On December 2nd, the Massachusetts Taxpayers Foundation (MTF), along with the Department of Revenue (DOR) and other economic experts participated in the annual Consensus Revenue Hearing. The hearing offers administration and legislative budget leaders an opportunity to assess current revenue assumptions for Fiscal Year (FY) 2025 and evaluate the resources that will be available to support budgeted spending in FY 2026. This brief uses the Consensus Revenue Hearing as the backdrop to examine potential revenue collections in both years. 

To put the testimony provided at the Consensus Revenue Hearing into context, this brief begins with an examination of the FY 2025 tax revenue benchmark and collection trends to date. It then provides an overview of the testimony offered at the hearing for FY 2025 and FY 2026; highlighting key themes, commonalities, and differences. The brief concludes with an assessment of the challenges and opportunities facing administration and legislative budget writers heading into the second half of FY 2025 and the FY 2026 budget development process.