Governor Healy's Proposed FY26 Budget

Posted on 01/22/2025
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On January 22, 2025, Governor Healey released her draft of a fiscal year 2026 budget. The House and then the Senate will make their own budget recommendations before the budget becomes final.


Bottom line: Governor’s budget recommendation totals $59.561 billion, an increase of 2.6% over FY25’s


Cost Inflation Factor: The FY26 budget includes moving forward with OSD’s estimated rate of inflation of 3.67% for fiscal year 2026.


Chapter 70 and Student Opportunity Act: The FY26 budget draft includes full funding for the 5th-year phase-in of the Student Opportunity Act. The $7.303 billion in the budget for Chapter 70 education represents a 6% increase over Fiscal Year 2025. This guarantees a minimum per pupil aid rate of $75. The Governor’s budget draws $207 million from the Student Opportunity Act Investment Fund to support Chapter 70 for the implementation of the Student Opportunity Act & aid to school districts.  


Special Education Circuit Breaker: Special Education Circuit Breaker account is funded at $531,991,844 million, which is $117 million less than what the Coalition for Special Education recommended to fully fund Circuit Breaker

 

Out of State rate language: MAAPS will ask the House and Senate to include permissive language in the FY26 budget about a separate rate for out of state tuitions


Human Services: The FY26 House 1 recommendation includes annualization of $524.2 million of FY25 rate increases, including $388.4 million at DDS, and $207 million to fund FY26 rate increases to human and social service providers via the Chapter 257 and Human Service Reserve.

 

DDS/Turning 22: FY26 invests $116.8 million in annualizing services for the FY24 and FY25 Turning 22 classes while also supporting a new FY26 class. An estimated 1,537 individuals will become age-eligible for DDS services in FY26, an increase of 4.2% over the FY25 class.


Next Steps: MAAPS will keep you informed as the budget moves through the legislative process and where you can support MAAPS priorities. If you have not already done so, please sign up for the Action Network so you can add your voice to advancing important priorities!