Facing potential federal funding cuts, Massachusetts is relying on the “millionaire’s tax” to bolster education. This article explores how the revenue generated by the Massachusetts millionaire’s tax is being allocated and the impact it’s having on education and transportation initiatives. Learn how this funding is shaping the state’s future investments.
Massachusetts advocates Push for Education Funding Amid Budget Concerns
Published: October 26, 2024
The Call for Investment
Boston, MA—A coalition of advocates convened near the State House, outlining a proposal for over $70 million in educational programs. These initiatives span English language instruction, youth employment, workforce training, and reentry programs.
Michael Curry, representing the Massachusetts League of Community health Centers, emphasized the transformative potential of these programs. He stated that they provide residents with the tools they need to build a better tomorrow.
This is an opportunity to reshape the future of our communities. It’s an opportunity to break the cycle of poverty, to create sustainable career paths and to build a more equitable and just society for all.
Michael curry, Massachusetts League of Community Health Centers
Millionaire’s Tax Revenue: A Potential Lifeline
With Beacon Hill anticipating federal funding cuts across various sectors, including schools and public health, advocates are focusing on the state’s millionaire’s tax revenue as a crucial funding source. The revenue, generated from a 4 percent surtax on incomes exceeding $1 million, is earmarked for education and transportation.
In a letter to lawmakers, the advocates stressed that this revenue is vrey likely the only way to get new funding to increase a current program or fund a new one
during this period of budgetary constraint.
Healey’s Proposed Allocation
Gov. Maura Healey has proposed a $1.3 billion spending bill to utilize the initial surplus from the millionaire’s tax. The proposal includes meaningful investments in the MBTA, workforce training, winter storm preparedness, child care, vocational high schools, and English language classes.
The largest portion, $780 million, is designated for the MBTA.Healey views this bill as complementary to her $62 billion annual budget, asserting that together, they will make historic investments in our public transportation system
and advance major initiatives in early education and support for cities and towns.
the annual budget is slated to allocate an additional $2 billion from the millionaire’s tax.
Advocates Highlight the Stakes
Raise Up Massachusetts, the coalition behind the income surtax, believes the new revenue allows for discussions about where to make new investments, rather than talking about where to cut and how to stop the bleeding,
according to spokesperson Andrew Farnitano.
Farnitano emphasized the critical need for this funding, stating, I don’t think anyone can say now that this money isn’t needed at the state level.
the potential impact of federal funding cuts looms large, with leaders cautioning that state funds alone may not suffice to cover the shortfall.
If we didn’t have this money today, we would be debating hiking fares or cutting service at the T, we would be debating layoffs in public colleges or tuition hikes. we would be making some really tough choices in our public education and transportation systems, and because we have the money from Fair Share, we’re able to have a much more positive conversation about how to make new investments, because the need is so great.
Andrew Farnitano, Raise Up Massachusetts
Legislative Process and Future Considerations
A hearing is scheduled to review Healey’s spending plan, marking the beginning of a legislative process where House and Senate members will integrate their own priorities. Doug Howgate, president of the Massachusetts Taxpayers Foundation, suggests this revenue offers an opportunity to address ongoing policy challenges, such as the escalating costs of transporting students to special education programs.
It’s kind of outpaced any projections,and we already see the strain it’s putting on the state budget,on school budgets,and on municipal budgets and,as you might imagine,there’s an education policy component here as well when people are having to make really tough decisions about expensive services,that’s going to impact how they make those decisions.
Doug Howgate, Massachusetts Taxpayers foundation
Howgate proposes using surplus funds for grants to districts exploring innovative solutions for coordinating services and expanding the workforce.
Rep. Aaron Michlewitz and Sen. Michael Rodrigues, leading the hearing, affirmed their commitment to crafting a reasonable and responsible plan for the use of these funds
based on the feedback received.