As Fiscal Year (FY) 2027 nears its midway point and policymakers prepare for the FY 2028 budget process, lawmakers must also contend with closing out FY 2026. Year-end revenues have now been finalized, and the Healey administration filed their plans to close the books on FY 2026 on September 23rd, sending a $2.3 billion bill intended to address program deficiencies in FY 2026 and anticipate needs in FY 2027 to the Legislature for action.

This brief will dive into FY 2026 tax revenue collections, the resources available to help budget writers end the year in balance, and the specifics of the administration’s spending proposal. MTF places the questions facing policymakers about how to best utilize state resources to meet state priorities within the context of a larger fiscal picture where spending trends have continued to outpace revenue growth in the operating budget.