Governor Healey’s Announced 9C Budget Cuts!

On January 8th, the Healey Administration announced a revision to the current fiscal year's budget called 9C cuts, which involves a $375 million reduction due to lower-than-expected tax collections. The Administration projected a $1 billion decrease in tax revenue for this budget year which may also impact the FY2025 budget. 

The term '9C cuts' refers to the Massachusetts Governor's authority, under Section 9C of Chapter 29 of the General Laws, to unilaterally reduce state spending when tax revenues fall short of projections to ensure a balanced budget without legislative intervention.

The most notable change to CHAPA priorities was a $5 million cut in funding for Housing Consumer Education Centers, under line item 7004-3036. However, this decrease will be effectively neutralized by additional funds from the Federal Moving to Work program, ensuring that the Housing Consumer Education Centers will continue to receive the same allocation. Alongside this, other areas such as cash assistance programs (TAFDC) and Senior Supportive Housing programs also saw reductions in their budgets. Please refer to this chart for a full list of budget cuts.

The Administration's strategy involves reducing expenditures for the next six months, utilizing typically non-budgeted investment earnings, and aiming for minimal revenue growth in the coming year. This approach, according to Healey's team, is designed to navigate through fiscal year 2024 without further cuts, setting the stage for a balanced budget in fiscal year 2025, for which the proposal is due by January 24.