The Latest: Governor Files $40.9B Budget With Legislature

BOSTON (AP) — Republican Gov. Charlie Baker has filed with the Legislature a $40.9 billion state budget proposal that calls for a 2.6 percent increase in overall state spending.

The budget submitted on Wednesday calls for larger, targeted spending hikes in several areas of state government including mental health services and the Department of Children and Families.

Baker is renewing his call to shift 140,000 non-disabled people from the state’s Medicaid program to subsidized insurance offered through the state’s Health Connector. Lawmakers have rejected that proposal in the past.

The budget for the fiscal year starting July 1 seeks no increases in broad-based taxes but would authorize the state to begin collecting hotel taxes from short-term rental services such as Airbnb.

It also calls for doubling the state’s earned income tax credit.

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