Reproductive Rights Activists
    • Summer's Here College Settlement Camp Open
    • See Me Roots Open Call Submissions
    • SeeMe Passion Grand Prize Winner
    • Meet Esteban Toro First Judge Roots
    • Roots Strength Beneath the Surface
    • Roots Reflections of Total Selves
    • Roots Open Call Judge Iliana Hoyos
  • Supporting ALL Law Enforcement
  • Thanks to the sponsors
  • Staff and Contact Information
  • Archive 2022
    • Arts
    • Dining Out
    • Editorials
    • Events
    • Festivals
  • Archives 2021
    • Community >
      • Feeding the Homeless Philadelphia
  • Archives 2020
  • Archives 2016 - 2019
  • A Valley and Beyond