Politics
Massachusetts House budget panel drops Healey’s proposed two-month gas-tax break
House Ways and Means advanced a $2.35 billion year-end spending bill without Gov. Maura Healey’s plan to suspend the 24-cent-per-gallon gas tax. The committee chair questioned whether drivers would see the savings, while Healey has said the plan would protect transportation funding.
Massachusetts House Ways and Means members advanced a $2.35 billion year-end spending bill Tuesday without Gov. Maura Healey’s proposed two-month suspension of the state gas tax, leaving the plan out of the House version headed for a vote Wednesday.
The committee’s Democrats approved the bill 24-0; its Republicans did not take a position. The measure is intended to close the books on the fiscal year that ended June 30 and is estimated to cost the state about $1.5 billion net.
The tax suspension would have paused the 24-cent-per-gallon levy on gasoline and diesel as fuel prices remain high amid the war in Iran. The Massachusetts Fiscal Alliance estimated the two-month break could save drivers a combined $120 million.
Committee Chairman Aaron Michlewitz, a North End Democrat, said he doubted the cut would reliably reach consumers. He pointed to a downtown Boston gas station charging $5.47 a gallon Tuesday, compared with a statewide average of about $4.28, and said he saw no mechanism to prevent fuel distributors from raising prices to offset the tax reduction.
“I think many of us have real skepticism on this being real, an opportunity for real savings,” Michlewitz said, describing the proposal as a short-term measure whose numbers did not add up. He also said suspending the tax could leave less money for transportation infrastructure and the MBTA.
Healey said when she unveiled the proposal in September that surplus tax revenue from wealthier households would cover the cost. She argued the plan was designed to ensure drivers received a price reduction without harming transportation funding or state bond obligations.
Republican gubernatorial nominee Mike Minogue also supports eliminating the gas tax. He criticized the committee’s decision and said he would suspend the tax whenever prices reached $4 a gallon or more if elected, though he did not explain how he would secure legislative support. The Massachusetts Fiscal Alliance likewise faulted lawmakers for rejecting even temporary relief for drivers.
As of Tuesday afternoon, representatives had filed 128 amendments to the committee’s bill; none appeared to restore the gas-tax suspension. The bill also sets aside funding for programs including MassHealth, nursing and rest homes, unemployment insurance repayments, maternal health, early education and additional Department of Transitional Assistance caseworkers.
The House was expected to take up the bill Wednesday. The Senate is not planning a formal session this week, so the proposal could still change as lawmakers work to complete the fiscal-year closeout.