Massachusetts Revenue Forecast of $36.9 Billion for Fiscal Year 2023
State revenue projections for Fiscal 2023 are out...
Secretary of Administration and Finance Michael Heffernan, Senate Ways and Means Chair Michael Rodrigues, and House Ways and Means Chair Aaron Michlewitz have announced a consensus revenue forecast for the Fiscal Year 2023 of $36.915 billion. That represents 2.7% growth in state tax revenue over the adjusted Fiscal Year 2022 projected revenue of $35.948 billion.
Based on current year-to-date economic data...
The adjusted FY22 revenue collections estimate incorporates a $1.548 billion upgrade of projected state tax revenues announced by Secretary Heffernan today, which is based upon current year-to-date revenues and economic data. The consensus revenue forecast is the basis on which the Baker-Polito Administration, the House, and the Senate will build their respective FY23 budget recommendations.
The Fiscal Year 2023 consensus revenue forecast aligns with expert testimony delivered in December and acknowledges improved revenue trends in the current fiscal year... We thank our colleagues in the House and Senate Ways and Means Offices for their continued partnership as we begin to develop a budget that will maintain fiscal discipline while providing necessary funding to protect essential government services and support key priorities throughout the Commonwealth. ~ Secretary of Administration and Finance Michael J. Heffernan
Additional details, according to a press release from the office of Michael Heffernan...
- Of the forecasted $36.915 billion in FY23 state tax revenues, an estimated $2.277 billion is projected to be capital gains tax revenue, of which, per statute, $873 million will be transferred to the Stabilization Fund and other long term liability funds for pension and retiree health insurance costs
- The agreement also includes the following statutorily required off-budget transfers that are mandated by current law:
- $3.744 billion transferred to the pension fund, a $329 million increase over the FY22 contribution, which keeps the Commonwealth on schedule to fully fund its pension liability by 2036
- $1.325 billion for the Massachusetts Bay Transportation Authority (MBTA)
- $1.165 billion for the Massachusetts School Building Authority (MSBA)
- $25 million for the Workforce Training Fund
LOOK: Food history from the year you were born
LOOK: Here are the pets banned in each state
LOOK: Here is the richest town in each state