On August 4, Governor Baker signed in-part a $16.5 billion interim state budget, H.4905, that will keep state government operating through October 31st. The current fiscal year, FY2021, began on July 1st. Massachusetts has been running on short term budgets since then.
The Governor vetoed language that set a deadline of Oct. 31 for the funding to expire and the Legislature's language to impose minimum spending requirements. The Governor said that this would unduly limit his authority to manage state spending over the next three months.
Passing a short term budget allows the Legislature the flexibility to wait to see if U.S. Congress passes a relief package to help with state budget shortfall, which is estimated to be in the billions of dollars, as well as to have a better picture of COVID impacts on revenue collection. The Legislature is likely to pass a FY2021 budget for the remaining months sometime in the fall.