Gov. Healey's $375M Spending Cut: Impact on MassHealth, Schools, and Fire Depts.
Massachusetts Governor Maura Healey plans to cut $375 million from state spending, with MassHealth facing the largest reduction of $294 million due to lower-than-anticipated caseloads. The cuts will impact various sectors, including behavioral health supports, housing services, grants to fire departments, parks, and economic development projects. Despite the reductions, there will be no layoffs, withdrawal from the Rainy Day Fund, or cuts to local aid and school funding. The move comes in response to flagging tax revenues, with the state's fiscal picture prompting a $1 billion reduction in revenue estimates. Legislative leaders and officials are concerned about the impact on local government services, while the administration also plans to increase non-tax revenues by $625 million and tap into a state escrow account to cover rising emergency shelter costs.