BOSTON — Gov. Maura Healey has signed a nearly $58 billion late budget that includes funding to make community college free for residents, no-charge bus rides on regional transit systems and more funding for free school meals.
The spending plan, which comes nearly a month after the July 1 beginning of the fiscal year, boosts spending by more than $3.8 billion over the previous year’s budget, but doesn’t raise any wholesale taxes or fees.
Speaking to reporters during a signing ceremony at the Statehouse, Healey said the budget “delivers on our shared priorities and drives our state forward with urgency and purpose.”
“It invests in areas that we are already leading on and makes them better – including our No. 1 ranked schools and our nation-leading child care strategy,” she said in remarks after signing the budget. “We’re also tackling our biggest challenges by lowering household costs and improving transportation.”
Direct aid to local governments — money that cities and towns use for everything from closing local budget shortfalls to hiring workers — will rise to more than $1.3 billion, a $38 million increase. Most communities will see increases in state local aid funding.
The fiscal 2025 budget boosts funding for schools by 4% to more than $6.86 billion. That would fully fund the fourth year of the Student Opportunity Act that was approved by the Legislature in 2019.
The plan also calls for spending $1.3 billion from the “millionaires tax” by divvying up the money for a range of education and transportation programs and new initiatives. The voter-approved law, which went into effect last year, set a 4% surtax on incomes above $1 million. At least $250 million of that would be used to leverage $1 billion in federal funding for fixing roads and bridges.
A key provision of the plan includes $117.5 million to offer free community college for Massachusetts residents, including stipends for low-income students to cover the cost of textbooks, transportation and child care services.
The plan also includes $170 million to provide free breakfast and lunch for K-12 school students, which was authorized by the previous year’s budget.
It also includes $110 million for the state’s 15 regional transit authorities, such as the Merrimack Valley Regional Transit Authority, including $30 million to offer free bus service. The MBTA would get $20 million for a new policy offering low-income riders a discount on fares inside the Boston region.
“All of these investments are focused on making life better and easier for people in Massachusetts,” Healey said. “This also makes us more competitive.”
The plan will also set up a cashless “iLottery” system and allow consumers to use debit cards to make purchases of MegaMillions tickets and other products.
It further includes more money for education, housing, transportation, health care and environmental protection.
Healey, a Democrat, vetoed about $317 million in spending, but left the budget sent to her by House and Senate negotiators largely intact. That includes millions of dollars in legislative earmarks for local pet projects, programs and initiatives.
Massachusetts was the last state without an approved 2025 budget, according to the National Conference of State Legislatures.
The House and Senate approved separate versions of the roughly $58 billion budget months ago, but a final spending package became tied up in negotiations.
Healey signed a nearly $7 billion interim budget in late June to fund the state government through July 31 or until the final budget is approved.
It’s not clear what held up approval of the budget, as the lawmakers deliberated on the spending package closed their proceedings to the press and public.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com