Fiscal Year 2023 State Budget

State Budget

Governor Baker signs FY23 state budget
On July 28, Governor Baker signed the state budget into law. The fiscal year 2023 (FY23) state budget totals $52.7 billion. Governor Baker vetoed less than half a million from the budget, and returned 41 sections to the Legislature with amendments.

The Governor did not veto any early education and care items. This makes the final FY23 budget a historic high point of Massachusetts' investment in early education and care.

The budget includes $250 million in Commonwealth Cares for Children (C3) Stabilization Grants [line item 3000-1045], $60 million for a rate increase for early educators [3000-1042], and $25 million for a new Early Education & Care Infrastructure and Policy Reform Reserve to bolster the statewide system of care, assist families in navigating the early education landscape, and help early educators with costs associated with personal childcare [3000-1046].

The budget also includes $15 million for preschool expansion in the Commonwealth Preschool Partnership Initiative [3000-6025], $15 million for resource and referral agencies [Access Management 3000-2000], $3.5 million for early childhood mental health [3000-6075], and more.

Outside section 180 of the budget provides $175 million for a new High-Quality Early Education & Care Affordability Fund.

Join us in thanking the Legislature and thanking Governor Baker for investing in early education and care in the FY23 state budget.

See below for budget line item comparisons over time, and contact Titus DosRemedios if you would like more information.

 

EEC Administration (3000-1000)
FY20 Conference Committee and Final Budget (GAA): $6,847,055 [includes $50,000 for East Boston Social Centers, $250,000 for Ellis Memorial Early Education Center, and $100,000 for More Than Words, $50,000 for Community Action Agency of Somerville, $25,000 for East End House in Cambridge, $50,000 for Springfield Day Nursery Corporation, and $150,000 for Jumpstart]
FY21 Conference Committee and Final Budget (GAA): $6,544,822 [includes $50,000 for Springfield Day Nursery Corporation, and $100,000 for Jumpstart]
FY22 Conference Committee and Final Budget: $7,069,823 [includes $200,000 for a Cape and Islands early education needs assessment, $50,000 for Nurtury, Inc., $100,000 for More Than Words, Inc., $25,000 for East End House, $250,000 for Jumpstart, and $50,000 for Square One]
FY23 Governor: $6,591,537
FY23 HWM and House Final: $11,591,537, includes $5 million for additional navigation support and outreach to families. Includes language stating "that any subsidies paid through items 3000-3060 and 3000-4060 shall be paid based on enrollment."
FY23 SWM: $6,591,537
FY23 Senate Final: $6,966,537 [includes $350,000 for Jumpstart and $25,000 for East End House in Cambridge]
FY23 Conference Committee and Final Budget (GAA): $12,201,537 [includes includes $5 million for additional navigation support and outreach to families, $100,000 for More than Words in Boston, $25,000 for Child Care of the Berkshires, $60,000 for Acre Family Child Care in Lowell, $350,000 for Jumpstart for Young Children, $25,000 for East End House in Cambridge, and $50,000 for Springfield Day Nursery] For language on subsidy payment based on enrollment, see 3000-3060 and 3000-4060.

Quality Improvement (3000-1020)
FY20 Conference Committee and Final Budget (GAA): $39,443,053 [includes $300,000 for Nurtury, Inc.]
FY21 Conference Committee and Final Budget (GAA): $44,601,119 [includes $50,000 for Nurtury, Inc.]
FY22 Conference Committee and Final Budget: $44,551,119
FY23 Governor: $44,551,119
FY23 HWM and House Final: $44,551,119
FY23 SWM and Senate Final: $44,551,119
FY23 Conference Committee and Final Budget (GAA): $44,551,119

Rate Increase for Early Educators (3000-1042)
FY20 Conference Committee and Final Budget (GAA): $20,000,000
FY21 Final Budget: $20,000,000
FY22 Conference Committee and Final Budget: $20,000,000
FY23 Governor: not funded
FY23 HWM: $70,000,000, includes $10 million for grants to early education and care providers for costs associated with personal childcare.
FY23 House Final: $70,000,000, includes $10 million for grants to early education and care providers for costs associated with personal childcare. Includes language "provided, that funds appropriated in this item shall be used to increase said reimbursement through a daily quality add-on rate by the same percentage for all such providers, inclusive of administration staff in family child care systems agencies."
FY23 SWM and Senate Final: $25,000,000
FY23 Conference Committee and Final Budget (GAA): $60,000,000, includes language "provided, that not less than $20,000,000 shall be expended to increase the reimbursement rate by an appropriate percentage for all such providers; provided further, that not less than $40,000,000 shall be expended to increase the reimbursement rate through a daily quality add-on rate by the same percentage for all such providers, inclusive of administration staff in family child care systems agencies"

Sliding Fee Scale Reserve (3000-1044)
For a reserve to meet the costs of parent fees for state subsidized early education and care providers; provided, that the costs of parent fees shall be covered by the commonwealth for the entirety of fiscal year 2021 and until a revised sliding fee scale, established and implemented by the commissioner of early education and care, with the approval of the board of early education and care, has received a public hearing under chapter 30A; provided further, that the commissioner of early education and care may transfer funds from this item to items 3000-3060 and 3000-4060, as necessary, under an allocation plan which shall detail by object class the distribution of the funds to be transferred; and provided further, that the commissioner shall report to the house and senate committees on ways and means on any such transfers
FY21 Conference Committee and Final Budget: $40,000,000
FY22 Conference Committee and Final Budget: $8,950,000
FY23 Governor: not funded
FY23 HWM and House Final: not funded
FY23 SWM and Senate Final: not funded
FY23 Conference Committee: not funded

Commonwealth Cares for Children (C3) Stabilization Grants (FY23) /
Coronavirus Reserve, Workforce and Operational Costs (FY21)
(3000-1045)

For a reserve to support the early education and care workforce and other operational costs related to the 2019 novel coronavirus pandemic at state-subsidized early education and care programs; provided, that funds appropriated in this item shall be used to fund: (i) classroom stabilization grants to ensure that early education and care providers can pay for the fixed costs of maintaining their business despite reduced caseload; (ii) incentive pay for early educators facing increased costs as a result of the 2019 novel coronavirus; and (iii) operational supports for providers necessitated by the 2019 novel coronavirus; provided further, that funds may be used to fund additional workforce sustainability initiatives including, but not limited to: (a) a reimbursement rate increase for center-based early education and care providers and (b) incentives for programs to recruit, develop and retain highly qualified educators; provided further, that funds may be expended to promote the safe supervision of school-aged children, particularly in low-income neighborhoods where the regular school day has been disrupted; provided further, that the commissioner shall submit a report to the house and senate committees on ways and means and the secretary of administration and finance detailing the funding expended from this item; and provided further, that any unexpended funds in this item shall not revert to the General Fund but shall be made available for this item until June 30, 2022
FY21 Conference Committee and Final Budget (GAA): $25,000,000
FY22 Conference Committee and Final Budget: not funded
FY23 Governor: not funded
FY23 HWM and House Final: not funded
FY23 SWM and Senate Final: $250,000,000 for Commonwealth Cares for Children (C3) Stabilization Grants:
For grants to support and stabilize the early education and care workforce and address varied operational costs at state child care programs supervised by the department of early education and care, especially those related to the 2019 novel coronavirus pandemic and the costs associated with stabilizing capacity during the period of pandemic recovery; provided, that the distribution of stabilization grants shall prioritize equity and early education programs with higher percentages of state subsidized enrollment; provided further, that the department shall collect data from participating programs, including, but not limited to, the: (i) number of enrolled children; (ii) number of educators employed; (iii) efforts to recruit and retain employees; and (iv) available demographic data of the families served by participating providers; provided further, that the department shall submit quarterly reports on the distribution of funds from this item to the executive office for administration and finance, the house and senate committees on ways and means and the joint committee on education; provided further, that each report shall include, but not be limited to: (a) a description of the formula through which funding is allocated to providers; (b) an analysis of the incorporation of equity into said formula, including the projected disbursement of funding to state subsidized and non-state subsidized childcare programs; (c) an analysis of the data collected by the department from participating programs; and (d) a description of the efforts undertaken to improve the distribution of funds to providers serving high-needs populations; provided further, that funds may be expended for departmental technical assistance related to the administration and distribution of funding; and provided further, that the department shall provide technical assistance to providers to assist them in planning expenditures so as to avoid any fiscal cliffs in future fiscal years, prior appropriation continued

FY23 Conference Committee and Final Budget (GAA): $250,000,000
For grants to support and stabilize the early education and care workforce and address varied operational costs at state child care programs supervised by the department of early education and care, especially those related to the 2019 novel coronavirus pandemic and the costs associated with stabilizing capacity during the period of pandemic recovery; provided, that the distribution of stabilization grants shall prioritize equity and early education programs with higher percentages of state subsidized enrollment; provided further, that the department shall collect data from participating programs including, but not limited to, the: (i) number of enrolled children; (ii) number of educators employed; (iii) efforts to recruit and retain employees; and (iv) available demographic data of the families served by participating providers; provided further, that the department shall submit quarterly reports on the distribution of funds from this item to the executive office for administration and finance, the house and senate committees on ways and means and the joint committee on education; provided further, that each report shall include, but not be limited to: (a) a description of the formula through which funding is allocated to providers; (b) an analysis of the incorporation of equity into said formula, including the projected disbursement of funding to state subsidized and non-state subsidized childcare programs; (c) an analysis of the data collected by the department from participating programs; and (d) a description of the efforts undertaken to improve the distribution of funds to providers serving high-needs populations; provided further, that funds may be expended for departmental technical assistance related to the administration and distribution of funding; and provided further, that the department shall provide technical assistance to providers to assist them in planning expenditures so as to avoid any fiscal cliffs in future fiscal
years, prior appropriation continued

Early Education & Care Infrastructure and Policy Reform Reserve (3000-1046)
FY23 SWM and Senate Final: $25,000,000
For a reserve to support system-wide infrastructure investments and improve access to early education and care services for children and families; provided, that the commissioner of early education and care may transfer funds from this item to items 3000-1000, 3000-2000, 3000-3060 and 3000-4060, as necessary; provided further, that not less than 30 days prior to the transfer of funds from this item, the department shall submit a spending plan to the executive office for administration and finance, the house and senate committees on ways and means and the joint committee on education, which shall detail by object class the distribution of funds to be transferred; provided further, that not less than $5,000,000 shall be expended to child care resource and referral agencies for additional navigational support and outreach to families eligible for state-subsidized early education and care; provided further, that not less than $10,000,000 shall be expended to support departmental initiatives related to the review and management of subsidy regulations and policies that support the stability of early education and care providers; provided further, that the department shall expend funds to evaluate an improved funding model for child care sustainability and quality, including, but not limited to, a classroom based funding model; and provided further, that not less than $10,000,000 shall be expended to provide financial assistance to early childhood educators employed by programs serving high percentages of subsidized families.

FY23 Conference Committee and Final Budget (GAA): $25,000,000
For a reserve to support system-wide infrastructure investments and improve access to early education and care services for children and families; provided, that the commissioner of early education and care may transfer funds from this item to items 3000-1000, 3000-2000, 3000-3060 and 3000-4060, as necessary; provided further, that not less than 30 days prior to the transfer of funds from this item, the department shall submit a spending plan to the executive office for administration and finance, the house and senate committees on ways and means and the joint committee on education, which shall detail by object class the distribution of funds to be transferred; provided further, that not less than $5,000,000 shall be expended to child care resource and referral agencies for additional navigational support and outreach to families eligible for state-subsidized early education and care; provided further, that not less than $10,000,000 shall be expended to support departmental initiatives related to the review and management of subsidy regulations and policies that support the stability of early education and care providers; provided further, that the department shall expend funds to evaluate an improved funding model for child care sustainability and quality including, but not limited to, a classroom based funding model; and provided further, that not less than $10,000,000 shall be expended for grants to early education and care providers for costs associated with personal childcare

Access Management (3000-2000)
FY20 Conference Committee and Final Budget (GAA): $10,086,311 [includes $1 million to reduce subsidy management caseload ratios based on national ratio standards]
FY21 Conference Committee and Final Budget (GAA): $11,100,000
FY22 Conference Committee and Final Budget: $12,000,000
FY23 Governor: $12,000,000
FY23 HWM and House Final: $15,000,000
FY23 SWM and Senate Final: $12,000,000
FY23 Conference Committee and Final Budget (GAA): $15,000,000

Supportive Child Care & TANF (3000-3060)
FY20 Conference Committee and Final Budget (GAA): $275,987,080
FY21 Conference Committee and Final Budget (GAA): $350,928,901 [allows EEC to make COVID-related stabilization payments to providers, including classroom stabilization grants]
FY22 Conference Committee and Final Budget: $358,928,901. Includes language re. improved child care funding models, and transferring unspent funds to 3000-1045:
provided further, that not later than December 30, 2021, the commissioner shall report to the joint committee on education and the house and senate committees on ways and means on the implementation or further development of an improved funding model for child care sustainability and quality;
provided further, that not later than April 15, 2022, the commissioner shall report to the house and senate committees on ways and means and the secretary of administration and finance the projected expenses for the program; provided further, that if the department of early education and care determines that the available appropriation exceeds projected expenses, the commissioner shall transfer the amount that would otherwise be unspent by June 30, 2022 to item 3000-1045.
FY23 Governor: $325,541,422
FY23 HWM and House Final: $325,541,422
FY23 SWM: $325,541,422
FY23 Senate Final: $325,541,422 [includes eligibility language: "in light of the economic impact of COVID-19, for families participating in education and training services funded by the Supplemental Nutrition Assistance Program”]
FY23 Conference Committee and Final Budget (GAA): $325,541,422, includes language: "provided, that providers shall be reimbursed for subsidized childcare services funded under this item based on enrollment." Includes eligibility language: "in light of the economic impact of COVID-19, for families participating
in education and training services funded by the Supplemental Nutrition Assistance Program"

Income Eligible (3000-4060)
FY20 Conference Committee and Final Budget (GAA): $276,480,376
FY21 Conference Committee and Final Budget (GAA): $286,702,892 [allows EEC to make COVID-related stabilization payments to providers, including classroom stabilization grants]
FY22 Conference Committee and Final Budget: $298,702,892. Includes language re. improved child care funding models, and transferring unspent funds to 3000-1045:
provided further, that not later than December 30, 2021, the commissioner shall report to the joint committee on education and the house and senate committees on ways and means on the implementation or further development of an improved funding model for child care sustainability and quality; provided further, that not later than April 15, 2022, the commissioner shall report to the house and senate committees on ways and means and the secretary of administration and finance the projected expenses for the program; provided further, that if the department of early education and care determines that the available appropriation exceeds projected expenses, the commissioner shall transfer the amount that would otherwise be unspent by June 30, 2022 to item 3000-1045.

FY23 Governor: $368,108,945
FY23 HWM and House Final: $368,108,945
FY23 SWM and Senate Final: $368,108,945
FY23 Conference Committee and Final Budget (GAA): $368,108,945, includes language: "provided, that providers shall be reimbursed for subsidized childcare services funded under this item based on enrollment."

Head Start (3000-5000)
FY20 Conference Committee and Final Budget (GAA): $12,000,000
FY21 Conference Committee and Final Budget (GAA): $15,000,000
FY22 Conference Committee and Final Budget: $15,000,000
FY23 Governor: $15,000,000
FY23 HWM and House Final: $16,500,000
FY23 SWM and Senate Final: $16,500,000
FY23 Conference Committee and Final Budget (GAA): $16,500,000

Commonwealth Preschool Partnership Initiative (3000-6025)
FY20 Conference Committee and Final Budget (GAA): $5,000,000
FY21 Conference Committee and Final Budget (GAA): $5,000,000
FY22 Conference Committee and Final Budget: $10,000,000
FY23 Governor: $10,000,000
FY23 HWM and House Final: $10,000,000
FY23 SWM and Senate Final: $15,000,000
FY23 Conference Committee and Final Budget (GAA): $15,000,000

Early Childhood Mental Health (3000-6075)
FY20 Conference Committee and Final Budget (GAA): $2,500,000
FY21 Conference Committee and Final Budget (GAA): $2,500,000
FY22 Conference Committee and Final Budget: $3,000,000
FY23 Governor: $3,000,000
FY23 HWM and House Final: $3,000,000
FY23 SWM and Senate Final: $3,500,000
FY23 Conference Committee and Final Budget (GAA): $3,500,000

EEC Contingency Contract Retained Revenue (3000-7040)
FY20 Conference Committee and Final Budget (GAA): $161,893
FY21 Conference Committee and Final Budget (GAA): $185,185
FY22 Conference Committee and Final Budget: $320,000
FY23 Governor: $320,000
FY23 HWM and House Final: $320,000
FY23 SWM and Senate Final: $320,000
FY23 Conference Committee and Final Budget (GAA): $320,000

Services for Infants and Parents (3000-7050)
FY20 Conference Committee and Final Budget (GAA): $14,042,000 [not less than $300,000 more than fiscal year 2019 shall be expended on the Parent-Child Home Program]
FY21 Final Budget: $11,539,190
FY22 Conference Committee and Final Budget: $11,539,190
FY23 Governor: $11,539,190
FY23 HWM and House Final: $11,539,190
FY23 SWM and Senate Final: $11,539,190
FY23 Conference Committee and Final Budget (GAA): $11,699,190, includes language: "provided further, that not more than $160,000 shall be expended for technical assistance."

Parent Child+ (3000-7052)
[included in 3000-7050 in previous budgets]
FY21 Conference Committee and Final Budget (GAA): $3,000,000
FY22 Conference Committee and Final Budget: $3,300,000
FY23 Governor: $3,300,000
FY23 HWM and House Final: $4,000,000
FY23 SWM and Senate Final: $3,300,000
FY23 Conference Committee and Final Budget (GAA): $4,000,000

Neighborhood Villages pilot (3000-7055)
FFY20 Conference Committee and Final Budget (GAA): $1,000,000
FY21 Final Budget: $1,000,000
FY22 Conference Committee and Final Budget: $1,000,000

FY23 Governor: $1,000,000
FY23 HWM and House Final: $1,000,000
FY23 SWM and Senate Final: $1,000,000
FY23 Conference Committee and Final Budget (GAA):
$1,000,000

Workforce Development Initiative (3000-7066)
[FY19 language] For professional development and higher education opportunities and supports for early educators to be coordinated through the department in conjunction with the Massachusetts community colleges; provided, that programming shall focus on the statewide recruitment and training needs specific to the early education and care workforce, encourage opportunities for career advancement and retention, and incorporate early education and care stakeholder, employer and industry collaboration; and provided further, that professional development opportunities shall be consistent with the core competencies and career pathways established by the department, and in accordance with the recommendations of the Early Education and Care Workforce Council established in section 79 of this act.
FY19 Final Budget (GAA): $10,000,000, see section 79.
FY20 Conference Committee and Final Budget (GAA): $5,000,000
FY21 Final Budget: $10,000,000
FY22 Conference Committee and Final Budget: $5,000,000
FY23 Governor: not funded
FY23 HWM and House Final: $10,000,000
FY23 SWM and Senate Final: not funded
FY23 Conference Committee and Final Budget (GAA): $10,000,000

Reach Out and Read (3000-7070)
FY20 Conference Committee and Final Budget (GAA): $1,000,000
FY21 Conference Committee and Final Budget (GAA): $1,000,000
FY22 Conference Committee and Final Budget: $1,548,228

FY23 Governor: $1,000,000
FY23 HWM and House Final: $1,548,228
FY23 SWM and Senate Final: $1,000,000
FY23 Conference Committee and Final Budget (GAA): $1,548,228

Massachusetts State Scholarship Program (7070-0065)
funds Early Childhood Educators Scholarship, estimated $3.2 million annually.
FY20 Conference Committee and Final Budget (GAA): $105,600,000 [language preserves FY19 funding levels for ECE Scholarship]
FY21 Conference Committee and Final Budget (GAA): $120,000,000 [language preserves FY20 funding levels for ECE Scholarship]
FY22 Conference Committee and Final Budget: $130,500,000 [includes $3,600,000 for ECE Scholarship]
FY23 Governor: $155,768,960
FY23 HWM and House Final: $156,020,960 [includes $3,600,000 for ECE Scholarship]
FY23 SWM: $175,000,000 [includes $5,000,000 for ECE Scholarship]
FY23 Senate Final: $175,150,000 [includes $5,000,000 for ECE Scholarship]
FY23 Conference Committee and Final Budget (GAA): $175,150,000 [includes $5,000,000 for ECE Scholarship]

High-Quality Early Education and Care Affordability Fund Transfer (Outside Section 180)
FY23 Conference Committee and Final Budget (GAA): $175,000,000 in a one-time transfer to this new trust fund. See budget language here.

 

Fiscal Year 2023 (FY23) Budget Timeline
FY23 starts on July 1, 2022 through June 30, 2023.

Governor’s Budget
January 2022

The budget begins as a bill that Governor Baker submits to the House of Representatives, referred to as House 1.

next step

 

House Ways & Means Budget
April 2022

The House Ways and Means Committee reviews House 1 and then develops its own budget recommendations.

next step

 

House Budget
May 2022

The House Ways and Means budget is then debated, amended and voted on by the full House of Representatives, becoming the House budget bill.

next step

 

Senate Ways & Means Budget
May 2022

The House then passes its budget bill to the Senate. The Senate Ways and Means Committee reviews that version and develops its own recommendation.

next step

 

Senate Budget
May 2022

Once debated, amended and voted on by the Senate, it becomes the Senate's budget bill.

next step

 

House and Senate Conference
Committee Budget
June 2022

House and Senate leadership assign members to a joint "conference committee" to negotiate the differences between the House and Senate budgets. The conference committee then returns its compromise budget to the House for a vote. Once approved by the House, the budget goes to the Senate for its approval.

next step

 

Vetoes
July 2022

From there, the Senate passes the bill to the Governor who has ten days to review and approve it, or make vetoes recommendations, but may not add anything to the budget.

next step

 

Overrides

The House and Senate may vote to override the Governor's vetoes, with a two-thirds majority vote in each chamber.

next step

 

Final Budget
July 1, 2022

July 1, 2022, the first day of the 2023 Fiscal Year, the FY23 budget becomes effective.


 
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