Massachusetts officials said the fiscal 2023 forecast projects a 2.7% growth in state tax revenue.
Secretary of Administration and Finance Michael J. Heffernan, along with Senate Ways and Means Chair Michael J. Rodrigues, D-Westport, and House Ways and Means Chair Aaron Michlewitz, D-Boston, said the state expects to see $36.915 billion in revenue. That’s more than the projected revenue forecast for fiscal 2022 of $35.948 billion.
“The Fiscal Year 2023 consensus revenue forecast aligns with expert testimony delivered in December and acknowledges improved revenue trends in the current fiscal year,” Secretary of Administration and Finance Michael J. Heffernan said in the release. “We thank our colleagues in the House and Senate Ways and Means Offices for their continued partnership as we begin to develop a budget that will maintain fiscal discipline while providing necessary funding to protect essential government services and support key priorities throughout the Commonwealth.”
According to the release, FY22’s adjusted revenue collections estimate included a $1.584 billion upgrade of projected state tax revenues. Those figures are based on current-year revenues and economic data, Heffernan said.
The revenue forecast will be used when lawmakers begin work on the 2023 fiscal year budget.
A public hearing was held Dec. 21, 2021, where testimony was heard from the Department of Revenue, the state Treasurer’s Office, and independent economists and other experts on tax revenue.
“The consensus revenue agreement for FY23 reflects our continued commitment to prioritizing the long-term fiscal health of our Commonwealth as we continue down the road of recovery from this COVID-19 pandemic,” Senate Committee on Ways and Means Chair Michael J. Rodrigues, D-Westport, said in the release.
Rodrigues pointed to a “steady trend of strong tax revenue growth” in addition to the Rainy Day Fund and more than $2 billion in American Rescue Plan Act funds to the growth in the revenue forecast.
This article was originally posted on State officials announce consensus revenue forecast for FY23