{"id":16467,"date":"2021-08-18T11:15:35","date_gmt":"2021-08-18T15:15:35","guid":{"rendered":"https:\/\/www.northcentralmass.com\/?p=16467"},"modified":"2021-08-18T11:15:35","modified_gmt":"2021-08-18T15:15:35","slug":"baker-polito-administration-files-1-6-billion-fiscal-year-2021-supplemental-budget","status":"publish","type":"post","link":"https:\/\/www.northcentralmass.com\/es\/baker-polito-administration-files-1-6-billion-fiscal-year-2021-supplemental-budget\/","title":{"rendered":"Baker-Polito Administration Files $1.6 Billion Fiscal Year 2021 Supplemental Budget"},"content":{"rendered":"

Legislation\u00a0<\/span>relies<\/span>\u00a0<\/span>on<\/span>\u00a0$5 billion surplus; includes\u00a0<\/span>$1 billion for unemployment relief and proposal<\/span>\u00a0to support local\u00a0<\/span>nonprofits<\/span><\/i><\/p>\n

The Baker-Polito Administration today filed a final Fiscal Year 2021 (FY21) supplemental budget proposal that aims to improve Massachusetts\u2019 economic competitiveness as the Commonwealth continues to recover from the COVID-19 pandemic. The $1.568 billon supplemental budget would provide $1 billion in unemployment insurance relief for employers, support greater resources for local charities and nonprofits and ensure that small businesses do not bear a tax burden for assistance received through pandemic relief programs. The legislation relies on a FY21 surplus of approximately $5 billion and would also make critical investments in housing, human services, and education.<\/span><\/p>\n

\u201cThanks to careful management of the Commonwealth\u2019s tax revenues and strong economic activity, Massachusetts has an unprecedented surplus at the close of Fiscal Year 2021, and this legislation ensures those resources are put to work to support local economies and small businesses,\u201d\u00a0said Governor Charlie Baker.<\/b>\u00a0\u201cOur proposal to provide employers with unemployment insurance relief is fiscally responsible and would provide much-needed support for businesses and workers across the Commonwealth. By combining this bill with our $2.9 billion plan to spend a portion of Massachusetts\u2019 federal funds on urgent priorities like homeownership, environmental infrastructure and job-training, the Commonwealth has an opportunity to leverage significant resources to promote further economic growth and support our hardest-hit communities.\u201d<\/span><\/p>\n

\u201cThis legislation provides an opportunity to reduce significant burdens on our employers, enabling them to hire and retain workers in communities across the Commonwealth,\u201d\u00a0said Lt. Governor Karyn Polito.\u00a0<\/b>\u201cThanks to strong economic activity by consumers and businesses, Massachusetts has a unique opportunity to leverage these surplus funds to further strengthen\u00a0<\/span>the<\/span>\u00a0economy and support our communities. We look forward to working with our partners in the Legislature to make these critical investments.\u201d<\/span><\/p>\n

The Administration\u2019s supplemental budget proposes dedicating $1 billion of Massachusetts\u2019 FY21 surplus toward the Unemployment Insurance Trust Fund. This affordable proposal would help stabilize the UI Trust Fund and lessen employers\u2019 future UI obligations. The legislation also includes language to make the federal Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loan (EIDL) advances, Shuttered Venue Operators grants, Restaurant Revitalization Fund grants, and state MGCC grants nontaxable for all Massachusetts recipients, consistent with federal tax treatment.<\/span><\/p>\n

The bill also proposes to finally implement the income tax charitable deduction, a measure that was first approved by voters nearly twenty years ago. Given the Commonwealth\u2019s strong fiscal situation, the proposal is fiscally responsible and would support greater resources for the local charities and non-profits who supported vulnerable populations through the pandemic.<\/span><\/p>\n

\u201cThe strong working relationship we enjoy with our colleagues in the House and Senate allowed us all to approach an uncommon fiscal year thoughtfully and deliberatively,\u201d\u00a0said Administration and Finance Secretary Michael J. Heffernan.<\/b>\u00a0\u201cWe are fortunate to end FY21 with an impressive surplus buoyed by rare federal activity. The Commonwealth must seize this opportunity to implement sensible fiscal policies like finally implementing a tax deduction to boost charity organizations that was approved by voters two decades ago, a measure that is affordable and should be done now.\u201d<\/span><\/p>\n

At the close of FY21, the Commonwealth\u2019s Stabilization Fund now stands at a balance of $4.63 billion \u2013 the highest level ever by more than a billion dollars. The $5 billion surplus included more than $1 billion in excess capital gains deposited into the Stabilization Fund; another $1.1 billion of the surplus made a planned withdrawal from the Stabilization Fund no longer necessary.<\/span><\/p>\n

In addition to the $1 billion UI transfer proposal, the legislation also proposes additional investments necessary to continue operating state government and invest in key priorities, including:<\/span><\/p>\n