On Wednesday, January 24, 2018, Governor Charlie Baker released a $40.9 billion budget proposal for FY2019. The plan, commonly referred to as House 2, is the fourth Baker has proposed since assuming office and increases spending by 2.6% over FY2018 levels.

The proposal relies on $27.594 billion in revenues, a 3.5% increase over FY2018 levels. The budget does not call for any new broad-based tax increases, though new revenue is estimated to be generated through a tax on short-term rentals, corporate repatriation, and retail marijuana sales, among other sources.