On Friday, June 26, Governor Baker signed an interim $5.25 billion state budget (H.4806) to keep government running when the new fiscal year begins on July 1. It is expected that the short term budget will largely be based on FY2020 appropriations. The interim budget is expected to keep the state government funded through July. If the Legislature has not approved a final FY2021 budget by August, another short term state budget will need to be approved.
The Legislature has not yet developed a budget for FY2021. The House and Senate have indicated that they are waiting to see how tax collections perform following the pushing of the annual tax-filing deadline from April 15 to July 15th before deciding on a final FY2021 state budget. The Legislature is also waiting to see if Congress will pass another stimulus or relief package that may include support for individuals, businesses, and state and local governments struggling due to COVID-19.
The current legislative session ends on July 31st. After that, the Legislature only meets in informal sessions. However, spending bills, including the state budget, must be passed during a formal session. The House and Senate may change their rules to allow the state budget to be considered after July 31.