Healey proposes using money from rich-people tax for dramatic increase in MBTA spending

Gov. Healey today announced a plan to spend an extra $8 billion over the next ten years on transportation projects, including a large increase in the MBTA's annual budget and nearly $1.4 billion for capital projects that would include new subway and commuter-rail cars, spending on "station accessibility and resilience, track improvements and power system resiliency" and bolstering ferry service.

But, of course, in a car-based society, the plan calls for even more money - $2.5 billion - to be spent on road projects, including bridge and culvert repairs along state roads and doing stuff to reduce "congestion hot spots." Money would also go towards the replacement of the section of the Massachusetts Turnpike where the Allston tolls used to be.

Under the governor's proposal, although the state would issue bonds for some of the work - roughly $1.2 billion for road projects - much of it would come from the "fair share" taxes now paid by above-average earners. According to the governor's office, Massachusetts collected $2.46 billion from the "fair share" tax surcharge in the last fiscal year - nearly $1.5 billion more than the state had forecast. The state's goal is to split the extra money between education and transportation.

Some $857 million of that extra income would go to public transportation, which would be followed by a plan that would "more than double support for the MBTA’s operating budget to $687 million in FY26 and immediately address the agency’s budget shortfall, putting the MBTA on a path of long-term stability," specifically:

• $400 million to address workforce and safety initiatives identified as necessary by the Federal Transit Authority
• $300 million to replenish MBTA reserves
• $25 million for a Winter Resilience Assistance Program for municipalities
• $25 million for RTA workforce recruitment and retention
• $10 million for microtransit

Also under her proposal, the state would direct an extra $100 million a year through its Chapter-90 road program to cities and towns for local road and sidewalk projects.

At the same time, the governor would spent money over the next five years for work required to bring functional east-west passenger service between Pittsfield and Boston, focused on needed track and other improvements between Pittsfield, Springfield and Palmer.