Publications: Budget

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  • January 12 2018
    Today, the Secretary for Administration and Finance and the House and Senate Committees on Ways and Means announced a consensus tax revenue figure of $27.594 billion for FY 2019. As part of the agreement, the FY 2018 tax estimate has been upgraded by $157 million to $26.661 billion. Budget makers expect tax revenue to grow by $933 million (3.5 percent) as they put together the FY 2019 budget.
  • January 8 2018

    The fiscal year (FY) 2019 budget process is officially underway, commencing last month with the annual Consensus Revenue Hearing. The testimony provided at the hearing touched on a number of issues – including slow revenue growth, insufficient reserves and growing nondiscretionary costs – that have contributed to the budget challenges of recent years. The testimony also highlighted several potential policy changes at both the state and national level that will make developing the FY 2019 budget particularly difficult. This brief poses ten major questions that budget makers will face in the coming months.

  • December 15 2017

    Heading toward the halfway mark in fiscal year (FY) 2018, the state’s short-term fiscal outlook remains unclear. At this point in the fiscal year, the state budget appears to be in balance, with known spending needs largely offset by stronger than expected revenue collections. However, several potential budget problems are lurking on the horizon while a change in revenue trends or a surge in capital gains collections could quickly eliminate any revenue surplus. This brief outlines the current fiscal situation and highlights issues to watch in the months ahead.

  • December 6 2017
    Forecasting state tax revenues 18 months into the future is always risky as unforeseen events often undermine predictions as the past three years have demonstrated.
  • October 17 2017
    Last week the House and Senate passed separate versions of the final supplemental budget necessary to close out fiscal year 2017. This brief assesses the final FY 2017 budget gap and looks at the strategies the Administration and the Legislature is relying on to end the year in balance.
  • July 18 2017
    Governor Baker signed the FY 2018 budget after vetoing $320.3 million in spending and striking or amending 34 policy sections. The Legislature now has until the end of formal sessions this year – likely in November – to override vetoes and finalize the FY 2018 General Appropriations Act (GAA).
  • July 7 2017
    Today, the Legislature voted to enact a $40.2 billion budget for FY 2018. This year’s budget reconciliation process was hampered by several major challenges – most notably the need to reduce expected tax revenues from the amount used in both the House and Senate plans.
  • July 7 2017
    The undersigned employer groups, representing businesses from all sectors, of all sizes and from all parts of the Commonwealth oppose the final budget plan calling for a new health assessment on employers without significant reforms to manage the cost of health care.
  • June 21 2017

    For the second straight year, budget conferees are working to finalize a budget for July 1st while grappling with how best to adjust the fundamental tax revenue assumption used to balance the budget. This brief examines the challenges budget conferees and the Administration face and how these challenges differ from their experience finalizing the FY 2017 budget.