- Massachusetts' new 4% tax on millionaires is bringing in $1 billion in revenue this year.
- Gov. Maura Healey last week signed a $55.98 billion state budget that spends the funds.
Massachusetts' new 4% millionaire's tax is giving a major boost to education and transportation initiatives in the state.
Thanks to the state's voter-passed Fair Share amendment that put a 4% surtax on people's annual incomes above $1 million, $1 billion in revenue has been added to the state's budget.
Democratic Massachusetts Gov. Maura Healey last week signed a $55.98 billion state budget for the 2024 fiscal year to spend the money.
The state's budget "makes significant investments in schools, child care, clean energy, the environment, and access to mental and physical health care," Healey previously said in a statement.
Of that $1 billion, $524 million has been earmarked for education programs — including giving public school students in the state access to free meals — and $477 million has been allocated for transportation initiatives.
The signing of the budget made Massachusetts the eighth state to adopt a plan for free school lunches since the expiration of federal free school lunches that had emerged during the COVID-19 pandemic.
Here's a complete breakdown of how the $1 billion revenue from the millionaire's tax will be spent, according to the governor's office:
- $71 million for early education and care. The governor's office says this will increase childcare slots for income-eligible families and put the state on a path to universal pre-K
- $224 million for K-12 education, which Healey's office says will guarantee access to free lunch for students across the state, expand routes for high school students to earn college degrees, and fund clean energy infrastructure in schools
- $229 million for higher education. The governor's office says this will help make community college and a four-year degree more accessible through the MassReconnect program and financial aid expansions
- $477 million is earmarked for transportation programs. This includes:
- $206 million to improve accessibility at commuter rail stations, the implementation of "a means-tested fares pilot," to support the workforce and safety.
- $75 million for "critical highway bridge" infrastructure
- $100 million to fix and maintain roadways
- $96 million for regional transit, especially in rural communities, and water transportation
A spokeswoman for Healey's office told Insider: "This establishes a blueprint for how this revenue will be tracked and spent in future years on priorities in education and transportation, as directed by the voters."