Fact Sheet and Highlights: Senate Committee on Ways and Means Fiscal Year 2027 Budget
May 5, 2026Top Line Spending
Total Budget. The Senate Committee on Ways and Means Fiscal Year 2027 (FY27) budget totals $63.3 billion in spending, an increase of $2.3 billion over Fiscal Year 2026 (FY26). General budget spending, excluding collections from the Fair Share surtax, increases $2.0 billion, or 3.5 per cent, over FY26.
Total Fair Share Funding. The Committee’s budget includes $2.7 billion in Fair Share spending to support public education and improve the Commonwealth’s public transportation system, reflecting strong surtax revenue collections and in accordance with the consensus revenue agreement. Together with the $1.38 billion in the Fair Share supplemental budget passed last month, the Senate is directing over $4 billion in Fair Share funds to invest in education and transportation initiatives.
Taxes and Stabilization Fund
Taxes. The Committee’s budget does not raise taxes or fees on Massachusetts residents or businesses.
‘Rainy Day’ Savings. This budget invests an additional $51 million in the Stabilization Fund. With the addition, the Fund’s balance would reach a historic high of $8.2 billion by the end of FY27.
Key Initiatives and Investments: Investments in Massachusetts’ 351 Cities and Towns
Unrestricted General Government Aid. The budget provides $1.376 billion in funding for Unrestricted General Government Aid (UGGA)—a significant increase of $53 million over FY26, resulting in the highest funding level ever proposed. The proposal includes a new funding formula for new UGGA funds to more equitably distribute the increase among communities statewide and deliver meaningful relief for every city and town.
K-12 Public Education & the Student Opportunity Act. Satisfying the state’s long-standing commitment to fully implementing the Student Opportunity Act (SOA), the FY27 budget invests $7.66 billion in Chapter 70 education funding. This is an increase of $297 million over the FY26 amount, making it the highest level ever. The Committee’s budget also increases minimum aid for school districts to an unprecedented level of $160 per pupil, devoting an additional $52 million in resources for FY27 to support school districts feeling the weight of rising costs and ongoing fiscal pressures.
Foundation Budget Review Commission. The budget reconvenes and revives the Foundation Budget Review Commission (FBRC) to examine the current K-12 funding formula. Fulfilling the Senate President’s call, the FBRC will assess potential new ways to address rising costs and the allocation of school resources statewide. This reflects the Senate’s recognition that school districts statewide face serious fiscal challenges related to escalating costs of special education, student transportation, personnel, educator health care, and other factors.
Special Education Circuit Breaker. The budget includes $652.6 million for the Special Education (SPED) Circuit Breaker, in addition to the $200 million included in the recently passed consolidated Fair Share supplemental budget. Together with the Fair Share supplemental funding, the Committee recommends $852.6 million to reimburse school districts for the rising costs of educating students with disabilities and complex needs, funding at least 75 per cent of reimbursements to districts for both tuition and transportation.
Regional School Transportation. The budget includes $114.2 million for regional school transportation from both General Fund and Fair Share resources, increasing reimbursements to 90 per cent of district costs.
Rural School Aid. The budget includes $20 million to support rural school districts, an increase of $8 million over FY26. The allocation includes $16 million in funding in the Committee’s budget in addition to the $4 million included in the recently passed consolidated Fair Share supplemental budget.
Massachusetts School Building Authority Commission. Schools are the largest public buildings in Massachusetts. Recognizing that the adequacy of the Commonwealth’s school buildings is an issue of public health and safety and accessibility, the budget establishes a special commission to study and make recommendations regarding the financial capacity of Massachusetts School Building Authority (MSBA) to meet the needs of current and future school facility projects and ensure the authority’s grant funding formula allocates resources responsibly and equitably.
Key Initiatives and Investments: Housing
Streamlined Local Permitting to Unlock Housing Opportunities. The budget includes numerous provisions to streamline local housing permitting, intended to boost new housing production in Massachusetts. It makes it easier for homeowners and developers to work with buildings or properties that don’t fully meet current zoning rules because they were built under older codes, provides reasonable timelines for projects to proceed under existing zoning rules, and modernizes the variance standard. These updates reflect the Senate’s ongoing commitment to making Massachusetts more affordable for families and young adults, as well as progress following the Legislature’s passage of the Affordable Homes Act in 2024.
Key Initiatives and Investments: Higher Education Affordability
Free Community College. The budget includes $137 million to fund the MassEducate free community college program, ensuring any qualified Massachusetts high school graduate can attend community college at no cost, an increase of $17 million over FY26. In academic year 2024, data showed a 40 per cent increase in community college enrollment because of the MassEducate program.
MASSGrant Plus Scholarship Support. The budget proposes $280 million in scholarship funding for students, including $176.6 million for scholarships funded through the General Fund and $85 million for MASSGrant Plus financial aid programs. It also covers remaining tuition and mandatory fee costs for students with lower or middle incomes attending state universities, and $18.3 million included in the recently passed consolidated Fair Share supplemental budget.
UMass SUCCESS. The budget includes $10 million to provide wraparound supports and services to improve outcomes for students attending UMass, ensuring student populations in need receive a full range of support that they need to remove barriers to academic success.
Key Initiatives and Investments: Combatting Food Insecurity
Combatting Food Insecurity. The Committee’s budget is providing $265.7 million to combat hunger and protect access to food security initiatives, including:
- $148 million for Department of Transitional Assistance (DTA) caseworkers to support staffing needs to protect program integrity, maintain access to SNAP food benefits and ensure compliance with new federal SNAP requirements, an increase of $46.4 million over FY26.
- $55 million for Emergency Food Assistance to assist residents in navigating historic levels of food insecurity, an increase of $5 million over FY26.
- $29.7 million for the Healthy Incentives Program (HIP) to support local farmers and ensure access to healthy food options, an increase of $9.6 million over FY26.
Additional Initiatives
Simplified Subscription Cancellations. The budget requires companies and sellers of subscription products to make canceling a subscription as easy as signing up, aligning state law with existing consumer protection regulations issued by the Office of the Attorney General. With this step, the Senate is enshrining protections for consumers who are being nickel-and-dimed by large companies who profit by making it difficult to cancel subscriptions.
Jail Diversion. The budget includes $19 million to fully fund jail diversion initiatives to divert individuals with mental illness and substance use disorders from the criminal justice system and connect them with appropriate treatment. With this action, the Senate is continuing to support alternatives to arrest and successful diversions into treatment that can reduce unnecessary prosecution and court costs, alleviate jail overcrowding, reduce incarceration costs, and decrease unnecessary visits to emergency departments.
Family Shelter Diversion. The budget includes $7.5 million for family shelter diversion to support families experiencing homelessness by providing flexible financial assistance to rapidly divert, rehouse, and find suitable alternative housing. The investment is targeted at reducing homelessness by supporting upstream prevention and stability.
Assisted Living Safety. In response to the tragic fire at Gabriel House in Fall River, the budget provides $500,000 for the implementation of recommendations set forth by the Assisted Living Residences (ALR) Commission. The goal of the funding is to meaningfully implement the findings of the Commission to improve safety standards, protections, emergency preparedness and oversight for assisted living residences across the state.
EMS Study. The budget directs executive agencies to study and recommend a plan to modernize and improve the efficacy, service delivery, and long-term sustainability of emergency medical services in the Commonwealth. The study will explore best practices in other states, the current state of the EMS workforce, and the feasibility and fiscal impacts of transferring the administration and oversight of the state emergency medical services system from DPH to a new agency within EOPSS.
DDS Turning 22 Commission. The Committee’s budget establishes a commission to study gaps in the current delivery of transitional youth services to persons with disabilities whose access to services under special education programs will terminate because of high school graduation or turning age 22. To address a yearslong trend of record caseload growth and the increasing acuity needs of this population, the budget charges the commission with recommending solutions to improve transition planning services and Turning 22 program outcomes for individuals with disabilities and their families.
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