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HD 6242

An Act making certain appropriations for fiscal year 2027 before final action on the General Appropriation Bill

194th Legislature (2025-2026)

Provides a temporary, $7.703 billion funding bridge through July 31, 2026 to maintain state operations, authorize advance local aid, and reauthorize capital accounts before the FY2

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Bill Summary · HD 6242

Overview

This Massachusetts bill, HD 6242 from the 194th Legislature, would authorize certain appropriations for Fiscal Year 2027 before the final action on the General Appropriation Bill. It sets a short-term funding framework to maintain government operations, permits advance local aid payments under cash shortfall conditions, and extends capital account balances that would otherwise expire. The act takes effect June 30, 2026 and would apply against the subsequent General Appropriation Act for FY2027.

Purpose and Intent

  • Ensure the Commonwealth can meet its payment obligations and maintain essential services through July 31, 2026, pending passage of the full General Appropriation Act for FY2027.
  • Provide mechanisms to address cash shortfalls at local levels (cities, towns, regional school districts, and independent vocational schools) to avoid disruptions.
  • Preserve necessary capital funding by reauthorizing unexpended balances that would revert at the end of June 2026, ensuring continuity of planned obligations into FY2027.

Key Provisions

  • Section 1: Appropriation of $7,703,000,000 for the fiscal year ending June 30, 2027, to cover necessary obligations and operating costs before the general appropriation act is enacted. This sum is intended for maintenance and operations across state departments, boards, commissions, and institutions, including federal grant and Intragovernmental Service Fund expenditures, and other required services. Expenditures under this section must align with appropriations later established in the General Appropriation Act and cease to be operative when that act becomes effective.
  • Section 2: Allows the state treasurer to make advance payments to local entities (cities, towns, regional school districts, independent agricultural and technical schools) that show an emergency cash shortfall. These payments would be made if certified by the commissioner of revenue and approved by the secretary of administration and finance, following guidelines issued by the secretary.
  • Section 3: Reauthorizes unexpended balances of capital accounts that would otherwise revert on June 30, 2026, if needed to fund obligations in FY2027. The reauthorization would terminate upon enactment of a capital account extension law.
  • Section 4: Effective date set for June 30, 2026.

Who Is Affected

  • State government to the extent of $7.703 billion in FY2027 spending authority for ongoing operations and services.
  • Local governments and eligible local education entities (cities, towns, regional school districts, independent agricultural and technical schools) eligible for advance local aid payments during cash shortfalls.
  • Holders of capital accounts (state capital projects) whose unexpended balances would revert; these balances may be reauthorized to fund FY2027 obligations pending further capital account extensions.

Procedural and Timing Aspects

  • The act is framed as an interim FY2027 funding measure, intended to bridge the gap until the General Appropriation Bill is enacted.
  • Section 1 specifies the appropriations are temporary and will be subsumed into the General Appropriation Act once enacted.
  • Section 4 establishes an effective date of June 30, 2026.
  • The Governor's message, dated June 22, 2026, urges prompt action by June 26, 2026, to prevent payment delays.

Potential Impact

  • Provides a concrete funding bridge to maintain state operations through a defined date (July 31, 2026) while awaiting the general appropriation act.
  • Creates a formal mechanism to address liquidity pressures at the local level, potentially reducing risk of local service disruptions.
  • Ensures continuity of capital project funding by extending the life of existing capital accounts temporarily, avoiding interruptions to capital programs pending longer-term extensions.

Compiled from official sources — confirm details with the bill’s official record.

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