"It's alarming that even with employment gains and a healthier economic climate, the state faces a monumental budget shortfall in fiscal 2015 and substantial challenges in 2016," said Andrew Bagley, director of research and public affairs for the Massachusetts Taxpayers Foundation, a business-backed fiscal watchdog group.
Andrew Bagley, research director of the Massachusetts Taxpayers Foundation, projected that tax revenues this year, which are trending $18 million below estimates, would come in $95 million above benchmarks by the end of the year, representing 4.4 percent growth. For fiscal 2016, Bagley estimated a similar 4.5 percent rate of growth, or $1.1 billion, for a total of $25.5 billion in tax revenues.
But the additional revenue does not mean budget writers will have an easy job. Andrew Bagley, director of research and public affairs for the Massachusetts Taxpayers Foundation, warned that increases in spending for Medicaid, pensions and retiree health care, along with spending for debt owed through the MBTA and School Building Authority "will consume most, if not all, of the $1.1 billion in new tax revenues."