Priorities for 2nd year of session take shape for Legislature, MMA

On Beacon Hill, last year kicked off with a new governor entering office, followed by significant agenda-setting by the administration as well as House and Senate leadership.

Legislative highlights in 2023 included a large re-capitalization through a general governmental bond bill, investments and remote meeting extensions through supplemental budgets, increases in local road funding (via a bond bill and the use of new state surtax revenue), a strong fiscal 2024 state budget with important increases in local aid, a comprehensive tax reform package, and recent municipal finance changes.

Priorities are now taking shape for 2024, with just under seven months until the end of formal sessions in the 193rd General Court.

As the Commonwealth moves further from the “crisis” mindset of the COVID pandemic, the economy continues to feel lasting inflationary pressures and a growing concern over the trajectory of state revenues, which continue to grow but at well-below-benchmark levels (and well below the rapid growth of fiscal 2021 and 2022). These fiscal pressures are particularly being felt in municipalities, which operate with tightly capped property tax revenues, despite growing costs and challenges. (Further complicating this will be the looming obligation deadline for funds provided by the federal government through the American Rescue Plan Act.)

Additionally, 2024 will continue to see legislative impacts from the growing needs under the state’s emergency shelter program. The recent closeout supplemental budget provided an important infusion of funding for the program, supporting many incurred costs at the state and local level. Ongoing and future financial implications of the program — especially with more modest state revenue growth — will be an important consideration for state budget conversations.

Amid these challenges, the Legislature is poised to tackle many priorities before the August recess. The next major development will be the fiscal 2025 state budget process. Gov. Maura Healey is expected to release her budget recommendation, known as House 2, in late January, with the Legislature planning to finalize a bill by the start of the fiscal year in July. The progress of state tax collections will be critical as the budget process unfolds in the House and Senate.

The MMA will continue to advocate for an adequate increase to Unrestricted General Government Aid to support key services for the state’s 351 cities and towns. Municipalities will continue to lean on predictable and adequate state revenue sharing to support essential municipal services and maintain local infrastructure, especially in light of the tight cap on local property tax revenue and recent cost escalations.

For the MMA, other key objectives early in 2024 will be investments in municipal infrastructure, housing, climate resiliency, and bills that ease unnecessary burdens on local government in Massachusetts.

Additional policy priorities of the House and Senate that are expected to get attention this year include health care reform, gun control, mental health services, economic development, early education and care, clean energy, and more. Additionally, the Legislature will make decisions on whether to propose alternatives to the seven potential questions making progress toward the 2024 general election ballot.

The legislative session formally ends on July 31. To have a realistic chance at passage this session, most legislation must move out of committee by Feb. 7 (governed by a legislative joint rule) unless it receives an extension.