Massachusetts Democrats reach ‘agreement in principle’ on overdue fiscal 2025 budget

A weeks-long, closed-door effort to hammer out a final fiscal year 2025 state budget came to an end Wednesday when top Democratic negotiators announced they had reached an “agreement in principle” on the overdue spending plan.

The documents necessary to file a budget accord were picked up from the House Clerk’s Office around 3:30 p.m. and the Legislature’s two budget writers announced they had come to a compromise less than an hour later, rounding off what was already a jam-packed day on Beacon Hill.

Details about what made it into the deal were not immediately available. Sen. Michael Rodrigues and Rep. Aaron Michlewitz, Democrats who lead the Legislature’s two budget-writing committees, said staff members were “ironing out the details and completing the work necessary to formalize the agreement.”

“We are confident that the conference committee report will be filed in the coming days, ensuring that both the House and Senate will send a budget later this week to Gov. (Maura) Healey and her team that moves Massachusetts forward on an affordable and fiscally sustainable path,” the pair said in a statement.

The House and Senate plan to meet in formal sessions Thursday. Healey will have 10 days to review the budget once it reaches her desk.

“Gov. Healey is grateful to the Legislature for their hard work on this budget and looks forward to reviewing it,” said Karissa Hand, a spokesperson for the governor.

The two budget proposals from the House and Senate have similar bottom lines but differ in important spending and policy areas like how state officials should spend $1.3 billion in revenue from a 4% surtax on incomes over $1 million commonly known as the “Millionaires Tax.”

House lawmakers wanted to shuttle $695 million to education initiatives and $605 million to transportation projects while the Senate put $735 million toward education and $565 million to transportation.

Senators approved a $117 million effort to make community college free by covering tuition and fee costs for all students starting this fall while the House shuttled hundreds of millions to the MBTA.

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It is unclear what parts of the spending plan held up discussions beyond the start of the fiscal year.

Discussions could also have been complicated by Massachusetts’ challenging fiscal picture over the past year, one which was marked by rollercoaster revenues.

Rodrigues, speaking to reporters only hours before the deal was announced, said negotiators were putting the “finishing touches” on a compromise bill.

He declined to say if there were any points of contention between the House and Senate, citing a long-standing practice of lawmakers not discussing private negotiations.

“Confidentiality is important,” he said.

At an event earlier in the day, Michlewitz also declined to describe the sticking points between the two branches.

“I think those have been pretty highlighted over the last couple of months here, but we’re getting there,” he said.

Massachusetts started fiscal year 2025 on July 1 without a full spending plan in place for the next 12 months for the 14th straight year. The commonwealth is the last state in the nation to not have a budget in place for the current fiscal year.

Both budget writers have signaled the annual budget deadline has little impact on the state, with Rodrigues previously describing it as only a “point of pride.”

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