Healey’s closeout budget bill includes disaster funds, clean energy changes

Looking to close the books on fiscal 2024, Gov. Maura Healey filed a $714 million supplemental budget bill on Sept. 11 that includes several provisions of note to municipalities.

The bill’s spending would cover deficiencies in the fiscal 2024 state budget law, with a net cost to the state of $149 million, according to the administration. The majority of the spending, $565 million, would be for MassHealth, which is a “net-zero” cost due to federal reimbursements. Most of the remaining $149 million would address fiscal 2024 account deficiencies, with $33.9 million in new spending.

The governor’s bill includes $11 million to seed a Disaster Relief and Resiliency Fund, which was created in the fiscal 2025 state budget. The fund would allow for a rapid state response to extreme weather events in municipalities, and is set to be funded at the end of fiscal 2025, should there be a consolidated net surplus of $14 million. According to the governor’s filing letter, this proposal would allow the funds to be available immediately, with the intention of still using the fiscal 2025 surplus to add to the fund.

To address municipal tax abatement reimbursements for veterans, widows, blind persons and the elderly, the bill includes $11.1 million to fully fund fiscal 2025 payments to municipalities. If the funding is approved, the Division of Local Services would issue accounting guidance.

The governor’s bill includes several outside sections to address policy changes and/or technical fixes.

The bill proposes a new effective date for changes to the tax title foreclosure process that were included in the fiscal 2025 state budget law. The effective date would be pushed from Nov. 1 of this year to July 1, 2025, to coincide with the beginning of the next fiscal year.

The governor also attached language to the bill that would make changes to both the state and local siting and permitting processes for clean energy infrastructure. The changes would apply to small and large clean energy projects, including solar arrays, battery storage, wind turbines, and energy transmission and distribution infrastructure.

The governor’s proposal is very similar to changes included in separate clean energy bills passed by the House and Senate this past summer. The House and Senate proposals remain in a conference committee process, and negotiators have signaled that they could reach an agreement by the end of the year.

The governor’s supplemental budget is being sent to the House Committee on Ways and Means to begin the legislative process.