Though the Commonwealth’s fiscal year 2019 ended June 30th, decisionmakers must make several important choices before the final accounting of the state’s finances for the year can be completed. Most importantly, lawmakers will determine how to allocate the year-end budget surplus, which revised MTF…

Though the Commonwealth’s fiscal year 2019 ended June 30th, decisionmakers must make several important decisions before the final accounting of the state’s finances for the year can be completed. Most importantly, lawmakers will determine how to allocate the year-end budget surplus, which MTF…

The Commonwealth Stabilization Fund, the state’s “rainy day” fund, is a critical component of the Commonwealth’s financial structure. For example, amid the Great Recession in fiscal 2009, budgeted tax revenue plummeted by nearly $2.7 billion compared to fiscal 2008. The Stabilization Fund was a key…

The Commonwealth of Massachusetts may be on track to end fiscal year 2019 with a surplus of approximately $522 million according to a new analysis. MTF outlined a framework for handling any fiscal 2019 surplus, including (1) Add to the state’s “rainy day” fund; (2) Pay down unfunded pension and…

As you know, tax revenue collections through May 2019 exceeded expectations by $952 million. If this strength continues through June, budgeted tax revenue will grow nearly seven percent over the strong fiscal 2018 collections.

The Massachusetts Taxpayers Foundation asks lawmakers to consider five questions before casting their votes: 1) Does this income tax surcharge meet the standards of a sound tax policy? 2) Will the estimated $1.9 billion in new tax revenue materialize? 3) Will overall spending on transportation and…

Last week, the Massachusetts State Senate finalized its version of the fiscal year 2020 budget after considering the Senate Committee on Ways and Means (SWM) budget proposal and the 1,142 amendments filed by Senators. The differences between the House and Senate versions will now be resolved by a…

Eileen McAnneny, the President of the Massachusetts Taxpayers Foundation (MTF), reacted today to the announcement of April tax revenue collections by the Massachusetts Department of Revenue (DOR). “Robust revenue collection is a good news story,” said McAnneny. “But given how volatile tax…

Tax revenue collections have been a roller coaster ride during fiscal 2019. Through the first five months of the year, tax collections were strong, ending November $323 million over estimates. In December and January, however, collections fell far short, ending January with a year-to-date variance…

“It is good news that tax revenue collections exceeded the monthly estimates,” said McAnneny. “But caution remains the key word for the rest of the fiscal year because revenues remain below projections for the year.”