Massachusetts Projects $40 Billion in Tax Revenue for FY24
Massachusetts is expected to see $40.410 billion in tax revenue for the Fiscal Year 2024.
Per the consensus revenue forecast by Secretary of Administration and Finance Matthew J. Gorzkowicz, Senate Ways and Means Chair Michael J. Rodrigues (D-Westport), and House Ways and Means Chair Aaron Michlewitz (D-Boston), this projection will be a 1.6 percent increase from Fiscal Year 2023.
The agreement also estimates an additional $1 billion in revenue that will be available in FY24 due to the passage via ballot referendum of the "Fair Share Amendment" which enshrined in the state constitution a four percent surtax on income over $1 million. They said this additional revenue will be used to fund new education and transpiration initiatives.
The Secretary of Administration and Finance also projected an increase in the FY23 forecast, and an agreement to utilize $100 million in FY23 to fully pay down pension liabilities for the 2015 Yearly Retirement Incentive Program about four years ahead of the previously established pension schedule.
Senator Rodrigues, who represents a large portion of the SouthCoast on Beacon Hill, said that this projection demonstrates that the Commonwealth is fiscally healthy and able to continue making key public investments in important policy areas such as transportation and education.
"This consensus revenue agreement for Fiscal Year 2024 provides a strong foundation for the Legislature and the Healey-Driscoll administration to develop a forward looking FY24 budget plan that upholds fiscal responsibility and meets the critical needs of our communities," he said.
"Reflecting our commitment to taxpayers and respecting the will of the voters, this agreement also includes an estimated $1 billion in new Fair Share surtax revenue to support investments in new education and transportation initiatives, while utilizing available resources to fully pay down pension liabilities attributable to the 2015 Early Retirement Incentive Program,” Rodrigues said.
"I want to thank Chair Michlewitz and Secretary Gorzkowicz for their collaboration, partnership and commitment to prioritizing the long-term fiscal health and well-being of our Commonwealth. With this agreement, Massachusetts is well positioned to confront an uncertain economic future and ensure continued stability," he said.
The total FY23 budget in Massachusetts was $52.7 billion. The Commonwealth has regularly seen budget surpluses, including an approximately $5 billion surplus in FY23. Just under $3 billion of that surplus was refunded back to taxpayers thanks to the previously obscure 62F law.
Because of 62F, Beacon Hill was forced to reign in their robust economic development bill, which still totaled $3.76 billion thanks to the remaining $2 billion surplus and an injection of cash from the federal American Rescue Plan Act (ARPA).
The spending bill made major investments in healthcare, housing, education, transportation, and economic development initiatives such as small business assistance and expanding internet access.
The Secretary and the House and Senate Committees on Ways and Means also determined the potential gross state product (PGSP) growth benchmark for calendar year 2023 remains 3.6 percent which is a benchmark for stable long-term economic growth.