Massachusetts Projects $40 Billion in Tax Revenue for FY24

Massachusetts is projected to see $40.410 billion in tax revenue for fiscal year 2024.

According to the consensus revenue forecast by Matthew J. Gorzkowicz, the secretary of administration and finance, Senate Ways and Means Chairman Michael J. Rodrigues (D-Westport), and House Ways and Means Chairman Aaron Michlewitz (D -Boston), this projection will see a 1.6 percent increase starting in Fiscal Year 2023.

The agreement also estimates an additional $1 billion in revenue will be available in FY24 as a result of the passage via ballot referendum of the “Fair Share Amendment” which imposes a four percent surtax on income over $1 million in the state laid down its constitution. They said that this additional revenue would be used to fund new education and transpiration initiatives.

The Secretary of Administration and Finance also forecast an increase in the FY23 forecast, and an agreement to use $100 million in FY23 to fully retire pension obligations for the 2015 Annual Retirement Incentive Program approximately four years ahead of the previously established pension schedule pay.

Senator Rodrigues, who represents much of the South Coast on Beacon Hill, said this projection demonstrates that the Commonwealth is fiscally sound and able to continue making important public investments in key policy areas such as transport and education.

“This fiscal year 2024 consensus revenue agreement provides a strong foundation for the Legislature and the Healey-Driscoll administration to develop a forward-looking FY24 budget plan that maintains fiscal responsibility and meets the critical needs of our communities, ” he said.

“Reflecting our commitment to taxpayers and respecting the will of 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 using available resources to to pay off pension liabilities attributable to in full. the 2015 early retirement incentive program,” Rodrigues said.

“I want to thank Chairman Michlewitz and Secretary Gorzkowicz for their cooperation, 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 that continued stability ,” he said.

The total FY23 budget in Massachusetts was $52.7 billion. The Commonwealth has regularly seen budget surpluses, including a surplus of around $5 billion in FY23. Just under $3 billion of that surplus was returned to taxpayers thanks to the previously obscure 62F law.

As a result 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 health care, housing, education, transportation, and economic development initiatives such as assistance for small businesses and expanding Internet access.

The Secretary and the House and Senate Committees on Ways and Means also determined that the potential gross government product (GDP) growth benchmark for calendar year 2023 remains 3.6 percent, which is a measure of stable long-term economic growth.

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