Beacon Hill price range writers search recommendation amid federal funding cuts in Massachusetts
A trio of prime state price range writers plan to convene a roundtable subsequent week with monetary consultants to debate the state of Massachusetts’ financial system and weigh the fiscal impacts of federal coverage modifications below the Trump administration.
Administration and Finance Secretary Matthew Gorzkowicz, Home price range chief Aaron Michlewitz, and Senate price range chief Michael Rodrigues will collect “key consultants” subsequent Tuesday after months of unpredictability, funding cuts, and coverage modifications out of Washington.
Gorzkowicz mentioned “it’s as essential as ever” that state officers attempt to perceive what is going on to the state’s financial system as price range writers transfer by means of fiscal 12 months 2026 and prepare to craft the fiscal 12 months 2027 price range.
“We all know that we face vital financial headwinds, and this roundtable will assist inform our administration as we proceed to work with our companions within the Legislature to navigate these unsure occasions,” Gorzkowicz mentioned in a press release Wednesday.
Rodrigues, a Westport Democrat, mentioned the roundtable will present a possibility to “pay attention, be taught, and work collaboratively in partnership as we chart our method ahead throughout this more and more turbulent time.”
“Aware of present budgetary pressures and ongoing uncertainty, it’s critically essential that we weigh the impacts of current federal coverage modifications on our Commonwealth’s financial system, whereas remaining targeted on fiscal accountability and the difficult street forward,” Rodrigues mentioned in a press release.
President Donald Trump’s administration has lower roughly $905 million in funding to key sectors in Massachusetts, together with schooling, well being care, power, and transportation tasks, in line with knowledge maintained by the Healey administration.
Greater than a 3rd of the misplaced money, or $327 million, was pegged to the Allston Multimodal Challenge, an overhaul of the Mass Pike in Allston that will have seen the alternative of viaducts with a ground-level freeway and a brand new transit hub, amongst different issues.
The state price range depends on greater than $16 billion in federal funding, a piece of cash that will be laborious to exchange if absolutely misplaced.
Amid the cuts, Gov. Maura Healey is seeking to develop her emergency budget-cutting powers past the manager department she oversees.
The primary-term Democrat filed a spending invoice earlier this 12 months that will enable her to slash spending throughout the complete state price range this fiscal 12 months if revenues are available in $400 million beneath preliminary projections, or federal coverage modifications go away a $400 million gap within the price range.
Gorzkowicz additionally mentioned earlier this 12 months that the administration deliberate to delay handing out money for native earmarks to municipalities till later this fall, or about a number of months longer than standard.
He mentioned officers would entertain slicing native earmarks if economists predict a monetary downturn in state revenues.
Michlewitz, a North Finish Democrat, mentioned the roundtable will assist state officers “keep extra knowledgeable on what lays forward fiscally within the short- and long-term future.”
“Given the uncertainties in our financial system, and the turbulence popping out of Washington, it has by no means been a extra essential time to work collaboratively and hearken to consultants,” he mentioned.
