The Governor's FY27 Budget Proposal (H.2), released on Wednesday, January 28, has proposed $62.8 billion in spending (a 3.8% increase from last year's signed budget).
H.2 allocates $33.774 billion for the Executive Office of Health and Human Services (EOHHS) a 3% increase ($889.4 million) from FY26. EOHHS leadership shared H.2 Budget Overview Highlights noting that some key drivers are MassHealth's substantial non-discretionary cost increases (healthcare cost growth), Ch. 257 provider rate increases, collective bargaining salary increases, and caseload and acuity growth.
While our initial review indicates numerous small cuts across the board, said to reflect federal "headwinds," as well as projected caseloads, there are significant investments meant to maintain service levels for children, youth and families. CLM continues to analyze H.2 with our members, state agency and coalition partners, and legislators, and CLM's advocacy messaging for the House of Representatives will be shared in the coming weeks.
A snapshot of initial highlights include:
- Chapter 257 Reserve (1599-6903): $175,000,000 to maintain rates for human services programs benchmarked to the 53rd percentile of the Bureau of Labor Statistics. With an estimated actual cost of $260M for FY27 rates, $175M would be appropriated to the Chapter 257 reserve in H.2 and the remaining amount would come through carrying over unspent funds from FY26, and a future filing for additional funds as needed. The overall need for Ch. 257 is also slightly down from recent years due to the effect of lower inflation on the benchmark.
- Children and Adolescent Mental Health Services (5042-5000) - $136,668,638 - increased from FY26 ($115,086,477) and FY25 ($131,350,885); EOHHS highlights included maintaining funding for intensive clinical services (CIRT, IRTP, Therapeutic Group Care).
- The Department of Children and Families: $1.469B (down 1% from FY26 GAA, due to projected reduced caseload.
- Congregate Care (4800-0041): $450,734,746 - reduced from the FY26-level ($463,750,089), to match projected reduced caseload.
- Family Support and Stabilization (4800-0040): $129,614,767, up from FY26 GAA ($125,486,736). This sum will be further analyzed to determine whether it matches projected needs.
- Services for Children & Families (4800-0038): $343,181,153; down from FY26 ($347,457,804).
- Family Resource Centers (4800-0200): $25,714,018 representing maintenance of the current network until the re-procurement (expected to go into effect in FY28); down from FY26 ($28,221,665), however $3.5M of the reduction was made in error and will be covered by rollover funds.
- DCF Local and Regional Management of Services (4800-0030): $19,174,028; up from FY26 ($11,239,960) to meet projected need per the Administration.
- Department of Youth Services: slight adjustments to support projected populations of detained and committed youth.
Again, CLM will continue analyzing H.2 and update messaging to ensure we best prioritize advocacy on critical investments necessary for children, youth and families.
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