Last month, Massachusetts Governor Charlie Baker released his proposed state budget for Fiscal Year 2021 (FY21), kicking off this year’s budget process. We pay close attention to this because various line items in the budget fund important programs that support MA families’ economic mobility. You can help advocate for these initiatives by signing up for advocacy alerts.

Each year, the Governor’s Office and the Legislature (House & Senate) work together to pass a budget. During this process, outside groups (like nonprofits) advocate for changes in the final budget. The annual budget process begins in January and is typically finalized in July.

This blog post will:
1. Explain how the budget process works
2. Explain EMPath’s budget priority items
3. Keep you informed on where we are in the process

How does the budget process work?

STEP 1 The budget process kicks off each year when the Governor releases his proposed budget. This proposal communicates his priorities to the public.

STEP 2 The House Committee on Ways and Means examines the Governor’s proposal and releases its own recommendations for the budget.

STEP 3 The full House debates the House Ways and Means recommendations.

STEP 4 The House releases its final version of the budget in April.

STEPS 5, 6, 7 Repeat Steps 2-4 in the Senate (based on both the Governor’s proposal and the House proposal), ending with the Senate releasing its own version of the budget in May.

STEP 8 The House and Senate appoint three members each to a “Conference Committee” to reconcile the differences between the House and Senate proposals. The Conference Committee reports a final compromise budget to the House and Senate for a final vote in each branch.

STEP 9 The Governor approves, vetoes, or vetoes part of the budget. The Legislature may override the Governor’s actions. The budget is then signed into law.

Click here to read more about the MA budget process timeline.

What are EMPath’s budget priorities?

Increase the state Earned Income Tax Credit (EITC) from 30 to 50% of the federal EITC
Increase the state EITC for all eligible workers to reward work, reduce income inequality, increase economic mobility and improve children’s health.

$800,000 for Volunteer Income Tax Assistance (VITA) sites
At VITA sites, volunteers help taxpayers with low incomes access the EITC and other tax credits. This allows them to pay bills, cover essential expenses and emergency needs, save, and plan for the future. VITA sites also offer financial education and link taxpayers to other critical services, strengthening families and the local economy.

Increase cash assistance grants in the Transitional Aid to Families with Dependent Children (TAFDC) program
Raise the TAFDC grant to 50% of the Federal Poverty Level in order to lift families out of deep poverty. Grants have not been increased significantly in 30 years and are not tied to inflation, so their value has severely diminished.

$130 million for the Massachusetts Rental Voucher Program (MRVP)
Provide families with low incomes, people with disabilities, and seniors with access to safe and affordable housing. This funding request would maintain the over 8,000 vouchers in use and increase the number of vouchers available.

$2 million for the Secure Jobs Initiative
Help families experiencing homelessness access stable jobs in order to move closer to economic stability. Secure Jobs bridges the critical gap between housing and workforce development services.

$8 million for the Workforce Competitiveness Trust Fund (WCTF) & the Learn to Earn Initiative (LTE)
Fund career training opportunities for jobs leading to economic stability for under-resourced single parents. Direct at least $1 million to the Learn to Earn Initiative, which helps families receiving public benefits by providing them with the support needed to access and maintain employment.

Click here to download a PDF of EMPath’s FY21 budget and legislative priorities.

Which step are we at now?

We are currently at Step One: The Governor’s Proposed Budget.

The Govenor’s proposed budget includes increases, decreases, and level funding for EMPath’s priority items listed above. Remember, this is just a proposal. The numbers will go up and down throughout the budget process.

Highlights include:

• Slight increases for EA family shelter (3.1%) and MRVP (3.4%)
• Level funding for Secure Jobs, Workforce Competitive Trust Fund, and Learn to Earn Initiative
• No proposed increase in the state EITC
• Cuts in Residential Assistance for Families in Transition (RAFT) (40%) and income-based childcare (2.8%) — priority items for coalitions of which EMPath is a member
• Large proposed increase for Supportive DCF and DTA childcare (23.7%) — a priority item for coalitions of which EMPath is a member

Now that the Governor’s budget has been released, EMPath is pivoting its focus to the House, which will release its budget in April.

Be sure to check back with us for updates, and sign up for advocacy alerts to get emails about how you can influence the state budget!

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