Mass. lawmakers say they are on precipice of outlawing mandatory tenant-paid broker's fees in $61 billion budget

Boston Globe

3 days ago

State Senator Michael Rodrigues, the lead negotiator for his chamber, said the agreement came after warnings from the state budget office and budget watchdogs 'that tax revenues are precarious, to say the least.'
'We wanted to . . . minimize anything that happens, especially down in DC,' the Westport Democrat said. 'We still don't know what's going to happen down there.'
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The $61 billion plan, which needs final legislative approval before going to Governor Maura Healey, would come in $1 billion under what
Legislative leaders said they cut $300 million in what they had originally planned to spend on MassHealth, the state's Medicaid program, and stripped out administrative costs. They also said they slimmed down some local earmarks, or funding for projects in individual districts.
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In doing so, they also rewrote its plan so that $450 million in money they plan to dedicate to local school districts will now be funded by money generated by the so-called millionaires tax. The agreement would now commit to spending $2.4 billion from that pot of revenue, a nearly $500 million jump from what they initially agreed to and more than $1 billion above what they budgeted for this fiscal year.
The money generated by the surtax has repeatedly blown past state projections, with nearly
State Representative Aaron Michlewitz, the House's budget chair, said legislative leaders felt they could 'be a little more aggressive with our approach' in using surtax funding given how much it's raised.
'Taking the term from Washington, this was actually the real
Earlier this month, Healey signed a
Rodrigues pointed to the bill as a sign that the Legislature is investing in the T, which would get $470 million in what lawmakers called 'direct investment.'
'We are very comfortable and confident that the amount of money that we invested in the MBTA will allow them to continue on the path they've been on in improving,' he said.
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The sweeping plan announced Sunday also includes several major policy changes. It would effectively ban charging tenants mandatory broker's fees —
The measure that would outlaw mandatory tenant-paid broker's fees is years in the making. The charges typically amount to a month's rent and have become a virtual rarity elsewhere. After
Healey already
The budget also would mandate that regional transit authorities provide fare-free service, while giving them $209 million in funding to make it a reality.
The compromise budget also left out pieces of policy proposed by both chambers. The Senate, for example, attached a rider to its budget plan that would give local officials, not lawmakers on Beacon Hill, the power to determine the number of liquor licenses distributed in their city or town. It didn't make the cut. Neither did a proposal to pause admissions reforms at vocational and technical schools.
State policymakers are trying to budget at a time of upheaval in Washington, where Republican leaders are pushing sprawling legislation through the US Senate that could
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The state has been
That could create some headaches in the weeks ahead, including a potential budget gap policymakers will need to decide how to fill. The Massachusetts Taxpayers Foundation, a business-backed budget watchdog, said last week that tax revenue may come in at least $600 million below what state officials had initially projected for the fiscal year that starts Tuesday.
That projection didn't even account for potential impacts of the Trump administration's trade policies or the chance of an economic downturn, which the foundation
House Speaker Ron Mariano and Senate President Karen E. Spilka said in a joint statement that the plan would 'make Massachusetts more affordable, and will protect our most vulnerable residents.'
'As President Trump and Congressional Republicans continue to pursue devastating cuts to programs that millions of Americans rely on, we recognize the heightened importance of passing a fiscally responsible budget that invests in the areas that we value most,' the Democrats said.
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Sunday's announcement marked a bit of relatively speedy deal-making for lawmakers. Should they whisk the agreement to Healey's desk on Monday as expected, it would be the first time since 2016 that they passed a budget deal before the start of the fiscal year.
Still, Healey has 10 days to decide whether to sign, veto, or amend parts of the plan. That makes likely this the 15 straight year the state will begin the year
'She still has the opportunity to put some of her fingerprints on the budget, and we would never deny her that opportunity,' Rodrigues said of Healey.
Samantha J. Gross can be reached at