TAX CUTS AND ABORTION FUNDING LIKELY IN UPCOMING SENATE BUDGET
The state Senate is expected to unveil its version of the House’s nearly $50 billion budget Tuesday, when upper chamber lawmakers will finally reveal their position on Gov. Charlie Baker’s tax cuts and priorities in the aftermath of the leaked opinion to repeal Roe v. Wade.
“In the budget the Senate will be providing $2 million for grants to support improvements in reproductive health access, infrastructure, and security,” a spokesperson for Senate President Karen Spilka’s office told the Herald.
The spokesperson pointed out that is an increase of $1.5 million over what the House has authorized. The increase comes after it became apparent the U.S. Supreme Court will likely move to restrict abortion access in the coming weeks.
The Senate may also take up tax relief, after previously seeming ready to move forward with their plan for fiscal 2023 without the inclusion of a series of tax cuts introduced by Baker.
Baker had proposed further tax relief for renters, adoption of federal standards for no-tax status for low-income residents, an adjustment of the “low income circuit breaker” on property tax relief for older residents, and a proposal to lower the estate and short-term capital gains taxes.
That proposal would cost the state about $700 million, according to estimates, and the idea seemed all but dead, until April’s tax revenue showed a $2 billion surplus for that month alone.
Spilka said in response senators should “work with their partners in government to pursue a tax relief package for residents before the end of session.”
“While the details remain to be worked out, I believe we can safely balance targeted spending investments to a number of crucial areas, such as housing, childcare and higher education, with tax relief for individuals and families who are feeling the effects of inflation and continued economic disruption,” she said.
Baker submitted his budget in January, coming in at a price tag of $48.2 billion. The House, in March, raised that figure to $49.6 billion — $2 billion more than the state spent last fiscal year.
“With growing revenue returns from the state, a record $5.76 billion expected dollars in our rainy day fund by the end of this fiscal year, this once-in-ageneration opportunity allows us to build for a better future,” committee Chairman Aaron Michlewitz said of the House’s budget.