Governor wants the millionaire's tax to pay for MBTA bills, Massachusetts road and bridge repairs
BOSTON - Gov. Maura Healey announced Tuesday she plans to tap into the revenue from the so-called millionaire's tax in Massachusetts to stabilize the MBTA's finances and repair bridges and roads.
The governor says she wants to pour $8 billion into transportation over the next 10 years, and do it without implementing any new taxes on Massachusetts residents.
"We're going to invest billions of dollars to deliver better roads, less traffic, safer bridges and a transit system that works in every region," Healey said in a statement. "We'll close the MBTA's budget gap, improving service and upgrading stations, and we'll move forward on regional projects like West-East Rail. And we'll do this all without raising taxes."
Healey's transportation plan
Healey's proposed legislation calls for immediately giving $857 million in "Fair Share Funds" from the millionaire's tax to public transportation. It would also more than double funding for the MBTA's operating budget to $687 million for Fiscal Year 2026.
The beleaguered transit agency has faced a budget shortfall and declining ridership in the wake of the COVID pandemic. MBTA general manager Phil Eng has managed to eliminate slow zones on the tracks in the past year, but the governor said she wants to "take the T to the next level."
"You'll see more frequent trains and buses, you'll see major station upgrades, you'll see accessible platforms across the Commuter Rail," Healey said at a news conference Tuesday. "Bottom line, you're going to wait less and you'll move faster."
The plan also calls for $2.5 billion for road and bridge repairs, and promises to close the funding gap for the Mass Pike project in Allston.
Massachusetts millionaire's tax
Voters in 2022 approved the 4% tax on those earning more than $1 million a year. It was estimated to bring in about $2 billion in revenue a year.
The money is set aside for education and transportation funding. On the education side, dollars generated by the tax have been used to cover community college tuition and pay for free school lunch in Massachusetts.