$2.78 billion to be invested in FY23 as part of $13.9 billion five-year plan

The Baker-Polito Administration released its Fiscal Year 2023 (FY23) Capital Investment Plan, which provides $2.78 billion in state bond cap spending in FY23 to support investments in transportation, economic development, climate resiliency, housing, education, technology and health and human services.

The plan reflects a balanced and fiscally responsible approach to long-term planning, with funding dedicated to the care and maintenance of the Commonwealth’s existing assets as well as targeted new investments that will support Massachusetts’ economic development and growth in the wake of the COVID-19 pandemic.

In addition to outlining state bond cap allocations for FY23, the plan charts a pathway for capital investment across the next five years, providing a blueprint for a total of $13.9 billion in FY23–FY27 bond cap spending that leverages the unprecedented amount of federal funding the Commonwealth will benefit from in the coming years.

“The capital budget is an important vehicle for enabling long-term economic growth and improving the way state government serves its constituents, and our FY23-FY27 plan supports infrastructure initiatives that will benefit residents in every corner of the Commonwealth,” said Governor Charlie Baker. “We are proud to release our eighth Capital Investment Plan today, and we look forward to the lasting positive impacts it will drive in the coming years.”

“Our Administration’s capital plan invests in critical initiatives across the state and continues to provide local communities with resources that will enable them to better serve their residents,” said Lieutenant Governor Karyn Polito. “With substantial funding for housing, education, climate change mitigation, technology infrastructure, public safety and more, this plan will make Massachusetts a better place to live, learn and work.”

Governor Baker and Lieutenant Governor Polito joined Administration and Finance Secretary Michael J. Heffernan today at the Quincy courthouse to release the capital plan. The plan provides $3.5 million in FY23 and budgets for $52.9 million over the next five years to continue efforts to replace the courthouse with a new Norfolk County regional justice center that consolidates court departments.

“The Baker-Polito Administration’s FY23–FY27 capital plan continues to be grounded in fiscal discipline and thoughtfully leverages available resources to maximize the impact of our capital spending,” said Secretary of Administration and Finance Michael J. Heffernan. “The plan carefully balances the maintenance of existing state assets and investments in new infrastructure– a responsible approach that will drive growth and deliver outsized benefits to the people of Massachusetts over many years.”

The capital plan continues the Administration’s approach to strategically using available funding sources. Along with funding to support the implementation of major transportation and environmental program expansions enabled by the Bipartisan Infrastructure Law (BIL) over FY23–FY27, the plan provides more than $700 million in state matching funds to allow Massachusetts to access opportunities for significant additional federal funds that support highways and bridges, municipal water infrastructure and electric vehicles infrastructure.

The FY23-FY27 plan continues efforts to strengthen and revitalize Massachusetts communities. It builds on the last seven years of capital investment as well as significant state and federal support over the last two years in response to the COVID-19 pandemic, which has included over $2.4 billion in total from the CARES Act Coronavirus Relief Fund and $2.9 billion in allocated state aid from the American Rescue Plan Act (ARPA). ARPA also provided $3.4 billion in direct aid for municipalities, $2.6 billion for housing and economic development initiatives, $1.1 billion for transit, $315 million in child care stabilization funding, and $200 million in Child Care Development and Block grant funding.

Continuing efforts to protect the Commonwealth’s natural environment, the capital plan supports investments in climate resiliency measures, food security and public outdoor spaces. It also provides substantial new funding for building infrastructure projects across the higher education system, and maintains investments for information technology and cybersecurity upgrades, public safety and health and human services.

The FY23 capital plan’s $2.78 billion bond cap represents a responsible $125 million (4.7%) increase over FY22, which is in line with the recommendations of the Debt Affordability Committee.

The five-year plan will be supported by authorization the Administration has filed for across several bond bills, including the General Government Bond Bill, the MassTRAC infrastructure bond bill and the FORWARD legislation. The majority of spending in FY23 is covered by existing authorizations.

To view the FY23–FY27 Capital Investment Plan, visit: www.mass.gov/capital.

FY23 Capital Plan Highlights:

Transporte

The combined MassDOT and MBTA capital plan is funded from a variety of state and non-state sources. $1.1 billion of FY23 spending is supported by state bond cap.

• $200 million for the Chapter 90 Program for local road and bridge repairs
• $25 million for the Municipal Pavement Program, established in the 2021 Transportation bond bill to assist municipalities with roadway pavement improvements
• $15 million for the Administration’s Municipal Small Bridge Program
• $15 million for the Complete Streets Program
• $8.5 million for the Shared Streets and Spaces Program, which was started in the midst of the COVID-19 pandemic to help municipalities and businesses adapt their operations
• $5 million for the Local Bottleneck Reduction Program
• $5 million for Transit Infrastructure Partnership Program

Division of Capital Asset Management and Maintenance (DCAMM)

• $171 million to continue work at Commonwealth-owned health care facilities, including the Department of Public Health’s Laboratory Campus in Jamaica Plain, the Newton Pavilion/Shattuck Hospital, and the Soldiers’ Homes in Holyoke and Chelsea
• $6.8 million ($120 million over FY23-FY27) for new major higher education projects at Massasoit Community College, Salem State University, Springfield Technical Community College and University of Massachusetts Lowell
• $50 million for smaller critical repairs and $24.3 million for accelerated building infrastructure projects across the higher education system
• Planning efforts for the construction of a new Regional Justice Center in Quincy

Economic Development

• $97 million for MassWorks to provide municipalities and other public entities with funding for infrastructure projects that promote economic development
• $35 million for the Life Sciences Capital Program to foster job growth and innovation in the life sciences industry
• $21.7 million for the Underutilized Properties program to rehabilitate or redevelop blighted, abandoned, vacant or underutilized properties
• $16 million for research and development projects that spur innovation and enhance job growth
• $16 million for Advanced Manufacturing Innovation programs, established in the 2021 economic development bond bill, which supports research centers around emerging manufacturing technology
• $12 million in Seaport Economic Council Grants

Housing

• $151 million for the production and preservation of affordable housing in addition to programs that support neighborhood stabilization, transit-oriented housing, and climate resilient affordable housing
• $110 million to support our state-aided public housing portfolio

Energy and Environmental Affairs

• $34 million for improvements to campgrounds, recreational facilities, and comfort stations
• $17.5 million for the Municipal Vulnerability Preparedness (MVP) Program to aid municipalities with climate change vulnerability assessments and planning and adaptation projects
• $12.5 million for the Food Security Infrastructure Program
• $12 million for inland dams and seawalls
• $10 million in municipal matching grants through MassTrails to enhance and maintain shared use paths and recreational trails
• $8.3 million for Greening the Gateway Cities, which has already planted nearly 33,000 trees and has a goal of planting at least 20,000 more trees over the next four years
• $8 million for grants to municipalities for park improvements and open space protection

Public Safety

• $5 million for the Protective Fire Equipment Grant Program which provides direct assistance to municipalities to ensure access to safe and reliable firefighter equipment
• $4 million for the Municipal Body-Worn Camera Grant Program and $837,000 to support a pilot Body-Worn Camera program for correctional officers at the Department of Correction Souza-Baranowski maximum-security facility
• Support for the Body Armor Replacement Program which provides a state match for the reimbursement of bulletproof vests by municipalities

Technology and Cybersecurity

• $78.6 million for technology solutions to improve operational efficiency and performance of state government
• $48.1 million for improvements to constituent-facing government applications to improve access to services
• $27.5 million for IT technical infrastructure modernization
• $11.3 million for cybersecurity
• $5 million for Community Compact IT Grants, which support cities and towns in their efforts to modernize their technological infrastructure
• $4 million for Municipal Fiber Grant Program to strengthen municipal IT security

Education

• $15 million for Workforce Skills Capital Grants to improve students’ skills and knowledge and better meet the needs of employers in the Commonwealth
• $6.9 million for Early Education and Out-of-School Time Grants to improve the indoor and outdoor space at early education and out-of-school time programs in which more than 50% of the children served are eligible for financial assistance

To view the full FY23 Capital Plan, please click here.