The Fair Share Amendment, passed by voters in November 2022, creates a 4 percent tax on the portion of a person’s annual income above $1 million and dedicate the funds raised to public education and transportation.
Only people who earn more than $1 million annually pay this additional income tax; 99 percent of us don’t pay a penny more. And we all benefit from better schools, colleges and universities, roads, bridges and public transportation.
In November 2022, Massachusetts voters passed the Fair Share Amendment, choosing a fairer tax system and guaranteeing that the richest one percent will pay more to fund our schools, colleges, roads, bridges, and public transit.
Now, Massachusetts is delivering on the promise of the Fair Share Amendment by making major new investments in transportation and public education. Massachusetts spent the first $1 billion from the Fair Share Amendment in FY24 (from July 2023-June 2024) to upgrade the MBTA’s infrastructure and make public college more affordable, repair bridges and provide free school meals for all students, build green schools and expand local bus service across the state, and more.
Now, with the passage of the state’s final FY25 budget, legislators have determined how to spend the next $1.3 billion in Fair Share revenue in FY25 (from July 2024-June 2025). Major new investments funded by Fair Share include free community college, free and expanded RTA bus service, universal free school meals for K-12 students, and millions of dollars for the MBTA and child care providers.
The state Legislature has designated $538.5 million for transportation and $761.5 million for public education in the state budget for the 2025 fiscal year, which begins on July 1, 2024, from tax revenues collected as a result of the Fair Share Amendment.
The Fair Share Amendment, passed by voters in November 2022, creates an additional tax of four percentage points on the portion of a person’s annual income above $1 million. The new revenue is designated for public schools and colleges and transportation.
Download FY25 Fair Share Budget Update FY24 Budget Numbers
Reimbursement of school districts for the costs of providing universal free school meals=$170 million.
Providing an additional $74 per pupil in minimum aid funding to local schools, for a total of $104 per pupil=$37 million.
Early literacy program for students in pre-kindergarten through grade 3=$20 million.
Projects to install or maintain clean energy infrastructure in K-12 public schools=$10 million.
Development of a statewide birth through higher education framework for mental and behavioral health=$5 million.
Expansion of early college, workforce, technical and innovation pathway programs=$2.5 million.
Financial aid for Massachusetts public college students=$90 million. This includes:
Tuition-free community college=$117.5 million. This includes:
Wraparound supports and services for public college students=$16.5 million.
Endowment match program for public colleges and universities=$15 million.
Operational grants to child care providers=$175 million.
Increased reimbursement rates for providers who enroll children receiving child care financial assistance=$65 million.
Expanded eligibility for child care financial assistance to reduce the waitlist for income-eligible early education and care programs=$33 million.
Expansion of pre-kindergarten or preschool opportunities=$5 million.
And these developments are just in the first year!
Along with our partners in the Raise Up Massachusetts coalition, the MTA celebrates the state reporting that revenues from the Fair Share Amendment are dramatically exceeding the expectations of the Legislature in its FY24 budget.
The news that Fair Share has produced upward of $1.8 billion in the current fiscal year and is on track to generate a total of $2 billion once the year is complete, was a thrilling vindication of the commitment MTA members and our union made in passing an additional income tax on multimillionaires and billionaires so we can invest in our public schools and colleges and transportation systems.
MTA members played an integral role in establishing the priorities and securing the funding displayed in this budget.
The investments we can make with Fair Share proceeds will improve the lives of our citizens and become the engine for long-term economic health.
Keep up to date on the latest budget news from the State House.