Mass. House Passes $38.1 Billion Spending Plan

By FRANK O’LAUGHLIN (Patch Staff)

The Massachusetts House and Senate voted to approve a $38.1 billion fiscal budget for 2016 on Wednesday, calling for major changes to the embattled MBTA system and an increase in spending on social services.

The budget — passed by an overwhelming 153-1 margin — calls for an increase in the state’s earned income tax credit and an increase in spending on programs to help prevent homelessness and the state’s opioid problems.

Additionally, the budget will bring big changes to the struggling MBTA system after a brutal showing during the winter months, perhaps leading to some privatization. The changes will create a stronger line of accountability between those in charge of running the MBTA and Governor Charlie Baker.

“For far too long, the management at the T allowed the system to fail, a grave disservice to their riders, taxpayers, and our economy,” Sen. Bruce Tarr said in a statement. “By adopting the amendment with bi-partisan support, the Senate created momentum to the idea of giving Governor Baker the tools he needs to begin to end the hardship that the T has generated, pursue greater efficiencies, and restore faith with those who pay the bills.”

The new budget agreement suspends the 22-year-old Pacheco Law for three years. The law had previously restricted the state from privatizing government services, such as the MBTA. According to the Pioneer Institute, the law has cost the MBTA $450 million in savings since 1997.

It will also prevent state spending on the 2024 Olympics without approval by Legislature. Public meetings will also be required before any decisions are made. Under the plan, money can only be spent for investigation and analysis of Boston 2024’s plans.

“Inclusion of our amendment ensures that the Legislature and Governor, as responsible stewards of the commonwealth’s resources, are putting taxpayer’s interests and needs first,” Sen. Tarr said.

The state had been operating since July 1 on a $5.5 billion stopgap while negotiating the budget agreement.

Patch will have more details as they emerge.