Last fall, the Massachusetts Taxpayers Foundation released a Stabilization Fund report that drew attention to the risks the state runs by failing to rebuild “rainy day” reserves during times of economic recovery. This companion brief explores how reliance on capital gains tax revenues in the…

Today, Governor Baker released his FY 2017 budget recommendations. His House 2 proposal recommends $39.55 billion in line item spending, an increase of $1.22 billion (3.2%) over FY 2016 projected spending. Of this $1.22 billion increase, $739.3 million goes to support increases in MassHealth.

Today, the Executive Office of Administration & Finance (ANF) and the House and Senate Committees on Ways and Means announced that the FY 2017 state budget will be built on $26.860 billion in tax revenues. This consensus figure, which assumes 4.3% growth over an updated FY 2016 tax benchmark of…

On January 8th, Governor Baker announced $105 million in budget cuts and new revenues to partially address an midyear budget gap.

Tax revenues will grow by $980 million, or 3.8 percent, to $26.69 billion in fiscal 2017, slower than the 4.6 percent annual average over the past five years and below that of previous economic recoveries, according to a new forecast released today by the Massachusetts Taxpayers Foundation.Eileen…

Troubling state budgetary practices have left the Commonwealth’s Stabilization Fund balance insufficient to meet the next fiscal downturn and immediate action is needed to increase and safeguard the fund for future use, according to a report released today by the Massachusetts Taxpayers Foundation…

Despite the vetoes, the 2016 budget bottom line remains virtually the same because there are both reduced appropriations and savings projections that are lower than originally anticipated.

Please find attached the Foundation’s analysis on the FY16 Senate Budget which was finalized last week.

In its fiscal 2016 budget, the Senate proposed increasing the state’s earned income tax credit (EITC), raising personal exemptions, and funding those measures by freezing the income tax rate at 5.15 percent with the goal of increasing the state’s personal income tax progressivity. This bulletin…