On July 1st, the House and Senate are preparing to enact the Fiscal Year (FY) 2027 budget, totaling $63.42 billion in line-item spending. The compromise budget proposes spending growth of 3.9 percent over the FY 2026 General Appropriations Act and includes $54 million more than Governor Healey’s original spending plan for FY 2027, $500K more than the House budget, and $50 million more than the Senate budget. With common approaches to resource decisions, House and Senate budget writers adhered to consensus revenue assumptions for FY 2027 and limit spending increases in most areas of the budget. The budget invests $2.7 billion in income surtax resources across education and transportation priorities and includes 132 outside policy sections, 37 more than the amount proposed by the House and 27 more sections than the Senate.
This report provides a summary and analysis of the final FY 2027 before it heads to Governor Healey’s desk. Ultimately, the Conference Committee built a spending plan that speaks to the state’s constrained fiscal picture amidst continued economic uncertainty and federal policy shifts.
