On September 11th, Governor Healey filed her administration’s closeout supplemental budget for Fiscal Year (FY) 2024; roughly two months after the official last day of the fiscal year. A closeout supplemental budget is filed and passed each year; its purpose being to resolve all outstanding deficiencies and ensure that the fiscal year ends in balance. The enactment of this final spending bill will allow the comptroller to “close the books” on FY 2024 and finalize mandated financial reports.

To provide context to the supplemental budget filed by Governor Healey and under consideration by the Legislature, this brief takes a closer look at each of the factors impacting budget balance in FY 2024. It begins with an examination of state tax revenue collections, estimates their impact on the resources available for the budget, and then summarizes the administration’s spending proposal. It also describes the additional actions proposed by the administration to build up reserve balances in FY 2025 to address known spending exposures, and increase the budget’s resiliency to deal with revenue shortfalls or resource needs.