Joint Ways and Means hears governor's $1.32 billion fair-share surplus plan, focused on MBTA reserves and education supports

House and Senate leaders convened the Joint Committee on Ways and Means on May 20 for a public hearing on House Bill 55, the governor's supplemental proposal to spend $1.32 billion in surplus Fair Share surtax revenue collected in fiscal year 2025.

The administration said the bill would direct a majority of the surplus toward transportation needs including a $300 million MBTA stabilization reserve and a $400 million Federal Transit Administration (FTA) safety reserve, while directing the remainder to education programs such as preschool expansion, early literacy tutoring and career and technical education.

Why it matters: The Fair Share surtax (the ballot measure approved by voters in 2022) was intended to be split between education and transportation. Legislators and administration officials told the committee they are treating House Bill 55 together with the governor's FY26 (House 1) budget so the total package moves the Commonwealth closer to a 50/50 balance while using surplus funds to address near-term transportation risks and a set of one-time education priorities.

The hearing opened with Representative Aaron Mikowitz, who identified himself as the House chair, and Senator Mike Rodericks, who identified himself as the Senate chair, outlining the committee's plan to hear from administration secretaries and outside stakeholders on the governor's surplus proposal. Representative Mikowitz told the committee the panel would "hear House Bill 55, the Governor's proposal on how to spend the more than $1,300,000,000 in surplus from the FY '25 fair share revenue." Representative Mikowitz also encouraged written testimony from members of the public.

Administration summary

Secretary Matthew Gorkowitz, who testified as Secretary for Administration and Finance, told the committee the bill would appropriate $1.3 billion in surplus surtax revenue collected in excess of the consensus revenue…